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Asian markets highlight

TOKYO: Tokyo stocks ran out of breath, slumping by the close after two straight days of gains.

The 225-share Nikkei average fell 151.30 points or 0.83 percent to 17,983.86.

Brokers said news reports that authorities in Osaka had decided to suspend some operations of Kizu Shinyo Kumiai, Japan's biggest credit union, had little impact on the market as it had largely been expected.

"Suspension of Osaka's Kizu credit union might actually be positive for the market as it would prompt the government to come up with more practical steps to solve Japan's bad loan problem," said Hitoshi Ichio, an analyst at Yamaichi Research Institute.

HONG KONG: Hong Kong shares closed modestly higher in lacklustre trade, brokers said.

The blue chip Hang Seng Index put on 44.32 points or 0.48 percent to 9,197.21.

Brokers said most investors stayed out of the market, awaiting the release of U.S. second-quarter gross domestic product (GDP) data later in the day and the outcome of Thursday's government land auction.

"There is a little bit of hesitancy ahead of the release of U.S. GDP growth and the auction tomorrow," said Mark Gallager, research manager at Dao Heng Securities.

BANGKOK: Thai stocks finished the day lower as negative factors continued to affect trade and investors took profits in the finance and building materials sectors, brokers said.

The index fell 16.32 points or 1.22 percent to 1,326.51 on thin 3.6 billion baht ($143 million) turnover. It recovered from the day's low of 1,321.84 minutes before the close.

"Another factor behind the selling is maybe people want cash for the debut of BECL tomorrow," said a broker at a local house, referring to Thursday's listing of construction firm Bangkok Expressway.

BOMBAY: The Bombay Stock Exchange is closed until Thursday for two Hindu festivals.

COLOMBO: Sri Lanka stocks fell on weak sentiment due to flat corporate results and increased fighting between the military and Tamil rebels, brokers said.

The Colombo Stock Exchange All Share Index eased 9.01 points to 727.46.

"The fact that blocks were done shows there is interest in Colombo," said Dinal Wijemanne of Bartleet Mallory Stock Brokers.

DHAKA: Dhaka stocks bounced back to close higher on gains by blue-chip shares as small investors ignored the current political unrest in Bangladesh.

The Dhaka Stock Exchange all-share price index rose 4.56 points to 774.41.

"There was buying pressure. This is something unusual ahead of strikes," said Mohammad Gausuzzaman of Securities Consultants Ltd. Big buy orders came from investors seeking profits from a falling market, he added.

JAKARTA: Jakarta share prices ended up slightly in late trading, with third-liner stocks providing further impetus to the market, brokers said.

The composite index closed provisionally at 506.63, up 0.52 percent or 2.62 points, but would be adjusted due to the ex-bonus of Tancho shares.

A foreign broker said overseas players continued to look for fundamentally sound companies which have just published results, including Gudang Garam, Sampoerna and Kalbe Farma.

KUALA LUMPUR: Malaysian share prices closed mixed with activity dominated by Innovest ahead of its capital restructuring exercise, brokers said.

The benchmark Kuala Lumpur Stock Exchange's Composite Index dropped 3.79 points or 0.37 percent to 1,015.07, dragged down by falls in some key blue-chip issues.

Apart from capital reduction, Innovest had also announced a one-for-one rights issue and several acquisitions aimed at turning around the financially stricken company.

MANILA: Manila shares bounced back from two days of losses, bolstered by selective bargain-hunting, brokers said.

The index rose 14.11 points or 0.51 percent to 2,776.38.

But brokers said they are bracing for further dips in the index.

"The market was generally very quiet with buying limited to select issues," Jerome Tan at Guoco Securities said.

SEOUL: South Korean stocks drifted in afternoon trading to close down as the lack of news, volume and investor interest left the market listless, brokers said.

The index fell 1.75 points or 0.19 percent to 914.71 in thin volume of 19.39 million shares.

Earlier focus on financial stocks mostly petered out later in the day as profits were taken. The banking sector was an exception, seeing a weak rise.

"The market is basically dormant," said a Citi International broker. "People are looking for liquid stocks, but nothing is moving."

SHANGHAI: Shanghai's B share index ended with the largest one-day loss of the past three months on profit-taking in market giant Shanghai Chlor Alkali Chemical and poor performances by Pudong stocks, brokers said.

The B index lost 1.392 points or 2.21 percent to 61.733. Volume was 10.251 million shares, a rise of 15 percent from Tuesday, showing the loss was solid, brokers said.

Chlor Alkali shed $0.014, or 4.21 percent, to $0.318 on heavy volume of 1.163 million shares.

Shanghai's A shares fell on rumours there would be new issues and listings. The A index lost 6.157 points or 0.82 percent to 741.212 on turnover of 832.839 million yuan ($100 million).

SHENZHEN: Shenzhen's A and B share indices ended lower on bearish sentiment, brokers said.

The A share index slipped 1.42 points to 137.69 on turnover of 350 million yuan ($42 million).

Brokers said investors were reluctant to build positions ahead of the Thursday deadline for Shenzhen-listed companies to publish interim results.

The B share index edged down 0.13 of a point to 72.89. Turnover was HK$2.81 million ($363,000).

The composite index shed 1.29 points to 133.94 on total turnover of 644.42 million yuan ($77.6 million).

SINGAPORE: Singapore shares ended mixed with gainers outnumbering losers, but overall sentiment was cautious.

The key Straits Times Industrials Index fell 2.87 points or 0.13 percent to 2,127.25, off the day's low of 2,122.20.

"Activity was focused on second board stocks and gains in blue chips were limited," a remisier at a local securities said.

SYDNEY: The Australian share market closed higher after a strong afternoon session led by a turnaround in the futures market and a firmer bond market.

The All Ordinaries index rose 8.1 points or 0.38 percent to 2,132.4.

The September share price index contract was up 10 points at 2,164, a 31.6-point premium to the physical market.

"Programme trading has pushed us up this afternoon although our market does look reasonably strong," said Stephen Smith of Burdett Buckeridge and Young.

TAIPEI: Taiwan share prices rose for the third straight session as investors believed tensions between Taiwan and China were easing, brokers said.

The index gained 64.08 points or 1.34 percent to 4,832.48, off a high of 4,852.51. Turnover was a modest T$37.22 billion ($1.35 billion).

Textiles rose 3.32 percent and plastics gained 1.89 percent on hopes that China may cut its value-added tax, which will benefit the two sectors most.

"But recent gains focused mostly on speculative shares. If the index needs to rise further, blue chips must emerge to lead the overall upward momentum," said George Hou of Jardine Fleming.

WELLINGTON: The New Zealand share market was higher after trade dominated by Fletcher Challenge and its co-leaders.

The benchmark NZSE-40 capital index rose 12.07 points or 0.58 percent to 2,102.57.

Fletcher Challenge closed two cents higher at NZ$4.21 ($2.75) after posting a consolidated group profit of NZ$464 million ($303 million).

"It was perceived to be a good result, at the top end of expectations," said Don Turkington at Cavill White.-Reuter