Asian markets gain as Tokyo succumbs
Asian markets gain as Tokyo succumbs
HONG KONG (AFP): Most Asia-Pacific stock markets posted
moderate gains yesterday on the back of steadier regional
currencies, but Tokyo shares succumbed to profit-taking.
A massive 16-billion-dollar tax cut announced by Japan to
kickstart its stagnant economy had buoyed regional markets the
previous day, and yesterday saw follow-through buying fueled by
positive domestic developments.
Currencies including the Philippine peso, the Indonesian
rupiah and the Thai baht came off their lows against the U.S.
dollar, cheering up stock investors.
In Hong Kong, share prices recouped early losses and rose 0.6
percent in cautious trading to a seven-day high despite investors
being wary about the direction of regional currencies.
"There is not much happening. Trading is boring," said Eugene
Law, research director at Lippo Securities, adding "the market is
reaching a resistance level, and there will be some profit-
taking."
The key Hang Seng Index gained 61.41 points to close at a
seven-day high of 10,754.11 -- each second consecutive gains.
In Tokyo, Japanese share prices closed 2.3 percent lower,
depressed by profit taking following sharp gains posted the
previous day on the announcement of a massive income tax cut,
brokers said.
The key Nikkei stock average of 225 selected issues on the
Tokyo Stock Exchange dropped 379.42 points to end the session at
16,161.64 while the Topix index of all issues on the first
section was down 15.02 points at 1,212.93.
In Singapore, stock prices ended 1.4 percent higher on buying
of banking and property counters amid a recovery by Asian
currencies, including the local dollar.
The blue-chip Straits Times Industrials index of the Stock
Exchange of Singapore rose 21.90 points to end at 1,591.41 while
the broader All-Singapore index rose 6.44 points to 425.12.
In Kuala Lumpur, Malaysia's key stock index closed 3.7 percent
higher on a technical rebound with follow-through buying by local
institutions.
The Kuala Lumpur Stock Exchange's 100-share weighted composite
index rose 20.79 points to 577.58. But the second board index
dipped 2.36 points, or 1.2 percent to 188.89.
In Manila, Philippine share prices rose 2.7 percent due to the
recovery of regional currencies and local bank moves to stabilize
the Philippine peso, analysts said.
The Philippine Stock Exchange rose 49.19 points to close at
1,846.09 points.
In Taipei, Taiwanese stock prices ended 1.1 percent lower,
pulled down by selling of technology shares, dealers said.
The Taiwan Stock Exchange weighted price index was down 92.15
points to 8, 255.05.
In Sydney, Australian share prices made marginal gains as a
stronger resource sector offset falls among major industrials
amid strong turnover with the early expiry of December options.
The Australian Stock Exchange's main indicator, the All
Ordinaries index, gained one point to 2,563.1.
In Shanghai, the B shares, nominally reserved for foreign
investors, closed barely lower in lack-luster trading amid the
absence of fresh incentives, analysts said.
"Trading was quiet due to a lack of fresh leads," a dealer
with a foreign brokerage said.
The Shanghai Stock Exchange's B shares index fell 0.03 points
to 54.97 points while the A share index of locally-traded stocks
closed 8.24 points, or 0.7 percent, lower at 1,215.91 points.
In Auckland, the NZSE-40 index was up 20.74 to 2318.51 on
moderate turnover of NZ$64 million (US$38 million).
In London, the FT-SE 100 index of leading shares fell by 5.3
points to 5,185.5 in early trading.
In Paris, the Paris Bourse posted a satisfying gain in the
first part of the yesterday session in active trading, supported
by the dollar's firmness, traders said in early afternoon.
The CAC 40 index was up by 0.27 percent at the opening, and by
0.61 percent in the afternoon to stand at 2,910.89 points as
trading continued. Volume stood at 6 billion francs on the
monthly settlement market.