Regional markets hit by currency weakness

Regional markets hit by currency weakness

HONG KONG (AFP): Most Asian bourses plummeted yesterday as regional currencies were sold down to historic new lows, deepening the gloom over regional financial markets.

Hong Kong shares fell 1.6 percent, Tokyo 0.4 percent, Singapore and Kuala Lumpur 3.8 percent, Jakarta 1.9 percent, Manila 2.8 percent, Taipei 0.8 percent and Shanghai 3.6 percent.

Markets were hit by jitters as the Indonesia rupiah, the Thai baht, the Malaysian ringgit and the Philippine peso maintained their freefall against the US dollar, seen as a haven from the regional crisis of confidence.

In Hong Kong, share prices dipped on an increase in interbank interest rates, fixed higher amid the renewed weakness in regional currencies to ward off any pressure on the local dollar, dealers said.

The key Hang Seng index shed 168.03 points to close at 10,135.51, after dropping 3.5 percent in Monday's trading.

In Tokyo, Japanese share prices closed 0.4 percent lower, pressured by lingering concerns over economic prospects and the yen's decline in foreign exchange trading, brokers said.

The Nikkei stock average of 225 selected issues on the Tokyo Stock Exchange fell 60.44 points to end at 14,896.40. The broader Topix index of all first-section issues lost 5.98 points to 1,160.65.

In Sydney, the Australian Stock Exchange's key All Ordinaries index closed up 41 points at 2,685.3. The All Industrials index rose 92.5 points to 4616. 4, but the All Resources index was down 3.2 points at 1142.9.

In Singapore, Singapore's benchmark stock index plunged 3.8 percent as Southeast Asian currencies received another beating and fears of more interest rate hikes spooked the local market.

The Straits Times Industrials index closed 56.83 points lower to 1,439.12. The more broadly-based All-Singapore index was 14.43 points down at 402.99.

In Kuala Lumpur, Malaysia's key stock index closed 3.8 percent lower, extending the previous day's losses amid sharp plunges in the ringgit and other regional currencies.

The Kuala Lumpur Stock Exchange's 100-share weighted composite index tumbled 21.05 points to end at 525.74. The lesser second board index fell 3.8 percent, or 5.61 points, at 143.52. Elsewhere in the Asia-Pacific:

In Bangkok, Thai shares staged a slight rally in late afternoon trade, finishing the day 1.1 percent higher, despite continuing turmoil in regional currency markets.

The Stock Exchange of Thailand (SET) broad based index closed 4.09 points stronger at 370.27, while the SET 50 index gained O.56 points to close at 26. 12, on thin trade of 1,257,162 lots worth 1.74 billion baht (34 million dollars).

In Manila, Philippine share prices fell 2.8 percent as the local currency plunged to new record lows.

The Philippine Stock Exchange index dropped 52.24 points to 1,820.60.

In Seoul, share prices closed 2.5 percent higher on the Korea Stock Exchange on active foreign buying and revived interest in second and third-liners, dealers said.

The composite index broke through the 400 point mark to close up 9.85 points at 406.34, off a high of 406.39.

In Taipei, Taiwanese stocks dropped 0.8 percent in volatile trading amid fears of a further depreciation in the local currency, dealers said.

The Taiwan Stock Exchange weighted price index dropped 62.45 points to 7, 966.18.

In Shanghai, the B share index fell 1.98 points to 52.71 points while the A share index of locally-traded stocks rose 15.08 points, or 1.2 percent, to 1,302.53 points.

In Auckland, New Zealand stocks gained 1.1 percent on a strong performance by paper and pulp issues.

The NZSE-40 index was up 24.81 points at 2,340.55 on a turnover or NZ$67.84 million (US$38 million).