Rupiah's freefall spooks Asian bourses

Rupiah's freefall spooks Asian bourses

TOKYO (AFP): Asia-Pacific stock markets dipped yesterday, spooked by the freefall of the Indonesian rupiah which deepened regional economic gloom and worries over corporate health.

Stock indices in Tokyo, Hong Kong, Singapore, Kuala Lumpur, Sydney, Bangkok, Jakarta, Manila, Seoul and Taipei, Shanghai and Auckland closed lower in sympathy with fresh weakness assailing regional currencies.

A dollar-buying spree by Indonesian corporates saw the rupiah hit a new record intra-day low of 16,500 to the US dollar, marking a 43.5-percent gain for the greenback from its close Wednesday of 11,500 to the U.S. dollar.

The rupiah recovered as selling pressure on it eased with reported central Bank Indonesia intervention. The rupiah ended its rollercoaster ride at 12, 000 to the dollar.

But sentiment in Indonesian markets -- and elsewhere in Asia -- was still fragile amid worries over corporate debt repayments and a successor to long-reigning Indonesian President Soeharto, 76.

In Tokyo, share prices fell 1.7 percent, hit by profit taking after a six-day rising streak and late selling on concerns over the fallout from the Asian crisis, brokers said.

"Active profit-taking on the day was a natural consequence, taking into account the fact that the Nikkei 225 index gained more than 2,000 points in just (the past) six days of trade," a Yamamaru Securities broker said.

The key Nikkei stock average of 225 selected issues on the Tokyo Stock Exchange fell 278.73 points to end at 16,405.69.

In Hong Kong, shares fell 3.9 percent as Indonesia's economic mess worsened and fears rose over the health of local finance firms, dealers said.

"Concerns over regional problems are escalating. I even see the market testing the 8,500-point level in the near term," said Nikko Securities analyst Steven Thompson.

The key Hang Seng index fell 363.07 points to 8,883.73.

In Singapore, blue-chip stock index dropped 3.2 percent on worries over a persistent plunge in the Indonesian rupiah which took its toll on other regional currencies as well.

The Straits Times Industrials index of the Stock Exchange of Singapore fell 41.91 points to end at 1,269.49 while the broader All-Singapore index slipped 10.34 points to 375.77.

In Kuala Lumpur, Malaysia's key stock index closed 2.6 percent lower, weighed down by falls in regional bourses and currencies, but ended off its lows on light local buying, dealers said.

The Kuala Lumpur Stock Exchange's 100-share weighted composite index fell 15.34 points to end at 575.21, off an earlier low of 565.71.

In Sydney, Australian share prices fell 0.9 percent, amid disappointing quarterly profit results and renewed turmoil in Asian markets as investors eased off ahead of a bank holiday, brokers said.

The Australian Stock Exchange's main indicator, the All Ordinaries index, fell 23.4 points to 2,599.4.

In Bangkok, Thai share prices closed 2.8 percent lower in active trading following the sharp fall of the rupiah, with most investors selling banking and finance stocks, dealers said.

The Stock Exchange of Thailand (SET) composite index finished 12.06 points weaker at 420.80, off a low of 419.63 points and a high of 441.63. The SET 50 index lost 1.29 points at 31.29 by the bell.

In Manila, Philippine share prices fell 2.7 percent amid a weakening peso, analysts said.

The Philippine Stock Exchange composite index shed 47.66 points to close at 1,707.61 points.

In Seoul, share prices closed 4.5 percent lower on the Korea Stock Exchange Tas foreign investors sold blue chips in afternoon trade, dealers said.

The composite index closed down 22.67 points, or 4.5 percent, at 483.99.

In Taipei, Taiwan stocks slid 0.2 percent ahead of the Chinese New Year holiday as investors took to the sidelines awaiting an expected post-holiday rally, dealers said.

The Taiwan Stock Exchange weighted price index moved down 13.18 points to 8,085.47.

In Shanghai, the B shares, nominally reserved for foreign investors, plunged 4.5 percent in line with a drop in Hong Kong's Hang Seng index, dealers said.

The Shanghai Stock Exchange's B share index lost 2.15 points to close at 45.50 points while the A share index of locally- traded stocks rose 5.57 points, or 0.4 percent, to 1,274.56 points.

In Auckland, New Zealand shares closed down 0.4 percent in thin and lackluster trade amid worries about the impact of Asia's financial turmoil.

The NZSE-40 capital index fell 9.22 points to 2,244.92 on a turnover of NZ$42. 92 million (US$24.8 million).