Korean stocks surge but bleeding continues in RI

Korean stocks surge but bleeding continues in RI

HONG KONG (AP): Asian stock markets went on some wild up-and- down rides Thursday, with South Korean shares rallying 8 percent and Australian prices setting a record - while red ink splashed through the exchanges in Indonesia and Malaysia.

In Tokyo, the region's biggest market, shares fell slightly after a recent rally pushed prices to levels unseen in years.

The benchmark 225-issue Nikkei Stock Average fell 16.56 points, or 0.1 percent, to 20,065.11. On Wednesday, the average had risen 0.6 percent to 20,081.67, its highest level since July 31, 1997.

In Hong Kong, share prices rose moderately but investors remained cautious, with little news to motivate them in the wake of a huge telephone takeover battle.

"The telecom news is out now, there's nothing more to go for," said Howard Gorges, vice chairman of the South China Brokerage.

The blue-chip Hang Seng Index edged up 0.6 percent, or 93.22 points, to 16,936.81. On Wednesday, the Hang Seng had fallen 1.9 percent.

Local Internet startup Pacific Century CyberWorks Ltd. announced Tuesday it had edged out rival bidder Singapore Telecommunications to win the month-long takeover battle for phone giant Cable and Wireless HKT.

In Seoul, shares soared on the global surge in prices for computer chips, a big local industry.

The Kospi index rallied 66.28 points to 894.66, a record one- day rise that outdid the 55.91-point climb on July 27.

Shares in Thailand also soared, led by banking and finance stocks, which had been weak in recent sessions.

The SET composite index gained 19.83 points, or 5.3 percent, to 391.39.

In Sydney, blue chips closed at a record high for the second consecutive session, boosted by media and resource stocks.

The All Ordinaries Index closed at 3,220 points, up 27.4 points, or 0.9 percent.

Recent weakness in the Australian dollar against the U.S. dollar is helping to boost the media sector, since a weak local dollar increases revenue from U.S.-denominated sales.

Meanwhile, the markets in Malaysia and Indonesia plunged on political instability.

In Jakarta, the JSX Composite Index fell to a five-month low as foreign investors continued to dump big blue chips, especially telecommunications stocks.

On Thursday, the index closed down 18.950 points, or 3.4 percent, at 546.528 points, its lowest close since Sept. 29. The continued selling has knocked around 25 percent off the index in dollar terms since the beginning of the year.

In Kuala Lumpur, investors who had borrowed money to buy stocks in previous sessions were forced to sell their holdings to cover the debts because the prices continued to fall.

The Composite Index was down 28.14 points, or 2.9 percent, at 941.82.

In Manila, Philippine stocks rose for a second day, but sentiment remained poor as the price manipulation scandal involving gambling group BW Resources Corp. remained unresolved. The PSE index rose 13.49 points, or 0.8 percent, to 1,667.44.

In Singapore, shares fell slightly but buying interest in technology stocks supported the market. The Straits Times Index fell 3.88 points, or 0.18 percent, to 2,110.17.

In Taipei, Taiwan shares plunged after several sessions of gains and amid political uncertainty ahead of the March 18 presidential election. The Weighted Price Index fell 145.28 points, or 1.49 percent, to 9,543.82,

In Wellington, New Zealand shares fell on the lack of foreign buying interest. The NZSE-40 Capital Index fell 12.88 points, or 0.6 percent, to 1,994.33.