Asian stocks drift in marginal trading

Asian stocks drift in marginal trading

SINGAPORE (Reuters): Asian stocks drifted on Tuesday in
generally light trading, with Tokyo dipping a touch while Hong
Kong and Australia managed marginal rises.

Tokyo's benchmark Nikkei average of 225 shares fell 0.3
percent to 17,708.

In Southeast Asia, the rapidly deteriorating situation in East
Timor, where Indonesian authorities declared martial law early on
Tuesday, weighed on market sentiment.

Many investors in Tokyo also remained on the sidelines ahead
of Thursday's gross domestic product data, which is being watched
for signs of whether the recession-hit Japanese economy has
really started a recovery trend.

Traders said sentiment remained bullish on the yen but the
market was concerned about risks surrounding the GDP data, given
that the Bank of Japan had intervened following the previous
release in June.

The dollar rose to one-week highs above 111 yen in London, up
nearly 1.5 percent from its Asian lows amid speculation that
Japan's GDP report will be weaker than expected.

Hong Kong stocks ended barely moved and well off their highs
after investors decided to lock in profits from the previous day.
The Hang Seng Index closed up 0.08 percent at 13,396.

"Index futures have traded at a premium to the spot index
which indicates there is real buying interest on hopes for good
news about China entering the World Trade Organization," said
Percy Au-Young, sales director at DBS Securities.

Australian stocks closed mixed as investors awaited the
reopening of U.S. markets after the Labor Day holiday. The All
Ordinaries index edged 0.1 percent up to 2,993.6.

Taiwan posted the biggest percentage loss. Brisk profit-taking
on Taiwan technology stocks wiped out the market's early gains
and dragged the index below 8,000 points despite a better than
expected performance in Taiwan's August exports.

The TAIEX ended at 7,945.76, down 2.3 percent.

In Seoul, buying in some core blue chips pushed the Korea
Composite Stock Price Index up 0.1 percent to 943.92.
The Straits Times Index (STI) finished just 0.3 percent up at
2,105.42 after initial losses.

"It's not a very inspiring day. People tend to stay on the
sidelines, waiting for a clearer picture on the development in
East Timor," a Singapore broker said.

Jakarta stocks recovered form initial losses which were
triggered by mounting concerns over possible international action
against Indonesia for its failure to quell escalating violence in
East Timor.

The key composite index rose 0.9 percent at 545.35, but the
rupiah came under attack again and was quoted at 8,250/8,300
versus 8,050/8,100 late Monday.

Dealers said market concerns also remain on the lingering
scandal surrounding PT Bank Bali Tbk

Trading in Malaysia was dull, with investors expressing some
disappointment at Malaysia's weaker-than-expected industrial
production data for July. The Kuala Lumpur Composite Index ended
down 0.04 points at 752.74.

Thai stocks were slightly firmer despite some retail selling
of banks and finance. The composite SET index closed up 0.6
percent at 426.75.