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HONG KONG, Feb 11: Asian stock markets were mixed on Tuesday as investors in the region took leads from a possible war in Iraq, local developments and gains on Wall Street.
The region’s major market Tokyo was closed for a holiday, but share prices in Hong Kong closed 0.40 per cent lower due to continuing worries over the US military build-up against Iraq.
The key Hang Seng index lost 37.23 points to close at 9,194.91, with losses limited by Wall Street’s gains.
Simon Tam, assistant sales director at Grand Cathay Group, said investors were unsettled by the war preparations, even though Iraq has agreed to allow US surveillance planes over its territory.
“Investors were worried about the outlook of the US stock market. The rise on Wall Street on Monday was only seen as a temporary rebound,” he said.
SYDNEY: Australian shares closed down 0.4 per cent as earnings concerns dragged banks lower and war fears continued to dampen sentiment.
The benchmark SP/ASX 200 index closed down 11.2 points at 2,879.0, while the All Ordinaries index was down 10.2 points at 2,860.0.
“There are a few jitters in the banking sector,” said Burdett Buckeridge Young institutional sales head William Kostoff, adding that expectations were not optimistic ahead of the Commonwealth Bank’s first half results Wednesday.
Shaw Stockbroking head dealer James Spiteri said the market was also worried about the prospect of war with Iraq.
SINGAPORE: Share prices in Singapore snapped a four-day losing streak to close 1.03 per cent firmer on hopes a war in Iraq can be avoided.
The Straits Times Index gained 13.24 points to 1,295.97 and the All-Singapore Equities index rose 7.45 points to 573.02.
SEOUL: South Korean stocks closed 0.22 per cent lower with selling sparked by the country’s ratings outlook downgrade partially offset by late bargain-hunting.
The composite index fell 1.27 points to 575.98, off a low of 561.69.
Moody’s Investors Service said it had cut South Korea’s sovereign ratings outlook by two notches to negative from positive, citing North Korea’s nuclear threats.
“After taking a severe beating earlier, the market appears to have taken a view that it does not have to overreact to Moody’s actions as it’s not a downgrade of ratings,” LG Investment Securities strategist Kang Hyun-Cheol said.
KUALA LUMPUR: Malaysian stocks closed 0.23 per cent higher after California Public Employees’ Retirement System adviser Wilshire Consulting’s recommendation to invest in Malaysia, among other countries.
The Kuala Lumpur Stock Exchange composite index closed up 1.49 points to finish at 659.95.
TAIPEI: Taiwan share prices closed 0.54 per cent lower on profit-taking despite early gains after a stronger close on Wall Street.
The weighted index closed down 24.89 points at 4,618.98, off a high of 4,704.46.
Iraq’s granting of unconditional consent to flights over its territory by surveillance planes has not totally dispelled worries over an eventual US attack, they said.
SinoPac Securities analyst Teng Ke-hsin said the failure of the market to sustain its Wall Street-inspired bounce to the end clearly points to continuing caution over Iraq.
MANILA: Philippine share prices closed 0.57 per cent higher in selective buying although concerns over a likely war in Iraq clouded prospects.
The Philippine Stock Exchange composite index added 5.88 points to 1,044.77.
The market was relieved on news that Iraq had agreed to overflights by surveillance aircraft, said Manny Cruz of Belson Securities, but stressed that war jitters remained.
“Most investors are not looking at any news right now. They’re more attuned to war fears in Iraq,” Cruz said.
MUMBAI: Indian shares closed slightly higher in lacklustre trade with the focus largely in state-owned counters on hopes for speedy privatization.
The Mumbai Stock Exchange’s 30-share index rose 4.61 points or 0.14 per cent to close at 3,261.47.
Dealers said volumes were low as investors kept to the sidelines, with retail orders slowing significantly.
They said technology stocks saw active selling pressure while old economy counters remained flat.
BANGKOK: The Thai stock market gained 0.97 per cent amid easing war fears in Iraq.
The Stock Exchange of Thailand (SET) composite index closed up 3.66 points at 379.14, while the Set 50 index earned 0.27 points at 24.61.
IB Securities trading manager Charoen Iampattanatham said investors sought out bargains to capitalize on the whiff of positive international sentiment regarding Iraq.
JAKARTA: Indonesian stocks closed 0.42 per cent lower but off lows with bargain-hunting in Indosat and Gudang Garam erasing earlier losses due to profit-taking in Telkom and other blue chips.
The Jakarta Stock Exchange composite index closed down 1.659 points at 395.559, off a low of 392.912.
Dhanawibawa Artha Cemerlang dealer Firman Surbakti said the market traded without any direction, prompting short-term trading by investors.
“Any movement on stocks did not reflect its fundamentals but just for trading purposes as the market remained cautious amid the uncertainty over the US-led war with Iraq,” he said.
SHANGHAI: China’s Shanghai B-shares closed marginally higher as technical factors lifted trade subdued by a lack of fresh leads.
The Shanghai B-share index gained 0.65 points to 125.16 while the A-share index increased 13.25 points or 0.86 per cent to 1,560.26.
“No particular news was behind the gains,” said analyst Jin Guanfeng at Hai Tong Securities.
“The markets have just have largely been undergoing technical corrections which started right before the (Chinese New Year) holiday,” he said.—AFP
