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Japan dips; HK creeps up
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October 21, 1999: 6:50 a.m. ET
Asia ends on ambivalent note after IBM profit alert; techs lead Tokyo lower
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LONDON (CNNfn) - Asian stocks sputtered and ended mixed Thursday as a profit warning from IBM after Wednesday's close on Wall Street fueled fears of a possible downturn in U.S. stocks.
After rising initially on the back of a 1.8 percent rally in the Dow Jones industrials overnight, Japan's benchmark Nikkei 225 average reversed course and fell 86.44 points, or 0.5 percent, to end at 17,448.27.
Hong Kong's Hang Seng edged up 0.2 percent to 12,523.00, bolstered by buying of a conglomerate tied to the latest big deal in the European wireless sector.
Thursday's fireworks came again from Indonesia, where the Jakarta stock index jumped 5.5 percent a day after an upset victory by Moslem leader Abdurrahman Wahid in the country's presidential election sparked violent riots by supporters of a popular opposition rival.
Local traders said markets were optimistic that rival, Megawati Sukarnoputri, would capture the vice presidency in a vote set for later Thursday. On Wednesday, Jakarta stocks soared 10 percent on news that former President B.J. Habibie had pulled out of the race -- only to hand back the gains amid fears of civic unrest.
On Wall Street, the Dow Jones industrials jumped 187 points, or 1.8 percent, while the tech-heavy Nasdaq composite leapt 3.7 percent, or 99.87 points - the third-largest one-day point gain.
The dollar edged down to 106.22 Japanese yen from 106.50 late Wednesday in New York. The euro was quoted at 114.33 yen.
An early dip in futures contracts on the Globex system dented sentiment in Japan following the profit alert by blue chip IBM (IBM). Big Blue tumbled in after-hours trade after warning that fourth-quarter and fiscal 2000 first-quarter results are likely to fall well below analysts' estimates.
On the corporate front, Nissan Motor Co. may sell its stake in Fuji Heavy Industries under a broad cost-cutting plan, Nissan's French partner, Renault said Thursday. Nissan shares shed 3.9 percent to 585 yen, while Fuji heavy industries gave up 1.3 percent to 943 yen.
High-tech stocks also suffered amid concerns that American shares of Japanese companies could come under pressure on Wall Street. Sony Corp. fell 1.1 percent to 15,420 yen, while Fujitsu slid 1.9 percent to 3,020 yen.
Shares of Ichikoh Industries soared 21 percent to 233 yen after a report in the Financial Times that France's Valeo was considering it, along with two other Japanese candidates, for an equity alliance with a car parts maker affiliated with Nissan Motor Co. After Tokyo had closed, Valeo announced it had selected Unisia Jecs for the joint venture.
In Hong Kong,Hutchison Whampoa rose 0.7 percent at HK$76.50 after Germany's leading wireless company, Mannesmann, unveiled plans to buy Hutchison's British cell-phone unit Orange for $36 billion, including assumption of debt. Hutchison said it stood to gain HK$22 billion ($2.8 billion) in cash and HK$69 billion in Mannesmann shares.
In Singapore, the Straits Times Index closed 0.4 percent lower at 2,017.50 as banking and electronics stocks came under pressure. Australia's All Ordinaries edged up 0.2 percent to 2,827.9.
South Korean stocks fizzled and gave up early gains.The Kospi index fell 1.5 percent to 818.51 amid futures-related selling.
Malaysian shares edged up 0.3 percent and Taiwan's weighted index slid 0.2 percent to 7,654.90. The index shrugged off higher-than-expected September export orders, focusing instead on Wall Street, where the latest rally failed to inspire.
Manila shares hit a seven-month low, falling 1.6 percent as investors took profits after news of a tie-up between Bank of the Philippine Islands and Far East Bank and Trust. Thai shares fell half a percent.
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