Asian markets tumble on weak regional currencies

Asian markets tumble on weak regional currencies

HONG KONG (AFP): Asian stock markets tumbled yesterday in a
sell-off prompted by fresh weakness in ailing regional currencies
at the start of the first full week of trading in the new year.

The Malaysian ringgit, Philippine peso, Indonesian rupiah and
the Thai baht all plumbed new depths against the US dollar in a
blow to stock market sentiment.

Hong Kong share prices fell 3.5 percent, Tokyo 2.0 percent,
Kuala Lumpur 4. 4 percent, Singapore 1.5 percent, Taipei 1.6
percent and Manila 1.0 percent, Shanghai 2.1 percent.

Sydney and Seoul bucked the regional trend to close higher.

Hong Kong share prices dropped as interbank rates climbed due
to the renewed weakness in Asian currencies, dealers said.

The key Hang Seng Index lost 377.03 points to close at
10,303.54, after gaining 3.3 percent in the previous week's
trading.

In Tokyo, Japanese share prices dropped 2.0 percent as market
sentiment remained weak, brokers said.

The Nikkei stock average of 225 selected issues on the Tokyo
Stock Exchange closed the half-day session at 14,956.84 points,
down 301.90 from last year's final trading day here on Tuesday.

The Topix index of all issues on the first section was down
8.40 points at 1,166.63.

In Singapore, the benchmark stock index closed 1.5 percent
lower as renewed currency weakness in Southeast Asia provided a
gloomy start to the new year's first full trading week.

The Straits Times Industrials index ended 22.25 points lower
at 1,495.95. The more broadly-based All-Singapore Index was 5.71
points lower at 417.42.

In Sydney, Australian shares closed up 1.3 percent as a rising
bond market pushed up banking stocks, brokers said.

The Australian Stock Exchange's key index, the All Ordinaries,
rose 35.2 points to 2644.3.

In Kuala Lumpur, Malaysia's key stock index closed 4.4 percent
lower, bogged down by the local currency which sank to a new low
amid concerns over plans for mergers in the finance sector.

"Investors were dumping the ringgit on the belief that the
quick merger decisions in the finance sector indicated deeper
trouble and this in turn, dragged down the stock market," said a
local institutional dealer.

The Kuala Lumpur Stock Exchange's 100-share weighted composite
index tumbled 25.17 points to end at 546.79.

In Bangkok, the Thai share market finished 1.7 percent weaker
after a volatile day in thin trade, dealers said.

"There is also buying among export-related stocks but this in
itself failed to support the index, with the baht so weak," a
Krungthai Thanakit dealer said. "There was also the customary
sell-off of blue chips after the year-end window-dressing
exercise, weakening the index," he said.

The Stock Exchange of Thailand (SET) composite index ended
6.51 points softer at 366.18.

In Manila, Philippine share prices fell 1.0 percent as the
peso plunged to a new record low, analysts said.

The peso depreciation "continues to place the uncertainty
level within the market at a point where investors don't want to
do anything until things clear up," said Oliver Plana of Asiasec
Equities, Inc.

The Philippine Stock Exchange index dropped 18.43 points to
1,872.84.

In Seoul, share prices closed 2.9 percent higher on the Korea
Stock Exchange, boosted in late trade by revived foreign buying,
dealers said.

Hanhwa Securities dealer Yon Joo-hum said speculation about
foreign takeovers of Korea First Bank and Seoul Bank and other
local companies provided a significant boost to prices, with
large caps seen as underpriced and a major focus of attention
from institutional investors.

The composite index closed up 11.00 points at 396.49, off a
high of 403.93.

In Shanghai, the B share index fell 1.19 points to 54.68
points while the A share index of locally-traded stocks rose
28.95 points, or 2.3 percent, to 1,287.44 points.

In Taipei, the Taiwan Stock Exchange weighted price index
dropped 130.48 points to 8, 028.63.

In Wellington, New Zealand stocks ended barely higher in a
flat start to 1998 trading on light volume.

The NZSE-40 capital index ended up just 0.83 of a point at
2,315.74 on a turnover of NZ$39.88 million (US$23 million).