May 17, 2006	Wednesday	Rabi-us-Sani 18, 1427

HONG KONG, May 16: Asian stocks extended their losses on Tuesday as investor fears over the dollar, the outlook for inflation and higher interest rates continued to punish regional markets. A mixed overnight performance by Wall Street had led to a better start in Asian trade with falls at a much slower pace than seen over the previous two trading days.

Tokyo closed 1.99 per cent down and weakness in the region’s largest market spread with Hong Kong losing 0.62pc while Seoul slumped 2.25 per cent and Taipei shed 1.48pc.

TOKYO: Share prices closed down almost two per cent at a fresh eight-week low as investors sweated over the recent rise of the yen which cuts into exporters’ profits.

Dealers said shares fell for a sixth straight trading day in line with recent weakness on other global stock markets amid uncertainties over the direction of US interest rates and the dollar.

The Nikkei-225 index dropped 328.49 points to 16,158.42. Volume rose to 2.06 billion shares, from 1.82 billion Monday.

Sumitomo Metal Mining fell 115 yen to 1,530.

HONG KONG: Share prices closed 0.62 per cent lower on sharp falls in metals and mining stocks after commodity prices tumbled overnight.

Zijin Mining fell 0.35 at 4.07.

SYDNEY: Share prices fell 0.32 per cent due to a sell-off in resources and energy stocks triggered by an overnight correction in commodity prices.

The S and P/ASX 200 closed down 16.7 points at 5,217.4. Turnover was 1.56 billion shares worth 5.34 billion dollars (4.07 billion US).

SINGAPORE: Share prices closed 0.83 per cent lower as investors concerned over rising interest rates continued to lock in profits.

KUALA LUMPUR: Share prices fell 0.49 per cent, with investors unnerved by further falls on regional markets, a tumble in commodity prices and fears over US interest rates.

JAKARTA: Share prices closed flat on bargain-hunting in blue chips such as Bank Mandiri and Perusahaan Gas Negara after the market lost more than 13 per cent in two days, dealers said.

WELLINGTON: Share prices fell 0.26 per cent, as reported comments by Telecommunications Minister David Cunliffe on Telecom’s dividend policy unsettled the market leader.

The NZSX-50 gross index closed 9.43 points lower at 3,623.65 on turnover worth 251.87 million New Zealand dollars (162.75 million US).

MUMBAI: Share prices recovered from sharp early losses and closed up 0.44 per cent to break a three-day slide linked to a drop in global metal prices and selling by overseas funds.

The benchmark 30-share Sensex index gained 51.53 points to 11.873.73 after falling almost 450 points in early trade to an intraday low of 11,378.90.—AFP