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Dow wows Hong Kong
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March 30, 1999: 5:36 a.m. ET
Hang Seng surges 251 points; economic woes hit Tokyo
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LONDON (CNNfn) - Hong Kong stocks rocketed more than 2 percent Tuesday, propelled by the twin engines of a major Dow breakthrough and heavy futures buying. But Tokyo's initial euphoria dissolved after an economic report showed record unemployment in February.
The Hang Seng index finished up 251.74 points, or 2.36 percent, at 10,940.21 taking heart from the Dow's ability to remain above the 10,000 mark Monday.
This time, the Dow mustered a 184-point rally that bore the benchmark index to its record-breaking close at just over 10,006. But the spill-over effects were not enough to offset gloomy economic data in Japan, the region's largest market.
The Nikkei 225 average ended down 149.72 points, or 0.94 percent, at 15,859.12. June Nikkei futures tumbled 160 points to end at 15,850.
"People who bet on the Dow's rally unloaded what they had gotten," Tetsuya Ishijima, chief strategist at Okasan Securities Co. Ltd. told Reuters.
The government reported Tuesday that joblessness jumped to a record-high 4.6 percent in February, up 0.2 percent from the previous month.
In Hong Kong, the rally was underpinned by property stocks, which soared during the morning session as investors reacted with gusto to a successful string of apartment sales by leading developers. Brokers told Reuters investors were taking long futures positions ahead of the March index futures expiration later Tuesday, further bolstering the market.
Despite Tuesday's buying spree, the Hang Seng remains more than 200 points below its 11-month intra-day high of 11,161, set on March 22.
The spill-over from Wall Street spurred Australia's All Ordinaries to a firmer finish. The index added 0.72 percent, or 21.3 points, to 2,995.3, closing within a whisker of its record finish Friday at 2,996.6.
In Singapore, the Straits Times index drew sustenance from Wall Street, advancing 1.58 percent to close at 1,521.20. Property stocks led the gainers, rising more than 3 percent in the morning.
South Korea stocks notched up the biggest gains of the day across the region, finishing 2.82 percent higher, at 618.05.
Thai shares pared early gains to finish down nearly 0.75 percent after an anxious session as investors awaited the details of an economic stimulus released Tuesday. The $3.5 billion economic rescue package is an attempt to prod the nation's sluggish economy back to life and avert a credit crunch.
Jakarta and Philippine shares ended marginally higher, while Taiwan's weighted index dipped 0.04 percent and Malaysian stocks gave up more than 1 percent.
--from staff and wire reports
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