Top Story News
Updated 11:37pm EDT October 23, 1997
Hong Kong Stocks Recover Some Lost
Ground
By Marguerite Nugent
SINGAPORE (Reuters) - Hong Kong stocks recovered some lost ground
to trade higher after initially sliding on Friday as the rest of Asia
succumbed to the fallout in the territory.
The blue chip Hang Seng Index nosedived 199 points, or 1.91 percent, at
the opening to 10,226 on concerns about rising local interest rates, but
recouped those losses to rise 2.04 percent to 10,639.33 by 0252 GMT
(10:52 p.m EDT Thursday).
One trader attributed the rebound to technical factors given the more than
30 percent drop so far this month.
"But the rebound is seen to be short-loved and the market will
fluctuate...," he said.
Traders said that Hong Kong will set the pace for the day. "If Hong Kong
stabilizes, I think you will definitely see a rebound here later in the
session," said one broker in Taiwan.
Thursday's more than 10 percent decline in Hong Kong whipped through
European exchanges, with London's FTSE 100 shedding 3.1 percent,
while in New York, the Dow Jones Industrial average slumped 2.33
percent.
Australian and New Zealand shares fell sharply when trading resumed in
Asia, while stocks in Tokyo recovered some of their early declines to be
little changed.
Australia's All Ordinaries Index opened down 3.2 percent at 2,531.6 and
then fell below 2,500 for the first time since May 8 of this year. At 0221
GMT, the Index was down 58.6 points, or 2.24 percent, at 2,556.3.
In New Zealand, stocks plunged 2.5 percent at the opening and fell six
percent in afternoon trade.
But it was all "wait and see" until Hong Kong trading resumed at 0200
GMT.
"Really we won't know a lot until Hong Kong opens up. I think you'll find
the markets may start to actually steady up from here," said one trader in
Wellington.
Tokyo stocks plunged through the key 17,000 level shortly after the
opening, but then began to recover.
After the first ten minutes of trading, the 225-share Nikkei average
dropped 222.78 points, or 1.3 percent to 16,928.77, hitting the lowest
level since August 14, 1995.
"Dealers bought back, as there were strong expectations that public funds
would support the Nikkei 225 at 17,000," said a broker at a second-tier
Japanese securities house.
At 0235 GMT, the Nikkei was down 87.81 points, or 0.51 percent, at
17,063.74.
In Tokyo, an adviser to Finance Minister Hiroshi Mutsuzuka said Japan
will make whatever efforts it can to help stabilise the reeling Asian
currency markets.
At 0235 GMT Singapore stocks were down 45.80 points, or 2.78
percent, at 1,604.07 after being down 4.03 percent earlier, as investment
funds continued to sell, while Malaysian shares lost 15.50 points, or 2.19
percent, to 690.95.
"This is all because of Hong Kong. And in addition, we have the ringgit
falling," said a dealer in Kuala Lumpur referring to the drop in the local
currency.
Taiwan stocks were off 191.82 points, or 2.45 percent, at 7,633.19 and
Korean shares lost 25.47 points, or 4.22 percent, to stand at 578.59.
Manila stocks rebounded half way through the morning after a brief
euphoric spell on the Hong Kong market, brokers said.
The Manila stocks index was down 14.26 points, or 0.78 percent, at
1,818.65 points, after 80 minutes, compared to an opening plunge of 3.28 percent. REUTERS
===================== |
