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Asian shares close lower
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December 21, 1999: 5:05 a.m. ET
Tokyo, Singapore retreat as investors await Fed rate decision; HK recovers
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LONDON (CNNfn) - Most of Asia’s major stock markets lost ground Tuesday as investors opted for a wait-and-see policy ahead of the U.S. Federal Reserve interest-rate meeting taking place after the session closes.
The benchmark Nikkei 225 in Tokyo closed down 95 points or 0.52 percent at 18,080.38, about 60 points above its session low, as telecom and technology shares fell after recent gains.
The Hang Seng in Hong Kong slid below the 16,000 level at one point before a late rally helped the index to close up 36 points or 0.22 percent at 16,248.74. The Straits Times in Singapore continued its decline, losing 0.62 percent at 2,354.61.
In Seoul, the benchmark Kospi index closed down 0.85 percent at 958.80 despite a strong performance from telecom shares. Overseas investors again contributed to the market’s decline.
Asian markets had received mixed signals from Wall Street in the previous session. The Dow Jones industrial average lost 1 percent to close down at 11,144.27 ahead of the Fed meeting. The broader S&P 500 lost 3 points at 1,418.09. However, gains among tech stocks helped lift the Nasdaq to another record, adding 30 points at 3,783.87.
Telecom shares fell in Tokyo after recent gains, with NTT off 2.4 percent and NTT Data down 1.4 percent. Manufacturers and export-sensitive shares also mostly headed down, with Sharp losing 1.1 percent, Hitachi shedding 0.9 percent and Fujitsu off by a similar amount. Toshiba bucked the trend to close up 0.8 percent.
Auto industry stocks were mixed. Truck maker Nissan Diesel soared 15 percent on reports of a joint venture with Renault (PRNO), though Nissan Motor lost 2 percent as it seeks to develop a restructuring plan for its troubled truck arm.
Honda Motor gained 0.8 percent after announcing plans to co-operate with General Motors (GM) in the supply of engines and related technology.
Toyota Motor headed in the other direction after climbing to record highs in recent sessions. The shares lost 5.4 percent.
Banks were the only sector to move clearly ahead, with Bank of Tokyo-Mitsubishi climbing 1.3 percent, Industrial Bank of Japan up 1.1 percent and Sumitomo Trust & Banking gaining 4.2 percent.
Hong Kong recovered some poise after its early slide, building on the surge in the index Monday. Banking heavyweight HSBC Holdings rose 1 percent though other financial shares fell back.
China Telecom gained 1.5 percent while regional telecom holding company First Pacific soared 10 percent.
Cheung Kong (Holdings) recovered a 2 percent loss to end flat, but property shares fell again. Sun Hung Kai Properties fell 1.8 percent and Great Eagle lost 3 percent.
Singapore Airlines was the star performer on Singapore’s Straits Times index, surging 8.5 percent higher in the wake of its purchase of a 49 percent stake in Virgin Atlantic.
Cycle & Carriage shed another 5 percent after losing a distribution contract for Mercedes-Benz. DBS Group lost 2.8 percent.
Other smaller markets were firmer, with the JSX in Jakarta best placed as it gained 1.7 percent to close at 656.89.
Taiwan’s Weighted index was even stronger, up almost 2 percent to end at 7,394.26 as Y2K-related fears diminished to encourage buyers back into the market.
Sydney’s All Ordinaries continued to lose ground as the index shed almost 1 percent to close at 3,107.20. News of Virgin’s agreement with Singapore Airlines depressed shares of Australia’s Qantas by 4.3 percent on anticipation of fiercer competition.
The PHS Composite in Manila ended 0.2 percent higher at 2,034.97 and the KLSE Composite in Kuala Lumpur closed 0.4 percent up at 791.20.
Thailand’s Set lost ground after powering ahead Monday, ending down 1.1 percent at 445.84. 
-- from staff and wire reports
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