Asian marts end mixed, economic worries persist

Asian marts end mixed, economic worries persist

SINGAPORE (AFP): Asian stock markets drifted in different directions Tuesday, taking their cue from domestic factors after a widespread sell-off the previous day.

Tokyo stocks ended 0.6 percent higher amid hopes of extra economic stimulus and Singapore gained 0.9 percent but Sydney fell almost 1.0 percent amid concerns over offshore markets.

Kuala Lumpur surged 4.0 percent, lifted by recapitalization plans for 10 financial institutions, and Bangkok rose 0.8 percent on short-term speculation.

Jakarta dipped 1.2 percent as a stronger rupiah depressed dual-listed dollar-denominated counters and concerns over the financial health of Taiwan companies pushed down Taipei 1.3 percent. Manila gained 0.3 percent on late bargain-hunting.

The bourses in Hong Kong and Seoul were closed for public holidays.

Regional markets witnessed widespread selling the previous day on disappointment over the failure of the Group of Seven industrial powers and the International Monetary Fund at week-end meetings in Washington to spell out concrete plans to lift Asia out of recession.

Wall Street blue chips fell 0.75 percent, with the Dow Jones Industrial Average falling 58.45 points to 7,726.24, offering no comfort to Asian investors.

On Tuesday, Singapore share prices closed higher in largely quiet trade amid the absence of new developments.

"Overall, investors are staying on the sidelines," said a dealer with a local brokerage here, adding that the closure of the Hong Kong market for a holiday thinned turnover.

The Straits Times Index rose 7.62 points to 891.48, while the broader All-Singapore index rose 5.03 points to 276.57.

There was still lingering disappointment in the market over the lack of concrete policies by the Group of Seven industrialized countries against a global recession, a dealer with a European-based brokerage said.

In Tokyo, share prices closed 0.6 percent higher on bargain- hunting amid hopes of extra economic stimulus after the previous day's tumble to near 13-year lows, brokers said.

Share prices gained ground from the outset on buying by public funds and foreign investors following the sell-off Monday, but closed well below their highs due to a lack of follow-through buying.

"Given the main buyers seen today, share prices are not expected to sustain their gains," a broker at Ark Securities said.

The 225-issue Nikkei index rose 73.52 points to end at 13,021.64 after late selling pushed the key index to 12,936.38 points near the close. It hit a high of 13,216.28 in the morning.

Share prices also enjoyed short-lived gains on reports that Japan would draw up a stimulus package worth up to 30 trillion yen (US$222 billion) to be financed under a supplementary budget in an effort to reawaken its economy.

In Kuala Lumpur, the 100-share weighted composite index rose 14.35 points to close at 374.45, but off an earlier high of 375.13.

In Sydney, the Australian Stock Exchange's key All Ordinaries index slumped 24.5 points to 2,491.2, its lowest close since September 11.

In Bangkok, the Stock Exchange of Thailand (SET) main index rose 1.88 points to end at 248.14, while the SET 50 selected index was up 0.08 at 17.16.

In Manila, the Philippine Stock Exchange composite index gained 3.62 points to close at 1,170.16 points.

In Taipei, the Taiwan Stock Exchange weighted price dropped 85.32 points to 6,534.65, following a holiday Monday. It gained 2.9 percent in the previous trading session.

In Shanghai, B-share index shed 0.58 points to settle at 32.58 points while the A-share index of locally-traded stocks ended down 18. 36 points, or 1.4 percent, to 1,294.02 points.

In Auckland, The NZSE-40 index gained 12.82 points to 1,704.97.