Most Asian stocks rise despite slump in HK

Most Asian stocks rise despite slump in HK

HONG KONG (AP): Asian stock markets closed mixed Tuesday, with prices rising in Tokyo and Taipei but slumping in Hong Kong and Jakarta.

The Japanese benchmark 225-issue Nikkei Stock Average rose 28.63 points, or 0.16 percent, to 18,090.8. The index closed down 74.37 points, or 0.41 percent, on Friday.

Tokyo financial markets were closed Monday for a national holiday.

The Nikkei index was lifted by an increase in U.S. high technology shares and hopes for company alliances in oil and telecommunications.

Shares in Taiwan closed sharply higher, posting their largest session gain since last month's massive earthquake.

The rally was led by key blue-chip electronic stocks as investors are realizing that Taiwan's technology prowess will continue after the temblor, dealers said.

The Taipei market's main Weighted Stock Price Index rose 228.26 points, or 3.0 percent, to 7,835.37.

Thai shares also surged on positive sentiment about the country's economic situation. The Stock Exchange of Thailand, or SET, index gained 12.48 points, or 3.2 percent, to 401.36.

Hong Kong stocks slumped after the government announced that it will start selling shares it acquired in a controversial stock market intervention last year.

The Hang Seng Index, the Hong Kong market's key indicator of blue chips, fell 233.37 points, or 1.8 percent, closing at 12,759.35. On Monday, the index lost 119.70 points, or 0.9 percent.

Brokers said investors sold blue chips in hopes of making a profit when they buy government stocks at a discount.

Hong Kong spent the equivalent of US$15.1 billion on shares when it intervened in the market in August 1998, during the Asian financial crisis, when local officials blamed speculators for big price plunges in the territory.

The government's shareholding has increased in value to about HK$200 billion (US$25.6 billion) as the market bounced back.

Indonesian shares also fell amid political concerns over the nomination of President B.J. Habibie by the ruling Golkar party as its presidential candidate.

Investors also took fright over student-led protests against the decision to drop an investigation into corruption allegations against former president Soeharto.

The Jakarta market's Composite Index fell 12.678 points, or 2.2 percent, to 571.382.

In Seoul, share prices closed higher after President Kim Dae- jung said Daewoo Group's financial problems won't shake the stability of the stock market. The Korea Composite Stock Price Index rose 21.86 points, or 2.6 percent, to 856.25.

In Singapore, share prices closed lower on worries over a possible rise in U.S. interest rates. The benchmark Straits Times Index fell 3.96 points, or 0.2 percent, to 2,118.27.

In Kuala Lumpur, Malaysian share prices closed lower on profit-taking. The benchmark Composite Index slipped 1.82 points to close at 745.57.

In Wellington, New Zealand share prices closed slightly higher. The benchmark NZSE-40 Capital Index rose 10.01 points, or 0.4 percent, to 2,070.42.

In Manila, Philippine shares closed lower as investors cashed in on gains from speculative stocks that soared in previous sessions. The Philippine Stock Exchange Index of 30 selected companies fell 3.77 points, or 0.2 percent, to 2,066.40.

In Sydney, the Australian stock market closed marginally stronger, underpinned by climbing prices for leading banks. The All Ordinaries Index closed at 2,934.1, up 7.7 points, or 0.3 percent.