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Tokyo falls 240 points
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November 11, 1999: 6:24 a.m. ET
Economic recovery package fails to lift Nikkei; telecoms lift HK 130 points
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LONDON (CNNfn) - Tokyo's blue chips tumbled 240 points Thursday as the government's $171 billion economic recovery package unveiled at the start of session failed to sustain enthusiasm. In contrast, most other markets in the region enjoyed a positive session.
The Nikkei 225 fell 1.3 percent, or 240 points, to close at 18,327.28, after an initial early morning rally following the announcement of the recovery package. Selling pressures mounted as economists cast doubts on the effectiveness of the latest measures, which amount to the ninth intervention since 1992.
"They keep raising the [headline figure] but it doesn't seem as if anything has really changed," said Peter Morgan, economist at HSBC Securities in Tokyo.
The fall in U.S. blue chips overnight contributed to a broad-based sell-off with only a few technology stocks resisting the trend, after the Nasdaq managed another record.
The Dow Jones industrial average closed down almost 20 points Wednesday, after mixed inflation data unsettled the market. The tech-heavy Nasdaq, on the other hand, jumped nearly 1 percent to set its eighth closing record in nine sessions.
Internet investor Softbank was one of the few gainers among Japanese blue chips, jumping 6 percent to close at 57,400 yen, continuing recent strong gains.
Telecom stocks were also strong, with heavyweight NTT jumping 5.3 percent to end at 1.78 million yen.
Most other sectors suffered heavy sell-offs, including automotive stocks. Nissan Motor Co. slumped almost 10 percent to end at 538 yen.
Other markets in the region ignored the drop in Japan, with most posting gains.
The Hang Seng index in Hong Kong jumped almost 1 percent, or 130 points, to end at 14,105.71. Traders said the rally was concentrated on just three heavyweight telecom stocks. C&W Hong Kong Telecom jumped 2.3 percent to close at HK$20.10. Hutchison Whampoa jumped 3.2 percent to HK$81.25, helped by further reports that Britain's Vodafone AirTouch will bid for Germany's Mannesmann, in which Hutchison has a 10 percent stake. China Telecom soared 6.5 percent to close at HK$ 32.80.
Singapore also ended on an upbeat note after a volatile session, with traders blaming worries over the future course of U.S. interest rates for unsettling the market. The Straits Times index closed 0.7 percent higher at 2,153.67.
Sydney's All Ordinaries had a strong run Thursday, as it closed 1.4 percent higher at 2,982.8. Traders said the mood was lifted by heavyweight mining and gold stocks, but also benefited from a strong Nasdaq-inspired tech rally.
South Korea's Kospi also closed well inside positive territory as it gained almost 1 percent to end at 947.42. Technology stocks lifted the index, although much of the gains were based on a relief rally as fears of huge fund redemptions, to clear massive corporate-debt related losses, failed to materialize.
In Taiwan, the Weighted index surged 1.8 percent to end at 7,532.22 after the government made supportive comments about the need for stock market investment in the battered traditional industries, pushing up textile and construction shares. Technology stocks were also strong on the back of the record by their U.S. counterparts.
Other markets also manages strong gains. In the Philippines, the Composite index in Manila closed 14 points higher at 2,010. Thailand's Set added 0.7 percent to close at 429.28.
Kuala Lumpur's blue chips endured a downbeat session the day after the government announced a snap general election. The date for the poll is set to be announced Friday and with the outcome unclear the Composite closed down 0.5 percent at 724.84.
The JSX in Indonesia closed just inside negative territory at 638.49.
-- from staff and wire reports
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