Most Asian stock markets close lower

Most Asian stock markets close lower

HONG KONG (AP): Most Asian stock markets closed lower on Tuesday on concerns about a rise in U.S. interest rates, despite an overnight surge on Wall Street.

In Indonesia, shares tumbled on fears of military retaliation after President Abdurrahman Wahid called on former army chief Gen. Wiranto to resign over his role in last year's East Timor violence.

The Jakarta Stock Exchange's Composite fell 19.516 points, or 3.1 percent, to 616.856.

The Japanese benchmark 225-issue Nikkei Stock Average closed at 19,423.38 points, down 116.32 points, or 0.60 percent. On Monday, the average closed up 104.92 points, or 0.54 percent.

The Nikkei fell amid concern that higher U.S. interest rates would curb U.S. business expansion by making it more expensive to borrow money.

The U.S. Federal Reserve's Open Market Committee, the Fed's policy-making body, is expected to boost interest rates by a quarter of a percentage point when it meets later Tuesday and Wednesday.

A U.S. economic slowdown would hurt Japanese exporters, the driving force behind Japan's struggle to emerge from its longest economic slump in decades.

The Hang Seng Index, the market's key indicator of blue chips, rose 121.52 points, or 0.8 percent, to close at 15,653.86. On Monday, the index slumped 653.60 points, or 4 percent.

Bargain-hunters stepped into the Hong Kong market following Monday's rally on Wall Street that saw the Dow Jones industrial average rising 201.66 points, or 1.9 percent, to 10,940.53, its steepest point gain since Jan. 7.

Taiwan shares also closed higher, with the main index rising to another 29-month high following gains on Wall Street.

The Weighted Stock Price Index rose 111.50 points, or 1.1 percent, to 9,856.39. The Taipei bourse will be closed from Wednesday to Tuesday for the Chinese New Year holidays.

The market was closed Tuesday in Malaysia for a holiday.

In Manila, Philippine shares closed lower as investors cashed in on gains made in the previous session. The 30-company Philippine Stock Exchange Index fell 15.99 points, or 0.8 percent, to 1,973.44.

In Wellington, New Zealand share prices closed lower. The benchmark NZSE-40 Capital Index fell 13.31 points, or 0.6 percent, to 2,041.91.

In Sydney, the Australian share market closed lower as investors confronted the likelihood that U.S. and Australian central banks will raise interest rates. The All Ordinaries closed at 3,084.5, down 11.5 points, or 0.4 percent.

In Seoul, the benchmark index fell 1.6 percent on profit- taking following recent gains. The Korea Composite Stock Price Index fell 15.13 points to 928.75.

In Singapore, share prices closed mixed on fears of a higher- than-expected U.S. rate hike. The Straits Times Index edged up 0.11 point to 2,330.39.

In Bangkok, Thai share prices closed lower on expectations of a rise in U.S. interest rates. The Composite Index fell 3.18 points, or 0.7 percent, to 474.39.