Hang Seng Rise Slightly

Hong Kong share prices rose 0.37 percent yesterday but off intraday highs after Chief Executive of Hong Kong Special Administrative Region Tung Chee-hwa's policy address disappointed the market, dealers said.

The key Hang Seng index gained 35.81 points to close at 9,688.21, off a high of 9,781.08 and a low of 9,624.04, on turnover of HK$6.98 billion (US$895 million).

Dealers said Tung's speech failed to provide concrete measures to boost the economy and the property market, while indications of possible tax hikes and a prolonged economic recession are likely to dampen investment interest.

Earlier, investors were speculating that the government may announce plans to make it easier for Chinese mainland and overseas civilians to buy Hong Kong property. Property stocks failed to generate much momentum in the afternoon session, dealers said.

Active Trade Pushes Prices

Taiwan stocks closed 2.89 percent higher yesterday in active trade on the back of liquidity-driven interest with investors eager to rebuild positions for the new year, dealers said.

The weighted index closed up 135.85 points at 4,836.93, off a high of 4,859.78, on turnover of NT$121.46 billion (US$3.51 billion).

Non-electronics stocks initially led the gains, fuelled by product price hikes during the peak season. Electronics managed to close in positive territory on bargain-hunting after early weakness triggered by Gateway's profit warning for the fourth quarter, dealers said.

"Investors chased prices much higher, afraid of being late in getting on board," said Tom Tang, Yunda Securities Investment Consulting vice-president.

Nikkei-225 Ends Lower

Japanese share prices fell 1.60 percent yesterday in thin, cautious trade amid a dearth of positive leads, dealers said.

The Nikkei-225 average of the Tokyo Stock Exchange shed 138.70 points to end the day at 8,517.80. The broader Topix index of all first-section issues tumbled 14.38 points to 839.55.

Decliners led gainers 1,128 to 248, with 116 stocks unchanged. Volume was an estimated 544 million shares.

News on Tuesday that struggling US computer maker Gateway lost between 18 and 19 US cents a share in the fourth quarter on disappointing sales of US$1.06 billion also pressured the Japanese market, dealers said.

"The only factor which will push up the stock market here is if Wall Street rises. There are only negative factors on the domestic front," said Masafumi Okamoto, a dealer at Jyujiya Securities.

(Edited from China Daily January 9, 2003)