|
Tokyo runs out of steam
|
 |
November 1, 1999: 3:07 a.m. ET
Nikkei notches small gain, fails to hold above key benchmark; Kospi sparkles
|
LONDON (CNNfn) - Japanese blue chips failed to hang on to any significant gains Monday and slipped back below a benchmark level at the close as a focused buying spree ran out of steam. Most other markets in the region also made modest headway, with the exception of South Korea's Kospi, which surged more than 5 percent.
The Nikkei 225 in Tokyo gained just 55 points to end at 17,996.92, having traded above the psychologically-important 18,000 level for much of the session. The strong performance on Wall Street Friday had initially provided some support for the market, but only the telecom sector experienced any sustained buying and the rally eventually petered out.
Most other markets in the region initially benefited from the support provided by the strong U.S. close on Friday, as investors' confidence was lifted by key economic data, which showed no sign of inflation.
Only two markets, however, showed any signs of a sustained rally. South Korea's Kospi was by far the biggest gainer Monday, as it soared almost 5.2 percent to close at 876.55, partly on the perception that Daewoo's debt restructuring is being handled quickly.
"The Dow's rise on Friday was the backdrop for the Seoul market's rally," said Baek Jung-hyun, a broker at Samsung Securities. "And eased concerns about Daewoo Group's debt problems boosted buying by foreigners and (local) institutions," he added.
In Singapore, the Straits Times index held onto sizable gains as it traded up 1.4 percent at 2,075.12 in late afternoon trading. Blue chips were boosted by a strong property sector as interest- rate worries receded on the back of the U.S. data.
Hong Kong's Hang Seng stood 93 points, or 0.7 percent, higher at 13,350.02, with traders blaming the relatively subdued reaction to Wall Street's strong close Friday on last week's strong performance of Hang Seng's leading shares. In the last session alone, the Hang Seng notched up a gain of almost 4 percent.
Australian shares barely hung onto gains after the market was surprised by data showing a record trade deficit. The All Ordinaries ended just 10 points higher at 2,895.6.
Elsewhere, the only two markets in the minus column were both suffering from a decision by Morgan Stanley Capital International to delay their reinstatement into its benchmark indices.
Kuala Lumpur's Composite suffered the most as it fell almost 2.2 percent to 726.59 in late trade. Earlier Taiwan's Weighted index closed 0.5 percent lower at 7,814.89.
In Jakarta, the JSX stood just a quarter of a percent higher at 595.27, while Thailand's Set gained 0.4 percent to trade at 397.15.
Manila's Composite was closed for a market holiday.
-- from staff and wire reports
|
|
|
|
|
 |
|
