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AFP
TOKYO, Aug 17: Asia-Pacific stock prices tumbled on Monday as news of the Russian rouble's effective devaluation unnerved investors already fearful over a weak yen and the possible impact of US president Bill Clinton's testimony in a sex-and-lies scandal.
Hong Kong's stock market was closed for a holiday and escaped a sell-off, but was braced for a volatile week's trading after last Friday's unprecedented government intervention in the stock and futures markets.
Tokyo stocks fell 2.2 per cent, Sydney retreated 1.2 per cent, Singapore slipped 2.9 per cent, Kuala Lumpur dipped 3.6 per cent and Bangkok dropped 3.4 per cent in a jittery start to the week. Jakarta was shut for a holiday.
News of the Russian ruble's de facto devaluation came as a further dampener to regional markets worried by Wall Street's fall, Clinton's impending sex-scandal testimony and regional economic woes.
Dealers said the markets were worried over the direction of US stocks following Clinton's testimony on Monday when he will TOKYO, Aug 17: Asia-Pacific stock prices tumbled on Monday as news of the Russian rouble's effective devaluation unnerved investors already fearful over a weak yen and the possible impact of US president Bill Clinton's testimony in a sex-and-lies scandal.
Hong Kong's stock market was closed for a holiday and escaped a sell-off, but was braced for a volatile week's trading after last Friday's unprecedented government intervention in the stock and futures markets.
Tokyo stocks fell 2.2 per cent, Sydney retreated 1.2 per cent, Singapore slipped 2.9 per cent, Kuala Lumpur dipped 3.6 per cent and Bangkok dropped 3.4 per cent in a jittery start to the week. Jakarta was shut for a holiday.
News of the Russian ruble's de facto devaluation came as a further dampener to regional markets worried by Wall Street's fall, Clinton's impending sex-scandal testimony and regional economic woes.
Dealers said the markets were worried over the direction of US stocks following Clinton's testimony on Monday when he willeither admit to sex with former White House intern Lewinsky - and risk perjury and possible impeachment charges - or stick to his original story and deny all.
Concerns were also rife of another round of currency depreciation in Asia following Moscow's move on the rouble.
Japanese share prices fell below the crucial 15,000-point level for the first time in two months. Investors were depressed by last week's easier tone on Wall Street, concerns over the outlook for Asian economies and the yen's weakness against the dollar.
The 225-issue Nikkei Stock average of the Tokyo Stock Exchange dropped 329.27 points to end at 14,794.66, brokers said. It was the first time the key index ended below 15,000 since June 17. The Topix index closed down 16.77 points at 1,152.03.
"The selling we saw today also factored in the possibility that the (Hong Kong) Hang Seng index will fall again sharply tomorrow," a broker said. The yen's weaker tone also discouraged buyers.
"The yen was expected to hold onto the gains seenearlier on Friday, but it failed," the Universal Securities broker said.
Singapore: Singapore stock prices fell 2.9 per cent to 10-year lows amid regional jitters over the yen's weakness and Russia's de facto devaluation of the rouble.The benchmark Straits Times Industrials (STI) index of the Stock Exchange of Singapore fell 28.62 points to end at 945.49 while the broader All-Singapore index dipped 7.16 points to 277.44.
The market was also worried about the backlash of the intervention by the Hong Kong authorities on the stock and futures markets on Friday which jacked up Hong Kong stocks by 8.5 per cent.
"Essentially, the Singapore rally on Friday was largely driven by the Hong Kong government's entry into the stock market," said Chandra Mahawar, dealer with Deutsche Morgan Grenfell.
"But the market is now going to find its true level as if intervention did not occur because the positive sentiment brought on by the intervention by the Hong Kong government is not there," hesaid.
Kuala Lumpur: Malaysia's key stock index slumped 3.6 per cent as the de facto devaluation of the Russian rouble added to domestic and regional economic miseries."The bourse fell sharply after ... news that the Russian central bank announced a de facto devaluation of the rouble broke out," the head of research at a local brokerage said.The Kuala Lumpur Stock Exchange's 100-share weighted composite index lost 11.74 points to end at 316.24 while the lesser second board index fell 0.93 points, or 1. 2 per cent, to 76.39.
Another dealer said US president Bill Clinton's impending sex-scandal testimony and uncertainties over the Japanese economy would continue to weigh down the bourse. "I see the bourse trading weaker on Tuesday," he added.
One senior dealer at a local brokerage said foreigners were continuing to sell down local shares "at all cost, regardless of the losses". He said with the outlook of the domestic economy still uncertain, coupled with the fact that various stimulusmeasures have yet to yield results, investors were unlikely to take up fresh long-term positions.
Bangkok: Thai shares slumped 3.4 per cent at the close as investors fled amid concerns over Russia's de facto devaluation of the ruble and the pace of a regional economic recovery, analysts said.
The Stock Exchange of Thailand (SET) composite index plunged 8.38 points to 235.24, while the selected SET 50 index slipped 0.75 points to 15.92.
Manila: Philippine share prices closed 0.2 per cent lower as investors took profits on last Friday's 2.7 per cent advance. "The name of the game now is get in and out quickly," said Joseph Roxas of Eagle Equities Inc. The Philippine Stock Exchange index lost 2.21 points to 1,335.71.
Seoul: South Korean shares inched down nearly one per cent on lingering concerns over steep regional market falls and dismal interim corporate results, dealers said. But the index managed to stay above the psychological 300-point mark despite an array of regional worrieswhich have kept foreign investors at bay for weeks.
Chief among investor concerns were the weakness of the Japanese yen, the possible devaluation of the Chinese yuan and Russia's troubled economy. But the market escaped shockwaves from Moscow's announcement that it would shift its ruble corridor against the dollar and restructure its debt, by closing just minutes ahead of the announcement. The Korean Stock Exchange index closed the day down 2.99 points at 301.62, off a high of 305.77.
Taipei: Taiwan share prices closed 1.3 per cent lower with institutional investors selling before the release of first-half corporate results, dealers said. The Taiwan Stock Exchange weighted price index dropped 97.99 points to 7, 273.85, following a 0.3 per cent rise in the previous session.
"Domestic institutional investors reduced holdings before companies report their first-half results as many expect negative outcomes," said Clement Lou with Taiwan International Securities.
Foreign investors were also on theselling side after the central bank's announcement on Saturday tightening control on foreign capital to curb foreign-exchange speculation, said Eric Lo at Dresdner Bank.
Shanghai: Shanghai's B shares, nominally reserved for foreign investors, fell 1.6 per cent, dragged down by a big fall in A shares, analysts said. "Trading was not active because of a public holiday in Hong Kong. Some fears over the sharp falls in A shares drove B shares into a decline," a China Securities analyst said. The Shanghai Stock Exchange's B share index lost 0.43 points to close at 27.18 points while the A share index of locally-traded stocks plunged 104.69 points, or 8.4 per cent, to 1,138.35 points. A Guangdong Securities analyst said A shares slumped mainly because of institutional selling. About 200 stocks closed limit down. "Investors were very pessimistic on the economy because of the floods," the analyst said, adding the investors also worried about a possible liquidity squeeze after a Hong Kong newspaper reportedChinese premier Zhu Rongji would crack down on illegal transactions by financial institutions.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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