Asian stock exchanges close lower

Asian stock exchanges close lower

HONG KONG (AP): Most Asian stock markets fell yesterday, with shares slumping in Tokyo as investors remained nervous about the Japanese government's ability to boost the country's faltering economy.

Tokyo's 225-issue Nikkei Stock Average shed 254.49 points, or 1.66 percent, closing at 15,054.60. On Monday, the Nikkei had gained 41.11 points, or 0.27 percent.

The Japanese government was expected to begin announcing soon details of its plan to tackle the sagging economy by cleaning up bad debt problems at banks.

Governing Liberal Democratic Party officials have said the party will come up with a plan by July 8 for a "bridge bank" to handle bad loans.

"People are still nervous about the Liberal Democratic Party's ability to come up with a plan" to deal with the problem, said Jon Yang, a salesman in the futures and options group at Jardine Fleming Securities.

South Korean shares also tumbled, with the key index falling 2.6 percent on unconfirmed talk that the government will soon list shares of state-owned Korea Telecom.

Analysts said a listing of the company's shares would be expected to further hurt the bearish stock market because it would sharply increase stock supply in an already oversupplied market.

The Seoul Stock Exchange's Korea Composite Stock Price Index fell 7.96 points to 303.31.

Share prices in Hong Kong closed slightly higher, a day after the government announced a multibillion-dollar package to boost the territory's sagging economy.

The Hang Seng Index, the market's key indicator of blue chips, rose 15.46 points, or 0.1 percent, closing at 8,219.67. On Monday, the index had slumped 387,70 points, or 4.5 percent. Elsewhere:

In Singapore, share prices closed mostly lower, with brokers saying that investors were gloomy about the region's economic prospects. The key Straits Times Industrial Index fell 1.5 percent, or 16.20 points, to 1,082.25.

In Kuala Lumpur, Malaysian share prices closed lower in cautious trading. The benchmark Composite Index slipped 0.36 points to 457.25.

In Taipei, share prices closed lower on continued profit- taking. The market's key Weighted Stock Price Index fell 59.55 points, or 0.77 percent, to 7,633.36.

In Wellington, New Zealand share prices closed higher. The NZSE-40 Capital Index rose 11.37 points, or 0.5 percent, to 1,953.68.

In Manila, shares closed mixed as investors remained cautious in the absence of significant news to provide direction. The 30- share Philippine Stock Exchange Index rose 6.17 points, or 0.4 percent, to 1,695.86, following Monday's 2.9 percent fall.

In Sydney, Australian share prices closed mostly lower, having stagnated for much of the afternoon session. The All Ordinaries Index fell 14.2 points, or 0.5 percent, to 2,582.60.

In Bangkok, Thai share prices closed lower in thin trading. The Stock Exchange of Thailand index fell 1.84 points, or 0.6 percent, to 274.06.