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.