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Hong Kong, Singapore drop
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December 23, 1998: 5:10 a.m. ET
Bearish billionaire talks Hang Seng lower as region's traders scramble for leads
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LONDON (CNNfn) - Hong Kong and Singapore stocks headed into the red Wednesday as the global momentum toward lower interest rates stalled and traders struggled to find leads in thin volumes.
With Japan closed for a national holiday and activity drying up across the region ahead of the Christmas break, there was little to excite the markets.
Decisions by the U.S. Federal Reserve and the European Central Bank to hold key interest rates steady gave traders little direction.
Hong Kong closed 1.6 percent lower while Singapore dropped 2 percent. Australia closed down 0.2 percent, Taiwan finished 1.4 percent lower and Indonesia lost 1.5 percent.
Korea and the Philippines added about 1 percent by the end of play in Seoul and Manila. Thailand inched ahead while Malaysia surged in afternoon trade to end 2.6 percent higher.
Hong Kong ended down 163.81 points at 10,158.75.
Tuesday's near-3 percent fall in Tokyo equities depressed traders. Falling Japanese bond prices did not help.
"That will affect us because it means we won't have a cut in U.S. interest rates very soon and so Hong Kong won't have a cut," said DBS Securities sales director Percy Au-Young.
Bearish comments by hugely influential local billionaire Li Ka-shing sent stocks lower.
Li, who stands down in the new year as chairman of developer Cheung Kong, said the political environment in Hong Kong had deterred him from making a HK$10 billion investment in a joint venture with an unnamed multi-national company.
The comments sent Cheung Kong down HK$1 to HK$57.25. Li's other company, telecom operator Hutchison, was hit harder, dropping HK$2 to HK$54.
"The market is thinking maybe he is referring to a telecom investment in Hong Kong fixed lines," said Au-young.
It was telecommunications stocks that dominated the day as China Telecom also took a hit. It dived 90 cents to HK$13.25 after regulators said the company would have to cut the cost of mobile phone subscriptions in bordering Guangdong province.
Bank stocks were also down. Heavyweight HSBC Holdings lost HK$1.5 to HK$197 while Hang Seng shed HK$1.25 to HK$71.5.
Singapore stocks slid in afternoon trade to close 27.87 points to 1,384.53. There was little news to drive the market and little activity as a result.
Rumors that DBS Bank was to sell its stake in DBS Land had boosted stocks Tuesday but once the reports were denied by the bank, both shares drifted lower.
DBS Bank lost 20 cents to S$8 while DBS Land lost 11 cents to S$2.35.
Heavyweights Singapore Press Holdings lost 20 cents to S$17.9 while Singapore Telecom dipped 3 cents to S$2.52.
But some banks held up. OCBC Foreign added 10 cents to S$11.5.
Australia closed 0.17 percent lower while Taiwan lost 1.39 percent by the end of trading. Indonesia finished 1.46 percent lower.
The Philippines closed up 0.89 percent while Korea moved 1.06 percent ahead.
Malaysia surged 2.59 percent higher and Thailand rose 0.27 percent.
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