Calm returns to Asian stock markets

Calm returns to Asian stock markets

HONG KONG (AFP): Calm returned to jittery Asian stock markets
Tuesday after China delivered soothing assurances it was
committed to upholding the value of its yuan currency.

Hong Kong and Kuala Lumpur indices ended barely higher, but
Tokyo gained 1.2 percent, Singapore put on 1.4 percent, Bangkok
climbed 0.9 percent and Jakarta surged 4.0 percent in the day's
best performance by a regional bourse.

Manila closed up 1.6 percent and Taipei added 1.4 percent, but
Seoul fell back in late trading to end 1.6 percent lower despite
a ratings upgrade announced by Standard and Poor's. Sydney was
closed for a holiday.

Shanghai, however, hit its third record-low close in seven
sessions.

Dealers said regional fears of a Chinese devaluation had eased
after Prime Minister Zhu Rongji delivered a rare personal
assurance that Beijing was steadfast in its resolve to maintain
the currency's value.

China's foreign ministry reaffirmed Beijing's no-devaluation
stance Tuesday.

"We have already stressed the Chinese government's policy of
not devaluing the yuan," foreign ministry spokeswoman Zhang Qiyue
told a news briefing.

"Over the past year we have been through great difficulties
but will still follow this policy," she said.

In Hong Kong, stocks ended a volatile day's trading a fraction
higher, reassured by comments China will not devalue the yuan.

The blue chip Hang Seng Index closed up 10.33 points at
9,509.83.

In Tokyo, share prices closed 1.2 percent higher, with
investors encouraged by China's assurance its yuan would not be
devalued, brokers said.

The key Nikkei 225 index rose 173.20 points to 14,382.01,
finishing off the high of 14,501.44 on profit-taking.

In Singapore, benchmark stock index closed 1.4 percent higher
after recovering from a sharp fall resulting from fears of a
Chinese currency devaluation, which Beijing has dismissed.

The Straits Times Index closed 19.12 points higher at
1,417.14. The broader All-Singapore index rose 3.70 points to
383.15.

In Kuala Lumpur, the composite index finished at 610.88
points, up 0.69 points from the previous day's close.

In Bangkok, the Stock Exchange of Thailand (SET) main index
firmed 3.41 points to 366.77.

In Manila, the Philippine Stock Exchange index gained 30.82
points to 1,982.26.

In Seoul, the Korea Stock Exchange main index fell 8.53 points
to close at 531.23, off a low of 531.20 and high of 562.46.

In Taipei, the benchmark Taiwan Stock Exchange weighted price
index rose 82.34 points to 6,115.64, following a 3.1-percent
plunge in the previous session.

In Shanghai, B-share index lost 0.16 points to finish at 25.01
points, while the A-share index of locally traded stocks fell
10.58 points, or 0.9 percent, to 1,212.02 points.

In Auckland, the NZSE-40 capital index ended up 10.51 points
at 2,179.30.