Regional markets rally as currencies stabilize

Regional markets rally as currencies stabilize

HONG KONG (AFP): Hong Kong share prices surged 5.9 percent
yesterday on bargain-hunting as stable regional currencies and a
multi-billion-dollar international aid package for Indonesia
cheered Asia-Pacific markets.

"Investors think the market has stabilized," amid an easing of
fears over attacks on regional currencies, said Sean Li,
associate director at Amsteel Securities.

Hong Kong's key Hang Seng Index gained 631.33 points to close
at 11,255. 11, after a roller-coaster ride the previous week.

Sydney: The Australian stock market recovered its nerve,
ending 1.6 percent up after a choppy morning with investors
seeking bank and industrial shares.
The Australian Stock Exchange's main barometer, the All
Ordinaries index, closed 39.0 points up at 2503.8.

Singapore: Singapore's blue-chip stock index rebounded
strongly to close 7. 4 percent higher as investors went bargain
hunting for counters that dropped sharply last week.

"This buying spree is in response to publicity that Singapore
stocks are pretty attractive after the steep falls but I think
it's more of a technical correction rather than a change in
trend," a dealer with a local stock brokerage said.

The Straits Times Industrials index of the Stock Exchange of
Singapore rose 117.88 points to end at 1,703.95 while the broader
All-Singapore index added 24.53 points to close at 424.93.

Kuala Lumpur: Malaysian stocks rebounded 7.8 percent on the
back of improved sentiment following an initial warm reaction to
the International Monetary Fund's rescue package for Indonesia.

The Kuala Lumpur Stock Exchange's 100-share weighted composite
index closed at the day's high of 716.72 points, up 52.03 points
from Friday's finish.

"Foreign investors are now more confident that regional
economies can improve but they are probably not back in a herd
yet," a senior investment analyst at a foreign brokerage said.
Elsewhere in the Asia-Pacific:

Bangkok: Thai share prices posted marginal gains, but closed
sharply down from morning highs after the senior economic advisor
to the cabinet submitted his resignation.

Although Chatichai Choonhavan's resignation from the post did
not mean his party -- the second largest in the ruling coalition
-- was withdrawing from the government, it prompted fears of
further political instability.

The Stock Exchange of Thailand (SET) broad-based index edged
up 0.23 points to 447.44 points, off a high of 456.99 points,
while the SET-50 select index was up 0.04 points at 32.28 points.

Manila: Philippine share prices closed 0.4 percent higher in
thin trade as some investors went bargain hunting.

"Some people are starting to buy because the market is so
cheap," said Abe Cordero, vice-president of HK Securities, Inc.,
while adding that trading was too thin for the gain to be of real
significance.

The Philippine Stock Exchange index gained 7.17 points to
settle at 1,825. 26 points

Seoul: Share prices closed 2.9 percent up but off their highs
on the Korea Stock Exchange, boosted by foreign buying of select
core blue chips after the foreign investment ceiling was raised.

Dealers said foreign investors appeared to have been net
buyers of shares worth some 250-to-300 billion won ($259-to-310
million) as their investment limit was increased to 26 percent
from 23 percent.

The composite index closed up 14.44 points at 511.66 on a
volume of 64.7 million shares worth 786.9 billion won (815
million dollars).

Shanghai: Shanghai's B shares, nominally reserved for foreign
investors, closed 1.5 percent higher with trading dominated by
selective counters.

The B share index closed 0.99 points up to 64.98 points, while
the A share index of locally-traded stocks closed 0.01 points up
at 1,238.77 points.

Taipei: The Taiwan stock market soared 4.6 percent, buoyed by
the prospects of better cross-strait relations as well as gains
in Hong Kong and Wall Street.

The benchmark Taiwan Stock Exchange weighted price index rose
332.95 points to 7,646.35.

Auckland: The New Zealand stock exchange closed up 1.5 percent
after swinging through a wide range.

The NZSE-40 index ended up 34.37 points to 2,390.20 on a
turnover of NZ$66.9 million (US$41.7 million).
James Reid said.

European share prices rose early on Monday, buoyed by an
overnight rally on Hong Kong, but underlying sentiment remained
cautious amid concerns about further volatility on global
markets.

In London, the Footsie-100 index posted an early gain of 1.44
percent, before slipping back to show an advance of 42 points, or
0.87 percent, to 4, 884.3.

In Paris, the CAC 40 index of leading shares rose by 0.83
percent in early trade to 2,761.93 points.

In Frankfurt, the DAX-30 index opened two percent higher at
3,802.52 points.