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To: Broken_Clock who wrote (25954)	1/11/1999 9:32:00 PM
From: goldsnow	Respond to of 116791

They are trying to push Dollar and weaken their currency at the same time....But fundamental question is in place why Dollar dropped as a stone in the face of Asian Crisis? Brazil to collapse? Worse? bloomberg.com bloomberg.com

To: Broken_Clock who wrote (25954)	1/11/1999 9:53:00 PM
From: goldsnow	Respond to of 116791

ASIA MARKETS - Boosted by firm yen, bullish Dow 04:09 a.m. Jan 11, 1999 Eastern By Sonali Desai SINGAPORE, Jan 11 (Reuters) - The strong yen kept most Asian currencies on a firm footing on Monday as the Dow's 105-point rise spurred regional stock markets to extend recent gains. YEN RISE WORRIES REGIONAL CENTRAL BANKS The dollar hovered below 111 yen in late Asian trade amid growing pessimism after Friday's stronger-than-expected U.S. jobs data failed to drive it convincingly higher. The yen's resilience and corresponding rises in regional currencies have sparked growing anxiety among Asian central banks about a loss of export competitiveness. The Bank of Korea stepped in to stem the won's rise last week and Seoul dealers cited further signs of intervention on Monday. Thailand's central bank is also believed to have bought dollars against the baht in recent sessions. Manila currency dealers are beginning to expect officials to intervene to cap the peso's rise. Collapsing regional imports have taken the steam out of Asia's much-touted export-led recovery. Regional governments now fear an appreciation in their currencies might hamper it further. KOREAN WON SPOOKED BUT SEEN SUPPORTED The Korean won was one of the few regional currencies to lose ground as two state-run banks actively bought dollars, absorbing sales by exporters and foreigners investing in the stock market. The won fell to a low of 1,183 per dollar from a high of 1,150 after the Export-Import Bank of Korea ploughed in with hefty dollar bids, trading directly in the local market for the first time. Analysts said Seoul's efforts to slow the won's rise could succeed, but any falls would also be limited. ''The government has announced measures to remove the issue of international bonds in 1999 and has asked state enterprises not to borrow and start repaying some loans. So that will reduce the supply of U.S. dollars and cap the strength of the won,'' said Irene Cheung, regional economist at CIBC in Singapore. ''But fundamentally, I think there is support for the currency and I don't expect it to weaken much below 1,200 per dollar in the first half of 1999,'' Cheung told Reuters Television. KOREA RAISES 1999 GROWTH FORECAST The Bank of Korea raised its 1999 GDP forecast to 3.2 percent growth from a previous projection of one percent growth, based largely on an expected surge in semiconductor exports. This compares with an expected contraction of five to six percent for 1998. The bullish outlook boosted the stock market, already up in early trade on strong demand for newly listed Hanvit Bank. Hanvit, the result of a merger between the Commercial Bank of Korea and Hanil Bank, shot up to its daily limit high of 7,590 won at the opening bell. PESO FIRMS BUT MARKET WARY The Philippine peso rose in line with the yen, but the 37.50 per dollar level was expected to pose a stiff barrier. Dealers were also wary after weekend press reports the policy-making Monetary Board had permitted the central bank to replenish its foreign reserves by buying dollars. Manila stocks snapped an 11-day winning streak, but brokers said any correction should be short-lived as interest in the market remained strong. KL SHARES UPBEAT ON CABINET RESHUFFLE Kuala Lumpur shares responded well to Prime Minister Mahathir Mohamad's weekend cabinet reshuffle, which saw former foreign minister Abdullah Ahmad Badawi named Deputy Prime Minister and Daim Zainuddin appointed Finance Minister. Analysts said Abdullah's appointment reduced the likelihood of a potentially damaging power struggle for the number two post. And the market-savvy Daim was expected to provide a steady hand in charting Malaysia out of its recession. The National Economic Action Council said concerns over the government's ability to finance its 62 billion ringgit economic recovery plan through 2000 were unfounded. It said two-thirds of the funds would be sourced locally, mainly through loans from the state pension fund and Petronas. But data released on Monday showed the economy remained in poor shape, with industrial output shrinking 11.5 percent year-on-year in November after a 10.4 percent drop in October. RUPIAH EDGES UP, CENTRAL BANK VOICES SUPPORT The Indonesian rupiah was slightly firmer, but showed no inclination to stray from its recent range near the 8,000 level. Dealers expected rising dollar demand ahead of the Moslem Eid al-Fitr celebrations on January 19/20. Bank Indonesia governor Syahril Sabirin said the central bank was prepared to step in if necessary. ''We are trying our best to make it stable. If some intervention is necessary we will do so. We do not want to see the rate fluctuate in a wider band,'' he told Reuters Television in Hong Kong ahead of a central bankers' meeting. Sabirin said there was room for interest rates to ease further and the rupiah strengthen, but added its current level was all right. TAIWAN, HONG KONG SHARES BUCK UPTREND Most stock markets rode the Dow's gains, though Taipei shares ended a shade softer on some late profit-taking. Brokers saw stability in the near-term as the index has held above the 10-year moving average at 6,300 for several sessions. Hong Kong stocks ended weak after a choppy day, as investors vacillated between Friday's interest rate cuts and news foreign creditors would not receive priority treatment in the bankruptcy of Guangdong International Trust and Investment Corp (GITIC). Change on the day Change on the day MON 11 0826GMT Currency...Latest bid....Prev Close....Pct Move Ringgit......3.7998.......3.8000.........0.01% Rupiah......7940.00......7950.00.........0.13% Baht..........36.25........36.35.........0.28% Peso..........37.80........37.95.........0.40% Sing dlr.....1.6772.......1.6720........-0.31% Taiwan dlr...32.095.......32.120.........0.08% Korean won..1173.00......1168.00........-0.43% Japan yen....110.11.......111.53.........1.29% Change since start of Asia crisis Currency.....Latest......July '97......Pct Move Ringgit......3.7998.......2.5200........-33.68% Rupiah......7940.00......2432.00........-69.37% Baht..........36.20........25.90........-28.45% Peso..........37.80........26.50........-29.89% Sing dlr.....1.6772.......1.4300........-14.74% Taiwan dlr..32.0950......27.7500........-13.54% Korean won..1173.00.......842.00........-28.22% Japan yen....110.11.......114.40..........3.90% ++++++++++++++++++++++++++++++++++++++++++++++++ STOCK MARKETS Change on the day MON 11 0826GMT Market........Current.....Prev Close.....Pct Move Indonesia.....437.06.......439.49..........-0.6% Malaysia......601.06.......591.70...........1.6% Philippines..2139.64......2140.64...........0.0% Singapore....1536.64......1545.18..........-0.6% Thailand......395.98.......399.43..........-0.9% Hong Kong...10634.27.....10722.70..........-0.8% Japan.......13368.48.....13391.81..........-0.2% Taiwan.......6406.99......6421.75..........-0.2% Korea.........640.95.......626.33...........2.3% Change since start of Asia crisis Market........Current.....July '97.......Pct Move Indonesia.....437.06.......731.00.........-40.2% Malaysia......601.06......1230.00.........-51.1% Philippines..2139.64......2815.00.........-24.0% Singapore....1536.64......1928.00.........-20.3% Thailand......395.98.......569.00.........-30.4% Hong Kong...10634.27.....15055.00.........-29.4% Japan.......13368.48.....20000.00.........-33.2% Taiwan.......6406.99......9000.00.........-28.8% Korea.........640.95.......770.00.........-16.8% -- Asia Forex +65-870-3840 -- asia.forex+reuters.com Copyright 1999 Reuters Limited. All rights reserved.