Asian markets cautious, HK shares dip

Asian markets cautious, HK shares dip

SINGAPORE (Agencies): Hong Kong sank over two percent on
Friday while Tokyo drifted after hitting a 17-year low a day
earlier to cap a largely dismal week for Asian equities hit by
fears of a worsening U.S. economy.

Taiwan fell more than three percent to end at a four-week low
on expectations of poor first-half corporate earnings, Seoul
edged a touch lower and Singapore shed 0.66 percent.

On the positive side, Sydney was led almost one percent higher
by heavyweight stocks, Malaysia jumped almost two percent
following better-than-expected second quarter economic
performance and Bangkok rallied over two percent.

The Dow Jones industrial average closed 0.46 percent lower on
Thursday and the technology-rich Nasdaq lost 0.92 percent as poor
retailing profits reinforced worries over the slow economy.

Investors are bracing for more bad news when the U.S.
government releases its durable goods orders data for July at
1230 GMT (7.30 p.m. Jakarta time), with an average month-on-month
fall of about 0.6 percent expected.

Tokyo got a welcome reprieve from a rebound in select
technology shares led by Murata Manufacturing Co Ltd, but the
gains were limited by falls in real estate issues and some retail
powerhouses such as Fast Retailing Co Ltd

But traders remained wary over high-tech earnings downgrades.

The benchmark Nikkei average crept up 0.35 percent to end at
11,166.31, but the capital-weighted TOPIX index fell 0.18 percent
to 1,145.34.

Hong Kong hit a near 29-month low, driven by shares of China's
leading wireless carrier China Mobile, which slid over seven
percent, while rival China Unicom lost almost five percent amid a
murky outlook for the Chinese telecoms sector.

The blue chip Hang Seng Index lost 2.07 percent, to end at
11,110.30.

Uncertainty over the weekend's economic advisory committee
meeting compounded worries over Taiwan company results, sending
the main TAIEX down 3.35 percent to 4,310.32. The TAIEX has shed
nearly five percent in the past five sessions.

Malaysia's benchmark Composite Index rallied 1.94 percent to
end at 682.87, recouping all its previous losses for the year-to-
date as investors cheered a 0.5 percent year-on-year growth in
second quarter gross domestic product, beating expectations of a
contraction.

The Korea Composite Stock Price Index (KOSPI) ended down 0.13
percent at 569.31 led by Hynix Semiconductor, which plunged 10
percent, as creditors appeared at odds over providing fresh funds
to the world's third-largest chipmaker.

Australia's benchmark S&P/ASX 200 index closed 0.8 percent
higher at 3,348.0 as investors bought blue chips such as miners,
banks and telcos.

Bangkok stocks kept their winning ways led by banking, finance
and property issues, gaining 2.24 percent near the close, but
Singapore shares were hit by nagging earnings woes.

The JSX Composite index ended up 0.4 percent, or 1.529 points,
at 441.219. But decliners led gainers 57 to 51, with 90 stocks
unchanged.

Volume was 260 million shares valued at Rp 268 billion rupiah
(US$30.7 million).

Dealers said trade was slow as most market players were
sidelined until the outcome of a meeting between the
International Monetary Fund and the Indonesian government which
ends Monday.