HK, Taiwan stocks slide, Jakarta shares climb

HK, Taiwan stocks slide, Jakarta shares climb

SINGAPORE (Reuters): A hefty fall in U.S. stocks overnight forced some key Asian markets into retreat yesterday, but the overall picture was mixed as investors drew breath after recent heavy losses.

Shares in Hong Kong and Taiwan fared worst in the wake of Wall Street's one percent slide, each falling nearly three percent.

But Tokyo shares edged up and Indonesian stocks bathed in some rare good news, climbing over three percent after Germany's Deutsche Bank said a framework deal on rescheduling Indonesia's private debt had been agreed.

Other markets continued to take comfort from the yen's grip above 139 to the dollar, and crude oil prices roared higher on prospects that the oil ministers of key producing countries would meet to discuss a possible cut in global output.

The dollar was trading at 138.20/30 yen in early Europe as traders remained wary that an expected meeting of G-7 ministers next week could agree to boost the feeble Japanese currency.

Hong Kong stocks surrendered the previous day's sharp gains, fulfilling analysts' predictions that the rebound had been a correction rather than a return of confidence.

The Hang Seng index dropped 260.79 points, or 2.96 percent, to 8,558.43 after jumping 2.57 percent on Wednesday.

Taiwan stocks, always sensitive to movements in U.S. technology shares, also took a beating.

The main index ended 2.84 percent down at 7,425.96 as disappointment at the government's lack of action to boost the market also took its toll.

Tokyo's Nikkei index rose 0.52 percent to end at 15,426.47, as investors sifted through the corporate debris and picked up some stocks seen as relatively safe, dealers said.

Shares in Singapore and Malaysia were on poor form again.

Singapore's Straits Times Index shed 2.63 percent to close at 1,187.74. Dealers said selling orders came thick and fast after the index broke through the 1,200-level and as gloom over the local property sector returned.

Kuala Lumpur's Composite Index fell 1.47 percent to close at 518.61 after details of a special agency set up to take over the non-performing loans in Malaysia's banking system, announced in the afternoon, disappointed the market.

Thailand's SET Index gained 1.79 percent on bargain-hunting, ending at 318.18, while Manila shares ended 1.29 percent higher to leave the main index at 1,953.88.