Stock markets head down as worries revive

Stock markets head down as worries revive

SINGAPORE (AFP): Most Asia-Pacific stock markets fell
yesterday as currencies lost ground amid renewed worries over the
regional financial crisis.

Fears that the International Monetary Fund (IMF) may withhold
rescue funds to Indonesia coupled with concerns over the health
of Malaysia's banking system hung over regional financial
markets.

The Jakarta bourse eased 3 percent, Kuala Lumpur 3.7 percent,
Taipei 2.5 percent, Bangkok 2.1 percent, Manila 1.8 percent,
Singapore 1.3 percent, Hong Kong 0.6 percent and Tokyo 0.4
percent.

A senior U.S. Treasury official on Tuesday warned that
Washington might withhold support for a second IMF disbursement
for Indonesia if authorities there fail to implement economic
reforms.

Currencies lost ground on the back of the Malaysian ringgit
after the country's central bank announced that two leading banks
faced financial difficulties and needed capital injections.

In Singapore, share prices fell in line with the Malaysian
stock market and in an anticipation of lower bank profits,
dealers said.

The Straits Times Industrials index shed 21.39 points to close
at 1,571. 49, while the more broadly-based All-Singapore index
dropped 9.19 points to 412.33 points.

In Hong Kong, share prices eased 0.6 percent but closed off
their lows as concerns about interest rates weighed on property
issues, dealers said.

The key Hang Seng index declined 74.65 points to close at
11,350.81, off an early low of 11,192.74 and a high of 11,414.20,
on turnover of HK$8.6 billion (US$1.1 billion).

In Tokyo, Japanese share prices closed 0.4 percent lower as
investors reacted to recent downgrading of corporate earnings
forecasts in the absence of other incentives, brokers said.

The Nikkei stock average of 225 selected issues on the Tokyo
Stock Exchange closed down 72.73 points at 17,095.60, with the
broader Topix index of all first-section issues off 5.18 points
at 1,290.92.

In Kuala Lumpur, Malaysia's key stock index fell 3.7 percent,
rocked by rising concerns that the health of the finance sector
could deteriorate further, dealers said.

The Kuala Lumpur Stock Exchange's 100-share weighted composite
index plunged 27.09 points to end at 705.94.

In Australia, stocks gained 0.8 percent, pulled higher by big
miner BHP which rocketed more than eight percent on the
resignation of its managing director John Prescott.

The Australian Stock Exchange's main indicator, the All
Ordinaries index, gained 21.0 points to 2,705.4.

Profits

In Bangkok, Thai stocks closed 2.1 percent lower in thin
volume as short-term investors took profits mainly in blue chip
banks and communications firms amid a crop of poor corporate
results.

"Those who bought shares since the beginning of this year
would probably make some profit while those who just stepped into
the market just a few days ago should not make much money," he
said.

The Stock Exchange of Thailand (SET) composite index shed
11.48 points to finish at 528.24 while the SET 50 selected index
dropped 0.98 points to 39. 69.

In Manila, Philippine share prices closed 1.8 percent lower
amid a correction and continued profit taking following recent
strong gains, analysts said.

It's "a correction and profit taking at the same time," said
Irving Ackerman of I. Ackerman and Company Inc.

The Philippine Stock Exchange composite index fell 39.55
points to close at 2,219.31 points

In Seoul, share prices closed 0.3 percent higher on the Korea
Stock Exchange, erasing early sharp losses, with retail investors
spurring active buying late in the session, dealers said.

The composite index closed up 1.87 points at 572.76, off a low
of 553.25.

In Shanghai, the B shares, nominally reserved for foreign
investors, fell 0.9 percent in line with the fall of the Hong
Kong stock market, analysts said.

The Shanghai Stock Exchange's B share index lost 0.53 point to
close at 46. 76 points while the A share index of locally traded
stocks ended up 12.57 points, or 1.0 percent, at 1,278.55 points.

In Taipei, Taiwan stock prices dropped 2.5 percent as
institutional selling set the lead for retailers, taking the
market barometer below the psychological 9,000-point level,
brokers said.

The Taiwan Stock Exchange weighted price index plunged 234.29
points to 8, 977.54.

In New Zealand, the stock exchange closed up 0.6 percent,
helped by a stronger Brierley Investments Ltd. share price and
forestry stocks.

The NZSE-40 index was up 14.19 points to 2,313.28 on good
turnover of NZ$74 million (US$43 million).