Sun, Aug 24, 2008 page10

• ASIA: Asian stocks fall for fourth week on fresh worries

  IN TAIPEI The probe into money-laundering claims against former president Chen Shui-bian may mean a jittery market, though the impact could fade soon

  • BLOOMBERG AND AFP
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  Asian stocks fell for a fourth week, dragging the region’s benchmark index to the lowest since July 2006, after technology companies and banks dropped on renewed concern credit-market turmoil and higher oil prices will hurt profits.

  Samsung Electronics Co, the world’s biggest maker of computer memory, fell 4 percent after US wholesale prices rose and housing starts decreased. Sumitomo Mitsui Financial Group Inc lost 6.9 percent after Citigroup Inc predicted more losses at US banks. Singapore Airlines Ltd, Asia’s most profitable carrier, lost 2.5 percent.

  “Consumer spending is shrinking from rising oil prices and higher inflation is increasing the costs of companies,” said Choi Min Jai, who helps manage about US$5 billion at KTB Asset Management Co in Seoul. “It doesn’t help that this is happening while the subprime problem in the US seems to be getting worse.”

  The MSCI Asia Pacific Index lost 2.6 percent to 121.62 this week, the lowest since July 21, 2006. It’s dropped 23 percent this year as soaring food and fuel prices threatened consumer spending and corporate profits, while writedowns and credit losses at the world’s largest financial companies topped US$500 billion.

  TAIPEI

  Taiwanese share prices are expected to test 6,800 points next week on possible selling by foreign investors, dealers said on Friday.

  A probe into money-laundering allegations against former president Chen Shui-bian (陳水扁) is likely to keep the market jittery, although the impact may fade to some extent after hitting the market badly this week, dealers said.

  Any technical rebound during the week may face strong resistance at 7,200 points, they said.

  Grand Cathay Securities analyst Mars Hsu said Wall Street’s movements were expected to continue to dictate global markets.

  “Possible Wall Street volatility may drive foreign investors here to sell ... Fears of depleting liquidity will further undermine local market sentiment,” Hsu said.

  TOKYO

  Japanese share prices closed down 0.68 percent on Friday from Thursday, hitting a near five-month low on jitters about US financial woes and a stronger yen, which is bad for exporters, dealers said.

  The Tokyo Stock Exchange’s benchmark Nikkei-225 index lost 86.17 points to end at 12,666.04, the lowest close since April 1. The broader Topix index of all first-section shares shed 8.11 points or 0.66 percent to 1,216.42.

  “We will continue watching when US financial stocks stop sliding as that’s an indication for [the outlook for] the Japanese market,” Shinko Securities analyst Yutaka Miura said.

  HONG KONG

  Trading in Hong Kong was closed on Friday due to Typhoon Nuri.

  SYDNEY

  Australian shares closed up 1.15 percent, dealers said.

  The benchmark S&P/ASX 200 index gained 56.2 points to 4,931.4, while the broader All Ordinaries added 60.6 points to 5,010.2.

  “I think some positive sentiment has come into the market through the resources,” Macquarie Private Wealth senior private client adviser Marcus Droga said.

  SHANGHAI

  Chinese share prices closed down 1.09 percent, dealers said.

  The benchmark Shanghai Composite Index, which covers both A and B shares, was down 26.49 points off a low of 2.362.09.

  “Negative factors are mostly priced in and investors are counting on more policy support after the Olympics,” said Chen Huiqin, an analyst at Huatai Securities.

  SEOUL

  South Korean shares closed 1.04 percent lower, dealers said.

  The KOSPI index ended down 15.68 points at 1,496.91. Volume was 222.9 million shares.

  “Investors seem to have almost given up on hopes for stocks for now,” Samsung Securities’ analyst Oh Hyun-Seok said.

  SINGAPORE

  Singapore share prices closed 0.36 percent higher, dealers said. The blue-chip Straits Times Index gained 9.83 points to 2,723.30 on volume of 645.17 million shares.

  “Although the market has come down a lot, I don’t think we’ve yet formed a base,” Westcomb research head Goh Mou Lih said.

  KUALA LUMPUR

  Malaysian share prices ended 1.3 percent higher, dealers said.

  The Kuala Lumpur Composite Index gained 14.17 points to end at 1,085.60.

  Dealers said volumes were thin as investors took to the sidelines ahead of a by-election that will be contested by opposition leader Anwar Ibrahim.

  BANGKOK

  Thai share prices closed 0.80 percent higher, dealers said.

  The Stock Exchange of Thailand (SET) composite index rose 5.40 points to close at 681.93 points, while the blue-chip SET-50 index gained 4.55 points to close at 480.77.

  JAKARTA

  Indonesian shares closed 1.5 percent higher, dealers said.

  The Jakarta Composite Index rose 32.24 points to 2,120.49.

  “I think bargain hunting in commodity stocks will continue Monday if oil prices continue to rebound,” a trader said.

  MANILA

  Philippine shares closed 0.14 percent lower, dealers said.

  The composite index fell 3.74 points to 2,653.18 points.
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