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550-point sell-off in Tokyo
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March 18, 1999: 6:19 a.m. ET
Nikkei tumbles, snapping winning streak; Hong Kong plunges almost 3%
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LONDON (CNNfn) - Asia's largest stock markets suffered mild panic attacks Thursday. Investors wary of the recent run-up in stock valuations sent the Nikkei tumbling 550 points, spurring a similarly sharp drop in Hong Kong.
But investors said the drop, coming amid general optimism about Japan's economic recovery, may be a prelude to a rebound. Most smaller markets in the region posted reasonable gains.
The Nikkei index, which had been rallying in recent days on hopes that Japan's recession may be drawing to a close, snapped a three-day winning streak to close 550.19 points, or 3.38 percent lower, at 15,717.92. Nonetheless, the average is still up nearly 13 percent from its closing low-point this month of 13,921, on March 2.
In Hong Kong, the Hang Seng index plummeted 280.75 points to 10,659.32 - a 2.57 percent drop - in what traders deemed a correction tied to concerns that the index had ratcheted up too far, too fast. Prior to Thursday's tumble, the index had risen about 2,000 points without a major consolidation, Reuters reported.
The nose-dives on both indices came after the Dow Jones industrial average continued to retreat from the 10,000-point barrier it briefly breached Tuesday morning in New York. The Dow lost 51.06 points overnight to close at 9,879.41.
China plays were active. The red chip Hang Seng China-Affiliated Corporations Index shed 0.59 percent.
After almost a weak of record peaks, Australia's benchmark All Ordinaries slipped 0.34 percent, or 10.1 points to end at 2,967.7 as shares backed away from the 3,000 resistance level.
In Singapore, stocks nosed into the minus column Thursday as ripples from the Nikkei spread. The Straits Times index slipped 0.28 percent to end at 1,466.07.
Bank and financial issues led shares in Kuala Lumpur 0.68 percent higher, however, after asset manager Pengurusan Danaharta Nasional said it had purchased non-performing loans from the banking system valued at 8.1 billion ringgit ($2.13 billion).
Taiwan's weighted index finished 2.04 percent higher at 6,895.01.
Among the Pacific region's other winners Thursday, Manila stocks closed more than 2 percent higher, buoyed by heavy gains for Philippine Long Distance Telephone Co. after the group's president said the company would launch a search for strategic partners this week.
The biggest regional winner of the day was Jakarta, where stocks spiked 2.22 percent. Thai shares on the SET index closed 1.71 percent higher ahead of an asset auction Friday that investors expect will be positive.
Korea stocks took a big hit, falling 3.59 percent to 578.98.
--from staff and wire reports
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