Asian markets mixed amid rupiah weakness

Asian markets mixed amid rupiah weakness

HONG KONG (AFP): Asia-Pacific stock markets ended mixed yesterday amid bearish sentiment stemming from renewed weakness in regional currencies led by the rupiah.

Hong Kong, Manila, Seoul, and Sydney and Auckland closed lower. Bangkok, Kuala Lumpur, Singapore, Tokyo, Taipei and Shanghai finished higher.

Dealers said sentiment turned bearish as the rupiah crashed on strong market demand for the U.S. dollar and concerns over the country's political situation, dragging down other regional currencies.

In Tokyo, Japanese share prices closed 1.9 percent higher as hopes for additional economic measures by the government eased concerns about the downside risk, brokers said.

The key Nikkei index on the Tokyo Stock Exchange extended gains for the sixth straight trading day, the longest string of consecutive rises since December 1995.

The Nikkei stock average of 225 selected issues on the Tokyo Stock Exchange rose 317.89 points to end the session at 16,684.42.

In Singapore, Singapore's blue-chip stock index ended 1.1 percent higher, but the market undertone was weak as punters squared positions worried by the rapid decline of the Indonesian currency.

The Straits Times Industrials index of the Stock Exchange of Singapore rose by 14.49 points to end at 1,311.40 while the broader All-Singapore index was up 1.95 points to 386.11.

In Kuala Lumpur, Malaysian stock prices closed mixed in moderate trade amid concerns over the weak local ringgit and the steep decline of the Indonesian rupiah.

The Kuala Lumpur Stock Exchange's 100-share weighted composite index rose 5.20 points, or 0.9 percent, to end at 590.55 but the lesser second board index fell 7.7 percent, or 12.48 points, to 149.38.

In Sydney, Australian share prices fell 0.6 percent as a strong opening gave way to reticence based on fears of further instability in Asian markets.

The Australian Stock Exchange's main indicator, the All Ordinaries index, fell 16.6 points to 2,622.8.

In Bangkok, foreign interest in Thai blue chip stocks pushed the Stock Exchange of Thailand (SET) composite index 4.6 percent higher, dealers said.

The SET composite index finished 19.07 points higher at 432.86 points, while the selected SET-50 index added 1.72 points at 32.58. A total of 259 million shares worth 5.2 billion baht (98.1 million dollars) changed hands.

In Manila, Philippine share prices fell 1.1 percent amid signs that a firming peso was again starting to depreciate, analysts said.

"The peso started depreciating ... that is why everyone had a fast change of mood," said a trader with Citisecurities, Inc., adding that the market started on the up-side but was pulled down in the last hour of trading.

The Philippine Stock Exchange composite index fell 18.59 points to close at 1,755.27 points.

In Seoul, share prices dived 5.0 percent on the Korea Stock Exchange on profit-taking and gloom over the weakening won, dealers said.

They said investors were also unnerved by newspaper reports that the finance ministry had ordered two major investment trust firms to repay their loans by end-June, although the government denied the reports.

The composite index closed down 26.89 points at 506.66, off a low of 504. 07.

In Taipei, Taiwan stocks rose 2.4 percent, led by strong buying of technology and financial shares, as investors were buoyed by the overnight rally on Wall Street, dealers said.

The Taiwan Stock Exchange weighted price soared 190.97 points to 8,098.65.

In Shanghai, the B shares, nominally reserved for foreign investors, rose 2.0 percent on improved investor sentiment, analysts said.

"Investors are getting optimistic because the Asian financial crisis had stabilized. Selling pressure was eased off because most investors thought the B index was too low," a Shenyin Wanguo Securities analyst said.

The Shanghai Stock Exchange's B share index rose 0.95 points to close at 47.65 points while the A share index of locally- traded stocks lost 4.23 points, or 0.3 percent, to 1,268.98 points.

In Auckland, New Zealand shares reversed their early gains to close 0.1 percent lower, reflecting the fall in the Australian market.

The NZSE-40 capital index fell 3.31 points to close at 2,254.14 on a turnover of NZ$60.33 million (US$35 million).