Return
to Story Page
To print: Select File and then Print from your
browser's menu
AGENCE FRANCE PRESSE
Tokyo, Sept 28: Most Asian stock markets rose on Monday as investors cheered the prospect of an imminent cut in US interest rates as the Federal Reserve moves to stimulate the US economy.
Dealers noted growing optimism that the policy-making Federal Open Market Committee, which meets on Tuesday, would lower short-term rates by at least a quarter of a percentage point. A further boost came from a crucial political agreement in Japan on how to fix the debt-laden banking sector.Stock markets in Hong Kong, Tokyo, Sydney, Singapore, Bangkok, Manila and Shanghai advanced in response. Kuala Lumpur was closed for a holiday.
In Tokyo, share prices closed 1.4 per cent higher, helped by the ruling and opposition party deal on key banking bills and a possible tie-up by two leading banks, brokers said. The Nikkei-225 rose 185.53 points to finish at 13,909.37 while the Topix of all issues in the first section gained 13.59 points at 1,063.52.
Stocks opened easier on news an affiliate of the troubled Long-Term CreditBank of Japan had filed for rehabilitation, marking the largest corporate failure here after World War II.
The credit bank's affiliate, Nippon Leasing Corp, said it filed for rehabilitation late on Sunday with liabilities exceeding two trillion yen (US$ 15 billion). But the market rallied after two major banks, Asahi Bank Ltd and Tokai Bank Ltd, said they were considering a tie-up, which would effectively create the second largest bank in Japan.
Investors also welcomed the agreement between ruling and opposition parties on the key banking bills to clean up the debt-ladden finance sector, brokers said. Hong Kong: Hong Kong stocks closed sharply higher on hopes for a cut in US interest rates, but failed to find the impetus to breach the 8,000 resistance level, dealers said. The Hang Seng Index ended up 3.2 per cent, or 244.43 points at 7,946.04 on turnover of 5.2 billion Hong Kong dollars (US$ 671 million).
Dealers said expectations the Federal Reserve will cut interest rates was the main factor behindthe rise. Anthony Mak of Vickers Ballas said there had also been some short covering ahead of the expiry of the September futures contract on Tuesday which had added to gains. But he warned the rally could fizzle out in coming days.
Singapore: Singapore's benchmark stock index closed barely higher as profit-taking erased earlier gains on expectations of a US interest rate cut which would prompt local banks to follow suit. "A rate cut in the US is likely to prompt local banks to speed up a cut in their own rates," said a dealer with a local brokerage, adding that local banks were already under pressure to lower interest.
The key Straits Times Index closed 6.61 points or 0.7 per cent higher at 930.53. The broader All-Singapore index ended 0.56 point up at 285.41. Bangkok: Thai share prices gained 2.7 per cent but closed off their highs in a market buoyed by expectations of further cuts in local and US interest rates, analysts said. The gains were made in solid trade as investors bought intothe Thai market across the board amid a lack of negative factors to dampen sentiment.
The Stock Exchange of Thailand (SET) broad-based index gained 6.60 points to close at 255.53 points, in strong trade worth 4.2 billion baht (US$ 107 million).
Jakarta: Indonesian share prices closed mixed with the firmer rupiah pushing down dual-listed stocks and other counters boosted by anticipation of a US interest rate cut, dealers said.
Gains were capped by growing concern over the political situation ahead of a planned national Congress by the Indonesian Democracy Party (PDI), they said.The Jakarta Stock Exchange composite index closed down 0.223 points at 275.001.
Manila: Philippine share prices closed 1.2 per cent higher on positive regional sentiment and renewed investor confidence. "We are basically mirroring the gains of the region this morning as most (markets) were also trading higher," said Oliver Plana of Asiasec Equities Inc. The Philippine Stock Exchange composite index rose 15.04points at 1,230.50.
Seoul: South Korean share prices closed slightly lower amid worries over a threatened strike by nine bank unions to protest layoffs, dealers said. "Investors are worried that the economy will get worse if the banks go on strike tomorrow," a dealer at Daewoo Securities said. The Korea Stock Exchange main index fell 0.57 points at 305.73, off a low of 305.38 and a high of 312.92.
Taipei: Taiwan share prices fell 1.0 per cent on the lowest turnover recorded since January 1997 as investors took to the sidelines, dealers said. The Taiwan Stock Exchange weighted price index dropped 69.28 points to 6,910.61 after ending barely changed in the previous session.
Shanghai: Shanghai's B shares, nominally reserved for foreign investors, rose 2.2 per cent on expectations of a US interest-rate cut, dealers said. "The B shares closed at their intra-day high due to the expectations of a US interest rate cut. Domestic institutions were still the main buyers while some foreignselling and profit-takings appeared," a Goldman Sachs dealer said.
The Shanghai Stock Exchange's B share index gained 0.70 points to settle at 32.92 points while the A share index of locally-traded stocks ended up 8.97 points, or 0.7 per cent,
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
------------------------------------------------------------
This story was printed from Net Express located at http://www.expressindia.com. Net Express provides a portal to India, with news from The Indian Express and The Financial Express along with sites on travel and tourism, the entertainment industry, the power sector, the environment and much more.
------------------------------------------------------------