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Asian markets dip as rupiah hits new low
AFP
TOKYO, January 22: Asia-Pacific stock markets dipped on Thursday, spooked by the freefall of the Indonesian rupiah which deepened regional economic gloom and worries over corporate health. Stock indices in Tokyo, Hong Kong, Singapore, Kuala Lumpur, Sydney, Bangkok, Jakarta, Manila, Seoul and Taipei, Shanghai and Auckland closed lower in sympathy with fresh weakness assailing regional currencies.A dollar-buying spree by Indonesian corporates saw the rupiah hit a new record intra-day low of 16,500 to the US dollar, marking a 43.5 per cent gain for the greenback from its close on Wednesday of 11,500 to the US dollar. The rupiah recovered as selling pressure on it eased with reported central bank of Indonesia intervention. The rupiah ended its rollercoaster ride at 12, 000 to the dollar. But sentiment in Indonesian markets - and elsewhere in Asia - was still fragile amid worries over corporate debt repayments and a successor to long-reigning Indonesian president Suharto, 76. In Tokyo, share prices fell 1.7per cent, hit by profit taking after a six-day rising streak and late selling on concerns over the fallout from the Asian crisis, brokers said. "Active profit-taking on the day was a natural consequence, taking into account the fact that the Nikkei-225 index gained more than 2,000 points in just (the past) six days of trade," a Yamamaru Securities broker said. The Nikkei-225 on the Tokyo Stock Exchange fell 278.73 points to end at 16,405.69. Hong Kong: Hong Kong shares fell 3.9 per cent as Indonesia's economic mess worsened and fears rose over the health of local finance firms, dealers said. "Concerns over regional problems are escalating. I even see the market testing the 8,500-point level in the near term," said Nikko Securities analyst Steven Thompson. The Hang Seng index fell 363.07 points to 8,883.73. Percy Au-Young, research director with DBS Securities, said the crisis affecting the Indonesian rupiah was dominating sentiment. Au-Young said local investors remained sensitive to events in Indonesia as
they expected interest rates to stay high as long as there was a risk of speculation against the Hong Kong dollar. Seoul: Share prices closed 4.5 per cent lower on the Korea SE as foreign investors sold blue chips in afternoon trade, dealers said. Foreign selling appears to reflect worries about the Indonesian rupiah's sharp decline. The index closed down 22.67 points, or 4.5 per cent, at 483.99.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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