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Tokyo falls as yen jumps
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February 28, 2000: 6:36 a.m. ET
Japan hit by Dow weakness, yen strength; HK slides on rate fears
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LONDON (CNNfn) - - Tokyo blue chips ended half a percent lower Monday as a sharp jump in the yen depressed export-reliant stocks and Wall Street's latest sell-off stoked uncertainty. Hong Kong slid more than 1 percent as interest-rate worries prompted investors to unload banking and property stocks. Seoul, Manila and Thai stocks nosedived on the Dow's weakness.
On Wall Street Friday, the Dow Jones industrial average fell 2.28 percent to 9,862.12, finishing below the 10,000 mark for the first time since April 1999. The technology-heavy Nasdaq Composite index eased 0.59 percent to 4,590.50.
The benchmark Nikkei Average of 225 leading Japanese shares on Monday ended down 97.78 points, or 0.5 percent, at 19,720.10, pulled lower by jitters over New York stocks. Cash inflows from six investment trusts that launched last Friday, raising a total of 188.58 billion yen in initial subscriptions, helped prop up 'new economy' stocks in the technology and telecom sectors. This offset a dip in export-reliant manufacturers triggered partly by a sharp rise in the yen against the dollar.
The yen strengthened Monday to 109.20 per dollar from 110.72 late Friday in New York, after earlier trading at about 108.0.
Internet investor Softbank Corp. fell 1.8 percent to 165,000, giving up earlier gains. Aiwa Co. nosedived 17.5 percent to 1,880 yen after the company downgraded its earnings forecast for the year to March.
Big brokerage firms also felt the heat, with Nomura Securities shedding 3.1 percent and rival Nikko Securities giving up 2.3 percent.
Mobile phone giant NTT Docomo gained 6.9 percent to 4.52 million yen, extending its gains from last week prompted by a Goldman Sachs report that reiterated a "buy" recommendation. Consumer electronics company Sony Corp. ended half a percent higher, while Mitsubishi Electric Corp. shot up 8.3 percent to 938 yen after a report in a local financial newspaper that it's planning a partnership with U.S. Intel Corp. (INTC: Research, Estimates) to develop cellular phones.
In Hong Kong, the blue chip Hang Seng index finished down 1.3 percent, or 216.54 points, at 16,984.44, with property shares and other interest-rate-sensitive stocks taking much of the brunt. On the broader market, decliners outnumbered advancers by 665 to 79.
Cheung Kong (Holdings) tumbled more than 4 percent, while subsidiary Hutchison Whampoa slid 3.6 percent. This was more than enough to counter strength in China Telecom, which advanced 2.2 percent to HK$70.75.
Banking giants HSBC Holdings and Hang Seng Bank also dragged the market lower. Shares of Hang Seng Bank, which posted a 22 percent rise in 1999 net profit, gave up 1 percent to HK$71.00. HSBC slipped 0.8 percent to HK$89.00 ahead of its earnings report in London, which showed a 21 percent increase in 1999 profit, in line with expectations. The bank also dismissed allegations there may be a potential conflict of interest in its dealings with Cable & Wireless HKT.
Shares of C&W HKT - the subject of separate takeover bids from Singapore Telecom and Hong-Kong-based Pacific Century CyberWorks - were suspended Monday at the company's request, pending a statement. Pacific Century CyberWorks' stock continued to be halted Monday after the shares were suspended early Friday.
The benchmark Kospi index in Seoul, South Korea slid more than 5 percent, dragged down by Friday's heavy losses on Wall Street. Blue chips absorbed the biggest blow.
In Singapore, the Straits Times Index finished 1 percent lower at 2,118.65 amid declines in banking stocks, led by DBS Group. Singapore Telecom closed unchanged at S$2.68 on uncertainty over the outcome of its attempt to tie up with C&W HKT.
Australia's All Ordinaries index eased slightly but averted a heavier loss thanks to a sharp rally in media giant News Corp. The index ended down 5.7 points, or just 0.2 percent, at 3,118.0, with much of the downside pressure coming from resource shares such as mining company BHP, which lost almost 4 percent. Rupert Murdoch's News Corp. jumped more than 5 percent to A$23.40 amid speculation the company may be in talks about an alliance with U.S. Internet portal Yahoo! (YHOO: Research, Estimates). According to a report to be published Monday in The New Yorker magazine, Yahoo! founder Jerry Yang has held talks with News Corp.'s No.2 executive Peter Chernin.
Elsewhere in Asia, Kuala Lumpur shares closed nearly 2 percent lower, while Thai stocks tumbled 4.5 percent as overseas investors dumped blue chips in the banking and communications sectors. Manila shares nosedived more than 4 percent, pressured by a sour mood at home and worries over U.S. interest rates. Jakarta stocks bucked the trend, climbing 1.4 percent.
The Taiwan market was closed Monday for the Peace memorial holiday. 
--from staff and wire reports
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