Hang Seng Edges Down

Hong Kong share prices edged lower yesterday in cautious trading ahead of the announcement of a US economic stimulus package and Chief Executive of Hong Kong Special Administrative Region Tung Chee-hwa's policy address, dealers said.

The key Hang Seng index lost 13.56 points or 0.14 percent to close at 9,652.40 on turnover of HK$5.35 billion (US$687 million).

Dealers said investors were generally cautious ahead of the announcement of a new economic stimulus package in the United States and Tung's policy address today.

"While trading volume has improved from meagre levels seen in the past few sessions, the market is generally taking a wait-and-see approach ahead of these two events," said Kenny Tang, associate director at Tung Tai Securities.

Some profit-taking was also seen in telecoms and property stocks after the benchmark index failed to rebound to the 9,700-point level.

Taiwan Shares Surge Slightly

Taiwan share prices closed 0.24 percent higher yesterday as late profit-taking offset most of the early gains driven by Wall Street's rise, dealers said.

The weighted index closed up 11.22 points at 4,701.08, off a high of 4,776.15, on turnover of NT$110.50 billion (US$3.18 billion).

Dealers said the electronics sector attracted interest in early trading after a strong showing by their US peers following positive broker comment on the sector, but the gains were capped in late trade on profit-taking by short-term investors.

The sector closed off its highs, while some non-electronics sectors also lost steam following previous sharp gains.

Nikkei Closes Lower

Japanese share prices slipped 0.65 percent yesterday as a slump in bank stocks erased earlier gains in the broader market after a rally on Wall Street, dealers said.

Lingering uncertainty over the Middle East as well as a strong yen also pressured investor sentiment, they added.

The Nikkei-225 average of the Tokyo Stock Exchange slipped 56.83 points to end the day at 8,656.50. The broader Topix index of all first-section issues fell 6.14 points to 853.93.

Volume was an estimated 677 million shares. Decliners led gainers 868 to 465, with 150 stocks unchanged.

The troubled banking sector "was hostage to the unwinding of cross-shareholdings," said Yoku Ihara, investment information manager at Retela Crea Securities.

(Edited from China Daily January 8, 2003)