September 12, 2006	Tuesday	Sha'aban 18, 1427

HONG KONG, Sept 11: Asian stocks closed sharply lower Monday, led down by heavy losses in Tokyo after much weaker-than-expected corporate spending figures dented confidence in the outlook for the world’s second largest economy, dealers said.

They said the outcome in Japan, following other softer data on inflation and growth, sparked concerns that both it and the US economy could slow in tandem, putting at risk the two most important drivers for the region’s exports.

Adding to the pressure was continued unease at the prospect the US Federal Reserve may still have further to go in hiking interest rates, rather than staying on hold as has been the hope.

Against this backdrop, investors opted to take some profits on recent substantial gains, ignoring a fresh fall in oil prices and solid gains on Wall Street Friday which would normally have underwritten a good start to the week.

TOKYO: Japanese share prices slumped to a two-week low back under 16,000 points after a much bigger-than-expected plunge in a key gauge of corporate capital investment rattled sentiment, dealers said.

They said investors largely overlooked a modest upward revision to Japan’s second-quarter economic growth and instead focused on the 16.7 per cent month-on-month drop in core private-sector machinery orders in July.

The Tokyo Stock Exchange’s benchmark Nikkei-225 index lost 286.08 points or 1.78 per cent to 15,794.38, the weakest closing level since August 28.

The broader TOPIX index of all first-section stocks fell 23.42 points or 1.45 per cent to 1,596.50.

Losers overwhelmed gainers 1,401 to 222, with 77 stocks flat.

Volume fell to 1.63 billion shares from 2.40 billion shares Friday, when volume was inflated by the settlement of the September futures and options contracts.

HONG KONG: Hong Kong share prices closed 1.15 per cent lower, led down by property stocks on profit-taking after recent gains and with Tokyo’s sharp losses weighing on investor sentiment, dealers said.

They said selected blue chips also saw strong selling pressure while easing metal and crude oil prices triggered sharp falls in commodity related stocks.

The Hang Seng Index was down 197.17 points at 16,948.59, off a low of 16,929.71 and a high of 17,158.22. Turnover was 31.35 billion dollars (4.1 billion US).

SYDNEY: Australian share prices closed 1.42 per cent lower, dragged down by the resources sector after sharp falls in gold and copper prices in Asian trade, dealers said.

The benchmark S&P/ASX200 lost 72.3 points at 5,026.0 while the broader All Ordinaries shed 69.7 points to 4,993.5

Turnover was 1.09 billion shares worth 3.92 billion dollars (2.94 billion US), with falls leading gains 732 to 347 while 331 stocks were unchanged.

SINGAPORE: Singapore share prices closed 0.87 per cent lower, tracking heavy losses in key regional markets, dealers said.

The Straits Times Index was down 21.63 points to 2,488.51 on volume of 857.22 million shares worth 846.77 million Singapore dollars (550 million US).

Losers led gainers 356 to 229, with 663 stocks unchanged.

KUALA LUMPUR: Malaysian share prices closed little changed in rangebound trade as investors remained sidelined by a lack of fresh leads, dealers said.

The Kuala Lumpur Composite Index was down 0.98 points at 955.72 on volume 360.17 million shares worth at 643.82 million ringgit (175 million dollars).

Losers led gainers 393 to 266, with 353 stocks unchanged.

JAKARTA: Indonesian share prices closed 1.32 per cent lower, tracking falls in key regional markets, dealers said.

The Jakarta Stock Exchange composite index fell 19.322 points to 1,447.254 on 1.35 billion shares worth 1.39 trillion rupiah (152 million dollars.)

Declines led gains 95 to 33, with 59 stocks unchanged.

WELLINGTON: New Zealand share prices closed little changed, with falls in the Australian market hurting local sentiment, dealers said.

The NZSX-50 gross index lost fell 3.07 points to 3,532.34 on light turnover worth$72 million (45.8 million US).

The market was barely changed in terms of the index ... on notably low turnover, First NZ Capital retail research director Barry Lindsay said.

MUMBAI: Indian share prices fell more than three per cent as Asian markets fared badly, prompting local investors to sell down index and mid-cap stocks, dealers said. The Sensex closed down 367.96 pointss or 3.09 per cent at 11,550.69.—-AFP