December 05, 2006	Tuesday	Ziqa'ad 13, 1427

HONG KONG, Dec 4: Asian stocks closed mixed on Monday after falls on Wall Street at the end of last week and as investors wrestle with the direction of the United States economy.

Regional markets have rallied to a series of record and multi-year highs amid fluctuating forecasts. Some predicting a soft landing for the US economy, others saying it will be harder.

However, on Friday the Institute of Supply Management reported that US industrial activity contracted in November for the first time in over three years as the wider economy continued to cool.

The surprise contraction raised fears that the economic slowdown for Asia's greatest importer may be deepening and rattled investors resulting Tokyo falling 0.11 per cent, Seoul by 0.55 per cent and Kuala Lumpur fell 0.25 per cent.

Sydney and Hong Kong were flat while limited gains helped Singapore and Mumbai to continue their run into record territory while a modest rise was also posted in Taipei.

TOKYO: Share prices closed mixed after news that corporate capital spending slowed markedly in the three months to September, sparking fresh doubts about the economic outlook.

Dealers said the market had also been hit earlier by a surprise drop in US manufacturing data which added to concerns about the world's largest economy and a key market for Japan.

The Nikkei-225 fell 18.19 points or 0.11 per cent to 16,303.59. Volume dropped marginally to 1.68 billion shares from 1.69 billion shares on Friday.

HONG KONG: Share prices closed flat amid concerns over the US economy after data released last Friday showed an unexpected drop in US manufacturing activity.

Cheung Kong and Sun Hung Kai Properties supported the benchmark index as the two stocks rebounded after sharp falls last week.

The Hang Seng Index closed up 11.91 points at 18,702.73. Turnover was 37.24 billion Hong Kong dollars (4.7 billion US dollars).

SYDNEY: Share prices closed flat, with sentiment dampened by soft economic data ahead of the release of third quarter growth figures later this week.

While major banking stocks weighed on the market, last week's rise in base metal prices helped resource stocks support the bourse.

The S and P/ASX 200 index slipped 3.0 points to 5,424.9. Some 1.43 billion shares worth 4.17 billion dollars (3.30 billion US) changed hands.

Macquarie Equities said that given low and falling bond yields, decade-low credit spreads and strong liquidity, this was not surprising.

However this 'goldilocks' economic environment won't be around forever.

Great care is therefore needed in stock selection to avoid the current debt-driven takeover hype in some valuations, they said. BHP Billiton added 0.07 to 26.00 dollars.

SINGAPORE: Share prices closed up 0.52 per cent at a new record high, partly boosted by companies bidding for the city-state's second casino licence.

The Straits Times Index gained 14.68 points to 2,850.72, beating the previous record of 2,840.94 set on November 27.

Volume was 1.46 billion shares worth 1.09 billion Singapore dollars (708 million US). Gainers outnumbered losers 311 to 291, with 719 stocks unchanged.

KUALA LUMPUR: Share prices closed 0.25 per cent lower after weaker than expected October trade data sparked concerns over Malaysia's export prospects.

The composite index shed 2.67 points to 1,077.44, while volume traded was 1.465 billion shares worth 1.735 billion ringgit (483.56 million dollars).

Figures released by Malaysia's trade ministry Monday showed the country's trade surplus fell sharply in October, declining 8.23 per cent to 9.4 billion ringgit from September.

The lower than expected October trade figures suggest that US economic growth is slowing down. Coupled with the softer US economic data during the weekend, it is difficult for investors to be optimistic, said Pong Teng Siew, head of research at EON Capital Securities.

The US economic data is certainly not encouraging but it does not mean that the US is going into a recession. Perhaps investors are now taking a wait-and-see approach on this while taking the opportunity to lock in gains,he added.

Tenaga Nasional lost 0.10 ringgit to 10.80.

JAKARTA: Share prices closed 0.20 per cent lower on profit-taking after last week's rally, with gains in index heavyweight Telkom limiting the fall.

The composite index closed down 3.515 points at 1,731.235 on volume of 2.32 billion shares worth 2.08 trillion rupiah ($227.45 million.)

WELLINGTON: Share prices closed 0.51 per cent lower, falling across the board as the local dollar strengthened to put pressure on the key exporters.

Dealers said a weak Wall Street performance Friday after soft US economic data added to the negative tone.

The NZX-50 index ended 19.37 points down at 3,835.04 in light trade of 77.44 million dollars (53 million US).

MUMBAI: Share prices closed up 0.21 per cent to a new record high as overseas fund continued a buying spree.

The 30-share Sensex index rose 29.55 points to a record 13,874.33. The index has recorded four straight trading days of record highs.—AFP