January 27, 2007	Saturday	Muharram 07, 1428

HONG KONG, Jan 26: Asian stocks closed sharply lower on Friday after heavy losses on Wall Street overnight as the latest US housing sales figures undercut hopes for an early interest rate cut, dealers said.

They said the figures were taken to show that the US housing market may be touching bottom and that the US economy is accordingly much stronger than previously thought, making lower interest rates more unlikely.

The sharp stock gains at the end of 2006 were in part built on hopes the US Federal Reserve would begin cutting interest rates in early 2007 but recent data has begun to seriously undermine that view.

TOKYO: Japanese share prices closed down 0.21 per cent as investors took profits on recent gains following a slump on Wall Street overnight and an uncertain outlook for domestic interest rates, dealers said.

Chipmakers led the fall after negative outlooks from Elpida Memory and NEC Electronics, which hit sentiment despite a retreat in the yen which would normally boost exporters.

The Tokyo Stock Exchange's Nikkei-225 index of leading shares fell 36.37 points to 17,421.93, trimming morning losses.

HONG KONG: Hong Kong share prices closed sharply lower, falling 1.88 per cent as investors sold off property and China stocks following Wall Street's sharp drop overnight, dealers said.

The Hang Seng index lost 388.70 points at 20,281.13, off a low of 20,204.67 and a high of 20,457.48. For the week, the index was down 46.59 points or 0.23 percent. Turnover was 60 billion Hong Kong dollars (7.7 billion US).

SINGAPORE: Singapore share prices closed 0.67 per cent lower as investors took profits after the market's recent record-breaking run, dealers said.

The main Straits Times Index fell 20.89 points to 3,087.74. Volume was 2.53 billion shares worth 2.39 billion dollars (1.56 billion US). Losers led gainers 456 to 263, with 651 stocks unchanged.

Most institutional investors who have recently pumped in funds are in for the long haul, Fraser Securities research chief Najeeb Jarhom said in a note to clients.

KUALA LUMPUR: Malaysian share prices closed 0.83 per cent lower as investors continued to lock in profits ahead of the weekend and a central bank decision on interest rates, dealers said.

The Kuala Lumpur Composite Index fell 9.77 points at 1,169.89 on turnover of 1.43 billion shares worth 2.57 billion ringgit (409 million dollars) while losers led winners 491 to 399, with 263 stocks unchanged.

It was just some normal profit-taking, nothing to be concerned about,said a fund manager at a local asset management firm.

JAKARTA: Indonesian share prices closed 0.83 per cent lower, pressured by falls on regional markets and weakness on Wall Street overnight, dealers said.

They noted, however that the market finished well off its lows, supported by a recovery in second-liners, especially miners, in the afternoon session.

The Jakarta Stock Exchange composite index lost 14.750 points at 1,759.206, off a low of 1,736.318. Volume was 2.07 billion shares worth 2.0 trillion rupiah (220 million dollars). For the week, the main index fell 58.20 points or three percent.

WELLINGTON: New Zealand share prices closed 0.36 per cent lower in trade subdued by a lack of leads and the closure of the Australian market for a holiday, dealers said.

The benchmark NZX-50 gross index fell 14.70 points to 4,120.86 on turnover of $80.9 million (56.4 million US). Rises outnumbered falls 46 to 41 among the 154 stocks traded.

MUMBAI: Closed for a public holiday.—AFP