Asian markets mixed after Wall Street drop

Asian markets mixed after Wall Street drop

HONG KONG (AP): Asian stock markets closed generally mixed yesterday despite a large drop overnight on Wall Street, but the key index in Tokyo fell to its lowest level since mid-January.

Tokyo's benchmark Nikkei Stock Average of 225 selected issues shed 254.52 points, or 1.63 percent, closing at 15,395.43, the lowest closing since Jan. 14. On Monday, the average had lost 361.29 points, or 2.26 percent.

The Tokyo market seemed most concerned about more bad news about the domestic economy.

Japanese officials said unemployment had jumped to a record 3.9 percent in March. Production at factories and mines fell, as did department store and supermarket sales.

Analysts said fears that the bull market in the United States was running out of steam added to the bleak atmosphere.

In currency trading, the U.S. dollar was quoted at 131.87 yen in late afternoon, down 0.78 yen from late Monday in Tokyo and also below its late New York rate of 132.23 yen overnight.

In New York Monday, fears that the Federal Reserve would raise interest rates forced the Dow Jones average down almost 147 points to close at 8,917.64.

As Asian markets opened hours later, declines were registered across the region.

In Hong Kong, the key Hang Seng Index dropped almost 300 points before rebounding later in the day to close at 10,678.61, up 84.90 points, or 0.8 percent. On Monday, the index had slumped 286.22 points.

James Osborne, a trader with INB Barings Securities, said the drop was a "knee-jerk reaction" to declines Monday in New York and Europe.

But he said the fact that there was no panic was a sign the market had already factored in the possibility of higher U.S. interest rates.

The morning decline also encouraged bargain hunters, said Kent Rossiter, a senior investment adviser at Nikko Securities.

The markets were closed in Malaysia and Jakarta for holidays. Elsewhere:

In Taipei, share prices closed slightly lower after recovering most early losses as investors snapped up lower priced stocks. The market's key Weighted Stock Price Index fell 36.95 points, or 0.43 percent, to 8,434.67.

In Seoul, share prices closed lower in line with declines on regional markets. The Korea Composite Index fell 3.86 points, or 0.9 percent, to 402.39.

In Manila, Philippine shares closed mixed, with bargain- hunters taking advantage of the market's recent weakness to pick up oversold blue-chip issues just before the session ended, traders said. The Philippine Stock Exchange Index of 30 selected issues rose 4.50 points, or 0.2 percent, to 2,126.69

In Singapore, share prices closed higher on renewed talk that local banks are planning to lower their interest rates, dealers said. The benchmark Straits Times Industrials Index rose 10.30 points, or 0.7 percent, to 1,481.77.

In Bangkok, Thai stock prices closed slightly higher in a late rally as the Cabinet announced steps to issue government bonds to ease tight liquidity and bring down interest rates, dealers said. The Stock Exchange of Thailand index gained 0.76 points, or 0.2 percent, to 419.55.

In New Zealand, share prices closed lower, with brokers saying the market has been dragged down by poor performances in overseas markets. The NZSE-40 Capital Index fell 47.52 points, or 2.0 percent, to 2,240.09.

In Australia, share prices closed lower, pushed down by an overnight slide on Wall Street and further declines on stock markets around the Asian region. The All Ordinaries index fell 36.7 points, or 1.3 percent, to 2,781.3.