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HK hits post-crash high
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April 9, 1999: 6:01 a.m. ET
HK at highest close since 1997 crash, Nikkei fails to hold on to 17,000 mark
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LONDON (CNNfn) - Hong Kong ended the week in buoyant mood with its leading index reaching levels last seen before the Asian financial crash in October 1997. Tokyo blue chips failed to hold onto an early break through the 17,000 mark.
The Hang Seng index in Hong Kong closed 1.59 percent higher at 11914.10, a rise of 186 points. This is the highest close since October 21, 1997. The index has gained almost 8 percent in the last three days.
Disappointment that the U.S. walked away from sponsoring China's entry to the World Trade Organization was offset by hopes of a local interest rate cut.
After the market closed, Hong Kong banks imposed the expected cut, lopping one quarter of a percentage point off the prime lending rate, which now stands at 8.5 percent.
Japan's Nikkei 225 ended Friday's session just 10 points higher at 16,856.65, after briefly touching 17,166.06 in early trade, the highest point since March 9, 1998. The market has risen 3.5 percent in the last week.
Investors stepped back Friday after passing through the psychological barrier. "Having got above 17,000, that gave a sense of achievement that led to a certain amount of profit-taking," Paul Migliorato, a senior salesman at Jardine Fleming Securities in Tokyo told Reuters.
A triple record close on Wall Street and two interest rate cuts in Europe overnight helped buoy Asian markets.
Singapore's Strait Times index closed 24 points higher at 1,665.26, a rise of 1.44 percent, while Sydney's All Ordinaries index of blue chips touched a new record high of 3,073.5 during the session, before closing just 2.7 points higher at 3,058.9.
Wharf Holdings was the main gainer in Hong Kong, putting on more than 8 percent to HK$14.80. The conglomerate was seen as one of the main beneficiaries of an interest rate cut.
Telecom giant NTT made strong gains in Tokyo Friday, at one point trading more than 8 percent higher. The buying was driven by speculation of a bidding war between NTT and U.K. counterpart Cable & Wireless (CW.) over local rival IDC. NTT's shares closed 5.83 percent higher at 1,270,000 yen.
Auto stocks were in the doldrums, however, after a local newspaper reported that Nissan's debt levels had reached almost $34 billion. The company acknowledged that the figures were based on estimates by prospective partner Renault (PRNO) but stressed they were not official figures. Investors bailed out, leaving Nissan's shares 5.66 percent lower at 450 yen.
The selling spree only added to the gloom in the sector after a report Thursday that Honda Motor would fail to make its earnings targets. Honda lost a further 5 percent Friday to 5,130 yen, while Toyota give up 5.29 percent to 3,580 yen.
In other markets, Taiwan's leading index closed 8 points lower at 7,265.70, while South Korean blue chips ended the session up almost 1 percent at 687.42.
Kuala Lumpur closed up just over 2 percent at 568.10, Jakarta put on a late rally to close 5.3 percent higher at 421.2, while Thailand's Set index was up almost 6 points at 370.68.
The Manila stock market was closed for a national holiday.
-- from staff and wire reports
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