Tokyo stocks end flat
|
|
June 2, 1999: 5:02 a.m. ET
Economic uncertainty becalms Nikkei; HK higher, boosted by HSBC
|
LONDON (CNNfn) - Japan's benchmark index pared early gains to end virtually flat Wednesday as questions turned to a pending economic stimulus plan and concerns about the trajectory of the U.S. economy.
Hong Kong stocks also retreated in late trade, ending up less than 1 percent, as a buying spree in index heavyweight HSBC Holdings failed to offset a late-day sell-off in the banking sector spurred by fears of bad-loan provisions to a struggling Chinese enterprise.
The Nikkei 225 average was becalmed by the close, ending up 0.06 percent, or 9.49 points, at 16,417.99, helped by overseas buying of blue-chips. The Hang Seng slunk back from an earlier high of 12,534.79 to finish 95.08 points, or 0.77 points higher, at 12,458.64. Traders said the index encountered resistance at the 12,500 level.
HSBC Holdings, the territory's largest bank, advanced HK$4.00 to HK$268.00, buoyed by shareholders' earlier approval of plans to denominate its shares in U.S. dollars, rather than the current pounds sterling or Hong Kong dollars, starting in early July.
But other banks lost ground as investors feared their exposure to Guangdong Enterprises, a mainland company undergoing a painful restructuring, could spell more problematic debt provisions ahead. Hang Seng Bank slipped HK$1.50 to end at HK$82.750.
Bank of East Asia eased HK$0.20 to HK$17.70. Separately, the bank's chairman said he was talking to at least two other banks with an eye on acquiring a stake.
"About half of the gain is Hongkong Bank (HSBC) and there has been a revival of the property sector," Alan Hutcheson, the head of research at Pacific Challenge Securities told Reuters.
In Tokyo, traders were unnerved throughout the day by uncertainty over the timing of the announcement of a government package of economic measures aimed at restructuring industry and creating jobs.
Traders are anxious to learn whether the plan, scheduled to be unveiled on June 11, will call for a supplementary budget.
Further rattling investors was volatility on Wall Street Tuesday, where fresh economic data concerned investors already fearful of higher interest rates. A stronger-than-expected manufacturing survey in the United States Tuesday fanned fears of higher inflation that some see as a harbinger of tighter monetary policy.
The Nasdaq composite index plummeted 58.49 points, or 2.4 percent, to 2,412.03. The Dow Jones Industrial average, however, recovered from a loss of more than 150 points at one stage to rise 36.52 points to 10,596.26.
Technology stocks suffered a setback in Tokyo, in line with the Wall Street trend. Sony Corp. fell 1.4 percent to 11,080, while TDK slipped nearly 1 percent to 10,500 yen. But financial issues fared markedly better.
Nikko Securities closed up more than 6 percent at 578 yen. Yamatane Securities roared up 12 percent to 224 yen.
Toyota Motor Corp. climbed 3 percent to finish at 3,440 yen after its president said the carmaker was yet to determine whether it would sell its 17.7 percent share in overseas long-distance carrier International Digital Communications Inc.
Poor job figures indicating record-high unemployment further dampened sentiment in Tokyo.
In Hong Kong, property stocks posted mixed performances despite a generally favorable reaction to a recent rebound in realty sales. Sun Hung Kai Properties was down HK$0.25 at HK$64.50. Cheung Kong rose HK$0.25 to HK$64.750.
The pay dispute between pilots and Cathay Pacific continued to fester. The pilots' union said it planned to meet Wednesday with Hong Kong's Labor Department to try to end an impasse in the talks. Cathay stock closed up 0.40 euros at HK11.30.
Also on the upside, Singapore's Straits Times index gained nearly half a percent to 1,917.37 in late trade, underpinned by gains in blue chip heavyweights Singapore Airlines, which announced an increased load factor, and Singapore Telecom, which is due out with results Friday.
Australia's All Ordinaries ended virtually flat at 2,914.7 as concerns of higher U.S. borrowing costs pressured the market. Investors also juggled fresh local economic numbers Wednesday showing continued strong growth in the Australian economy amid tame inflation.
Leading the regional gainers, Seoul's Kospi rallied nearly 3 percent, a day after the government reported a 44 percent plunge in the country's trade surplus in May. Thai shares were up 1.6 percent, while in Taiwan the weighted index added 90 points, or 1.2 percent by the finish.
Malaysian shares slid 2.4 percent, however, on a technical correction following gains in many second-tier stocks Tuesday. Doubts about a bank recapitalization plan also pushed Jakarta stocks 1.6 percent lower.
The Philippine Composite index ended 1 percent lower, at 2,415.77, dragged down by a fall in the country's largest phone operator, Philippine Long Distance Phone Co.
--from staff and wire reports
|
|
|
|
|
|