Mixed day for Asian markets amid lingering investor concerns

Mixed day for Asian markets amid lingering investor concerns

HONG KONG (AFP): Asian stock markets turned in a mixed
performance Wednesday amid lingering investor concerns over the
direction of U.S. interest rates, dealers said.

Stock markets in Hong Kong, Japan, Singapore, South Korea,
Taiwan and New Zealand rose, partly helped by a gain on Wall
Street overnight. But their counterparts in Australia, Malaysia,
Indonesia, the Philippines and China fell.

Dealers said caution prevailed amid concerns over the
direction of U.S. interest rates, which some U.S. analysts
believe could be raised at the next meeting of the U.S. Federal
Reserve later this month.

Figures on U.S. unemployment due out next Friday are expected
to indicate whether the Fed will tighten its policy.

Markets in Asia have been jittery over the prospect of higher
U.S. interest rates after the Fed warned recently that it was
shifting its monetary policy bias to one of tightening.

Investors fear that higher U.S. rates cold cause an increase
in rates in the region. When U.S. rates rise, capital is usually
sucked out of riskier emerging markets and re-deployed back to
U.S. bond markets.

Hong Kong share prices rose 0.8 percent on selective bargain
hunting spurred by overnight gains on Wall Street, dealers said.
The key Hang Seng index rose 95.08 points to close at 12,458.64
-- its third consecutive gain.

Dealers said concerns surrounding U.S. interest rates remained
at the forefront of investors' minds, however, and there was
unlikely to be much upside from current levels in the near-term.

"We have a bit of turnover today, but it is largely
technically driven," Celestial Asia sales director Eugene Law
said.

"We are probably close to the top of the short-term trading
range," Law said.

In Tokyo, share prices edged up 0.1 percent as investors
bought bank stocks in quiet trading. The key Nikkei average of
225 leading issues on the Tokyo Stock Exchange gained 9.49 points
to end at 16,417.99.

In Singapore, share prices closed 1.0 percent higher in a
generally lackluster session. The Straits Times Index rose 18.48
points to 1,927.36, while the broader All-Singapore index rose
5.70 points to 543.30.

In Kuala Lumpur, Malaysian share prices closed 1.3 percent
lower due to profit-taking and mild foreign selling. The Kuala
Lumpur Stock Exchange composite index lost 9.91 points to finish
at 749.46.

In Bangkok, Thai shares climbed 2.8 percent led by heavy trade
in financial and communications issues. The benchmark Stock
Exchange of Thailand (SET) index rose 13.07 points to finish at
474.86.

In Jakarta, shares fell 1.5 percent led by banking stocks on
concerns over additional rights issues by banks. The Jakarta
Stock Exchange composite index closed down 8.942 points or 1.53
percent at 574.315.

In Manila, Philippine share prices closed one percent lower as
profit-taking hit the market. The Philippine Stock Exchange
composite index fell 24.55 points to close at 2,415.77 points.

In Seoul, South Korean share prices closed 2.8 percent higher,
rising for the seventh consecutive day. The Korea Stock Exchange
main index rose 21.28 points to close at 775.00, off a high of
784.73.

In Taipei, Taiwan share prices closed 1.2 percent higher on
strong buying of technology shares. The Taiwan Stock Exchange
weighted price index rose 90.41 points to 7,488.03.

In Shanghai, B shares dropped 8.0 percent on profit-taking. B-
share index, which tracks shares nominally reserved for
foreigners, lost 3.34 points to 38.67.

In Sydney, Australian shares closed barely lower. The
benchamark All Ordinaries index was virtually untouched, a mere
0.9 points, or 0.03 percent, down at 2,914.7 points.

In Auckland, New Zealand share prices closed up 1.4 percent.
The NZSE-40 capital index climbed 29.74 points at 2,127.96.