HONG KONG, May 11: Asian stocks closed mostly lower on Wednesday after heavy losses on Wall Street added to the increasingly negative tone and as investors were buffetted by intense speculation over a yuan revaluation, dealers said.
They said the New York downturn was troubling since it was linked to rumours of possible problems at several hedge funds, raising the spectre of severe disruption to the financial system if there was to be any confirmation.
There was no special reason to believe the rumours but the fact they had such an impact reflected the current state of uncertainty in the markets as investors churn over conflicting data in the hope of making a definite call on the outlook.
Against this backdrop, the fevered speculation on the yuan only added to the uncertainty, especially after very confused reports emerged late afternoon that China would move as early as next week to change its fixed currency system.
In the event, the People’s Bank of China forcefully rejected the reports but that is unlikely to be the last of the matter.
On a losing day, Sydney stook out, adding 0.34 percent as investors welcomed the government’s tax cutting budget.
TOKYO: Japanese share prices closed 0.35 per cent lower, hit by a sharp drop on Wall Street amid concerns over possible problems at several hedge funds, dealers said.
The market remained cautious during the corporate earnings season and ahead of key US trade data later in the day for the possible lead it could give on the US economic outlook.
The Tokyo Stock Exchange’s benchmark Nikkei-225 index fell 38.76 points to 11,120.70. The broader TOPIX index of all first section shares lost 4.28 points or 0.37 percent to 1,145.30.
The general view is that if China were to revalue the yuan, it would mean the other Asian currencies also rose against the dollar and so possibly put pressure on exports to the United States, the region’s main market.
HONG KONG: Hong Kong share prices closed 0.56 per cent lower following sharp falls on Wall Street which led to continued profit-taking in local stocks, dealers said.
The Hang Seng Index closed down 78.58 points at 13,939.80, off a low of 13,895.27 and high of 13,973.62. Turnover was 13.96 billion Hong Kong dollars (1.8 billion US dollars). The Hang Seng China Enterprises Index was down 39.83 points or 0.84 percent at 4,719.37.
SYDNEY: Australian shares closed 0.34 per cent higher, ignoring heavy losses on Wall Street to focus on the large tax cuts announced in the federal budget and a positive lead from National Australia Bank, dealers said.
The SP/ASX 200 ended up 13.5 points at 4,005.7, while the broader All Ordinaries index closed up 9.5 points at 3,958.6.
Turnover was 2.07 billion shares worth 4.42 billion dollars with 488 stocks higher, 437 lower and 314 stocks steady.
SINGAPORE: Singapore share prices closed 0.34 per cent higher after late support for the banks boosted an otherwise cautious market, dealers said.
The Straits Times Index rose 7.29 points to 2,173.14 on volume of 583 million shares worth 576 million Singapore dollars (351 million US). Losers led gainers 259 to 170, with 707 stocks unchanged.
KUALA LUMPUR: Malaysian share prices closed 0.46 per cent lower, falling below the key 900 points level again as investors worried once more about high oil prices, dealers said.
The Kuala Lumpur Composite Index lost 4.14 points at 898.70 on volume of 491 million shares worth 799 million ringgit (210 million dollars). Losers led gainers 598 to 175.
JAKARTA: Indonesian share prices closed 1.31 per cent lower led by market leaders Telkom and Indosat on continued profit-taking, with sentiment dampened by falls in many regional markets, dealers said.
The Jakarta Stock Exchange composite index closed down 14.080 points at 1,057.077 on volume of 1.15 billion shares worth 1.98 trillion rupiah ($208.4m). Losers outnumbered gainers 77 to 24, with 73 stocks unchanged.
WELLINGTON: New Zealand share prices closed 0.42 per cent higher, boosted by gains in stocks also listed in Australia after the announcement of tax cuts in the Australian budget, dealers said.
The benchmark NZSX-50 gross index gained 12.11 points to 2,913.75.
MUMBAI: Indian share prices closed 0.15 per cent lower as investors sold down in line with weaker Asian markets after heavy losses on Wall Street, dealers said.
The Bombay Stock Exchange’s 30-share Sensex index fell 9.58 points to 6,445.13 on turnover of 18.94 billion rupees (432 million dollars).—AFP
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