Asian stocks close mostly down

HONG KONG, June 30: Asian stocks closed mostly down Monday to end the first half of 2008 around 13 per cent lower after soaring crude oil prices and fears for economic growth sunk investor confidence.

The region’s stock market has fallen some 21 per cent since its peak last November, with a US financial crisis and surging inflation bursting earlier heady optimism stoked by powerful Asia-Pacific economic expansion.

Shares in Australia slipped 0.4 per cent Monday, capping the worst financial year for the resource-rich nation’s stock market since 1982. Japanese shares fell nearly 0.5 per cent to a fresh two-month low on fears for business profits.

China, Taiwan and South Korea also finished in the red, with the bourse in Seoul hitting its lowest point for more than three months. But Hong Kong managed a small rise despite a subdued performance by giant bank HSBC.

Elsewhere, India tumbled nearly 2.5 per cent and Malaysia fell 0.3 per cent on deepening domestic political uncertainty in both countries, but Indonesia managed to rise 0.7 per cent.

Meanwhile, world oil prices held at around $142 per barrel, very near last week’s all-time highs of just under $143, fanning concerns that high inflation will squeeze consumers, company profits and economic growth.

TOKYO: Japanese share prices extended a losing streak to an eighth day, closing at a fresh two-month low amid worries about the outlook for corporate earnings, dealers said.

The Tokyo Stock Exchange’s benchmark Nikkei-225 index dropped 62.98 points or 0.46 per cent to 13,481.38, the lowest close since April 18.

The broader Topix index of all first-section shares slipped 0.58 points or 0.04 per cent to 1,320.10.

Sony fell 4.1 per cent to 4,640 yen, Kyocera shed 2.2 per cent to 10,000 and Toyota Motor gave up 1.2 per cent to 5,010. Millea Holdings shed 2.6 per cent to 4,140 and Daiwa Securities declined 3.1 per cent to 976.

HONG KONG: Hong Kong share prices closed up 0.27 per cent, dealers said.

The Hang Seng Index closed up 59.66 points at 22,102.01. Turnover was light at 53.06 billion Hong Kong dollars (6.80 billion US).

HSBC fell 0.82 per cent after the ratings agency Moody’s downgraded its US operation, which has been hard hit by the subprime mortgage crisis.

Francis Lun, general manager at Fulbright Securities, told Dow Jones Newswires investors would find good bargains when the benchmark index approaches 21,000 points.

Sun Hung Kai Properties dropped 1.5 per cent. China Unicom rose 3.7 per cent after falling 2.4 per cent Friday.

CNOOC rose 2.4 per cent. Oil refiner PetroChina gained 0.6 per cent, but Sinopec fell 0.7 per cent.

SYDNEY: Australian shares closed down 0.4 per cent, dealers said.

The benchmark S&P/ASX 200 dropped 21.7 points to close at 5,215.3 while the broader All Ordinaries slipped 16.5 points to 5,332.9.

For the financial year ending June 30, the S&P/ASX 200 lost close to 17 per cent. The All Ordinaries dropped 15 per cent, its worst performance since 1982 when it lost fell 32 per cent.

Monday’s turnover was 7.28 billion Australian dollars (7.0 billion US).

KUALA LUMPUR: Malaysian share prices closed down 0.3 per cent, dealers said.

The Kuala Lumpur Composite Index dropped 3.97 points to 1,186.57.

The political risk premium is rising,” Alliance Research said in a note.

Palm oil firm Sime Darby added 0.5 per cent to 9.25 ringgit. IOI Corp. rose 1.4 per cent to 7.45 ringgit.

JAKARTA: Indonesian shares closed 0.7 per cent higher, dealers said.

The Jakarta Composite Index rose 16.8 points to 2,349.10.

Local funds bought shares to shape up their books for the end of June,” a trader told Dow Jones Newswires.

Coal miner Bukit Asam rose 3.5 per cent at 16,400 rupiah. Bank Central Asia rose 5.3 per cent at 2,475 rupiah.

WELLINGTON: New Zealand shares closed 1.00 per cent lower, dealers said.

The NZX-50 gross index fell 32.30 points to close at 3,194.61.

ASB Securities managing director John McMahon said the market reflected a pessimistic view of the local economy and corporate earnings.