HONG KONG, April 28: Asian stocks closed off their lows on Friday after investors sent markets plunging over a shock interest rate hike in China, raising fears that Beijing would act further to cool its fast running economy.
However, dealers said the rate rise was modest and had provided an excuse for profit taking with most markets trading around record levels.
The impact of the hike was also compounded by remarks overnight from the US Federal Reserve Chairman Ben Bernanke which put pressure on the US dollar, thus hurting the region’s exporters.
As the selldown gathered pace bargain hunting opportunities emerged resulting in mixed performances across the region.
TOKYO: Share prices fell 1.23 per cent as investors fretted about a firmer yen, a Chinese interest rate hike and Sony’s profit outlook.
The Nikkei-225 index fell 208.31 points to 16,906.23. Volume rose to 1.74 billion shares from 1.65 billion Thursday.
HONG KONG: Share prices closed down 0.49 per cent Friday but were off early lows after China raised bank lending rates in an effort to prevent an overheating of its economy.
SYDNEY: Share prices fell 0.78 per cent in heavy trade as the resources sector dropped in response to profit-taking and China’s decision to hike interest rates.
The SP/ASX 200 fell 41.4 points to 5,258.8 while the broader All Ordinaries Index was down 39.9 points to 5,207.0.
SINGAPORE: Share prices closed 0.37 per cent higher at an all-time high on gains in banking stocks ahead of the weekend.
KUALA LUMPUR: Share prices closed 0.17 per cent higher with some late-buying of blue chips ahead of the long weekend.
The composite index closed up 1.62 points at 949.23 Volume was 1.16 billion shares worth 1.31 billion ringgit (0.36 billion dollars).
JAKARTA: Share prices closed 0.69 per cent lower as the market absorbed remaining profit-taking pressure, tracking declines in the region set off by China’s interest rate hike.
WELLINGTON: Share prices closed 0.45 per cent higher on hopes of a strong profit reporting season.
The NZX-50 index rose 17.27 points to 3,795.17 on turnover worth 127 million New Zealand dollars (80.5 million US).
ASB Securities head of advisory Stephen Wright said stocks with a March balance date, which are due to report next month, were the focus of attention.
MUMBAI: Share prices closed up 0.14 per cent, rebounding from a plunge of nearly 500 points after a regulatory crackdown on 24 brokerages over alleged manipulation of initial public share offerings.—AFP
