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).