Asia Roundup: Lower on liquidity concerns

Published: 2009/12/18

HONG KONG: Asian shares were lower on liquidity fears yesterday, with a stronger dollar triggering capital outflows as upbeat Federal Reserve comments led to speculation about a US rate increase early next year.

Asia was given a weak lead from Wall Street as the Dow Jones Industrial Average edged 0.10 per cent lower on Wednesday, after the Fed held the federal funds rate steady in a range of zero to 0.25 per cent.

TOKYO: Down 0.13 percent. The Nikkei-225 index dropped 13.61 points to 10,163.80.

Bank stocks fell as investors took profits after sharp gains on Wednesday on the back of an easing of capital-raising worries.

SYDNEY: Up 0.18 per cent. The S&P/ASX 200 closed up 8.4 points at 4,670.3.

"Not surprisingly materials were the best performing sector on the session, closing firmer by 0.8 per cent," said IG Markets analyst Cameron Peacock.

SHANGHAI: Down 2.34 per cent. The composite index fell 76.13 points to 3,179.08.

Concerns that a glut of new shares coming on the market will reduce market liquidity hit sentiment, dealers said.

TAIPEI: Down 0.12 per cent. The weighted index shed 9.43 points to 7,742.17.

SEOUL: Down 0.99 per cent. The Kospi lost 16.4 points to 1,647.84.

Investors may hesitate in buying stocks for the rest of this year, Min Sang-Il of E*Trade Securities told Dow Jones Newswires, adding that the market is not expected to undergo any steep correction.

BANGKOK: Flat. The composite index edged down 0.20 points or 0.03 per cent to 715.81, and the blue-chip index dipped 0.41 points to 503.58.

"Trading was sluggish as there were no fresh leads," Pichai Lertsupongkit, a financial analyst from Thanachart Securities, said.

JAKARTA: Down 0.51 per cent. The composite index lost 12.96 points to 2,509.57.

"I expect the market to rebound next week as most fund managers will likely buy shares to improve their portfolios by the end of the year," a trader told Dow Jones Newswires.

MANILA: Up 0.52 per cent. The composite index added 15.78 points to 3,048.15 and the all-share index added 0.40 per cent, or 7.75 points, to close at 1,901.40.

"We're moving sideways, probably building momentum for the usual 'Santa Claus rally' which could start next week," Joey Roxas of Eagle Equities told Dow Jones Newswires.

MUMBAI: Down 0.11 per cent. The 30-share Sensex fell 18.52 points to 16,894.25. - AFP