|
HK nose-dives 405 points
|
 |
July 14, 1999: 5:25 a.m. ET
Taiwan-China tensions, yuan jitters send HK reeling; Tokyo rallies on tech mania
|
LONDON (CNNfn) - Hong Kong stocks tumbled almost 3 percent Wednesday as Taiwan's decision to jettison its decades-old "One China" policy and renewed talk of yuan devaluation soured sentiment. High-flying technology stocks and rekindled optimism over economic recovery hoisted Japanese blue chips to their highest close in 21 months Wednesday.
Taiwan suffered the most stinging setback of the day in Asia, plummeting 3.85 percent as the policy brinkmanship with China, which claims the territory as its own, knocked the weighted index off balance.
Seoul shares dived more than 2 percent, while Australian stocks ended virtually unchanged, Singapore notched up about 1 percent.
Optimism crested in Tokyo, where the Nikkei 225 average ended up 176.77 points, or 0.97 percent, at 18,357.86. High-tech and machinery issues made impressive strides a day after computer maker Fujitsu, which aims to become Japan's leading Internet provider, surged to a historic high.
Among Wednesday's favorites, Matsushita Electric Industrial rocketed 16.53 percent to 2,820 yen after a Morgan Stanley analyst added the company to a list of top stocks.
Riding Matushita's blazing coattails, Hitachi advanced 4.95 percent to 1,250 yen; Sharp shot up 5.23 percent to 1,610 yen and Toshiba added just over 1 percent to 977 yen.
Hitachi Maxell, rallied for the third straight day, soaring 14.75 percent to a year-high of 3,150 yen. It announced a sales target of 10 billion yen by 2001 for electronic media products. Yaskawa Electric racked up a 10.13 percent gain to 413 yen, while TDK Corp. advanced 5.25 percent to 13,030 yen.
In Hong Kong, the Hang Seng extended its afternoon losses to close down 2.9 percent, or 405.36 points, at 13,575.57, rattled by renewed fears of a Chinese yuan devaluation, debt problems in Argentina, and flaring tensions between China and Taiwan over the latter's decision to forsake its official adherence to the notion that it is part of a single state with China.
The latest tensions stem from comments made by Taiwan's president over the weekend to a German radio station that the two countries should enjoy a "state-to-state" relationship. The shift in policy was later confirmed by another senior Taiwanese official.
"The Taiwan thing has got into the market now, Howard Gorges, a director at South China Securities in Hong Kong, told Reuters. "In the last couple of days it didn't seem to be a factor."
Traders also fear that economic turmoil in Argentina could trigger domino-effect currency devaluations in Asia. Red chip companies - or mainland companies listed in Hong Kong - took a sharp hit Wednesday, faring even worse than the sagging blue chips.
China Telecom, a red-chip company listed in Hong Kong, closed down 4.9 percent at HK$23.350. The telecom announced Tuesday that it may become a subsidiary of a new Chinese cellular firm, but has no plans to formally merge with the start-up.
A report in a Shanghai securities journal that red-chip Nanjing Panda Electronics is shifting its focus from color televisions to telecommunications to recoup lost profits sent Nanjing Panda stock surging 29 percent to HK$0.890.
Banking giant HSBC slipped 3 percent to 96.250.
On Wall Street, the Dow Jones industrial average ended 0.2 percent lower at 11,175 as investors focused more on political turmoil in Latin America than corporate earnings optimism. U.S. traders fear that debt problems in Argentina may spread through Latin America and ripple to American shores.
Singapore shares initially shrugged off the regional downturn as traders bought back into positions they had sold off earlier. But the Straits Times Index later pared its gains to finish flat at 2,178.49.
Australia's All Ordinaries slipped 0.31 percent to close at 3.054.4 as investors braced for U.S. economic numbers due out Wednesday that could offer clues about near-term directions in interest rates.
Jakarta shares rose more than 1 percent, while Philippine shares pared some losses in late trade to close 1.29 percent lower at 2,570.96. Local traders said the market is in a corrective phase that is likely to continue in the near-term.
Seoul's Kospi succumbed to a selling streak following recent gains, sliding 3.43 percent to end at 953.67. Thai shares faced selling pressure among banking and financial firms, which are due to unveil half-year financial results next week.
Kuala Lumpur, however, received a lift from buying in property and financial issues. The composite index finished up more than 1 percent.
--staff and wire reports
|
|
|
|
|
 |
|
