Investors batter regional stocks

Investors batter regional stocks

SINGAPORE (Reuter): Investors battered stocks in Indonesia, Thailand, Malaysia and the Philippines yesterday while markets in the rest of Asia were narrowly mixed.

High interest rates on time deposits lured investors away from stocks in Indonesia, pulling the Jakarta stock index down to close at 542.647, off 5.53 percent or 31.75 points. The index was down by more than six percent at one point but was lifted from the lows by a rush of late bargain-hunting.

On Friday Jakarta stocks also plunged by more than five percent on heavy selling of blue chips.

Thai stocks also nose-dived, ending 5.36 percent or 29.98 points down at 529.61 as investors remained nervous over continued weakness in the baht and political uncertainty. Thailand's stock index also lost more than five percent on Friday.

In the Philippines, the main index fell through its 2,400 support level as selling continued on blue chips and analysts cut projections for gross national product growth for the first half of the year.

The main Manila index closed 64.70 points, or 2.66 percent lower at 2,364.03.

"Analysts are down-scaling their GNP projections, recommendations are being softened. We have no good news," said Juanis Barredo, an analyst at Citisecurities. The GNP figures are due August 28.

Malaysian shares closed sharply lower on a lack of buying support as institutional and retail investors remained sidelined, said dealers and analysts.

The benchmark Composite Index closed 21.04 points, 2.32 percent, lower at 883.96, close to its session low of 883.86.

Weakness in U.S. chip stocks spilled over into the Tokyo market, taking the key 225-share Nikkei average down 75.41 points, or 0.40 percent, to 18,574.76 at midday. But it later recouped its losses and ended up six points, or 0.03 percent at 18,656.17.

"Japan's sluggish economy has been the main reason for the weak tone and profit-taking will continue to push down high tech shares for a while," said Harushige Kobayashi, deputy general manager at Yamaichi Securities Co Ltd.

Wall Street closed little changed on Friday, but only after recouping steep losses made earlier in the session.

Concern over weakness in the U.S. dollar and Treasury bonds and a sell-off in semiconductor stocks had forced the Dow down 177 points before it recovered to end 6.04 points, or 0.08 percent, lower at 7,887.91.

Hong Kong stocks turned in a see-saw performance, opening lower but closing slightly higher as fears of an attack on the territory's currency began to fade. It ended 169.13 points, or 1.10 percent higher, at 15,598.88, pulled up by a rally in blue chips and H-shares.

"There has been a bit of rocking and rolling. I think the market is being pushed and pulled by short-term traders," said James Osborn, sales director at ING Barings.

Seoul stocks fluctuated in a relatively narrow band before ending down 0.82 points, or 0.11 percent, at 741.76.

Traders said a series of financial measures aimed at settling local financial markets provided underlying support for the market, even though the details were in line with expectations.

Taiwan stocks ended up 6.05 points, or 0.46 percent, at 10,011.47, while Singapore stocks were off 25.47 points, or 1.31 percent at 1,919.97.

Mainland China markets were mixed with B shares available to foreign investors down ahead of interim results and A shares, those reserved for domestic investors, posting gains.

Australia's All Ordinaries Index ended up 16.8 points to 2,637.1 at midday, while New Zealand shares ended 9.66 points lower at 2,488.11 amid disappointment over some corporate results.

European shares managed a small early rebound in thin trading on Monday, expressing relief at Friday's sharp late recovery on Wall Street and a recovery in the dollar.

London markets closed for a one-day holiday.

In Frankfurt, the DAX index was 18 points firmer at 4104 while in Paris, the CAC-40 rose 16 to 2920, recovering only a quarter of its 1.79 percent fall on Friday.