Asian markets down on Chinese fears

Asian markets down on Chinese fears

SINGAPORE (Agencies): Nervous Asian stock markets slid on
Monday, shaken by speculation that China might devalue its yuan
and by losses on Wall Street.

The only major exception was Tokyo, where growing optimism
over Japan's debt-laden banking sector steadied shares. The
Nikkei 225 average closed up 0.38 percent at 14,208.81 as
investors and pension funds scrambled for bargains.

Elsewhere, jittery markets fell -- around five percent in
Manila, Jakarta and Singapore, three percent in Taipei and
Bangkok, and two percent in Hong Kong and Seoul.

Shares in Hong Kong plunged 4.25 percent in early trade but
recovered to end the day 2.45 percent down at 9,499.50.

"The main reason for this is that the Brazilian crisis and the
China debt situation have led to new worries about the Hong Kong
dollar and possible devaluation of the Chinese renminbi (yuan),"
said Percy Au-Young, head of sales at DBS Securities.

Terry Cheung, sales director at Core Pacific-Yamaichi (HK),
said the Hang Seng Index could move towards 9,000.

Brokers said market sentiment was badly hurt by a report in
Sunday's official China Daily Business Weekly that said a
devaluation or floating of the yuan may not be a bad idea.

Shares in the Philippines plunged nearly six percent in mid-
morning trade as fears spread that China might devalue the yuan.
They closed at a three-week low of 1,951.44, down 5.38 percent.

"There is a lot of nervousness in the region," said Jose Maria
Ricardo Garcia, executive vice president of Diversified
Securities.

South Korean stocks closed down 1.97 percent at 539.76.
Brokers said investors were concerned that Beijing would devalue
the yuan following Brazil's decision to float its currency
earlier this month and after a string of bankruptcies among
Chinese state-run investment organizations.

In Australia, shares closed 0.72 percent down at 2,827.9 in a
calm reaction to New York's and Hong Kong's losses ahead of
Tuesday's Australia Day holiday.

"Wall Street set the trend, no doubt about that, and the Hong
Kong market has leaned on the market also," said a dealer.

In Auckland, New Zealand shares closed down 0.9 percent in
line with a sharp fall on Wall Street at the week-end, dealers
said.

The NZSE-40 capital index dropped 20.56 points to 2168.79.

Singapore shares ended 5.46 percent lower at 1,398.02, gripped
by fear over a yuan devaluation.

In Taiwan, the benchmark index closed down 3.14 percent at
6,033.21 after New York's losses further hurt weak sentiment, and
brokers said the index would continue to slip further.

Malaysian shares closed down 1.35 percent at 610.19. Thai
shares were down 3.31 percent at 364.03 at 0845 GMT and Indonesian
stocks fell 4.95 percent to 382.48.

In China, the Shenzhen B-share index closed at a record low of
46.35 and the Shanghai B-share index ended at a record low of
25.173.

in Bangkok, Thai shares fell 3.5 percent at the close as
regional anxiety over a possible devaluation of China's yuan
currency spooked investors, dealers said.

The Stock Exchange of Thailand (SET) main index closed down
13.12 points at 363.36, while the select SET 50 shed 1.04 points
to 26.51.