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Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: MythMan who wrote (4019)	8/19/1998 8:45:00 AM
From: yard_man	Respond to of 86076

Big jump in Malaysia overnight -- up more than 8 %. Oops, maybe just an official short squeeze: >>Brokers said the surge in Hong Kong's blue chip Hang Seng index, helped by a 1.6 percent gain on Wall Street overnight, had been aided by suspected government buying. Hints of similar action in Taiwan and Malaysia boosted their markets, suggesting a widening policy of regional governments to shore up beleaguered stocks with state money. Share analysts said such moves achieved spectacular results in the short term but were unlikely to end Asia's market woes. ''The lesson that should have been learned over the past 24 months is that government intervention in the stock market has only a fleeting positive impact,'' said Prasenjit Basu, senior regional economist at CS First Boston in Singapore. Although Hong Kong's government declined to comment on whether it was intervening on Wednesday, brokers said it was probably taking advantage of the stronger market tone to boost major blue-chip stocks and further squeeze short sellers.<< >>MALAYSIA ALSO ON THE UPSWING Kuala Lumpur shares were up sharply after Prime Minister Mahathir Mohamad said the government would support the ailing stock market by buying shares. Dealers said buying by local mutual funds also supported the index, which had touched a 10-year low on Tuesday.<<