Asian markets end mixed as Japan readies for reform

Asian markets end mixed as Japan readies for reform

TOKYO (AFP): Asian markets closed mixed yesterday as Japan readied for its Big Bang financial reforms to kick in with high hopes that they would boost the world's second biggest economy.

Japanese share prices closed 1.6 percent higher as public funds were injected to lift the market on the final day of the current fiscal year, Tokyo-based brokers said.

Markets in Bangkok, Manila and Singapore saw their key indices fall on a lack of interest from overseas buyers and no encouragement from Wall Street, dealers said.

In Jakarta, the stock trading was closed to mark the closing of the 1997/98 fiscal year.

In Tokyo, share prices started to gain further on futures-led buying after 2:30 p.m. as public funds finally emerged," a Chuo Securities broker said.

The key Nikkei stock average of 225 selected issues gained 264.13 points to end at 16,527.17. The Topix index of all issues on the first section of the Tokyo Stock Exchange closed up 10.43 points at 1,2251.70.

"There was no clear trend in the market today, as investor interest was focused on when and how active buying by public funds would emerge," the broker said.

In Hong Kong, share prices rose 0.1 percent in cautious trading as traders shored up positions amid a lack of fresh leads, dealers said.

"The market is moving up and down in close range as there is not much good news or bad news," said Sean Li, associate director at Amsteel Securities.

The key Hang Seng index gained 14.92 points to close the session at 11,518. 68.

In Australia, shares made marginal gains as offshore investors deserted the local bourse, brokers said.

The Australian Stock Exchange's main indicator, the All Ordinaries index, gained 3.2 points to 2,744.2 points.

The All Industrials index rose 6.2 points to 4,702.0 points while the All Resources index was 0.7 points higher at 1,182.9 points.

In Singapore, share prices closed 1.2 percent lower in thin trade amid slight profit-taking in the absence of leads to spur the market.

The index's fall late in trade came as blue chip Singapore Airlines Ltd. (SIA) denied rumors that it would announce Tuesday plans to merge the foreign and local tranches of its shares, dealers said.

The benchmark Straits Times Industrials index fell 19.38 points to 1,629. 18, while the All-Singapore index fell 7.79 points to 419.14.

In Kuala Lumpur, key stock index closed 0.5 percent lower in thin trade on fears of possible interest rate hikes and further tightening of liquidity.

The Kuala Lumpur Stock Exchange's 100-share weighted composite index fell 3.44 points to end at 719.52, while the second board index lost 0.04 points, or 0.02 percent, to 179.81.

In Bangkok, Thai share prices closed 1.3 percent lower after tumbling sharply on the unveiling of tighter new banking regulations and an unwelcome ratings downgrade for Thai banks, dealers said.

The Stock Exchange of Thailand composite index ended the day 5.98 points down at 459.11, after clawing back some ground after an earlier plunge. The SET 50 index closed down 0.55 points at 33.27.

In Manila, Philippine share prices closed 1.6 percent lower as the market took its cues from abroad ahead of the Lenten holidays.

"It seems that the Dow, which has been leading the market in the last two weeks, (is) taking a breather," Alex Timbol of All Asia Securities Management Corp. said.

The Philippine Stock Exchange index shed 35.38 points to 2,238.42.

In Seoul, share prices closed 0.3 percent lower on the Korea Stock Exchange, giving up early modest gains as foreign interest remained muted, dealers said.

"Today's rating change by Moody's does not mean that we have recovered to investment grade levels. It is just a change within the level of nought investment grades, from negative to stable," said Park Suk-han, a dealer with KLB Securities.

The composite index closed down 1.29 points at 481.04, off a high of 490. 31.

In Shanghai, the B shares, nominally reserved for foreign investors, fell one percent in dull trading, dealers said.

The Shanghai Stock Exchange's B share index lost 0.53 points to close at 53.97 points while the A share index of locally- traded stocks ended down 6.66 points, or 0.5 percent, to 1,312.05 points.

In Taipei, the Taiwan stock market inched up slightly as most investors stayed on the sidelines amid a consolidation, dealers said.

The Taiwan Stock Exchange weighted price index rose 2.20 points to 9,091. 16.

In New Zealand, continued worries about rising interest rates saw the New Zealand Stock Exchange close down 0.7 percent, with the NZSE-40 index losing 15.15 points to 2,287.97.