Major Asian markets end largely flat
Tuesday, 4 December 2007
BANGKOK, Thailand, Dec 3 (AP); Major Asian markets ended little changed Monday as investors were reluctant to place big bets ahead of next week's interest rate decision by the US Federal Reserve.
Benchmark indices in Hong Kong, Shanghai, Singapore, Sydney and Taipei finished within 0.1 per cent of their Friday close.
Asian investors are generally expecting the Fed to cut a key interest rate a quarter point to shore up the US economy -- a key export market for Asia -- that has been weakened by a housing slump and shortage of credit.
But hopes for an even larger cut are growing -- and that could spark a rally in Asian markets, analysts said.
"There is a rising expectation that the US Federal Reserve will not only cut rates when it meets Dec. 11, but that the move will be a half-percentage point," said Francis Lun, general manager at Fulbright Securities Ltd. in Hong Kong.
Hong Kong's Hang Seng Index rose 14.81 points, or 0.05 per cent, to 28,658.42.
Property companies were the biggest gainers amid hopes that local interest rates will also drop. Henderson Land rose 3.7 per cent and Cheung Kong ended 2.6 per cent higher.
Chinese telecom stocks, meanwhile, fell as investors locked in profits from gains last week after a report Beijing will speed up the restructuring of the telecom industry. China Unicom fell 7.9 per cent.
In Tokyo, Japanese stocks dipped amid persisting concerns over the US economy and the yen's strength against the dollar. The Nikkei 225 stock index fell 51.70 points, or 0.33 per cent, to 15,628.97 points, retreating from a 3 1/2-week high on Friday.
"There is no doubt that the strategy that investors are taking now is to sell on the rebound," said Hiroshi Arano, an adviser at Mizuho Asset Management.
Financial and export-oriented shares were among the decliners, spurred by the dollar's weakness against the yen, which makes exports more expensive and less competitive overseas.
Ongoing concerns over US credit woes -- fueled further in the afternoon by comments from Bank of Japan Gov. Toshihiko Fukui that the end to the US housing credit crisis was "not in sight" -- also helped spur the selling.
In Tokyo currencies, the dollar was trading at 110.50 yen late afternoon Monday, down from 111.15 yen late Friday in New York. The euro rose to US$1.4692 from US$1.4636.
Elsewhere:
BANGKOK: Thailand's main stock index sank 1.8 per cent to 831.12 on light volume, dragged down by energy, banking blue chips on profit taking
JAKARTA: Indonesia's key index ended up 1.4 per cent at a new high of 2,726.925.
KUALA LUMPUR: Malaysian shares rose, with the Kuala Lumpur Composite Index rising 1.6 per cent to 1,419.34. Gains were led by government-led companies including Sime Darby, Telekom, Proton and Tenaga Nasional.
MANILA: Philippine shares climbed for the third straight session, led by property and bank stocks, on expectation that lower US interest rates will spur local rate reductions. The Philippine Stock Exchange Index rose 48.33 points, or 1.4 per cent, at 3,626.88.
SEOUL: South Korean shares dipped as investors awaited the Fed's decision. The Korea Composite Stock Price Index finished a marginal 3.57 points, or 0.2 per cent, lower at 1,902.43.
SINGAPORE: The benchmark Straits Times Index closed flat, gaining just 0.29 point, or 0.01 per cent, to close at 3,521.56.
SYDNEY: Australian stocks ended flat after a mixed performance from major bluechips. The benchmark S&P/ASX 200 closed 0.4 point higher at 6,533.5.
TAIPEI: Taiwan shares also were little changed as weakness in electronics shares offset strength in traditional industry names. The Weighted Price Index of the Taiwan Stock Exchange dipped just 2.56 points to 8,583.84, failing to sustain the rally at the end of last week.
Benchmark indices in Hong Kong, Shanghai, Singapore, Sydney and Taipei finished within 0.1 per cent of their Friday close.
Asian investors are generally expecting the Fed to cut a key interest rate a quarter point to shore up the US economy -- a key export market for Asia -- that has been weakened by a housing slump and shortage of credit.
But hopes for an even larger cut are growing -- and that could spark a rally in Asian markets, analysts said.
"There is a rising expectation that the US Federal Reserve will not only cut rates when it meets Dec. 11, but that the move will be a half-percentage point," said Francis Lun, general manager at Fulbright Securities Ltd. in Hong Kong.
Hong Kong's Hang Seng Index rose 14.81 points, or 0.05 per cent, to 28,658.42.
Property companies were the biggest gainers amid hopes that local interest rates will also drop. Henderson Land rose 3.7 per cent and Cheung Kong ended 2.6 per cent higher.
Chinese telecom stocks, meanwhile, fell as investors locked in profits from gains last week after a report Beijing will speed up the restructuring of the telecom industry. China Unicom fell 7.9 per cent.
In Tokyo, Japanese stocks dipped amid persisting concerns over the US economy and the yen's strength against the dollar. The Nikkei 225 stock index fell 51.70 points, or 0.33 per cent, to 15,628.97 points, retreating from a 3 1/2-week high on Friday.
"There is no doubt that the strategy that investors are taking now is to sell on the rebound," said Hiroshi Arano, an adviser at Mizuho Asset Management.
Financial and export-oriented shares were among the decliners, spurred by the dollar's weakness against the yen, which makes exports more expensive and less competitive overseas.
Ongoing concerns over US credit woes -- fueled further in the afternoon by comments from Bank of Japan Gov. Toshihiko Fukui that the end to the US housing credit crisis was "not in sight" -- also helped spur the selling.
In Tokyo currencies, the dollar was trading at 110.50 yen late afternoon Monday, down from 111.15 yen late Friday in New York. The euro rose to US$1.4692 from US$1.4636.
Elsewhere:
BANGKOK: Thailand's main stock index sank 1.8 per cent to 831.12 on light volume, dragged down by energy, banking blue chips on profit taking
JAKARTA: Indonesia's key index ended up 1.4 per cent at a new high of 2,726.925.
KUALA LUMPUR: Malaysian shares rose, with the Kuala Lumpur Composite Index rising 1.6 per cent to 1,419.34. Gains were led by government-led companies including Sime Darby, Telekom, Proton and Tenaga Nasional.
MANILA: Philippine shares climbed for the third straight session, led by property and bank stocks, on expectation that lower US interest rates will spur local rate reductions. The Philippine Stock Exchange Index rose 48.33 points, or 1.4 per cent, at 3,626.88.
SEOUL: South Korean shares dipped as investors awaited the Fed's decision. The Korea Composite Stock Price Index finished a marginal 3.57 points, or 0.2 per cent, lower at 1,902.43.
SINGAPORE: The benchmark Straits Times Index closed flat, gaining just 0.29 point, or 0.01 per cent, to close at 3,521.56.
SYDNEY: Australian stocks ended flat after a mixed performance from major bluechips. The benchmark S&P/ASX 200 closed 0.4 point higher at 6,533.5.
TAIPEI: Taiwan shares also were little changed as weakness in electronics shares offset strength in traditional industry names. The Weighted Price Index of the Taiwan Stock Exchange dipped just 2.56 points to 8,583.84, failing to sustain the rally at the end of last week.