No respite for Asian stock markets

No respite for Asian stock markets

SINGAPORE (AFP): Asia-Pacific stock markets kept up their new- year plunge yesterday with no signs of a respite from the deepening regional financial crisis.

Jakarta plunged 12 percent to a four-year low, Hong Kong 3.0 percent to a two-year low and Singapore 7.1 percent to levels last seen during the October 1987 crash.

Bangkok fell 2.7 percent, Kuala Lumpur 2.7 percent, Shanghai 5.3 percent and Manila 5.2 percent.

The latest declines were posted as the Indonesian rupiah continued its free-fall to hit the psychological level of 10,000 to the dollar amid growing fears that Jakarta could declare a moratorium on the repayment of its massive foreign debt.

Singapore's blue-chip stocks plunged to levels last seen during the "black October" crash in 1987 amid market rumors that some property companies and banks here are in trouble.

Dealers said the rumors rapidly drove down prices of property and banking counters.

The blue-chip Straits Times Industrials index of the Stock Exchange of Singapore ended 97.36 points down to 1,270.70, after hitting a low of 1,264. 14, while the broader All-Singapore index was down 20.18 points to 370.16.

Elsewhere in the region, Tokyo gave up hefty early gains to end marginally lower while Seoul finished with a modest gain and Sydney edged up.

In Tokyo, Japanese share prices closed marginally lower on a late bout of profit-taking, giving up sharp gains made earlier on active buying in leading exporters and blue chips, brokers said.

"The sustained slide of the (Hong Kong's) Hang Seng index poured cold water on the earlier bullish mood," one broker said.

The Nikkei stock average of 225 selected issues on the Tokyo Stock Exchange edged down 8.99 points to end at 15,019.18. The key index had shot up 580 points in morning trading to reach the day's high of 15,608.39.

In Hong Kong, share prices plunged nearly 3.0 percent to their lowest level in more than two years as investors shaken by Asia's unrelenting financial crisis cashed out, dealers said.

The slump, which followed a 5.9-percent loss the previous day, came amid fears of speculative attacks on the Hong Kong dollar which drove interbank rates up.

The key Hang Seng Index lost 284.08 points to close at 9,254.53 points -- its lowest level since Sept. 7, 1995 when it stood at 9,278.99. It recovered from earlier lows which saw it give up 4.5 percent by mid-day.

In Kuala Lumpur, Malaysian shares fell 2.7 percent as the collapse of the Jakarta market and falls in other regional bourses sparked renewed selling, reversing earlier gains.

The Kuala Lumpur Stock Exchange's 100-share weighted composite index fell 13.84 points to end at 507.16, off the day's high of 534.11.

In Sydney, the Australian Stock Exchange's key All Ordinaries index rose 3.8 points to 2,650.7, off a low of 2,633.7, with an improvement in industrial stocks offsetting continuing weakness in major resource companies.

In Bangkok, Thai shares fell 2.7 percent as regional markets posted sharp falls and investors pulled out of banking stocks, dealers said.

The Stock Exchange of Thailand (SET) composite index finished 10.14 points weaker at 360.17 points on volume of 2.2 billion baht (US$42.3 million), while the SET 50 index shed 1.07 points to close at 25.71 points.

In Manila, Philippine share prices closed 5.2 percent lower due to continuing concerns over the depreciation of the peso and fears that interest rates would rise further, analysts said.

The Philippine Stock Exchange composite index fell 91.49 points to close at 1,655.85 points.

In Seoul, share prices perked up to close 3.6 percent higher on the Korea Stock Exchange on the back of foreign buying of blue chips and index-linked large-caps, dealers said.

The composite index closed up 14.54 points at 423.96, off a high of 424.81 and low of 403.08.

In Taipei, Taiwan stocks fell 0.7 percent on the back of fresh weakness in the Hong Kong share market, dealers said.

The Taiwan Stock Exchange weighted price index dipped 57.40 points to 7, 778.16.

In Shanghai, the B shares, nominally reserved for foreign investors, fell 5.3 percent on a strong wave of selling Thursday sparked by the weakness on the Hong Kong markets, analysts said.

The Shanghai Stock Exchange's B share index lost 2.63 points to close at 46.76 points while the A share index of locally- traded stocks ended down 6.17 points, or 0.47 percent, to 1,309.19 points.

In Auckland, the New Zealand share market closed down 0.9 percent on low turnover with the broad market staying steady.

The benchmark NZSE-40 capital index tumbled 21.40 points to close at 2307. 91.