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.