Tokyo slump drags Asian bourses down

Tokyo slump drags Asian bourses down

TOKYO (AFP): Japanese share prices led a regionwide fall yesterday, with the key index suffering the largest decline this year after the release of a weak "Tankan" business confidence survey.

Singapore lost 2.0 percent on concerns about neighboring Malaysia, with Kuala Lumpur down 2.3 percent.

Hong Kong was dragged down 1.3 percent by Tokyo's tumble, which eroded earlier gains in Sydney on Wall Street's continued strength. Australian stocks managed only a meager 0.1 percent increase.

The Nikkei stock average of 225 selected issues ended down 538.76 points or 3.3 percent at 15,702.90, the steepest single- day drop since the turn of the year, after tumbling to 15,634.47 points at one stage.

It was the lowest close since January 14 when the index finished at 15,121. 98. The intra-day high was 16,215.28 touched at the open. An estimated 700 million shares changed hands on the major board, up from the previous day's 566.2 million shares.

"Foreign investors remained sellers, with retail investors and institutional investors sidelined, awaiting details of the government's stimulus package," a Meiko Securities Co. Ltd. broker said.

Elsewhere in the Asia-Pacific region:

In Hong Kong, share prices fell 1.3 percent in the absence of fresh incentives and on sharp falls in Tokyo.

The key Hang Seng index lost 141.71 points to close at 11,189.71 -- its second consecutive loss for the week.

In Singapore, share prices closed 2.0 percent lower in thin trade, with investor sentiment dampened by concerns over bankruptcy and rising non-performing loans in neighboring Malaysia.

The Straits Times Industrials index fell 31.52 points to end at 1,568.60, while the All-Singapore index fell 2.98 points to 406.51.

In Kuala Lumpur, Malaysia's key stock index ended 2.3 percent lower, weighed down by fears of more corporate failures and concerns over the health of the banking sector.

The Kuala Lumpur Stock Exchange's 100-share weighted composite index fell 15.78 points below the 700-psychological level to end at 684.27, off the day's low of 681.45.

In Seoul, share prices tumbled 3.1 percent on the Korea Stock Exchange, with sentiment weakened after the index fell below 460 points, triggering "panic-selling," securities dealer Choi Sung- ho said.

The composite index closed down 14.56 points at 453.66, off a low of 450. 25.

In Bangkok, share prices slipped 0.6 percent in quiet trade as investors backed out of large capitalization stocks amid worries over earnings and interest rates.

The Stock Exchange of Thailand (SET) composite index fell 2.69 points to close at 453.88, while the SET 50 selected index was down 0.27 points at 32. 81.

In Manila, share prices closed 1.6 percent lower due to the continuing weakness of the local currency, the approach of Easter holidays and the need for funds for income tax payments.

The Philippine Stock Exchange composite index fell 35.37 points to 2,174 points.

In Shanghai, B shares, nominally reserved for foreign investors, fell 1.9 percent as institutions reduced their positions to buy A shares.

The Shanghai Stock Exchange's B share index lost 1.03 points to close at 52.80 points while the A share index of locally- traded stocks ended up 15.57 points, or 1.2 percent, to 1,340.53 points.

In Taipei, stock prices dipped 0.3 percent on strong selling of technology issues, following a US move to impose anti-dumping duties on some computer chip makers, dealers said.

The Taiwan Stock Exchange weighted price index dropped 28.40 points to 9, 013.10, following a 0.5-percent decline Wednesday.

In Australia, share prices closed 0.1 percent higher, but early gains were sapped by falls in the Japanese market.

The Australian Stock Exchange's main indicator, the All Ordinaries index, gained 4.1 points to 2,757.0.

In New Zealand, stock market, already concerned about a sliding Kiwi dollar, was unnerved by the extent of falls in Tokyo and closed down 0.8 percent.

The NZSE-40 index lost 17.51 to 2,315.21.