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).