Rioting in RI hits KL, Jakarta shares

Rioting in RI hits KL, Jakarta shares

HONG KONG (AP): Most Asian stock markets closed lower
yesterday, with shares tumbling in Kuala Lumpur and Jakarta
following rioting in Indonesia.

News of the rioting in Indonesia caused a sell-off by
foreigners on the Kuala Lumpur Stock Exchange, where the
benchmark Composite Index, which tracks 100 key stocks, fell
19.03 points, or 3 percent, to 608.40.

Dealers said any political turmoil in Indonesia could hurt
Malaysia, which is host to more than 1 million Indonesian
workers.

The Jakarta Stock Exchange's Composite Index fell 10.834
points to 435.160.

The Hong Kong stock market's main index tumbled 2.7 percent
after the government reported a sharp drop in the territory's
economic growth in the fourth quarter of last year.

The Hang Seng Index, the market's key indicator of blue chips,
fell 285.76 points, closing at 10,153.66. On Monday, the index
had slumped 124.26 points.

Brokers said investors were concerned over the prolonged
economic downturn in the territory.

The government said Monday that Hong Kong's economic growth
slowed to 2.7 percent in the fourth quarter of 1997 from 5.7
percent in the previous quarter.

Financial Secretary Donald Tsang also said that he expected
bankruptcies and unemployment to rise in the near future.

Going against the trend was the Philippines, where shares
closed higher on expectations of a market rally after next week's
presidential elections.

The Philippine Stock Exchange index of 30 selected stocks
soared 59.06 points, or 2.7 percent, to 2,267.18 after Monday's
26.8-point gain.

Markets were closed in Japan, South Korea and Thailand for
holidays.

In Singapore, share prices closed largely lower as investors
were wary of the region's economic and financial woes. The
Straits Times Industrials Index fell 7.13 points, or 0.4 percent,
to 1,469.27.

In Taipei, share prices closed lower in the absence of any
upbeat news in the market. The market's key Weighted Stock Price
Index fell 30.45 points, or 0.4 percent, to 8,330.15.

In New Zealand, share prices closed higher, buoyed by a
stronger finish in the U.S. share market overnight and a better
performance by most leading stocks. The NZSE-40 Capital Index
rose 10.40 points, or 0.4 percent, to 2,248.09.

In Australia, share market closed lower, with brokers citing a
lack of investor buying interest at current price levels. The All
Ordinaries Index fell 8.8 points, or 0.3 percent, to 2,803.5.