|
Asian markets hit
|
 |
February 21, 2000: 6:42 a.m. ET
Wall St hangover leaves Tokyo down 1%; HK, Singapore join regional slump
|
LONDON (CNNfn) - Asia's equity markets suffered sharp losses Monday, taking their cue from the sell-off in U.S. markets Friday which left Wall Street's main gauges nursing 3 percent declines.
In Tokyo, the benchmark Nikkei 225 index fell 245 points, or 1.24 percent, to close at 19,543.75, with weakness in financial shares compounding the impact of an interest-rate warning last week from U.S. Federal Reserve Board chairman Alan Greenspan. His hawkish comments last Thursday have placed the equity markets on rate alert.
The dollar was trading at 110.62 against the yen by the close of business in Tokyo, below its late New York level of 110.96 yen on Friday.
Hong Kong's Hang Seng index was hit by a broad sell-off in blue-chip shares and closed down 276 points, or 1.67 percent, at 16,322.37. The Straits Times index in Singapore was even harder hit, ending down 2.82 percent at 2,115.85.
The Nikkei was weaker across the board, with the major banks losing ground on a combination of financial reform measures and a planned new tax. Dai-Ichi Kangyo Bank was worst hit, closing down almost 10 percent, while merger partners Fuji Bank and Sakura Bank both lost almost 7 percent.
Banks face a new tax charge to finance the city of Tokyo's budget deficit. They are also reducing shareholdings in other industries to qualify for state funds to boost their own balance sheets.
The interest-rate environment hit other blue chips in the technology and telecom sectors. Computer manufacturer Fujitsu shed 1.7 percent while cellular operator NTT DoCoMo lost 3.6 percent. Automaker Mazda was the Nikkei index's worst performer, slumping almost 9 percent after warning Friday that full-year profits were set to fall more than a third from last year's levels.
Sony Corp. was the one bright spot, closing up 6.8 percent on optimism about the imminent launch of its PlayStation 2 video game system.
 In Hong Kong, a market closely tied to the U.S. market by its currency's peg to the dollar, banking and property shares came under the most selling pressure. HSBC Holdings, the largest bank, ended 1.9 percent lower while Bank of East Asia fell 1.2 percent. Property developer Wharf Holdings lost 4 percent and Cheung Kong (Holdings) was off 2.4 percent.
Hong Kong Telecom ended narrowly lower as talks continued between its U.K. parent and rival Asian suitors. Pacific Century CyberWorks lost 5.5 percent after denying Monday that it had reached an agreement to acquire the 54 percent in HKT owned by Cable & Wireless (CW-).
 Singapore Telecom, which remains in talks with HKT, lost 3 percent as the Straits Times index declined across the board. Bank DBS Group tumbled 4.3 percent while telecom and distribution company Keppel shed 2.5 percent and computer components maker Datacraft lost almost 5 percent.
The concern over U.S. interest rates spread throughout the region, with the Kospi blue-chip index in Seoul closing down 3.85 percent at 845.32, stung by investment trusts' sales of telecom shares to raise cash. The PHS Composite index in Manila ended at a 14-month low of 1,833.84 after a 2.7 percent slump. Taiwan's Weighted index lost 2.4 percent to end at 9,912.67, after it broke through the 10,000 barrier for the first time in 10 years last week.
Among smaller markets, only the All Ordinaries in Sydney avoided heavy losses as a rally in commodity shares buoyed the market in late trade to leave it off just 3 points at a close of 3,117.10.
In Jakarta, the JSX index ended 1.1 percent lower at 592.99 while the KLSE Composite in Kuala Lumpur lost 0.6 percent to end at 1,007.13. The Thai exchange was closed for a public holiday,
The BSE-30 in Mumbai was the one Asian market to buck the regional slide, jumping 2.71 percent to close at 5,876.89 as software shares all enjoyed firm demand. 
-- from staff and wire reports
|
|
|
|
|
 |
|
