Profit-taking trims Asian stock gains

Profit-taking trims Asian stock gains

TOKYO (AFP): Asia-Pacific stock markets ended mixed yesterday, with domestic factors dictating the course of trading and profit- taking by investors paring down gains.

Expectations of additional economic stimulus in Japan, disappointment over Singapore's 1998 budget, a large trade surplus posted by South Korea, a large deficit logged by Australia and bank recapitalisation plans in Thailand were among factors influencing investors.

Indonesian President Soeharto's vow to move cautiously on plans to peg the rupiah and reaffirmation of his commitment to an International Monetary Fund reform program also underpinned regional stock markets.

Investors were also heartened by stability in the regional currency markets.

Japanese share prices rallied 2.6 percent on reported remarks by a ruling party leader calling for the use of funds from postal savings to bolster the stock market, brokers said.

The Nikkei stock average of 225 selected issues on the Tokyo Stock Exchange rose 432.67 points or 2.6 percent to close at 17,264.34, finishing above the 17,000 support level for the first time since February 12.

The broader Topix index of all issues on the first section was up 24.52 points at 1,296.97.

In Hong Kong, share prices dropped 1.4 percent after earlier gains were wiped out by futures-led profit-taking following a series of recent rises, dealers said.

"Profit-taking set in after strong selling in the futures in late trading, " said Eugene Law, research head at Lippo Securities.

The key Hang Seng index shed 161.85 points to close at 11,318.84 -- the first drop after three consecutive sessions of gains, following an 8.3 percent gain over the week to Friday.

In Singapore, share prices fell 0.3 percent, but ended off their lows, on profit-taking amid disappointment over details of the 1998 budget unveiled over the weekend.

"The market has gone up significantly since last week on hopes of a business-friendly budget. The absence of the corporate income tax cut in the budget disappointed investors," a dealer with a regional brokerage said.

The Straits Times Industrials (STI) index shed 4.74 points to close at 1, 610.64. The All-Singapore index fell 2.02 points to 428.11.

In Kuala Lumpur, Malaysia's key stock index closed barely changed in quiet trade on a lack of fresh leads, with selective buying offset by profit taking, dealers said.

The Kuala Lumpur Stock Exchange's 100-share weighted composite index ended at 745.12 points, down 0.24 of a point from Friday's close.

A senior institutional dealer at a bank-linked brokerage said the market was retail-dominated, with trading largely driven by rumors.

In Australia, shares closed barely higher after late profit- taking pared strong gains in the morning session, brokers said.

The Australian Stock Exchange's main indicator, the All Ordinaries index, gained half a point to 2,697.9.

In Bangkok, Thai shares closed 1.8 percent higher as investors hunted for bargains in blue chip stocks and the export sector, analysts said.

The Stock Exchange of Thailand (SET) index finished the day 9.75 points stronger at 538.17, while the SET 50 selected index climbed 0.95 points to 40. 32.

In Manila, Philippine share prices closed 0.6 percent higher due to last-minute buying after a brief bout of profit-taking, analysts said here.

The Philippine Stock Exchange composite index rose 14.26 points to close at 2,280.56 points.

In Seoul, share prices closed 2.7 percent up on the Korea Stock Exchange on foreign buying as sentiment was boosted by the won's rebound and a record February trade surplus, dealers said.

The composite index closed up 15.37 points at 574.35, off a high of 581. 12.

In Taipei, the Taiwan Stock Exchange weighted price index rose 74.53 points to 9,277. 09.

In Shanghai, the B share index rose 0.34 point to close at 59. 07 points while the A share index of locally-traded stocks ended down 19.76 points to 1,250.88 points.

In New Zealand, shares ended 0.1 percent higher, heartened by stable Asian markets. The NZSE-40 index closed at 2,288.40, up 1.93 points.