Asian stock markets close mostly lower

Asian stock markets close mostly lower

HONG KONG (AP): Most Asian stock markets closed lower yesterday, with the key index in Jakarta tumbling 2.1 percent after the Indonesian central bank raised interest rates to support the battered currency.

Dealers at the Jakarta Stock Exchange said there was selling across the board after Bank Indonesia, the nation's central bank, raised interest rates by between 3 and 6 percentage points in an attempt to strengthen the rupiah.

The stock exchange's key Composite Index fell 10.449 points to 497.707.

Inflation and unemployment are soaring in Indonesia as it weathers its worst economic crisis since the 1960s. The slump was spurred by a plunge in the value of the rupiah last year.

Share prices in Hong Kong also slumped, pushed down by a government report showing rising unemployment in the territory because of the regional economic crisis.

In Hong Kong, the Hang Seng Index, the market's key indicator of blue chips, fell 183.37 points, or 1.6 percent, closing at 10,968.26. On Monday, the index had gained 150.31 points.

Brokers said share prices fell in reaction to Monday's announcement that last month's unemployment rate stood at 3.5 percent, an increase of 0.6 percentage point from the previous month, and 1 percentage point above the 2.5 percent figure from the end of January.

In Tokyo, shares rebounded after skidding for three straight days. A temporary halt in futures selling by life insurers and other institutional investors helped lift share prices, traders said.

The benchmark Nikkei Stock Average of 225 selected issues rose 128.57 points, or 0.82 percent, closing at 15,825.67. On Monday, the index had slipped 6.70 points, or 0.04 percent.

In currency trading, the dollar was trading at 131.54 yen in late afternoon, down 0.64 yen from late Monday in Tokyo and also below its late New York level of 132.15 yen overnight.

Elsewhere:

In Taipei, share prices closed lower as investors remained worried about the prospects for technology stocks. The market's key Weighted Stock Price Index fell 68.36 points, or 0.8 percent, to 8,440.20, following Monday's 2.5 percent fall.

In Wellington, New Zealand share prices closed mostly lower, with brokers noting uneven buying interest during the session. The NZSE-40 Capital Index fell 16.33 points, or 0.7 percent, to 2,310.46.

In Manila, share prices closed lower on profit-taking. The Philippine Stock Exchange index of 30 selected stocks fell 5.12 points, or 0.2 percent, to 2,151.48.

In Australia, the Australian share market closed lower in moderate trading, pushed down by a weaker close on Wall Street Monday. The All Ordinaries Index fell 6.1 points, or 0.2 percent, to 2,866.4.

In Seoul, share prices closed higher in what brokers described as a technical rebound following recent sharp falls. The main Korea Composite Stock Price Index rose 3.48 points, or 0.7 percent, to 439.21.

In Singapore, share prices closed mostly lower on renewed jitters sparked partly by the interest rate increase in Indonesia, dealers said. The Straits Times Industrials Index fell 1.2 percent, or 18.05 points, 1,492.34.

In Kuala Lumpur, Malaysian share prices closed lower as investors found more reason to sell amid flagging confidence in corporate stability. The benchmark Composite Index fell 10.31 points, or 1.6 percent, to 623.98.

In Bangkok, Thai share prices closed mixed. The Stock Exchange of Thailand index edged up 0.86 point, or 0.2 percent, to 435.23.