Sun, Oct 23, 2005 page10

• Asian markets react well to losses on Wall Street

  MIXED BAG Although markets opened lower in line with Wall Street's lead, investors became more confident as the oil price slipped and a bargain-hunting frenzy ensued

  • AFP
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  Asian stocks closed mixed to firmer on Friday in volatile trade, with some markets pulled down by heavy losses on Wall Street where inflation and likely higher interest rates remained the focus, dealers said.

  Elsewhere, as in Seoul which rose 1.83 percent, investors were confident enough to bounce back as oil prices slipped below US$60 and the recent downturn provided an opportunity for bargain hunting.

  recovery

  Dealers said markets opened lower, in line with Wall Street's lead, but most then recovered at least some of the lost ground to suggest the region could be stabilizing after a very tough month so far.

  Much now depends on how the US corporate results season develops -- after a strong start, US chip giant Intel disappointed with its guidance and Ford Motor's report on Thursday was not for the faint hearted.

  On the day, Seoul outperformed, followed by Singapore, Hong Kong and Bangkok.

  In Taiwan, share prices closed 0.16 percent lower as government plans for to bolster the market offset early weakness from Wall Street's overnight losses and fears about bird flu, dealers said.

  Among the government's proposed stimulus measures are a relaxation of stock buy-back regulations and more room for insurance companies to invest in equities.

  The weighted index closed down 9.24 points at 5,738.76, off a low of 5,678.62 and a high of 5,761.16, on turnover of NT$67.15 billion (US$2 billion). Gainers led decliners 478 to 468, with 188 stocks unchanged.

  A total of 45 stocks closed limit-up and 10 limit-down.

  Taiwan still has a lot to worry about, including an uncertain Wall Street and continuing pressure on the New Taiwan dollar, as well as concerns over a possible bird-flu pandemic and the nation's own political stalemate, SinoPac Securities assistant vice president Alvin Teng said.

  In Japan, share prices closed firmer after electronics giant Toshiba raised its first-half profit outlook, sparking hopes other major companies may report upbeat results next week, dealers said.

  At the same time they said the mood remained cautious with Japanese corporations including Sony, Fujitsu, Canon, NEC, Nissan Motor, NTT DoCoMo and Toshiba all due to announce results next week.

  nikkei climbs

  The Tokyo Stock Exchange's benchmark Nikkei-225 index climbed 9.49 points or 0.07 percent to 13,199.95 on turnover of 2.20 billion shares.

  The broader TOPIX index of all first-section shares gained 1.42 points or 0.10 percent to 1,385.37.

  Over the week the Nikkei 225 fell 1.6 percent while the TOPIX shed 0.9 percent as a pullback that started early this month continued on the back of worries about US inflation and economic growth, dealers said.

  In South Korea, share prices closed 1.83 percent higher, extending gains for a second day, as heavy program buying more than offset continued sales by foreign investors, dealers said.

  They said initial trade was cautious after Wall Street's weaker finish overnight but the market soon gained momentum on futures-linked program buying.

  In Hong Kong, share prices closed 0.55 percent higher as investors hunted for bargain blue chips following recent losses, dealers said.

  They said late interest in large caps Hutchison Whampoa and China Mobile supported the index, with some property shares recovering from earlier falls.

  The Hang Seng Index was up 78.91 points at 14,487.85, off a low of 14,308.61 and a high of 14,491.94. Turnover was HK$19.77 billion (US$2.53 billion).

  bargain hunting

  In China, share prices closed 0.48 percent higher on bargain hunting with real-estate developers snapped up and banks bolstered after Shen-zhen Development Bank announced a stock placement deal with US giant General Electric, dealers said.

  The benchmark Shanghai Composite Index, which covers both A and B shares, rose 5.37 points or 0.47 percent at 1,141.32 on turnover of 8.65 billion yuan.

  In Singapore, share prices closed 0.56 percent higher, supported by gains in property stocks which continue to attract interest on hopes the industry is gaining momentum, dealers said.

  In Thailand, share prices closed 0.63 percent higher, led by gains in the banking and energy sectors, dealers said.

  They said a better regional performance supported the market but foreign investors traded with caution after the announcement on Thursday of the kingdom's thirteenth fatality from bird flu.
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