June 11, 2008	Wednesday	Jamadi-us-Sani 06, 1429

HONG KONG, June 10: Asian stocks fell sharply on Tuesday amid concerns soaring oil prices will stoke inflation, with Shanghai suffering its worst slump in a year after China’s central bank tightened credit conditions.

Investors were worried that rising energy costs and interest rates will hurt consumers and eat away at company profits, dealers said.

In Shanghai, share prices plunged 7.7 per cent, the biggest one-day per centage loss since June last year, after the Chinese central bank ordered banks keep more money in reserve to contain inflation.

Hong Kong fell 4.21 per cent, while Sydney closed 2.8 per cent lower. Seoul shed 1.9 per cent, Tokyo gave up 1.1 per cent and Singapore closed 1.65 per cent down.

The People’s Bank of China hiked the reserve ratio for commercial banks for the fifth time this year, a move that is expected to curb bank lending and slow economic growth and investment flows into the stock market.

The key Shanghai Composite index has fallen nearly 50 per cent since a peak last October 16, almost giving up all the gains from a stamp duty cut this April.

Oil prices rose in Asia on Tuesday despite efforts by leading producer Saudi Arabia to reassure consumers that it is ready to meet any increase in demand.

TOKYO: Japanese share prices closed down 1.13 per cent as investors worried about high oil costs, a sharp fall in Chinese stocks and the uncertain outlook for the global economy, dealers said.

The benchmark Nikkei-225 index dropped 160.21 points to 14,021.17, after earlier dipping below the key 14,000 level for the first time in more than a week.

The broader Topix index of all first-section shares gave up 14.34 points or 1.03 per cent to 1,383.20.

HONG KONG: Hong Kong share prices tumbled, closing down 4.21 per cent following the plunge on Shanghai’s bourse, dealers said.

The Hang Seng Index lost 1,026.66 points at 23,375.52, off a low of 23,343.19 and a high of 23,741,09. It was its largest points fall since it dropped 1,339 to 23,469 on February 6.

Turnover was low at 82.16 billion Hong Kong dollars (10.53 billion US).

SYDNEY: Australian share prices closed down 2.8 per cent, dealers said.

The benchmark S&P/ASX 200 index lost 154.6 points at 5437.5, while the broader All Ordinaries fell 146.9 points to 5,544.3.

Macquarie Private Wealth associate director David Halliday said US Federal Reserve chairman Ben Bernanke’s comments that higher energy prices have added to inflation risks contributed to the market’s jitters.

SINGAPORE: Singapore share prices closed 1.65 per cent lower, dealers said.

The blue chip Straits Times Index dropped 50.97 points to 3,033.05 on volume of 1.31 billion shares worth 1.50 billion Singapore dollars (1.1 billion US).

KUALA LUMPUR: Malaysian stocks closed little changed, dealers said.

The Kuala Lumpur Composite Index fell 0.02 points to 1,230.96.

It was a bit of a mixed day today with some investors opting to bargain hunt blue-chips and some oil and gas related sectors while others took the opportunity to sell into strength, a dealer told Dow Jones Newswires.

JAKARTA: Indonesian shares closed 1.5 per cent down, dealers said. The Jakarta Composite Index fell 31.96 points to 2,378.81.

Foreign funds were seen as dominant sellers on concerns over sluggish performance in US equity markets, a trader said.

Coal miner Bumi Resources closed down 3.6 per cent at 8,150 rupiah, rival Bukit Asam was down 3.2 per cent at 15,100, while Bank Rakyat ended down 4.7 per cent at 5,100.

WELLINGTON: New Zealand share prices closed 0.27 per cent higher, dealers said.

The NZX-50 gross index rose 9.40 points to 3,505.90 on thin turnover worth 87.8 million dollars (67.4 million US). There were 56 rising stocks and 45 falls.

Market leader Telecom rose one cent to 3.86 dollars, second-ranked Contact Energy fell five cents to 8.59, and Fletcher Building fell two cents to 7.35.

MUMBAI: Indian shares closed 1.17 per cent lower, dealers said. The benchmark Mumbai 30-share Sensex index was off 176.85 points at 14,889.25, after hitting a new intra-day low for the year, on its third straight trading day of losses.

Lack of faith in global equities and concerns about monetary tightening saw a fresh funds sell-off, said Bhaskar Kapadia, partner with brokerage Pyramid Securities.—AFP