HONG KONG, Jan 8: Asian stocks followed Wall Street's lead and closed sharply lower on Monday with investors again cashing-up on the end of year rally, amid concerns over US interest rates.
US equities closed lower on Friday, setting the tone for Asia, as the likelihood of an interest rate cut dwindled rapidly in the wake of a government job report which revealed a hefty jump in wages.
Taipei and Sydney were among the worst performers on the day as both dropped 1.26 percent each, Mumbai fell 1.50 percent, Manila slumped 1.47 percent, Seoul fell 1.08 percent and Jakarta shed 1.05 per cent.
Elsewhere, Singapore dropped 0.96 per cent, Hong Kong shed 0.90 per cent, Kuala Lumpur dropped 0.66 per cent while Wellington was down a more modest 0.17 per cent.
HONG KONG: Share prices closed 0.90 per cent lower led by mainland banks and real estate firms after China's central bank raised the reserve requirement for commercial banks further in an effort to rein in lending.
Dealers said local property firms, however, attracted rotational interest and helped the benchmark index regain the 20,000 level after slipping below that key mark in early trade.
The Hang Seng Index closed down 181.62 points at 20,029.66. Turnover was heavy at 60.58bn Hong Kong dollars (US$7.77bn).
SYDNEY: Share prices closed 1.26 per cent lower as investors reacted to Friday's drop on Wall Street and a downward correction in metal prices.
The SP/ASX 200 dropped 70.0 points to 5,502.0. Turnover was 1.40 billion shares worth 4.22 billion dollars (3.29 billion US).
Across the commodity scene at present, supply is catching up to demand, even with demand remaining strong, Macquarie Equities said in a note to clients.
SINGAPORE: Share prices closed 0.96 per cent lower in cautious trade that pulled the index back to the psychological 3,000 points level.
Dealers said investors had turned wary of pushing the benchmark index too far above 3,000 points on concerns that valuations of some counters are becoming overstretched.
The Straits Times Index (STI) closed down 29.04 points at 3,000.00 on volume of 3.58 billion shares worth $1.89 billion (US$1.24 billion).
KUALA LUMPUR: Share prices fell 0.66 per cent as profit-taking hit after recent gains.
Dealers said the sel ling pressure was well absorbed but that a more serious correction soon should take the benchmark index below the 1,100 points level.
The composite index dropped 7.38 points to 1,113.02. Volumes were 876.02 million shares valued at 1.29 billion ringgit ($369).
OSK Securities analyst Chan Ken Yew said the market needs to undergo a healthy correction before climbing to another high.
JAKARTA: Share prices closed 1.05 per cent lower, pressured by Wall Street's drop as well as weakness in East Asian markets.
Dealers said Telkom, Astra International and Bank Mandiri led the falls, although a late rebound by large cap Perusahaan Gas Negara helped cushion the market's slide.
The composite index closed down 19.156 at 1,813.394 on volume of 4.0 billion shares valued at 2.05 trillion rupiah ($226.77m).
WELLINGTON: Share prices closed 0.17 per cent lower following weakness in overseas markets, dealers said.
The benchmark NZX-50 gross index fell 6.68 points to 4,028.59 on low turnover worth 63.1 million dollars (39.8 million US).
Grant Williamson of Hamilton Hindin Greene said the market responded to the weakness in overseas markets.
We are starting to see some weakness in the (local) dollar so investors are starting to have a look at the export-oriented stocks, Williamson said.
A lower New Zealand dollar boosts exporter earnings in local currency terms. Telecom fell seven cents to 4.71 dollars.
MUMBAI: Share prices closed 1.5 per cent lower following weak Asian market trends.
They said investors locked in recent gains ahead of September-December quarter earnings by Indian companies starting this week.
The 30-share Mumbai stock exchange Sensex fell 208.37 points to 13,652.15. Investors have preferred to keep cash aside ahead of the corporate earnings, said Vijay Tilakraj, chief dealer with brokerage Prabhudas Lilladher.—AFP