Gulf tensions affect Asian bourses

HONG KONG (Reuter): Stock markets closed down but off their lows around the region yesterday, with the escalation of tension in the Gulf as a major factor.

The blue chip Hang Seng Index closed 36.48 points down at 9,248.40. Preliminary turnover was HK$2.18 billion (US$283 million), compared with HK$2.94 billion (US$282 million) revised turnover on Friday.

The Kuala Lumpur Stock Exchange Composite Index ended down 12.21 points or 1.09 percent at 1,110.12 points. The index had fallen at the start on news that Iraq was massing troops near its border near Kuwait.

In Taipei and Tokyo markets closed for public holidays.

In Sydney, the All Ordinaries Index closed 20.5 points or 1.04 percent higher at 1988.0, while December SPI futures finished 26 points or 1.58 percent higher at 1983.

In Seoul, the composite index closed 6.72 points higher at 1,068.68 after reaching a day high of 1,071.91.

In Bangkok, the SET index closed 31.66 points lower at 1,428.12 after dipping as low as 1,422.09. Turnover was 7.38 billion baht.

In Singapore, the 30-share Straits Times Industrials index fell 27.81 points to 2,302.28, above the psychological 2,300- mark.

European stock markets were firmer but dealers said prices were unlikely to move much higher as investors still feared the likelihood of an imminent rise in U.S. interest rates.

Dealers said most of the gains in European stocks were technically driven, with shares following the rise in bond prices and stock index futures in thin trading.

In London, by 10:00 GMT the Financial Times-Stock Exchange index of 100 leading British shares had risen 33.2 points to 3,031.9.

In Paris, the CAC-40 share index gained 20.49 to 1,876.87.