|
Tokyo gains, HK pares loss
|
 |
January 14, 2000: 6:06 a.m. ET
Japanese shares up as warehouses rise; others recover early setbacks
|
LONDON (CNNfn) - Asian markets were mixed Friday, with gains in late trading reducing early losses in Hong Kong and Singapore while Tokyo closed at a profit. That was after a nervous initial reaction to hints by Federal Reserve chief Alan Greenspan that an interest-rate hike may be needed to cool an overheating U.S. economy.
Japanese stocks closed modestly higher as brisk buying of Internet-tied warehouse stocks outweighed the impact of Greenspan's remarks. The rate alert rattled Hong Kong and Singapore, which both ended in the minus column, though well off earlier lows. Australia ended more than 1 percent higher, while Kuala Lumpur surged more than 4 percent and Thailand barreled up 3.5 percent.
Greenspan signaled in a speech late Thursday in New York that a rate hike may be the inevitable antidote to mounting imbalances in the U.S. economy. Most traders already expect the Fed to hike its key overnight lending rate when its policy committee convenes at the beginning of February. Higher rates make it more costly for banks - and by extension, consumers - to borrow money.
In currency markets, the dollar slipped below 106 yen Friday in thin trade, down from 106.2 yen late Thursday in New York.
Tokyo's benchmark Nikkei Average of 225 leading shares ended with a gain of 123.26 points, or 0.65 percent, at 18,956.55. Warehousing companies posted sharp gains for a second straight day as investors bet that burgeoning Internet commerce will boost demand for storage facilities.
Transport and warehouse company Nippon Express soared 16.1 percent to 720 yen, while Japan's largest warehouse operator Mitsubishi Logistics jumped 12.2 percent to end at 918 yen.
Technology stocks continued to suffer following strong gains at the end of last year. Consumer electronics giant Sony Corp. dipped 1 percent to 24,000 yen - still well above the 20,000 yen value that the company's president recently suggested would more accurately reflect Sony's value.
In Hong Kong, Asia's second-biggest market, the benchmark Hang Seng index closed down 91.73 points, or 0.59 percent, at 15,542.23, rallying from a loss of 1.4 percent earlier in the session. In the broader market, losers outstripped gainers by 379 to 285, with 248 issues holding steady.
"It's been a bit volatile today," South China Securities director Howard Gorges told Reuters. "People are selling into strength and buying into weakness."
China Telecom suffered its third straight loss, falling 3.7 percent to close at HK$43.70, while Internet darling Pacific Century CyberWorks, which represented 13 percent of total market volume, shed 2.9 percent to HK$16.75. Index heavyweight HSBC Holdings lost 0.3 percent to HK$96.50, while conglomerate Hutchison Whampoa climbed almost 2 percent to HK$104.50.
A banner week for News Corp.
The benchmark All Ordinaries index in Australia ended up 35.8 points, about 1.2 percent, at 3,131.6 amid brisk blue-chip buying in the latter stages of trade. The likelihood of higher interest rates in the United States was seen as already factored into equity prices. Rising bond yields continued to exert pressure, especially on rate-sensitive issues such as banks, traders said.
Rupert Murdoch's News Corp. gained 3.2 percent to end at A$17.443, adding to big gains earlier this week on the back of Monday's merger announcement by America Online and Time Warner. News Corp. climbed 20 percent in the week.
In Singapore, the Straits Times Index retraced almost the whole of the loss suffered earlier in the day to end just 1.79 points lower at 2,392.53. Banking firm DBS Group rebounded from an session low of S$23.50 to end unchanged at S$23.90.
In South Korea, the blue-chip Kospi index closed down 0.3 percent at 948.03 after investors spooked by Greenspan's remarks wiped out an early gain of more than 2 percent. The Kospi retreated just 0.62 point for the week. Samsung Electronics, a leading manufacturer of dynamic random access memory chips, advanced 6,000 won, or 2.1 percent, to 291,500 won Friday, supported by a strong fourth-quarter earnings report from U.S.-based Intel Corp.
Manila stocks ended almost 1 percent higher, spurred by interest in some blue chips. The weighted index in Taiwan failed to sustain an initial surge, with profit-taking leaving the index down nearly 1 percent at the close. Jakarta shares ended flat, while Kuala Lumpur soared almost 4.2 percent amid strong blue-chip buying by overseas and domestic institutional investors. Thai shares jumped 3.5 percent, lifted by banks and telecoms. 
--from staff and wire reports
|
|
|
|
|
 |
|
