Friday the 13th spooks Asian stock markets

Friday the 13th spooks Asian stock markets

HONG KONG (AFP): Asian markets were hit hard with investors apparently frightened away by ill omens yesterday, the 13th, with sharp falls in Hong Kong and Tokyo sparking profit-taking throughout the region, analysts said.

Fears of further negative fallout from Indonesia's currency crisis hung like a black cloud over market sentiment despite talk that Jakarta was contemplating introducing a currency board mechanism to stabilize its beleaguered rupiah.

All Asian markets fell with the exception of Jakarta, which was up 1.3 percent on a technical rebound despite confusion over plans for the peg.

Hong Kong share prices plunged 3.3 percent on future-led selling as concerns over interest rates resurfaced amid the financial crisis in Indonesia, dealers said.

The key Hang Seng index lost 45.43 points to close at a two- week low of 10, 274.60 after four consecutive sessions of losses.

In Tokyo, Japanese share prices closed 2.2 percent lower, pressured by profit-taking on recent gains and selling in bank shares, brokers said.

The Nikkei index fell by over 400 points at one time, but the downside was supported well above the 16,500-point level thanks to optimism that investors would remain buyers after ensuring profits, brokers said.

In Sydney, Australian share prices fell 0.8 percent after being dragged down by early trade on markets in Hong Kong and Tokyo, brokers said.

The Australian Stock Exchange's key All Ordinaries index fell 21.3 points to 2,653.0. The All Industrials index fell 27.6 points, or 0.61 percent, to 4, 532.4, while the All Resources index sank 17.5 points or 1.49 percent, to 1, 156.0.

In Singapore, Singapore's benchmark stock index closed three percent lower as regional financial markets underwent a further correction triggered by currency volatility over Indonesia's plans to peg the rupiah.

The Straits Times Industrials index closed 47.60 points lower at 1,552.69. The more broadly-based All-Singapore index fell 5.17 points to 408.05.

In Kuala Lumpur, Malaysia's key stock index closed 1.7 percent lower on concerns over possible renewed weakness in the local currency and political uncertainty in Indonesia.

The Kuala Lumpur Stock Exchange's 100-share weighted composite index fell 11.93 points to finish at 685.50, but the second board gained 6.64 points, or 3.4 percent, to 199.98.

In Jakarta, Indonesian share prices closed 1.3 percent higher on a technical rebound despite renewed weakness in the rupiah and confusion over the implementation of an exchange-rate peg.

Dealers said there was confusion over the implementation of a currency-board system which would institute a fixed exchange-rate for the ailing rupiah.

The Jakarta Stock Exchange composite index added 5.869 points to finish at 448.158.

In Manila, Philippine share prices fell 3.3 percent due to a combination of profit-taking, the weakening of the local currency and negative developments concerning an index issue.

The Philippine Stock Exchange composite index fell 71.47 points to close at 2,094.98 points.

In Seoul, Share prices closed 1.2 percent down on the Korea Stock Exchange with uncertainty over the financial and labor markets offsetting opening gains on a canceled general strike, dealers said.

The composite index closed down 6.29 points at 506.20.

In Shanghai, Shanghai's B shares, nominally reserved for foreign investors, fell 4.2 percent, pulled down by weakness in the Hong Kong market, dealers said.

The Shanghai Stock Exchange's B share index lost 2.33 points to close at 53.06 points while the A share index of locally- traded stocks rose 0.67 point, or 0.05 percent, to 1,315.63 points.

In Taipei, Taiwan stocks dipped 1.1 percent as late selling wiped out early gains. The Taiwan Stock Exchange weighted price index dropped 93.56 points to 8, 706.46.

In Auckland, The New Zealand Stock Exchange ended barely changed. The NZSE-40 index moved up just 0.13 points to 2,313.01.