Mixed day for Asian stock markets

Mixed day for Asian stock markets

HONG KONG (AFP): Asian stock markets ended mixed Wednesday, focusing on local factors with Tokyo shut for a holiday and the Federal Reserve deciding to leave US interest rates unchanged.

Hong Kong, Singapore, Sydney, Jakarta and Taipei ended lower. Kuala Lumpur, Bangkok, Manila and Seoul ended in positive territory.

Trading was thin with foreign investors sidelined ahead of the Christmas and New Year holidays, dealers said.

As had been expected, the Fed left US interest rates unchanged Tuesday, apparently satisfied that three previous rate cuts since September had restored calm to financial markets and moderate growth to the U.S. economy.

In Hong Kong, share prices fell 1.6 percent on concerns sparked by tycoon Li Ka-shing's remarks that the political situation here did not make it an ideal investment site, dealers said.

"The market has fallen because of Li's remarks," said Alex Tang, research head of Core Pacific-Yamaichi International.

Li, one of the world's richest men and chairman of blue chip Cheung Kong (Holdings) Ltd., announced Tuesday that he had rejected proposals for a major investment with a foreign corporation because of the political climate here.

The key Hang Seng index lost 163.81 points to close at 10,158.75 -- its second consecutive losses.

"If Hong Kong's biggest developer says Hong Kong is not fit for investment, what should we think," said Anthony Mak, sales director at Vickers Ballas, adding the market "got the message."

In Singapore, stock prices ended two percent lower on selling of index-linked stocks, dealers said.

Dealers said the market was subdued also because of expectations that interest rates would not be slashed further following a decision Tuesday not to cut interest rates in the United States.

The benchmark Straits Times Industrials index of the Stock Exchange of Singapore fell 27.87 points to end at 1,384.53 while the broader All-Singapore index fell 6.41 points to 379.51.

In Kuala Lumpur, Malaysian share prices closed 2.6 percent higher due to late buying support extended by local institutional investors.

"The only news for the day was the possibility of alternatives for the one-year moratorium on capital outflows which boosted sentiments on the stock market," a dealer with a local institution said.

The Kuala Lumpur Stock Exchange's composite index ended 13.89 points higher at 551.11 while the second board index rose 17.57 points, or 11.6 percent, to 168.86.

In Bangkok, Thai share prices gained 0.3 percent Wednesday in thin trade with foreign investors sidelined ahead of the holiday period, analysts said.

The Stock Exchange of Thailand (SET) composite index edged up 0.93 points to close at 344.27 points, while the select SET 50 gained 0.04 points at 24.94.

In Sydney, the Australian Stock Exchange's benchmark All Ordinaries index drifted 4.8 points lower to 2.755.0.

In Manila, the Philippine Stock Exchange composite index rose 16.80 points to close at 1,910.46

In Seoul, the Korea Stock Exchange main index closed up 5.78 points at 553.53, off a high of 564.21.

In Taipei, the Taiwan Stock Exchange weighted price index fell 94.03 points to 6,688.65, following a 3.4-percent rise in the previous session.

In Shanghai, B-share index climbed 0.16 points to end at 28.06 points, while the A-share index of locally traded stocks dipped 14.52 points, or 1.2 percent, to 1,247.61 points.

In Auckland, the NZSE-40 index was up 0.2 percent, rising 4.51 points to 2,089.90.