Asian stocks seen nervous, volatile

Asian stocks seen nervous, volatile

HONG KONG (Reuters): Asian stocks braced for another week of
extreme volatility, with concern that instability in other world
markets could put further pressure on the region's wildly
fluctuating exchanges.

Indonesia's huge assistance package engineered by the
International Monetary Fund -- estimated at up to US$40 billion
by some analysts -- was expected to offer a hint of stability to
the region, which remains unnerved by events in Thailand and
vulnerable to market gyrations on Wall Street.

The Dow Industrials ended one of its most turbulent weeks in
history with a gain of 60.41 points or 0.82 percent on Friday,
closing at 7224.08.

But any reassurance from New York will be countered by further
losses in Bangkok, where the IMF continues to work with
politicians on meeting the terms of a US$17.2 billion package
agreed last August.

All Asian markets ended the week on a nervous note. Most were
poised for more volatility and probable losses, including the two
biggest markets, Tokyo and Hong Kong.

The only markets expecting some improvement were Singapore,
where blue chips were touted as oversold and Seoul, where margin
loans were falling. Taipei also hoped for a bounce.

More stable conditions surfaced in Sydney, but they were
considered unconvincing against the unsettled global backdrop.
Regional dealers in Hong Kong said liquidity remained thin,
aggravating market volatility. Net regional outflows persisted,
although foreign outflows from Hong Kong had slowed.

Tokyo: Worried by a lack of energy in Japan's domestic
economy, market participants in Tokyo will remain nervous about
lingering turmoil on stock markets around the world, investors
and analysts said.

Some said the benchmark Nikkei average is likely to slip
through the next key psychological support line of 16,000 some
time this week.

"Stocks will keep on swinging wildly overseas this week, and
the Tokyo market will be affected by that," said Keiko Kondo, a
strategist at Merrill Lynch Japan Inc.

On Friday, the 225-share Nikkei average gained 94.00 points,
or 0.57 percent, to close at 16,458.94. The average ended the
week 904.8 points lower, losing 5.21 percent on the week.

The market will be closed on Monday for a national holiday.

Hong Kong: Hong Kong's blue chips are expected to remain
volatile in the coming week, although red chips and H shares may
see some gains, analysts said.

"The market is seen still volatile with a range of about
10,000 to 11,000," said Ben Kwong, director of research at
Dharmala Securities.

The blue chip Hang Seng index rose 260.92 points, or 2.52
percent, to close at 10,623.78 on Friday. It lost 520.56 points,
or 4.67 percent, during the week.

Kuala Lumpur: Overseas markets would dictate direction next
week and deflect attention from local issues, analysts said.

"Next week's market depends on Hong Kong and Wall Street. The
market is looking for leads from overseas markets," said Ooi Soon
Beng, head of research at Inter-Pacific Capital.

For the week, the Kuala Lumpur Stock Exchange (KLSE) Composite
Index of 100 large-capitalized stocks closed 27.70 points, or 4.0
percent, lower from Friday a week ago.

On Friday, the index closed at 664.69 points, up 2.21 points
from Wednesday's close. The market was closed on Thursday for a
Hindu festival.

Bangkok: Battered Thai stocks are expected to lose more ground
next week on a variety of negative factors including a plunging
baht, poor corporate third quarter earnings results and local
political uncertainty, brokers said.

Uncertainty surrounding the US$17.2 billion aid package put
together by the International Monetary Fund would also weigh on
sentiment. An IMF team is now in Bangkok to review the progress
of the Thai government in meeting aid conditions.

The Stock Exchange of Thailand (SET) index retreated 9.47
percent in the week to 447.21 points on Friday from a week ago,
depressed by the baht which hit a record low of 41.20 against the
dollar in the onshore market early on Friday.

"What was an initial bout of sickness has become an epidemic,"
said Barry Yates of Seamico Securities.

Manila: Philippine shares, unnerved by the setbacks on Wall
Street and regional markets, are seen tumbling further next week
on more unfavorable third quarter company earnings and a rise in
the October inflation rate, traders said.

"People are unlikely to stay long-term in this market and next
week they will take trading stances. We will see more
volatility," said Michael Julian, trader at Paribas Asia Equity.

The key stock market index ended 4.93 points higher on Friday
at 1,818.09 but it lost 1.6 percent on the week. The index closed
last Friday at 1,847.78 points.

Singapore: Singapore dealers said funds were returning to blue
chips on the view they were oversold.

"Some houses have been pushing investors toward blue chips,
saying earnings growth doesn't justify the prices where they're
trading," a Japanese brokerage dealer said.

On Friday, the Straits Times Industrials Index (STII) ended at
1,586.07, up 2.9 percent compared with a week ago when the index
closed at 1,617.81.

In Seoul: Seoul stocks are likely to rebound next week,
boosted by falling margin loans and rising customer deposits, but
volatile financial markets would continue to weigh on long-term
sentiment, brokers said.

"We would most likely see an up-down-up movement next week,
but won/dollar rate and overseas market trends will continue to
affect (us)," said Jun Yong-hee of Hyundai Securities.
Brokers also said heavy foreign sales would also limit the
expected stock market rebound.

The composite index closed at 497.22 on Saturday, down 9.34
percent or 51.25 points from last Saturday's 548.47.

Sydney: Australia's stock market ended the week on a firm note
despite the Dow's wobble on Thursday night, but brokers remain
wary of any talk the market has settled.

"I think we will see more of this volatility with all eyes on
Hong Kong and New York waiting for things to calm down," said
Henderson Charlton Jones dealer Phillip Toop. "No-one is saying
we are out of the woods just yet," he said.

The All Ordinaries index ended at 2464.8 on Friday, up 1.18
percent on the day, but down 3.7 percent over the week.

Wellington: New Zealand brokers heaved a sigh of relief as the
share market closed 0.8-percent higher on Friday, but brokers
said the storm clouds had not dissipated yet.

Wall Street would remain the defining force but brokers said
the New Zealand market was fundamentally well-placed.

The top-40 ended at 2,355.83, 113.92 points or 4.61 percent
below last Friday's close and 279.65 points or 10.6 percent under
its 10-year peak, hit on Wednesday last week.