August 08, 2006	Tuesday	Rajab 12, 1427

HONG KONG, Aug 7: Asian stocks closed mixed on Monday with investors sidelined ahead of a decision on US interest rates and sentiment dampened by another surge in oil prices.World crude prices spiked above $76 a barrel after British energy giant BP began closing production in a key oil field in Alaska owing to a pipeline spill which rattled investors trading in Asia.

However, trade was already sluggish amid the hype generated over recent weeks leading up to Tuesday's meeting of the US Federal Reserve.

Analysts are evenly divided over whether the Fed will end its two-year cycle of interest rate hikes although softer than expected job numbers out last Friday suggested a pause is probable.

This helped Hong Kong, Sydney, Bangkok, Kuala Lumpur and Jakarta to post mild gains on the day, while Manila was also higher on the back of a strong reporting season.

TOKYO: Share prices tumbled 2.23 per cent lower to hit a two-week low as traders fretted on the eve of the US Federal Reserve's rate decision meeting.

Dealers said data released Friday showing slower-than-expected US jobs growth in July has not been enough to end speculation that the Fed may again increase its key rate at a meeting Tuesday, they said.

Market players were also cautious ahead of events in Japan including the release on Friday of Gross Domestic Product data for the three months to June and a Bank of Japan meeting.

The Nikkei-225 index declined 345.12 points to 15,154.06. Volume was 1.37 billion shares, up from 1.35 billion Friday.

HONG KONG: Share prices closed 0.39 per cent higher as investors bought select blue chips such as China Mobile and HSBC in late trade after a sharp falls Friday.

Dealers said turnover was relatively thin ahead of the US Federal Reserve's interest rate decision on Tuesday.

The Hang Seng Index closed up 65.75 points at 16,953.55. Turnover was 19.95 billion Hong Kong dollars (2.55 billion dollars).

Cheung Kong rose 0.20 dollars to 84.65.

SYDNEY: Share prices closed marginally higher, after US employment data raised expectations the Federal Reserve will pause its current monetary tightening cycle.

Dealers said banking stocks rose despite local inflation concerns lingering after Friday's Reserve Bank of Australia quarterly monetary statement and the possibility of further interest rate hikes this year.

The S and P/ASX 200 gained 5.7 points or 0.12 per cent to 4,961.8. A total of 693.7 million shares changed hands worth 2.33 billion Australian dollars (1.78 billion US).

Volumes in the blue chips were reasonable but really it was a matter of waiting and seeing how the week unfolds with the Fed rate decision, with a pause expected there, while we've also got Telstra and Commonwealth Bank reporting their annual results this week, he said.

SINGAPORE: Share prices closed 0.11 per cent lower on caution over rising oil prices and ahead of the US Federal Reserve's decision on interest rates.

Dealers said the market was spooked by a surge in oil prices on news British energy giant BP began to cut production in a key oil field in Alaska due to a pipeline spill.

The Straits Times Index slipped 2.67 points to 2,460.25. Volume was 737.92 million shares worth 829.91 million Singapore dollars (528.60 million US).

New York's main contract, light sweet crude for delivery in September, surged 1.67 dollars to 76.43 dollars per barrel in electronic deals before the official opening of the US market.

Leading the losers was Singapore Airlines, which lost 0.20 at 13.30.

KUALA LUMPUR: Share prices closed flat ahead of a US interest rate decision as well as the release of June industrial production data due out Tuesday.

The composite index added 0.49 points to 938.48 on turnover of 431.38 million shares worth 522.4 million ringgit ($149.3m).

JAKARTA: Share prices closed 1.02 per cent higher led by Bank Mandiri and other interest rate-sensitive issues on hopes that the central bank will cut its key policy rate this week.Dealers said analysts expect Bank Indonesia to cut the rate by 25 basis points to 12.0 per cent on Tuesday, with only a few expecting a 50 basis point cut following mild July inflation data.

The composite index closed up 14.137 points at 1,403.490. A total of 1.39 billion shares worth 1.98 trillion rupiah (218.30 million dollars) changed hands.

WELLINGTON: Share prices closed 0.58 per cent lower, dragged down by market heavyweight Telecom which plunged to a year low.

The NZX-50 index fell 20.5 points to 3,549.84 on turnover worth 111 million New Zealand (67.71 million US) dollars.

MUMBAI: Share prices closed down 0.50 per cent Monday on regional concern about the impact of higher oil prices and a possible US Fed interest rate hike this week.

The 30-share Sensex index closed down 53.87 points down at 10,812.64.—AFP