950823

Asian markets end mixed in absence of rates easing

HONG KONG: Asian markets on Wednesday failed to react to the U.S. Federal Reserve's decision to hold interest rates steady and ended the day mixed with Hong Kong rising just over two percent, while Taiwan and Tokyo ended lower.

Hong Kong stocks rose 2.07 per cent on late European buying, while shares in Tokyo eased further as investors ran out of reasons to buy, brokers said.

After rallying on Tuesday, Taiwan shares fell more than one percent on politicial fears but Thai stocks ended up more than 1.5 per cent on bargain hunting of bank and finance stocks.

Elsewhere, stocks continued the mixed theme with stocks in Australia knocked down by a sell-off of News Corp shares after lower-than-expected annual results. News Corp shares fell by 4.9 percent by the day's close to A$7.61 ($5.63). The All Ordinaries Index finished 2.7 points lower at 2,101.6.

An eleventh-hour surge of European buying drove Hong Kong's blue-chip Hang Seng index up 185.45 points, or 2.07 percent, to end at 9,132.64 in a rally that was the strongest since the index surged 255 points on July 7.

"Buying orders were coming in the afternoon from foreign funds," Jenny Ting, senior analyst at Mansion House Securities, said.

Dealers said early trading was dominated by local investors buying in anticipation of good interim results on Thursday from tycoon Li Ka-shing's main companies, Cheung Kong and Hutchison Whampoa.

Political uncertainty over the outcome of Taiwan's ruling Nationalist Party's key congress prompted late selling of shares in Taipei, brokers said.

The index lost 53.84 points, or 1.12 percent, to close at 4,753.37 on thin turnover.

The index was higher in early trade led by the Nationalist-related shares in a bid by investors to show their support to the ruling party.

President Lee Tung-hui later announced his intention to run for a second term in the country's first direct presidential elections, due in March 1996.

Japanese stocks ended a quiet day as investors shied away from low-priced issues, which had been supporting prices recently, brokers said.

The Nikkei average ended 145.79 points, or 0.82 percent lower, at 17,731.98.

The dollar fell in late Tokyo trade on a sudden frenzy of selling, erasing most of the gains made earlier on widespread expectations of a cut in German interest rates. The dollar eased to 96.63 yen, compared with New York's previous close of 96.83 yen. At 1110 GMT, the dollar was trading around 96.55 yen.

Spot crude prices rose in Singapore on the back of drawdown in U.S. weekly inventory data, but traders watched to see whether developments in the Middle East would temper these gains. Oct 15-day Brent quotes were at $16.40/16.45 a barrel while SIMEX Brent traded off morning highs to $16.44 in late trade, compared to the IPE's settle of $16.29.

Gold recovered slightly in Hong Kong from New York's lower finish in narrow trading, dealers said. Bullion ended at US$383.10/60 an ounce, compared with New York's close of US$382.90/383.40 and the local open of US383.00/50.-Reuter