U.S. rate hike has mixed impact on Asian markets

U.S. rate hike has mixed impact on Asian markets

HONG KONG (AP): Asian stock closed mixed Wednesday, with some
markets depressed by the overnight U.S. interest rate hike and
Japanese shares falling on its currency's strength.

In Tokyo, the 225-issue Nikkei Stock Average fell 240.25
points, or 1.33 percent, to 17,855.16. On Tuesday, the average
had fallen 0.76 percent.

In Hong Kong, shares fell as the U.S. interest rate increase
stirred fears that Hong Kong banks will follow suit.

The blue-chip Hang Seng Index fell 1.1 percent, or 154.74
points, to 13,479.13. The Hang Seng had gained 0.5 percent
Tuesday.

Traders focused on the overnight decision by the U.S. Federal
Reserve to increase interest rates by a quarter point, worrying
that Hong Kong banks may do the same.

Hong Kong's de facto central bank, the Hong Kong Monetary
Authority, raised the discount rate by a quarter point, but it
won't be clear whether the banks will go along until they meet
after the market closes Friday.

Rises in U.S. interest rates often are followed by similar
moves in Hong Kong because the Hong Kong dollar is pegged to the
U.S. currency, but experts warn this time that higher rates could
harm the territory's efforts to climb out of recession.

In Bangkok, prices rallied on huge foreign speculative buying
in banking stocks, which had fallen sharply lately, and on news
that Thailand would keep interest rates low.

The SET index jumped 4.9 percent, or 22.15 points, to 468.70.

In Kuala Lumpur, Malaysian shares fell, despite widespread
market expectations of strong economic growth. The Composite
Index closed at 768.43, down 6.75 points, or 0.87 percent.

In Jakarta, Indonesian shares fell slightly after the World
Bank threatened to halt aid if the investigation into
irregularities in fund transfers at Bank Bali isn't concluded
satisfactorily. The JSX Composite Index fell 0.979 point, or 0.2
percent, at 585.257.

In Manila, Philippine shares rose on strong demand for blue
chips. The PSE index rose 11.21 points, or 0.5 percent, to
2,260.14.

In Seoul, South Korean shares rallied on hopes that the
troubled Daewoo Group could repay its debts soon. The Kospi rose
30.59 points, or 3.3 percent, to 963.00.

In Singapore, Singapore shares rose, led by heavyweight
property developer City Developments Ltd. The Straits Times Index
rose 16.34 points, or 0.78 percent, to 2,136.36.

In Sydney, Australian shares fell on poor corporate earnings
and the U.S. interest rate hike. The All Ordinaries index fell
19.1 points, or 0.6 percent, to 3,033.3.

In Taipei, Taiwan shares rallied as investors bought heavily
in semiconductor-related stocks. The Weighted Price Index rose
142.70 points, or 1.8 percent, at 8,127.09.