|
Tokyo slips, Korea soars
|
 |
November 16, 1999: 6:16 a.m. ET
Tokyo blue chips lower on telecoms sell-off; Kospi and HK post gains
|
LONDON (CNNfn) - Asia's markets closed mixed Tuesday as Japan's blue chips closed slightly lower, while South Korea surged and Hong Kong continued to benefit from the breakthrough in Sino-U.S. trade talks.
The Nikkei 225 slipped 43 points or 0.2 percent to close at 18,155.14, after a sharp afternoon sell-off in telecom stocks which had been strong in recent sessions
"The speed of recent gains in telecoms was surprising," said Tsuyoshi Segawa, general manager at New Japan Securities. "But people who had been climbing up a ladder without a break finally looked down to see how far they've come," he added.
Traders said there was little evidence to suggest that the meeting of the U.S. Federal Reserve's Open Market Committee later Tuesday had played any large role in the sell-off. Economists are split on whether the key borrowing rate will move higher.
On Wall Street Monday, both the Dow Jones industrial average and the Nasdaq Composite closed just inside the red.
In the currency markets, the dollar was trading just above 105 yen at the close of Tokyo trading, up slightly from its level in New York late Monday of 104.75.
Japan's No. 1 telecom operator NTT fell 2.1 percent to close at 1.84 million yen. The country's second-largest telecom group, DDI Corp., plummeted 13 percent to close at 1.27 million yen. KDD also had a poor session as it tumbled 12.6 percent to end at 11,800 yen.
Hong Kong blue chips, in contrast, moved higher again following the trade pact signed between China and the United States Monday, which should clear the way for Beijing's entry into the World Trade Organization.
The Hang Seng index rose 127 points, or 0.9 percent, to end at 14,689.46.
Property stocks led the market higher, with Henderson Land surging almost 8 percent to HK$84.25. Conglomerate Hutchison Whampao underpinned the market's gains with a rise of 3 percent to HK$91.50, as it benefited from its strong links with mainland China.
Hutchison's parent Cheung Kong jumped 3.7 percent to close at HK$84.25.
South Korean stocks soared Tuesday in a late rally amid rumors that Moody's was due to announce an upgrade of the country's credit rating. The Kospi surged 3.4 percent, or 33 points, to close at 1,007.72, the first close above the 1,000 level since mid-July.
Singapore's Straits Times index hit its second consecutive record close as it rose 13 points, or 0.6 percent, to 2,238.86. The index did pull back slightly before the close amid some caution ahead of the U.S. interest rate decision, but the mood was generally bullish.
"There was some caution ahead of the FOMC but the market is likely to pick up and soar tomorrow again as some buying interest has returned," one Singapore-based dealer said.
The mood in Australia was more subdued, however, reflecting the cautious tone in New York overnight. The All Ordinaries fell 6 points to end at 3,004.5.
The region's other markets were mixed. In the Philippines, blue chips slumped 1.3 percent to close at 1,957.81, while Taiwan's leading index gained 0.8 percent to end at 7,606.20.
The JSX in Indonesia closed almost 1 percent higher at 641.73. Thailand's Set fell 0.8 percent to end at 423.15, with civil unrest continuing to plague the country. Kuala Lumpur's Composite lost 1.2 percent to 720.34, as investors remained cautious ahead of general elections set for Nov. 29.
-- from staff and wire reports
|
|
|
|
|
 |
|
