Hang Seng Plummets 7.1%;
Region Continues Descent
An INTERACTIVE JOURNAL News Roundup
Hong Kong's Hang Seng Index plunged 7.1% Monday, as it appeared the
government was no longer buying shares to prop up the market. Most
other Asian-Pacific markets also fell sharply.
The government intervened in the market for the past two weeks to punish
speculators. The battle culminated in Friday's buying spree, which boosted
trading volume to a record 79 billion Hong Kong dollars.
However, the government is expected to gradually unload the stocks it
bought, or at least not buy as aggressively, traders said.
Meanwhile, news that Sakura Bank plans to
increase its capital pushed the Nikkei stock
average higher Monday after it sank to a
12-year low on Friday.
On Monday, the company's president, Akishige Okada, said at a press
conference the bank is consulting with Toyota Motor, Mitsui & Co, Mitsui
Fudosan and other major shareholders and customers about a 300 billion
yen capital increase.
Mr. Okada said the bank plans to raise the capital through the issue of
new ordinary shares and preferred shares which may be bought by major
shareholders and customers. The bank hopes to increase its capital as
soon as possible within this fiscal year ending next March, he said.
Taiwan shares finished at a 22-month low, and Australian shares returned
early gains after Hong Kong's stock market began to slide.
China's Class B shares fell, as poor earnings reports and plunging Hong
Kong equities kept investors sidelined.
Stocks on the Korea Stock Exchange advanced, with the main index rising
1.8%, encouraged by expectations of government measures to help boost
the current sluggish economy. Traders added that the market was also
supported by the fact that the U.S. and Russia are making efforts to
resolve the current economic turmoil in Russia.
Philippine shares fell for the seventh consecutive session Monday, weighed
down by Friday's weakness on Wall Street and the poor prospect for the
local economy. On Friday in New York, the Dow Jones Industrial
Average fell 114.31, or 1.4%, to 8051.68.
The Jakarta Stock Exchange Composite Index rose nearly 1%, gaining
support late in the day when foreign investors entered the market to pick
up telecommunications and tobacco blue chips. However, most
Indonesian shares ended the session with substantial losses.
Singapore's new Straits Times Index of 55 stocks fell 3.3% from Friday's
closing level of the Straits Times Industrial Index of 30 issues. And the
Stock Exchange of Thailand Index lost 2% of its value, as foreign investors
continued to flee Bangkok's bourse.
Indian share prices rebounded on the Bombay Stock Exchange.
Malaysia's financial markets were closed for a national holiday.
In dollar terms, the Asia-Pacific sector of the Dow Jones Global Indexes
rose 0.28 to 63.40 at 6:30 a.m. EDT Monday, after ending unchanged
Saturday. The Dow Jones World Stock Index fell 0.09 to 171.01, after
gaining 0.01 Saturday.
Asian Stock Market Indexes
Market
Index
Aug. 31
Change
Australia
All Ordinaries
2480.70
- 1.44%
China
DJ China 88
127.04
+ 0.93%
Hong Kong
Hang Seng
7275.04
- 7.08%
India
Bombay Sensex
2933.85
+ 0.87%
Indonesia
JSX Index
342.436
+ 1.01%
Japan
Nikkei
14107.89
+ 1.38%
Malaysia
KLSE Composite
302.91*
- 3.38%
Philippines
PSE Index
1192.25
- 0.21%
Singapore
STI
856.43**
- 3.26%
S. Korea
Korea Composite
310.16
+ 1.76%
Taiwan
Weighted
6550.11
- 2.76%
Thailand
SET
214.53
- 1.97%
* -- Previous quote. Market closed for a holiday.
** -- Singapore introduced a new stock index, the Straits Times Index, on
Monday
interactive.wsj.com
Regards, Jeff |
