Sun, Dec 23, 2007 - Page 10 News List

ASIA: Asian stocks drop for second week

CONCERNS Taiwan's TAIEX index managed only a 1.5 percent gain for the year, making it Asia's fourth-worst performer, behind Japan, Sri Lanka and New Zealand

BLOOMBERG AND AFP , HONG KONG

Traders pose for a photo shortly after trading ended at the stock exchange in the financial district of Makati in suburban Manila on Friday. Philippine shares closed 1.2 percent higher on Friday. The composite index rose 41.02 points to 3,532.98.

PHOTO: AFP

Asian stocks fell for a second week, led by exporters and financial firms on concern losses linked to US subprime mortgages will spread and damp growth in the region's biggest export market.

Toyota Motor Corp declined after US retail sales slumped and homebuilder confidence remained at a low. Mitsubishi UFJ Financial Group Inc and Commonwealth Bank of Australia dropped and Goldman Sachs Group Inc said it was "cautious" about the outlook for its own business.

"Slowing US demand will hurt Asian exporters as well as other industries because of the massiveness of the US economy," said Kevin Yang (楊師銘), president of Paradigm Asset Management Co (華頓投信), which oversees US$360 million in assets in Taipei.

The MSCI Asia-Pacific Index declined 2.1 percent this week to 153.47. It lost 4.7 percent last week after a US interest-rate cut failed to ease concerns that the US may slide into a recession. For the year, the measure is up 9.2 percent, set for its smallest annual gain in five years.

Taiwan's TAIEX index fell 2.2 percent this week to end the week 19 percent lower than this year's closing high on Oct. 29, a decline widely regarded as signaling a bear market. The index's gain of 1.5 percent this year makes it Asia's fourth-worst performer, behind Japan, Sri Lanka and New Zealand.

"This is certainly a bear market," said Michael On (洪瑞泰), who oversees US$100 million as managing director at Beyond Asset Management Co in Taipei. "To many people it may feel like the world is crashing. Stocks have more to fall before the condition of the global economy becomes clear."

Jakarta and Mumbai were closed for public holidays.

TAIPEI

Taiwanese share prices closed 1.07 percent higher on Friday, with sentiment buoyed by Wall Street's firmer tone overnight. The weighted index closed up 84.36 points at 7,941.44, on turnover of NT$100.44 billion (US$3.09 billion).

While margin call pressure briefly dragged down the index in early trade, bargain hunters focusing on bellwether technology stocks pushed it to a firmer close, dealers said.

TOKYO

Japanese share prices rebounded 1.5 percent as bargain hunters waded into the market after the key NIKKEI index dipped briefly below the key 15,000 points level.

Dealers said sentiment was boosted by a report of a tie-up between electronics giants Toshiba and Sharp in liquid-crystal displays (LCDs).

The NIKKEI-225 index ended up 225.40 points at 15,257.00. Volume rose to 1.98 billion shares from 1.67 billion on Thursday.

HONG KONG

Hong Kong share prices closed 2.26 percent higher led by the property sector as housing sales are expected to remain strong next year.

The Hang Seng index closed up 609.83 points at 27,626.92, off a low of 27,192.80 and a high of 27,670.31.

SYDNEY

Australian share prices ended a seven-day losing streak to close up 1.1 percent, with major banks leading the way on speculation a Chinese government agency had bought stakes in them.

The S&P/ASX 200 closed up 70.1 points at 6,247.0.

SHANGHAI

Chinese share prices closed 1.15 percent higher, led by airlines and metal companies, with investors shrugging off the latest interest rate hike.

The Shanghai Composite Index closed up 58.24 points to 5,101.78.

SEOUL

South Korean share prices closed 1.8 percent higher after a volatile session, with banks leading the rebound on hopes that ownership restrictions will be eased under the new government.

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