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.