Sun, Aug 03, 2008 page10

• ASIA: Earnings concern drags Asian stocks down

  GHOST MONTH The Taiwanese market is haunted by fears that foreign institutional investors will reduce holdings and move their funds out of the country, dealers said

  • BLOOMBERG AND AFP
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  Asian stocks fell last week after Toyota Motor Corp forecast lower sales and Australia & New Zealand Banking Group Ltd said bad loans will erode profit, deepening concern slowing economic growth will dent earnings.
  
  

  Toyota, the world’s biggest automaker by market value, slid after it cut its sales projection on cooling demand. ANZ, Australia’s fourth-largest bank, declined after saying full-year profit will drop by the most since 1992. Neptune Orient Lines Ltd retreated after Lloyd’s List said trade between Asia and Europe fell for the first time in seven years in June.
  
  

  “Things could get ugly,” said Jonathan Ravelas, a strategist at Manila-based Banco de Oro Unibank Inc, which manages about US$5.9 billion in assets. “We could see more downside from here as corporate earnings are released.”
  
  

  

  A Japanese businessman passes electronic stock indicators in Tokyo on Friday. Japanese share prices fell 282.22 points to close at 13,094.59 points at the Tokyo Stock Exchange on Friday, hit by an overnight slump on Wall Street, disappointing domestic earnings news and political uncertainty.

  PHOTO: AFP

  The MSCI Asia-Pacific Index dropped 1.8 percent to 130.63. Japan’s Nikkei 225 Stock Average lost 1.8 percent. Most benchmark indexes across the region declined.
  
  

  Asia-Northern Europe container traffic declined 0.5 percent last month as European countries headed toward recession, Lloyd’s List said, citing the Far Eastern Freight Conference.
  
  

  TAIPEI
  

  
  

  Taiwanese share prices are expected to test 6,800 points again this week on weak market confidence amid lingering concerns over further Wall Street turbulence and a slowing US economy, dealers said on Friday.
  
  

  As share prices continue to weaken, the market is also haunted by fears that foreign institutional investors will cut holdings and move their funds out of the country, they added.
  
  

  For the week to Friday, the weighted index closed down 231.08 points or 3.19 percent at 7,002.54, after a 6.14 percent increase a week earlier. Average daily turnover stood at NT$84.01 billion (US$2.61 billion), compared with NT$105.67 billion a week ago.
  
  

  While bargain hunting emerged in late Friday trading to push the bourse above 7,000 points, “market sentiment remains poor,” President Securities Co (統一證券) analyst Steven Huang said.
  
  

  “With little sign of a stable Wall Street and continued selling by foreign investors, it is possible for the market to suffer more losses in the short term,” Huang said.
  
  

  TOKYO
  

  
  

  Japanese share prices on Friday closed down 2.1 percent from Thursday, dealers said.
  
  

  The Tokyo Stock Exchange’s benchmark Nikkei-225 index slid 282.22 points to end at 13,094.59.
  
  

  The broader TOPIX index of all first-section shares shed 30.69 points or 2.35 percent to 1,272.93.
  

  
  

  HONG KONG
  

  
  

  Hong Kong share prices closed 0.6 percent higher, dealers said.
  
  

  The benchmark Hang Seng Index was up 131.5 points at 22,862.6. Turnover was 60.70 billion Hong Kong dollars (7.78 billion US).
  
  

  Banking heavyweight HSBC gained 0.39 percent and Hang Seng Bank surged 3.12 percent.
  
  

  “All eyes are now on HSBC’s result next week, which may help support buying interest,” KGI Asia’s Ben Kwong told Dow Jones Newswires.
  

  
  

  SYDNEY
  

  
  

  Australian share prices closed down 1.47 percent, dealers said.
  
  

  The benchmark S&P/ASX 200 index dropped 73.4 points to 4,904, while the broader All Ordinaries lost 74.6 points to 4978.
  

  
  

  SHANGHAI
  

  
  

  Chinese share prices closed 0.94 percent higher, dealers said.
  
  

  The benchmark Shanghai Composite Index, which covers both A and B shares, added 26.10 points to 2,801.82.
  
  

  But analysts remain cautious amid fears of a share supply glut, as well as domestic economic uncertainties and volatility in overseas markets.
  
  

  SEOUL
  

  
  

  South Korean share prices closed 1.3 percent lower, dealers said.
  
  

  The benchmark KOSPI index lost 20.9 points to 1,573.77.
  
  

  July trade data triggered worries over weakening exports in the second half of this year, said So Jang-ho, an analyst at Samsung Securities.
  
  

  SINGAPORE
  

  
  

  Singapore share prices closed down 0.80 percent, dealers said.
  
  

  The blue-chip Straits Times Index closed 23.58 points lower at 2,906.07.
  
  

  KUALA LUMPUR
  

  
  

  Malaysian share prices closed 0.3 percent lower, dealers said.
  
  

  The Kuala Lumpur Composite Index shed 3.99 points to close at 1,159.10.
  
  

  MANILA
  

  
  

  Philippine share prices closed 0.3 percent higher, dealers said.
  
  

  The composite index rose 7.11 points to 2,584.21 points. The all-share index gained 0.26 percent to 1,623.74 points.
  
  

  The upturn in the local market “is partly because of falling oil prices. That is the major reason,” said Carl Sy of Citiseconline.
  
  

  MUMBAI
  

  
  

  Indian shares closed 2.1 percent higher, dealers said. The benchmark 30-share SENSEX index rose 300.94 points to 14,656.69.
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