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).