Asian stocks falter on economic slowdown
HONG KONG, Jan 30: Asian shares closed mostly down on Wednesday with investors seemingly worried that an expected US interest rate cut may fail to boost stock prices in the face of a global economic slowdown.
Forecasters said the Federal Reserve would cut US borrowing costs by up to 50 basis points later Wednesday after it made an emergency 75 basis points cut last week to 3.50 per cent.
But the share price falls across Asia suggested investors were betting that stocks already reflected predictions of lower US rates, potentially crimping the scope for more rises in the short term.
Key US economic figures are also due out this week, causing more jitters as they could confirm fears that the world’s biggest economy is heading for a sharp slowdown or even a recession.
TOKYO: Japanese share prices fell almost one per cent, giving up early gains as jitters about the US subprime loan crisis resurfaced ahead of a key US interest rate decision, dealers said.
The Tokyo Stock Exchange’s benchmark Nikkei-225 index fell 133.83 points, or 0.99 per cent, to close at 13,345.03.
The broader Topix of all first-section shares finished down 8.62 points, or 0.65 per cent, at 1,320.11.
Volume traded rose to 2.33 billion shares from 2.15 billion shares on Tuesday.
HONG KONG: Hong Kong share prices closed down 2.6 per cent, dealers said.
The Hang Seng index closed down 638.11 points at 23,653.69 after an early rally faded. Turnover was 105.08 billion Hong Kong dollars (13.45 billion US).
China Life was down 2.30 at 29.00. China Mobile fell 4.30 to 113.60. HKEx was down 11.40 at 166.50. PetroChina fell 0.44 at 10.80. Hang Seng Bank was up 1.60 at 155.90.
SYDNEY: Australian share prices closed down 1.7 per cent, dealers said.
The benchmark S&P/ASX 200 dropped 97.8 points to 5,618.7, while the broader All Ordinaries index ended down 89.2 points at 5,665.3.
Volume was 1.6 billion shares worth 6.4 billion dollars (5.7 billion US).
SINGAPORE: Singapore share prices closed 1.64 per cent lower, dealers said.
The blue chip Straits Times Index closed 49.87 points lower at 3,000.03.
Volume was 1.42 billion shares worth 1.75 billion Singapore dollars (1.22 billion US).
A 50 basis point cut will be a non-event, while a 25 basis point cut will be a big disappointment, said Yeo Kee Yan of DBS Vickers, referring to an expected US interest rate cut.
KUALA LUMPUR: Malaysian share prices closed 0.3 per cent lower, dealers said.
Telekom Malaysia rose 10 sen to 11.50 ringgit. Tenaga firmed up 10 sen to 9.15 ringgit. Maybank added 10 sen to 11.80 ringgit.
JAKARTA: Indonesian share prices closed 0.1 per cent higher, dealers said.
The Jakarta composite index closed up 2.52 points at 2,610.36.
I think there is still lingering uncertainty on whether the Fed would cut its rate by 50 basis points, 25 basis points or not at all, said Samuel Sekuritas analyst Christine Salim.
WELLINGTON: New Zealand share prices closed 0.19 per cent lower, dealers said.
The benchmark NZX-50 index fell 7.15 points to 3,697.01 on turnover worth 81 million dollars (63.0 million US).
Telecom fell two cents to 4.00 dollars, Contact Energy rose three cents to 7.58 and Fletcher Building dropped nine cents to 10.06.
MUMBAI: Indian share prices closed down 1.84 per cent, dealers said.
The benchmark 30-share Sensex index fell 333.3 points to 17,758.64.
Investors will look for fresh direction from the US Fed meeting. We however do not expect a sharp rally ahead as overseas flows may remain subdued, said a dealer with broker Jamnadas Morarjee.—AFP