Asian stocks down over fears of RI escalating unrest
Asian stocks down over fears of RI escalating unrest
HONG KONG (AP): Fears over escalating social unrest in Indonesia sent Asian stock prices and currencies sharply lower early yesterday, but most markets managed to regain some lost ground at the close.
The key index in Hong Kong plunged through a critical support level of 10,000 points.
Despite the escalating violence, share prices on the Jakarta Stock Exchange rebounded sharply, with the key index soaring 5.3 percent to 436.778 points, following its 4.7 percent plunge Wednesday.
Looting and unrest continued for the fourth consecutive day in the north Sumatran city of Medan, Indonesia, but cooled slightly as security forces patrolled the city.
Dealers said the rally was driven by arbitrage buying in telecommunications stocks and did not indicate a turnaround.
But the rupiah continued to fall, adding to the 11-percent drop on Wednesday, despite the central bank's move to increase interest rates by between 4 and 12 percentage points.
In late trading, the rupiah was trading at 9,600 to the U.S. dollar compared with its close Wednesday 9,000.
In Hong Kong, share prices plunged for the fourth consecutive session, with the key index ended at its lowest level since January.
The blue-chip Hang Seng Index dipped below 10,000 when the market opened, losing more than 250 points at one point during the morning session.
It recovered some lost ground in the afternoon to end at 9,971.93 points, down 1.4 percent, from the previous close.
In Tokyo, the benchmark 225-issue Nikkei Stock Average shed 0.66 percent, closing at 15,143.03. On top of a 40.16-point fall on Friday, it shed 357.26 points, or 2.29 percent, on Wednesday.
In late afternoon, the dollar cost 133.16 yen, up 0.80 yen from late in Tokyo on Wednesday but slightly lower than its late New York rate of 133.18 yen overnight
In Singapore, share prices also plunged soon after the stock market opened, reacting to a free fall in the region's currencies and overall worsening sentiment on Asia, but rebounded later in the session, dealers said.
The key index shed 1.4 percent to close at 1428.67. It had slipped below the key 1,400-point support to 1,399.61 in early morning trade.
In Kuala Lumpur, share prices in Malaysia also finished higher on a technical rebound after slumping earlier in the day, and analysts said it was the stronger ringgit that boosted investors' confidence.
The Composite Index ended up 2.21 points at 586.83, after hitting an intraday low of 562.91 points yesterday.
In Bangkok, Thai stock prices ended slightly higher as local bargain-hunting among oversold blue chips, dealers said.
The key index gained 0.15 percent to end at the day's high of 393.95.
In Manila, Philippine stocks tumbled, also on unrest in Indonesia. The key index fell nearly 1 percent, to 2,189.97, adding to Wednesday's 2.5 percent loss.
In Seoul, share prices in South Korea closed up in what analysts saw as a rebound from recent sharp falls. The key index closed up 3.24 points at 379.47.
In Australia, share prices closed lower, despite a rally in late trading on the strength of National Australia Bank's half- year results, dealers said. The key index plunged 7.2 points to 2,761.0.
In Taipei, Taiwan shares ended lower as concerns over regional economies and a sharp fall in the New Taiwan dollar drove more investors to the sidelines and sapped liquidity from the market, analysts and traders said.
The key index closed 35.27 points lower to 8,290.37.
In New Zealand, share prices finished down but off its lows on an increase in short-term interest rates and weaker overseas share markets, brokers said. The index closed down 10.06 points at 2,220.55.