|
Yen worries knock Tokyo
|
 |
September 2, 1999: 5:47 a.m. ET
Japan's Nikkei shies from 18,000 level, wary of currency moves
|
LONDON (CNNfn) - Tokyo traders focused on more strength in the yen Thursday, shrugging off New York's escape from a four-day losing streak. Japan's Nikkei 225 index closed down 171 points, or 1 percent, at 17,631.25.
"The yen's rise and uncertainty over possible (dollar-supporting) intervention made players take a wait-and-see stance,'' said Hiroyuki Nakai, general manager of the research department at Nippon Global Securities.
The Japanese currency climbed back to 109 to the dollar in late trade, unwinding an early-session rise in the value of the U.S. currency.
Japanese stocks remained below the waterline throughout the session on fears the rising yen could choke off a recovery in the struggling economy.
Traders also pointed to a technical ceiling on the Japanese market which prevented stocks from making further upward progress.
"Every time the Nikkei comes close to 18,000, the sellers come out," according to Shinji Fujinaga, a deputy general manager of the equity section at Kankaku Securities.
Japan's decline was mirrored across most of the Asian region, with only Philippine stocks closing in positive territory, and then only marginally.
In Hong Kong the Hang Seng index was pulled lower in afternoon trade by woes afflicting the index's largest component, HSBC.
The Hang Seng closed 1.3 percent lower at 13,367.56, after Japanese regulators pounced on a unit of Republic New York. HSBC agreed to buy Republic in May in a $10 billion deal that has yet to close.
In Hong Kong HSBC shares closed 1.8 percent lower at HK$ 95.00.
Riding out the downturn in Japan were banking stocks, which investors backed on the back of restructuring hopes and relative immunity to currency movements.
Singapore's Straits Times index dipped just 4 points to 2,118.21. "The Hang Seng and the Nikkei are down, and our market is directionless. Blue chips are mixed and undecided," a dealer at a local securities house said.
Australian stocks closed in negative territory after a day of lackluster trade and low turnover. Resources issues bucked the trend, with solid rises in mining giants BHP and Rio Tinto. The All Ordinaries index finished the session just 3.7 points lower at 2,993.7.
Elsewhere in Asia, Thailand's Set index closed almost 2 percent lower at 426.21 amid reports that speculators are set to attack the country's currency.
Korean stocks closed 0.7 percent lower, with the Kospi index ending at 898.97. Taiwan stocks slipped 0.6 percent.
Malaysian stocks suffered heavy losses after rules on international investors repatriating their money were relaxed Wednesday. Overseas selling drove the KLSE index 2.34 percent lower to 735.52.
Jakarta stocks, which traded in the black for most of the session, finally succumbed to the downbeat regional mood, closing fractionally lower. That left Manila as the only bright spot, with stocks scraping just into the black by the close.
-- from staff and wire reports
|
|
|
|
|
 |
|
