August 02, 2006	Wednesday	Rajab 6, 1427

HONG KONG, Aug 1: Asian stocks closed mostly lower on Tuesday with investors booking profits on recent gains ahead of a decision on US interest rates by the Federal Reserve next week, dealers said.

They said uncertainty over whether the Fed will end its current two year cycle of rate hikes was testing market patience, resulting in cautious trade and lower volumes.

Many markets are also in the middle of their reporting seasons which have delivered profits better or largely in line with expectations and gains on the back of this meant investors were content with the sidelines on the day.

This was evident in Kuala Lumpur, Singapore and Mumbai where equities ended the day flat while losses elsewhere were modest with Tokyo and Manila both down 0.10 per cent, Sydney shed 0.09 per cent and Taipei 0.20 per cent.

Falls were harsher in Seoul, down 0.81 per cent, after the release of less than impressive July export figures while Jakarta bucked the trend and rose 1.48 per cent on the back of positive inflation data.

TOKYO: Share prices edged lower as investors opted to pocket profits after three days of gains, turning wary ahead of next week's key US interest rate decision.

Dealers said the market retreated in tandem with Wall Street amid uncertainty about whether the US Federal Reserve will end its long campaign of monetary tightening when policymakers meet next Tuesday.

The Nikkei-225 index dipped 15.90 points or 0.10 per cent to 15,440.91.

Volume fell to 1.49 billion shares, from 1.69 billion Monday.

HONG KONG: Shares prices closed 0.35 per cent lower on profit-taking in index heavyweight HSBC following its first-half results announcement.

Lai added HSBC's results failed to inspire further buying of the stock due to the market's sluggish undertone.

HSBC closed down 0.20 at 139.90, after opening up at 141.00, as investors took profits from its recent gain ahead of the results announcement.

Its unit Hang Seng Bank was down 0.20 at 99.10 on disappointment over its mild profit growth.

SYDNEY: Share prices closed slightly lower as investors remained cautious ahead of an expected hike in localinterest rates.

The Reserve Bank of Australia is widely expected to announce a 25 basis points rise on Wednesday that would take its key rate to 6.0 per cent in an effort to curb inflationary pressures on the economy.

Rising copper, nickel and oil prices helped support resource stocks, they added.

The S and P/ASX 200 slipped 4.7 points or 0.09 per cent to 4,981.3. Turnover was 1.06 billion shares worth 3.07 billion dollars (2.34 billion US).

SINGAPORE: Share prices closed flat as investors consolidated positions following recent market gains.

The Straits Times Index slipped 0.39 points to 2,445.04 on volume of 862.99 million shares worth 741.32 million Singapore dollars (469.67 million US).

ST Engineering lost 0.01 to 2.82 and Singapore Airlines fell 0.20 to 12.80 before the release of the airline's first quarter results to June.

SIA said after the market closed that its net profit for the quarter rose to 575.1 million Singapore dollars (366 million US) from 234.6 million dollars a year ago.

KUALA LUMPUR: Share prices closed flat with institutional interest in selected blue chips reversing early losses from profit-taking.

The composite index was up 0.19 points at 936.04.

JAKARTA: Share prices closed 1.48 per cent higher, led by index heavyweights Telkom and Astra International and supported by positive July inflation figures.

The July consumer price index (CPI) rose 0.45 per cent from the previous month and was up 15.15 per cent year-on-year.

The composite index closed up 20.044 points at 1,371.693 on volume of 1.24 billion shares valued at 1.50 trillion rupiah (165.38 million dollars).

WELLINGTON: Share prices closed little changed in quiet trade as investors took to the sidelines awaiting an announcment on the future of carpet maker Feltex.

The NZSX-50 index was down 2.4 points at 3,578.1 on turnover worth 81.26 million New Zealand dollars (49.8 million US).

The market “is still in the background worrying about a slowing economy and still thinking about higher interest rates,” said Stephen Wright of ASB Securities.

The market had to wait until after trading closed for news of Feltex's restructuring plan and a trading halt imposed in the morning was lifted.

MUMBAI: Share prices closed flat in choppy trade amid weak global market trends and a lack of buying from large funds.

The 30-share Sensex index closed 7.78 points up to 10,751.66.—AFP