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Asia jumps on rate hopes
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November 16, 1998: 5:14 a.m. ET
Hong Kong, Singapore soar on expectations of U.S. rate cut
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LONDON (CNNfn) - Asian stocks shrugged off a record 24 trillion yen ($196 billion) Japanese stimulus package on Monday, rising instead on expectations that the U.S. Federal Reserve will cut rates again this week.
Hong Kong and Singapore soared about 3 percent, while Japan rose just 1 percent Monday after the government announced the largest-ever stimulus package.
Taiwan and Thailand also jumped about 3 percent with Korea and the Philippines right behind.
Australia and Malaysia eased a bit by the end of trading while Indonesia closed up just slightly.
The calling off of air strikes against Iraq lifted pressure on local currencies as safe- haven dollar buying ceased.
Japan's Nikkei average closed 1.12 percent higher - up 160.06 points at 14,428.27 in moderate trade. December futures were up 130 at 14,450.
Traders were disappointed that there would be no cut in sales tax, and stocks dropped after the government announced the stimulus package. But they recovered in afternoon trade.
It is the country's ninth - and largest -- fiscal stimulus package since 1992. The plan includes six trillion yen in income and corporate tax cuts and nearly 18 trillion yen in government spending measures, such as public works projects.
Bank stocks were strong. Sumitomo Bank leaped 3.19 percent to 1,328 yen on news it was considering applying for an injection of public funds of around 400 billion to 500 billion yen and planning reforms. Sanwa Bank climbed 1.57 percent to 1,036 yen.
Many exporters were also up ahead of the index, with Honda Motor adding 4.83 percent to 4,340.
Electronics parts maker, Kyosera Corp. was up 20 at 5,960, despite news that its group net profit fell 33 percent to 16.6 billion yen in the six months to September.
Hong Kong stocks rose 3 percent to 10,298.09, adding 300.10 points in quiet trade.
Property stocks buoyed the market. Sino Land rose HK$0.225 to HK$3.325. It announced additional units would be available at a prestigious new development after 100,000 people viewed show flats.
Sun Hung Kai Properties leaped HK$3.25 to HK$55.25 and Cheung Kong climbed HK$3 to HK$58.75.
Singapore stocks also accelerated. The Straits Times Index closed 2.89 percent higher at 1,241.74 after adding 34.83 points.
Australia's All Ordinaries index closed 6.8 points lower at 2,674.5 on turnover of A$835 million (US$530.2 million).
Index heavyweight News Corp. ended three cents down at A$10.67 as buyers slowly returned after hurrying out of the media group in the wake of Friday's worse-than-expected first quarter result.
On the up side, retailer Woolworth soared 9.1 cents to A$5.612 after optimistic comments on the Christmas trading period.
Korea closed 1.93 percent higher with the Philippines up 1.96 percent. Gains in Manila were led by interest in Philippine Long Distance Telephone after Hong Kong's First Pacific said it wanted to buy a strategic stake in the telecom giant.
Taiwan outshone them both, adding 2.55 percent after the government announced its own fiscal-stimulus plan
With Jakarta calm after a week of bloody riots and an apparent government crackdown on dissenters, Indonesian stocks were steady at 356.226, just 0.19 points lower.
Malaysian stocks slipped 0.66 percent to 461. But Thai stocks put on a strong performance on the rising Baht, up 3.47 percent to 345.17. 
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