|
Asia ignores Dow rally
|
 |
December 16, 1998: 4:42 a.m. ET
Japan, Hong Kong, Singapore steady but other markets more volatile
|
LONDON (CNNfn) - The major Asian markets were quiet Wednesday, with Japan stocks inching ahead and Hong Kong and Singapore both easing.
Elsewhere in the region stocks posted bigger moves, but there was no clear trend despite modest gains on European bourses and a rally on Wall Street which snapped a five-day losing streak.
Hong Kong closed down 0.14 percent while Singapore finished off 0.67 percent.
The Philippines closed 4 percent higher while Indonesia finished almost 3 percent ahead. Australia was also in the black, adding 0.35 percent by the finish in Sydney.
On the downside, Korea slumped almost 6 percent while Taiwan dived 2.4 percent. Thailand finished more than 1 percent lower with Malaysia 0.15 percent in the red.
Tokyo's benchmark Nikkei average closed 85.11 points or 0.61 percent higher at 14,096.3.
A 1.33 percent rise in real estate stocks helped support the index. But banks, securities stocks and many of the big auto exporters were lower as fears for Japan's financial sector lingered and the yen retained its strength against the dollar.
Sanwa Bank lost 0.8 percent to 982 yen while most banks enjoyed their first respite since the Financial Services Authority nationalized Nippon Credit Bank over the weekend.
But ING Barings banks analyst James Fiorillo warned that the worst is not over for the financial sector.
"Having shocked most market participants in nationalizing NCB so quickly, the FSA had investors worrying about all the banks," he said. "In that sort of environment we can expect some pretty tremendous volatility in banking shares."
Mazda Motor closed down 0.45 percent at 441 yen. Tire maker Bridgestone dropped 3.4 percent to 2,550 yen.
But high-tech stock Hitachi, left behind by the recent rally, climbed 5 percent to 712 yen. Sony rose 2.18 percent to close at 8,440 yen.
Hong Kong stocks closed down a negligible 0.14 percent or 13.45 points at 9,939.39.
Turnover was light and trading dull, enlivened only by the suspension of Kwong On Bank and DBS Bank.
Singapore's DBS is expected to announce a takeover of Kwong On, a medium-sized local bank, which is 51 percent owned by Japan's Fuji Bank.
"It will probably be priced below book," said one trader. "That's likely to have a negative impact on medium-sized banks. And that's why futures were down almost 100 points."
Heavyweight HSBC Holdings lost HK$3 to HK$186 but developers rallied to support the index.
Cheung Kong climbed 75 cents to HK$54.25 while Sun Hung Kai Properties added HK$1.25 percent to HK$55.75.
Singapore stocks also eased, dipping 0.67 percent or 9.19 points to 1,359.1. The stumbling U.S. market and the Straits Times index's own good performance has made local stocks look a little expensive and made traders nervous ahead of the year-end.
DBS Bank, linked with a takeover in Hong Kong, climbed 25 cents to HK$7.65 but most blue chips were off.
With the Association of South-East Asian Nations holding a summit in Vietnam this week, it was a mixed picture across the region's other markets.
The biggest fall of the day was in Korea where stocks tumbled almost 6 percent following strong gains recently. Taiwan also headed south, losing 2.4 percent by its close. Thailand closed about 1.3 percent lower while Malaysia shed 0.15 percent.
The Philippines put on the best performance to climb 4 percent with Indonesia, which finished 2.76 percent higher, not far behind. Australia closed up 0.35 percent.
|
|
|
|
|
 |
|
