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Asian markets shrug off gains on Wall Street
RETREATING:
As investors cashed in on earlier gains, dealers predicted that the TAIEX would fluctuate within a small range, although it could squeeze past the 6,000-point level
AP AND AFP
, HONG KONG AND TAIPEI
Sunday, May 22, 2005, Page 10
Most Asian markets retreated on Friday, shrugging off Wall Street's gains a day earlier, with Tokyo shares down as investors cashed in on sharp gains from the previous session.
Taiwan's prices are expected to remain rangebound next week despite the government's latest efforts to boost the economy amid a weaker projection for full-year economic growth, dealers said on Friday.
Beijing's announcement allowing Chinese nationals to visit Taiwan for sightseeing would strengthen tourism-related stocks such as hotel and transport for a short period, they added.
But the general bourse was expected to fluctuate within small range with a possibility it could break the 6,000-point level.
For the week to May 20, the TAIEX shed 26.70 points or 0.45 percent to 5,954.69 following a 0.23 percent gain the previous week.
Average turnover stood roughly the same at NT$62.00 billion (US$2.0 billion).
"No dramatic changes in the market are expected unless there are consecutive rallies on Wall Street or positive leads in cross-strait relations such as preparations for bilateral talks," said Daniel Tseng (´¿«Ø¸à), a manager at Fubon Securities Investment Services (´I¨¹§ëÅU).
Government incentives for local businesses would do little to push up investor confidence amid slower economic growth, Tseng said.
Taiwan's budgeting agency has cut the nation's gross GDP forecast for this year to 3.63 percent from the 4.21 percent projected in February due to a global economic slowdown.
Japan's NIKKEI Stock Average of 225 selected issues lost 39.87 points, or 0.4 percent, to end at 11,037.29. On Thursday, the NIKKEI surged 241.75 points, or 2.2 percent, which was the index's biggest point gain for single-day trading since Oct. 4 last year.
The market fell as investors sold technology issues and other selected stocks after Thursday's rally. The decline came despite Wall Street's gain on Thursday. The Dow Jones industrial average rose 0.3 percent and the Nasdaq composite index climbed 0.6 percent.
Decliners Sony Corp, Fujitsu Ltd and TDK Corp. All of these issues gained more than 3 percent on Thursday. Telecoms KDDI Corp and NTT DoCoMo Inc also fell, as did steelmaker Nippon Steel Corp and shipping firms Kawasaki Kisen Kaisha Ltd and Mitsui O.S.K. Lines Ltd.
Hong Kong shares rose marginally for a second consecutive session, as renewed conviction that China's currency will be revalued offset a sell-off in property stocks due to higher interest rates.
The Hang Seng Index rose 18.49 points, or 0.1 percent, to finish at 13,717.42. On Thursday, the Hang Seng jumped 71.92 points, or 0.5 percent.
Thai declined on losses by telecommunication issues on concerns that a price war will hit the lucrative mobile phone industry. The Stock Exchange of Thailand Index dropped 5.89 points, or 0.9 percent, to 670.65.
Indian edged up, as strong fourth-quarter results from India's largest bank, State Bank of India, helped lift market sentiment. The Bombay Stock Exchange's 30-share Sensitive Index, or SENSEX, climbed 20.56 points, or 0.3 percent, to 6,499.50.
Indonesian advanced marginally on gains in telecom and banking issues. The Composite Index rose 2.647 points, or 0.3 percent, to 1,048.112.
Malaysian ended lower as some investors sold stocks and others stayed on the sidelines ahead of the long weekend. The weighted Composite Index of 100 blue chips dipped 4.30 points, or 0.5 percent, to 883.17.
Philippine fell on losses by select blue chips as fears over corporate earnings mounted. The 30-company Philippine Stock Exchange Index shed 6.36 points, or 0.3 percent, to 1,886.73.
South Korean shares ended nearly flat as investors took profits in heavyweight blue chips, offsetting early gains by technology issues. The Korea Composite Stock Price Index, or KOSPI, edged up 0.10 point to 952.19.
China retreated as news of China's decision to raise export tariffs on 74 categories of textile products prompted a sell-off in textile stocks. The Shanghai Composite Index gave up 4.21 points, or 0.4 percent, to 1,099.27.
Shares Singapore closed higher, boosted by Wall Street gains on better-than-expected jobless claims numbers and falling oil prices. The Straits Times Index added 6.5 points, or 0.3 percent, to 2,173.77.
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