HONG KONG, Sept 17: Asian stocks closed mostly lower on Monday amid renewed fears of an international credit crunch after hundreds of panicky depositors converged on British bank Northern Rock.
Most markets had steadied in early trade with investors opting for the sidelines ahead of a decision on United States interest rates by the US Federal Reserve on Tuesday, with observers forecasting a 25 basis point cut.
US stocks had also eked out small gains Friday, as generally positive reports on retail sales and consumer sentiment and this helped the markets shake off renewed worries about a widening of the credit crunch.
However, as Britain opened for business in late Asian trade, Northern Rock shares plunged by nearly a third for the second straight trading day as depositors attempted to grab their savings.
As Britain’s fifth largest mortgage lender, Northern Rock is seen as the latest victim to a global credit squeeze, sparked by rising interest rates and troubles in the US subprime mortgage sector.
Mumbai fell 0.64 percent and Jakarta eased 0.1 percent.
Of markets that closed earlier in the day, Seoul gained 0.1 percent, Manila was up 0.4 percent, Wellington gained 0.15 percent, and Shanghai advanced 2.06 percent further into record territory.
Sydney was off 0.6 percent and Taipei shed 1.46 percent. Tokyo was closed for a public holiday.
HONG KONG: Hong Kong share prices closed 1.20 per cent lower on concerns over embattled British bank Northern Rock and profit taking ahead of the US Federal Reserve’s interest rate decision.
The Hang Seng Index closed down 298.77 points at 24,599.34. Turnover was 81.12 billion Hong Kong dollars (10.4 billion US).
The People’s Bank of China announced late Friday that it is raising benchmark lending and deposit rates by 27 basis points, in the fifth rate hike this year, to combat surging inflation.
SYDNEY: Australian share prices dropped 0.6 per cent on Monday as investors opted to sit on the sidelines ahead of the United States Federal Reserve’s decision on interest rates.
The S&P/ASX 200 lost 35.4 points to close at 6,271.4. Turnover was 1.50 billion shares worth 5.06 billion dollars (4.3 billion US).
Overall, the market behaved as expected but there were some solid performances by individual stocks, Austock Securities private client advisor Michael Heffernan said.
SINGAPORE: Share prices closed 1.7 per cent lower as traders locked in profits ahead of a key United States Federal Reserve meeting on interest rates.
The Straits Times Index closed down 60.09 points at 3,476.31 on volume of 2.04 billion shares worth 1.67 billion dollars (1.10 billion US).
KUALA LUMPUR: Malaysian share prices closed 0.9 per cent lower as investors opted to take profits ahead of the US Federal Reserve’s interest rate policy meeting on Tuesday.
The composite index closed down 11.16 points at 1,278.34. Volume traded was 600.820 million shares worth 918.778 million ringgit ($263.26 million).
JAKARTA: Indonesian share prices closed a volatile session 0.1 per cent lower as some players cut positions on the eve of the keenly awaited US Federal Reserve monetary policy meeting.
The composite index closed down 2.39 points at 2,223.22. Volume was 4.80 billion shares valued at 2.72 trillion rupiah (289.67 million dollars).
WELLINGTON: New Zealand share prices rose 0.15 per $cent as investors chose to stick to the sidelines amid uncertainty on the future direction of the market and a US interest rate decision.
The NZX-50 index rose 6.05 points to close at 4,168.72 on light turnover worth 68.08 million dollars (48.6 million US).
MUMBAI: Indian share prices fell 0.64 per cent in volatile trade ahead on the eve of a US Federal Reserve meeting to review interest rates.
The 30-share Sensex index fell 99.37 points to 15,504.43.
The markets were volatile. The US Fed meeting may determine near-term t rends, said a dealer with brokerage Jamnadas Morarjee.—AFP
