Asia ends year with slight rise
Friday, December 31, 2004 Posted: 0931 GMT (1731 HKT)
SINGAPORE (Reuters) -- Asian stock markets rose slightly on the last day of 2004, mostly topping off strong performances for the year, and the dollar fell against the yen but gained against the euro in holiday-thinned trade on Friday.
MSCI's index of stocks in Asia Pacific, excluding Japan, hit a new five-year high and was within a point of touching levels not seen since late 1997.
Australia's S&P ASX 200 was the only major market to fall on the day.
The country's largest steel maker, Bluescope Steel, fell 1.55 percent and miner Rio Tinto lost 2.05 percent after steel-related stocks sagged in New York on emerging fears of a slowdown in Chinese demand.
But analysts predicted the Chinese growth story would drive the region's stock markets higher in 2005.
"We expect another positive year for the local share market, supported by solid global growth, continued expansion of the Australian economy and favorable valuations," Commonwealth Securities equities economist Craig James said.
Taiwan's weighted index was the biggest gainer on Friday, rising 0.92 percent.
Financials rose 1.37 percent after the central bank raised interest rates by an eighth of a point, but weakness in steel shares capped the market's gains.
Japanese and South Korean markets were closed on Friday.
For the year, Jakarta's stock market was the best performer in Asia, gaining 44.56 percent.
Only markets in Thailand and China finished in the red, down 13.5 percent and 15.2 percent respectively.
The dollar tumbled to a fresh record low for the sixth consecutive session against the euro in New York on Thursday after weaker-than-expected business activity data.
But Asian traders pushed it back up about half a cent from the record low of $1.3667 per euro.
By 0600 GMT the euro cost around $1.3618 compared with $1.3647 late in New York. It bought about 102.60 yen.
Steel buckles
Blue-chip U.S. stocks closed lower in thin trade, with steel companies Nucor Corp. and United States Steel Corp. the worst performing stocks in the S&P 500 on concerns that slowing Chinese demand could lead to oversupply and drive down steel prices.
The Dow Jones Industrial average lost 0.27 percent while the Nasdaq composite index and the Standard and Poor's 500 were flat.
Steel demand in China has increased only about five percent a month recently, down from average increases of 26 percent a month in 2002, 2003 and early this year, according to a Wall Street Journal report on Thursday that cited UBS AG.
Steel production was also on the rise in China, which became a net exporter in steel last month, reversing its position as the world's biggest steel importer in 2003.
Chinese steel shares were also weaker, hurt by news that Hong Kong-listed Angang New Steel Co. would sell shares to buy major iron, steel and other assets from its parent for 18.02 billion yuan (US$2.18 billion).
Angang fell 3.1 percent.
Gold was steady and dealers said they expected it to resume its upward trend in 2005 on the back of a gloomy outlook for the dollar.
Spot gold was quoted at $437.00/438.00 an ounce versus $437.20/437.70 last quoted in New York on Thursday.
U.S. crude oil was untraded, with the NYMEX market closed for the year.
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