No end to gloom in Asian stock markets

No end to gloom in Asian stock markets

SINGAPORE (AFP): Asian bourses plummeted yesterday on the back of sliding regional currencies which deepened the gloom hanging over financial markets.

Stocks in Hong Kong fell 5.9 percent, Singapore 4.9 percent, Kuala Lumpur 0.9 percent, Sydney 1.5 percent, Jakarta 2.0 percent, Manila 4.0 percent, Taipei 1.6 percent and Shanghai 6.3 percent.

In Singapore, the key Straits Times Industrials index ended 71.06 points lower at 1,368.06, and a senior dealer with a local brokerage firm said he was uncertain when the market rout would end.

Tokyo, Seoul and Bangkok bucked the regional trend and ended with modest gains.

In Hong Kong, share prices plunged 5.9 percent, with the key index falling below its psychological barrier of 10,000 points to a more than two-month low.

"The market fell on continuing weaknesses of currencies around Asia in general and also further falls on those stock markets," said Howard Gorges, vice president of South China Brokerage.

The key Hang Seng index lost 596.90 points to close at 9,538.61 -- its lowest level since October 28 when the index stood at 9,059.89.

In Tokyo, Japanese share prices closed 0.9 percent higher, supported by late short covering and bargain hunting in blue chips following recent declines, brokers said.

The Nikkei stock average of 225 selected issues on the Tokyo Stock Exchange rose 131.77 points to end at 15,028.17.

The broader Topix index of all first-section issues gained 3.14 points to 1,163.79. Turnover remained light, with an estimated 330 million shares changing hands against 346.7 million the previous day.

In Kuala Lumpur, Malaysia's key stock index fell 0.9 percent but off earlier lows after the central bank's reported intervention in the foreign exchange market to support the ringgit.

The Kuala Lumpur Stock Exchange's 100-share weighted composite index fell 4.74 points to end at 521.00, after hitting an earlier low of 501.59.

In Sydney, the Australian Stock Exchange's key index, the All Ordinaries, fell 38.4 points to close at 2,646.9. The All Industrials sank 53.2 points to 4,563.2, while the All Resources slumped 28.4 points to close at 1,114.5.

In Bangkok, the Stock Exchange of Thailand (SET) index closed up 0.01 percent in thin trade as investors digested news that Bangkok would request a review of its IMF package.

The SET composite index rose 0.04 points to end at 370.31 points, while the SET 50 index was up 0.66 points at 26.78, brokers said.

In Manila, Philippine share prices closed four percent lower amid the relentless turbulence in Asian currency markets.

The Philippine Stock Exchange index shed 73.26 points to 1,747.34.

In Seoul, share prices rose marginally on the Korea Stock Exchange on improving foreign interest but profit taking by institutional investors on a weakening won capped the gains, dealers said.

The composite index closed up 3.08 points at 409.42, off a high of 424.01 and a low of 407.22.

In Taipei, Taiwanese stocks fell 1.6 percent as investors moved their funds into U.S. dollars amid fears the local currency could weaken further in step with ailing regional currencies.

The Taiwan Stock Exchange weighted price plunged 130.62 points to 7,835.56.

In Shanghai, the B shares, nominally reserved for foreign investors, plunged 6.3 percent with foreign funds rushing to clear their positions, analysts said.

The Shanghai Stock Exchange's B share index lost 3.32 points to close at 49.39 points while the A share index of locally-trade stocks rose 12.84 points, or 0.99 percent, to 1,315.37 points.

In Auckland, the New Zealand stock market closed down 0.5 percent as Telecom shares fell.

The NZSE-40 index ended down 11.21 points at 2,329.31 on a turnover of NZ$55. 35 million (US$30.8 million). Telecom ended down 13 cents to 8.17 dollars.

"It's a softer tone today, driven down predominantly by Telecom," County NatWest's Tony Rogers said.

In Europe, stocks dropped in early trading on Wednesday following fresh turmoil in Asia where the Hong Kong Hang Seng index fell to the lowest point for two months.

The FT-SE 100 index of leading London shares was showing a loss of 21.8 points to 5,242.9. In Paris, the CAC-40 index fell 24.93 points to 3,012.80.