Asian stocks settle after volatile week

Asian stocks closed easier on Friday after a volatile week saw global markets roiled by fears growing problems in the US housing market could halt the stellar run of the past few years, dealers said.

They said most bourses were little changed for the week, having recovered from very heavy losses on Wednesday, but investor sentiment has been rattled by the second round of global turmoil since late last month.

On the day, there was little to be gained from taking any fresh positions going into the weekend and ahead of key central bank meetings in the US and Japan.

Dealers said no one was expecting any change in US or Japanese interest rates, but investors want to see what both banks have to say on the economic outlook, especially after warnings from former US Federal Reserve chairman Alan Greenspan about the dangers of a recession.

Confidence, which appeared to have recovered from the sell-off late last month sparked by heavy losses in Shanghai, has once more been undercut, but this time by potentially more worrying long-term problems in the key US housing market.

News of a sharp rise in US mortgage loans, especially in the riskier sub-prime segment, did the damage mid-week and left investors fearful that the problem could have a negative knock-on effect on the wider US economy.

TAIPEI

Taiwanese share prices closed 0.31 percent higher as investors took comfort from Wall Street's modest gains overnight and a recovery in Hong Kong after early losses, dealers said.

They said, however, the gains were capped by worries over the volatility in global markets and news that some local firms are being probed by authorities.

Prosecutors searched Veutron Corp's (力廣科技) premises on Thursday. The company said it had no knowledge of what the authorities were looking for.

Earlier this week, BenQ's (明基) offices were searched over an insider trading probe.

The TAIEX closed up 23.84 points at 7,719.80, off a low of 7,676.39 and high of 7,743.37, on turnover of NT$118.75 billion (US$3.60 billion).

Risers led decliners 578 to 535, with 191 stocks unchanged. A total of 35 stocks closed limit-up, while nine were limit-down.

The food sector was up 2.48 percent while financials added 0.98 percent and the key electronics slipped 0.1 percent.

"The local bourse was divided -- between Wall Street's advance overnight and weakness in some Asian markets this morning," said Stanley Hsu, a manager with First Taisec Securities (一銀證券).

TOKYO

Japanese share prices closed down 0.69 percent as investors remained wary about a stronger yen and problems brewing in the US housing sector, dealers said.

The Tokyo Stock Exchange's benchmark NIKKEI-225 index of leading shares fell 116.24 points to 16,744.15. The TOPIX index of all issue on the Tokyo Stock Exchange's first section dropped 17.12 points or 1.01 percent to 1,677.06.

HONG KONG

Hong Kong share prices closed little changed after a choppy session as investors turned cautious ahead of results announcements from blue chip heavyweights next week, dealers said.

The market opened lower on worries over possible economic tightening measures in China but recovered soon on hopes of solid earnings from top stock China Mobile and some short-covering activity.

The Hang Seng Index closed down 15.94 points at 18,953.50, after a low of 18,770.28 and a high of 19,130.10.