DAWN.COM

HONG KONG, Sept 24: Asian markets mostly fell on Monday as the recent rally fuelled by central banks’ stimulus plans petered out, while there were fears over Greece’s ability to meet requirements to get more bailout cash.

Earlier losses in China and Hong Kong were pared despite a People’s Bank of China adviser warning the mainland economy was still weak. Tokyo was 0.45 per cent down, closing 40.71 points lower at 9,069.29, while Sydney shed 0.52 per cent, or 22.8 points, to close at 4,385.5 and Seoul closed flat, edging up 1.07 points to 2,003.44.

Hong Kong ended 0.19 per cent lower, giving up 40.24 points to 20,694.70 while Shanghai rose 0.32 per cent higher, adding 6.50 points to 2,033.19.

“Uncertainties over the overseas markets during the holiday will keep investors from building positions aggressively this week,” Dongxing Securities investment adviser Hou Yi told Dow Jones Newswires. Global markets have been boosted in September by central bank announcements in the US, Europe and Japan that they would buy up huge amounts of government debt to pump liquidity into their respective economies.

However, with little else to drive buying, traders on Monday cashed in the recent gains. Investors are becoming concerned about progress between Greece and the “troika” — the European Commission, the ECB and the IMF — over budget cuts that need to be presented by Friday, Mizuho Securities forex strategist Kengo Suzuki said.

“The risk sentiment-driven rally has begun to lose steam as profit-taking kicks in and uncertainty over Greece and Spain come back into the spotlight,” Suzuki told Dow Jones Newswires. If Greece is unable to satisfy requirements it could be refused the next batch of cash to help it pay its bills, a move that would likely see it default.

Masafumi Yamamoto, chief currency strategist at Barclays Capital, said in a note to clients: “The prospect of the eurozone’s economic recovery is still uncertain given the global economic slowdown.” Wall Street was unable to provide any inspiration.

The Dow closed down 0.13 per cent, the Nasdaq added 0.13 per cent and the S&P 500 was flat.

Hong Kong and Shanghai recovered from earlier deep losses caused by a central bank adviser saying at the weekend that he saw no signs of a rebound in China, following a string of soft data on trade, investment and growth.In other markets: Taipei raised 0.18 per cent, or 13.71 points, to 7,768.3.Hon Hai Precision lost 1.03 per cent to Tw$95.8 while Taiwan Semiconductor Manufacturing Co. was 0.47 per cent higher at Tw$86.1.

Wellington was flat, nudging down 0.42 points to 3,809.15.

Singapore closed down 0.33 per cent, or 10.30 points, to 3,067.93. Singapore Airlines fell 1.93 per cent to Sg$10.66 and DBS Group shed 1.03 per cent to Sg$14.35.

Jakarta ended 1.03 per cent or 43.71 points lower at 4,200.91. Bumi Resources fell 19 per cent to 680 rupiah, Timah dipped 3.1 per cent to 1,540 rupiah and Vale Indonesia slid 6.6 per cent to 2,850 rupiah.

Kuala Lumpur dipped 0.70 per cent or 11.32 points, to end at 1,612.38. Malayan Banking fell 1.53 per cent to 9.01 ringgit, while Sime Darby lost 0.41 per cent to 9.75. Scomi Group gained 4.48 per cent to 0.35 ringgit.

Bangkok fell 0.15 per cent or 1.96 points to 1,284.30. Oil company PTT lost 0.89 per cent to 334.00 baht, while Banpu dropped 2.97 per cent to 392.00 baht.

Mumbai slid 0.42 per cent or 79.49 points to 18,673.34. HDFC fell 2.52 per cent to 759.5 rupees, while Hindustan Unilever slid 2.16 per cent to 518.10 rupees.—AFP