Widespread profit-taking knocks Asian stock markets off beam

Widespread profit-taking knocks Asian stock markets off beam

TOKYO (AFP): Investors locked in profits Tuesday on handsome gains notched up by share prices the previous day, cutting short a rally on Asian stock markets that helped lift world bourses.

The profit-taking came despite Japan moving to fix its banking crisis with the lower house passing a second set of reform bills.

Tokyo stocks tumbled 2.3 percent on doubts over how effective the reforms would be, Singapore dipped 0.1 percent, Kuala Lumpur ended 1.1 percent lower and Sydney fell 0.5 percent.

Seoul fell 1.7 percent and Bangkok lost 0.2 percent.

Hong Kong, Manila and Jakarta posted gains.

Regional bourses had staged a strong rally Monday, boosted by a firmer yen, Tokyo's moves to reform banks and hopes of interest-rate cuts. The focus moved Tuesday from regional issues to domestic ones.

Tokyo stocks were hit Tuesday by lingering skepticism over the effectiveness of the series of key bank reforms now passing through parliament, brokers said.

The Nikkei 225 index fell 312.22 points to close at 13,242.79, reversing the previous day's 675.04-point rebound from its near- 13 year low.

The broader Topix index of all issues on the first section of the Tokyo Stock Exchange was also down 24.36 points at 998.98.

In Hong Kong, the key Hang Seng index gained 18.56 points to close at 9,008.83 in fifth straight winning session. The index last closed above 9,000 points on May 26, when it reached 9,482.21.

In Singapore, the Straits Times index dipped 0.96 of a point to end at 1,015.64 but off a low of 1,004.97. The broader All- Singapore index ended down 0.54 of a point at 302.01.

In Kuala Lumpur, Malaysian share prices fell 1.1 percent as investors locked in profits on gains posted the day before.

The Kuala Lumpur Stock Exchange composite index fell 4.46 points to 385. 04, while the lesser second board index fell 4.33 points or 4.3 percent to 97. 02.

In Sydney, the Australian Stock Exchange's benchmark All Ordinaries index fell 13.1 points to 2,488.5.

In Bangkok, the Stock Exchange of Thailand (SET) composite index dropped 0.61 points to 290.19, while the SET 50 selected index finished 0.09 points weaker at 20. 73.

In Manila, the Philippine Stock Exchange index gained 24.50 points to 1,367.77 as investors snapped up oversold issues and bid up the price of dominant carrier Philippine Long Distance Telephone Co. (PLDT), a reported hostile takeover target.

In Seoul, the Korea Stock Exchange closed 1.7 percent down amid heavy profit taking. The index fell 6.09 points at 346.08, off a low of 344.91 and a high of 358.31, with steadier interest rates and the weaker yen leading to profit taking.

In Taipei, the Taiwan Stock Exchange weighted price index dropped 11.23 points to 6, 909.22, following a 0.3 percent decline in the previous session.

In Shanghai, the Shanghai Stock Exchange's B-share index added 0.02 point to settle at 35.58 points. The A-share index of locally traded stocks finished down 3.31 points, or 0.2 percent, at 1,321.34 points.

In Auckland, the NZSE 40 index gained 32.19 points to 1,755.84.