Asian markets rebound as Wall St, HK exude confidence
AGENCE FRANCE PRESSE
HONG KONG, January 13: Asian share markets rallied on Tuesday with some markets making their first gains in the new year, taking heart from Wall Street's resilience and a rebound in Hong Kong. Southeast Asian bourses took heart from positive comments from senior officials from the International Monetary Fund and the United States touring the region.Indonesian share prices jumped a spectacular 9.1 per cent in heavy trade, while Hong Kong recovered 7.4 per cent after steep losses the previous day over the liquidation of Asia's largest independent investment bank Peregrine Investment Holdings. Hongkong: Hang Seng index gained 598.94 points to close at 8,720.00 following seven consecutive sessions of losses, after Wall Street overnight reversed a sharp early slide and ended up. "The market is very oversold, there is no doubt about it," said Eugene Law, research head at Lippo Securities. "But without regional stability, there is no way we can go any further from here," Law cautioned. The index had
dived 773.58 points to a near three-year low in the previous day's trading amid high interest rates and the collapse of Peregrine. Tokyo: Japanese share prices rebounded for the first time in four trading days, aided by a recovery in Asian share prices and uninterrupted by a hostage-taking at the stock exchange, brokers said. "Recent trading proved that Asian share price falls alone are not sufficient to pull share prices lower significantly," a broker at a mid-sized securities house said. The key Nikkei stock average of 225 selected issues rose 91.50 points to end the session at 14,755.94. The broader Topix index of all first section issues closed up 1.01 points at 1,121.62. Singapore: Singapore share prices ended 7.7 per cent higher on a technical rebound after seven straight days of sharp falls. "Prices have become so attractive to bargain hunt but frankly not many dare pickup because the regional financial situation is still so fluid," a dealer with a local brokerage said. The
benchmark Straits Times Industrials index ended 83.05 points higher to 1,156.52 while the broader All-Singapore index rose 2 8.61 to 353.53. Seoul: Share prices closed 1.6 per cent up on the Korea Stock Exchange, reacting positively to IMF chief Michel Camdessus's display of confidence in the recovery of the economy, dealers said. Camdessus in a press conference said that negotiations for rollovers of South Korea's short-term debt were going well, and predicted the economy would recover if it sticks to the IMF rescue plan. The composite index closed up 7.54 points at 463.74, off a high of 466.59 and a low of 450.01. Kuala Lumpur: Malaysia's key stock index closed 5.5 per cent higher on fresh locaL support amid rebounds in regional bourses and currencies. "There are few local leads," an institutional dealer at a local brokerage said, adding that "performances in the region dominate both conversation and sentiments in the stock market." The Kuala Lumpur Stock Exchange composite index surged
26.32 points to end above the 500-point psychological barrier at 503.89. Bangkok: Thai stocks rallied 2.9 per cent on positive current account figures and as markets around the region took heart from overnight gains on Wall Street, analysts said. "The cash flows from the current account surplus - if they continue for the rest of 1998 - are going to add some support to the currency in the long term," said Greame Blench, head of research with ABN Amro Hoare Govett. The Stock Exchange of Thailand (SET) composite index rose 9.79 points to 348.96, while the SET-50 index climbed 0.98 points to 24.86. Jakarta: Indonesian share prices jumped 9.1 per cent in heavy trade with the market buoyed by ongoing talks between the government and the IMF, dealers said. "Frankly speaking, I think people are trying to put aside for a while the underlying concerns about corporate debts or earnings," a sales director at a local brokerage said. The Jakarta Stock Exchange composite index closed up 31.900 points at
382. 137, as investors set aside their worries. Manila: Philippine share prices closed 3.8 per cent higher on bargain-hunting in an oversold market, dealers said. Lisa Joson of Amsteel Securities Philippines Inc said the upturn was due to "bargain-hunting because so many stocks have reached oversold conditions" but "we cannot attribute it (the upturn) to anything fundamental." The Philippine Stock Exchange index rose 58.02 points to close at 1,590.99 points. Shanghai: Shanghai's B shares, nominally reserved for foreign investors, ended a six-day losing streak rebounding from a historic intra-day low as analysts painted a bright outlook for the year ahead. Daishin Securities analyst Zhao Ya said, "I think the recovery can be maintained for some time to come. B shares are completely internationalised now." The Shanghai Stock Exchange's B share index closed 2.12 points, or 5.2 per cent, higher at 43.01 points after charting a record intra-day low of 38.40 points, while the A share index fell
64.85 points, or 4.98 per cent, to 1,236.16 points. Taipei: Taiwanese shares rebounded 1.9 per cent, buoyed by an overnight rise on Wall Street and a rebound on the Hong Kong stock market, dealers said. "Investors regained confidence after the modest gain on Wall Street and the Hong Kong stock market's rebound," said Lai Tseng-yu of Core Pacific Securities Co Ltd. The Taiwan Stock Exchange weighted price index climbed 138.10 points to 7, 513.24.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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