|
Asia lower after tech spill
|
 |
April 5, 2000: 6:13 a.m. ET
Tokyo drifts, Hong Kong down 2% in wake of Wall Street technology woes
|
LONDON (CNNfn) - Asian stock markets mostly closed lower Wednesday, but technology shares were chastened by a harrowing session on Wall Street a day earlier - leaving "old-economy" issues to cushion the declines in Hong Kong and Tokyo.
U.S. share prices ended lower Tuesday, prompted by new worries about technology stock valuations. The tech-heavy Nasdaq composite shed more than 13 percent at its lowest point in the day, but bounced back to close with a loss of 1.7 percent. The Dow Jones industrial average sank as much as 500 points, or 4.5 percent, before rallying to end the day 0.75 percent, or 57 points, below its previous close.
Tech tremors also reverberated through Asia, dragging Tokyo's benchmark Nikkei 225 down 132.16 points, or 0.64 percent, at the close. Japan's parliament Wednesday named Liberal Democratic Party veteran Yoshiro Mori as prime minister in place of ailing Keizo Obuchi, who suffered a stroke on Monday.
In Hong Kong, the Hang Seng index fell 3.4 percent at 16,318.44, as investors dumped technology and telecommunication shares. Singapore's Straits Times edged down 0.2 percent at 2,055.30, with electronics stocks falling sharply. 
In the currency market, the dollar edged up against the yen to ¥105.36 from ¥104.95 late Tuesday, as traders predicted the Bank of Japan would intervene to bolster the U.S. currency. The euro firmed slightly against the yen to ¥101.32 from ¥101.15 in New York Tuesday.
Softbank hit hard again
In Tokyo, Internet and high-tech shares extended their recent losses, as investors again turned to old-economy stocks in search of stability.
Among Internet investors, Softbank shed 6.1 percent while Trans Cosmos fell 8 percent. Shares of telecom company NTT fell 2.6 percent.
On the upside, Japan Energy Corp. soared 23.2 percent after the oil company said it had made a breakthrough in reproducing a light diode that consumes much less electric power to emit light than traditional light bulbs.
Tokyo Gas Co. rose 3.5 percent amid heavy trading, supported by the shift toward "old-economy" stocks and companies dependent on domestic demand.
Supermarket chain operator Seiyu rose 6.9 percent after announcing that it's venturing into e-commerce by starting an Internet shopping service that will provide same-day delivery from May.
Consumer finance firm Hitachi Credit rose 11.1 percent after it said Tuesday it would merge with unlisted Hitachi Leasing to form Japan's largest leasing company.
Singapore saw widespread declines among technology shares. Sound card maker Creative Technology fell 2.7 percent, chipmaker Chartered Semiconductor shed 6.1 percent and Pacific Century Regional Developments sank 16 percent.
In smaller markets
Sydney's All Ordinaries dropped 0.8 percent to 3,137.8 as investors sold telecommunications, technology and media stocks after the U.S. sell-off, moving some funds into blue-chip issues such as banks and miners.
The Reserve Bank of Australia raised interest rates for the third time in six months, hiking rates by a quarter point to 5.75 percent to try to head off inflation and prop up a falling Australian dollar.
Among other markets, Taiwan's TAIEX index rose 1.35 percent, leading Asia's gainers after a two-day holiday as electronics shares headed higher late in the day's session. Seoul's stock market was closed for a holiday.
The Set 50 in Bangkok ended down 0.1 percent, Kuala Lumpur's KLSE Composite dropped 0.6 percent and Jakarta's JSX index fell 1.2 percent. Manila's PHS Composite closed up 0.5 percent. 
-- from staff and wire reports
|
|
|
|
|
 |
|
