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Bank fears weigh on Tokyo
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December 15, 1998: 5:43 a.m. ET
Japan and Singapore ease while Hong Kong climbs
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LONDON (CNNfn) - Fears that more Japanese banks could be put under state control pushed Tokyo stocks down moderately Tuesday. But the benchmark Nikkei average rallied to keep its head just above the 14,000 point barrier.
Declines on Wall Street and European markets Monday - and the possible impeachment of U.S. president Bill Clinton -- weighed heavily on Asia and further depressed the Japanese market. Singapore shed 0.8 percent.
But Hong Kong held up better, adding 1.3 percent by its close. Australia, Malaysia, Thailand and Taiwan all closed up about 0.5 percent. Korea climbed 3.7 percent.
The Philippines and Indonesia both closed down less than 1 percent.
Japan's benchmark Nikkei average finished 0.71 percent or 100.43 points lower at 14,011.19. It had dropped below the 14,000 level for the first time in a month.
"There was a lot of weakness in some of the banks in particular," said HSBC strategist Jason James. "There was a bit of reaction by foreigners to the Nippon Credit Bank liquidation or whatever it was at the weekend."
Yasuda Trust and Daiwa Bank are among the institutions believed to be most at risk of a state bail-out. Yasuda plunged 17 percent to 89 yen while Daiwa dived 9 percent to 181 yen.
Banks as a whole were down 2.43 percent, though real estate stocks were the biggest decliners on the Nikkei, losing 3.48 percent as a sector.
Nippon Telegraph and Telephone rallied to finish unchanged at 882,000 yen. Late Monday the finance ministry set the price for the further portion of shares in the company it plans to offer at 855,000.
Global woes and fears that the local market is starting to look a little expensive took Singapore stocks lower again.
The Straits Times index finished down 0.81 percent or 11.21 points at 1,368.29.
The index came back a little in late trade, though banks and property-related stocks led the market lower.
DBS bank lost 15 cents to S$7.4 while OCBC bank dipped 10 cents to S$6.4. City Development shed 15 cents to S$7.25.
But Hong Kong, which normally mirrors moves on Wall Street to a greater extent than Singapore, held up. The Hang Seng index put on a late spurt to climb 1.3 percent or 127.63 points to 9,952.84.
"We were impervious to Wall Street, Clinton's dilemma and Brazil taking a bath last night which is good news," said South China Brokerage vice-chairman Howard Gorges.
"It reflects a bit of institutional nibbling at the lower levels. The market seems to find support at 9,800. We have bounced off that several times in the last few weeks.
Heavyweight HSBC Holdings added HK$1.5 to HK$189 while Hang Seng Bank jumped HK$2 HK$67.75.
Developers were also higher. Sun Hung Kai was up 1.87 percent at HK$54.5 while New World Development climbed almost 3 percent to HK$18.8.
Korea was the day's best performer. Local stocks have enjoyed a resurgence on the back of corporate restructuring in recent weeks and soared 3.68 percent on the day. Australia climbed 0.43 percent while Taiwan finished 0.69 percent higher.
Malaysia inched ahead 0.5 percent while Thailand jumped 1.24 percent.
The Philippines closed 0.23 percent lower and Indonesia finished off 1 percent. 
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