TOKYO, January 23: Depressed regional sentiment looked set to nullify the customary rally ahead of the lunar new year celebrations as markets generally lost ground Friday amid a weakening Indonesian rupiah, dealers said.The rupiah, which hit a historic low of 16,500 to the US dollar on Thursday before recovering to end the week at around 13,000 in Asian trading, has given a sharp blow to overall regional confidence.
A revised Indonesian budget containing reforms stipulated by the International Monetary Fund failed to lift fragile market sentiment. Even the Hong Kong bourse, which gained meagre 0.4 per cent Friday, was not expected to carry out the customary rally ahead of the lunar new year on January 28, dealers said.
Despite the regional turmoil, Japanese share prices staged quick 2.3 percent bounce on bargain-hunting and futures-linked buying by foreign investors, which dispelled the otherwise cautious mood ahead of the weekend amid the sustained slide of the rupiah, brokers said.
Singapore share
prices closed 0.8 per cent weaker, but off their lows, as lingering concerns over the crisis in Indonesia and higher interest rates weighed on investors. The benchmark Straits Times industrials index fell 9.66 points to 1,259.83, while the broader All-Singapore Index was lower by 4.11 points to 371.66. Australian share prices rose 0.9 per cent as a buoyant resource sector surged in latest trade, outweighing poor performances by several leading bank issues. The Australian stock exchange's main indicator, the all ordinaries index, rose 23.9 points to 2,623.3.
Malaysia's key stock index closed 2.9 per cent lower as investors squared positions ahead of a long break for the Chinese lunar new year holidays, dealers said.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
