Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : INDONESIA'S PT TELECOM(TLK) -- Ignore unavailable to you. Want to Upgrade?

To: Jay Fisk who wrote (134)	1/26/1998 12:28:00 AM
From: Duke	Respond to of 947

Clinton scandal offers comfort to Asian currencies By Mure Dickie TOKYO, Jan 26 (Reuters) - Scandal surrounding an alleged relationship between U.S. President Bill Clinton and a White House internoffered beleaguered Asian markets a helping hand on Monday morning as the greenback fell against key regional currencies. Shares rose and the rupiah held its ground in crisis-hit Indonesia, while South Korea -- also a focus of Asian economic fears -- scored foreign exchange and stock price gains. In Japan, speculation that Clinton's presidency could be weakened by reports he indulged in an affair with 24-year-old former intern Monica Lewinsky piled pressure on the greenback. The scandal, combined with the possibility of new action by Tokyo to stimulate the stagnant Japanese economy, pushed the dollar below 125 yen in early trade, its lowest level against the Japanese currency since November, traders said. The Tokyo stock market's key barometer advanced 2.65 percent by midday as short-covering accelerated amid growing hopes of fresh government action to stimulate the economy. The key 225-share Nikkei average finished the morning session at 17,233.67, its highest level since October 27, 1997. Hong Kong stocks bolstered the hints of festive cheer ahead of traditional Moslem and Chinese holidays celebrated by millions in the region by jumping 3.65 percent to 9,246 points in early trade. ''Futures-driven roll-over activities is the leading reason for a technical rebound, which we expect will be followed by profit-taking at 9,000,'' said one Hong Kong securities firm. The South Korean won strengthened against the dollar, underpinned by hopes that talks in New York would resolve Korea's short-term debt problems, dealers said. The won opened at 1,700 to the dollar, up from Friday's close of 1,745, after bankers said some progress had been made in the slow-moving negotiations. South Korea's composite stock index shot up 2.55 percent in early trade to 522.50 at 0044 GMT. ''There's no fresh news to attribute it to, but foreign buy orders continue to come in and this encourages buying by local investors,'' said LG Securities broker Koh Soon-shik. The yen's early strength against the scandal-hit U.S. dollar offered support to other regional currencies that often take their cue from the Japanese unit. Traders in Taiwan said the island's dollar followed the yen to rise to T$33.701 to the greenback in the first 10 minutes of trade from Friday's T$33.925 close, although it also mirrored a slight later weakening in the Japanese currency. Monday was the last day of trade on Taiwan's foreign exchange market before the Chinese Lunar New Year holiday. The island's stock market began the week-long break last Friday. The run-up to Chinese New Year and the Moslem festival of Eid al-Fitr that marks the end of the fasting month of Ramadan offered Indonesia some respite from its financial despair. The rupiah remained mired at levels never plumbed before last week, but was holding the line at 14,000/15,000 to the dollar at 0230 GMT after ending in New York on Friday at 15,100/16,000. ''There isn't much going on. The market is winding down for the Lunar New Year and Eid al-Fitr,'' said one Singapore-based currency dealer. The rupiah has weakened some 80 percent against the dollar in the past six months and investors continue to fret over Indonesia's political future and the prospects for repayment of the nation's $140 billion foreign debt overhang. ''These holidays will give the rupiah a brief respite and allow the government to work out a proper plan to sort out the private debt problem,'' a European banker said. Jakarta's composite shares index was up 3.47 percent at 466.63 points at 0245 GMT as investors, especially foreign players, snapped up blue chip stocks. A senior Japanese official said on Sunday that Tokyo and the International Monetary Fund (IMF) would take some form of action on Indonesia's financial crisis this week. ''This week, in cooperation with the IMF, we will be taking some sort of measures (on the Indonesian crisis),'' said Vice Finance Minister for International Affairs Eisuke Sakakibara. In Hong Kong, gold reached US$302 an ounce in thin morning trade after jumping on Friday in New York amid rumours -- later denied -- of resignations in President Clinton's cabinet.

To: Jay Fisk who wrote (134)	1/26/1998 12:35:00 AM
From: Duke	Read Replies (1) \| Respond to of 947

Indon crisis: IMF, Japan to act again this week [TOKYO] The International Monetary Fund (IMF) and Japan are expected to draw up this week additional measures to deal with the deepening financial crisis in Indonesia, Eisuke Sakakibara, Vice-minister for International Affairs at the Ministry of Finance, said yesterday. Mr Sakakibara, speaking on a television panel discussion on Japan Broadcasting Corp (NHK) in the morning, said: "Indonesia is in a critical state . . . This week, Japan and the IMF will cooperate in taking some sort of measures . . . Drastic measures need to be taken." He did not elaborate. The Indonesian rupiah plunged to as low as 15,250 against the US dollar on Friday before central bank intervention hauled it up to 12,750. The crisis in the country took another turn that day as several major international banks, jittery about their exposure in Indonesia, cut off US dollar funds to customers. The IMF has set so far put together a US$40 billion (S$70.1 billion) international loan package for Indonesia. Earlier in an interview with the Tokyo Shimbun on Saturday, Mr Sakakibara had said Japan would build a united front with Singapore and the US to save Indonesia from ruin. "We will never let Indonesia collapse," said Mr Sakakibara, better known as Mr Yen for his power to move the yen on currency markets. On South Korea, Mr Sakakibara said he expects an agreement "shortly" between the nation and US, European and Japanese banks on repayment of external debts owed by the country's private sector. A formal agreement is seen in late January or early February, and once the agreement is finalised, the nation's crisis will pass, he said. Overall, the financial crisis currently hitting Asian nations has "bottomed" and is expected to move forward in a "good direction", Mr Sakakibara said. He also said there is only a marginal possibility that the current crisis will spread to China. "If something went badly wrong in South Korea and Japan, it could spread to China, but I think...the chances are extremely low." Mr Sakakibara stressed that economic fundamentals of the region are strong, and that while the current problems stem from financial system instabilities, Asia remains a growth centre. Those nations must undergo structural reforms, but Asia, as well as Japan, must "be confident" in solving its problems, he said. Calling the current financial situation a "global capitalisation crisis" where massive amounts of funds have shifted across borders, he said Japan recognises the importance of coordination and cooperation with the US, Europe and the IMF. "Creating an Asian regional bloc to solve the issue is not desirable," he added. On criticism of the IMF's fiscal tightening measures imposed on nations that receive IMF aid, Mr Sakakibara said Japan would back the IMF, but propose flexible measures. "The IMF has stopped taking extremely stringent fiscal measures and agreed to provide short-term loans," he said, adding that IMF managing director Michel Camdessus has recognised the IMF must change some of its policies to deal with the financial crisis. Meanwhile, part of Asia's current problems have stemmed from liberalising markets without having the proper regulatory and systemic controls. Strengthening risk controls in the public and private sectors thus becomes an important issue, Mr Sakakibara said. - Bridge News, Bloomberg