Source : The Straits Times, Aug 24, 2007
MOST Asian stock markets slipped back in early trade on Friday as players locked in recent gains, with concerns re-emerging over the US mortgage sector.
Regional trade was subdued as players took a wait-and-see approach to further developments in the US, in particular the release later on Friday of US new home sales data.
The Chinese market provided a silver lining, however, as the benchmark Shanghai Composite Index put on another robust performance in the morning on strong corporate earnings growth.
'Thin trading underlines investor doubts that we will fall much further from here,' said Hiroichi Nishi, equities manager at Nikko Cordial Securities in Tokyo.
'But bargain-hunting is expected to keep shares well supported, as some investors take the view that the worst of the fallout from the US subprime loans problem is over,' he said.
HONG KONG
Hong Kong share prices closed 0.2 per cent weaker but well off the session's lows, as investors exercised caution ahead of the weekend amid renewed concerns over the fallout of US subprime mortgage sector troubles, dealers said.
They noted comments by the chief executive officer of troubled US mortgage lender Countrywide Financial Corp that the US housing sector slump could tip the economy into a recession.
China banks were hit after some big mainland lenders confirmed exposure to US subprime loans-backed securities, although the banks assured that such investments made up only a small portion of their overall portfolios.
Profit-taking pressure also arose following first-half results announcements from several blue chips.
But the market still managed to end the week with a solid gain of 12.43 per cent after hefty gains in the last four days, following China's decision to allow mainland individuals to invest directly in Hong Kong-listed securities under a trial program.
The Hang Seng Index closed down 45.08 points at 22,921.89, off a low of 22,629.49 and a high of 22,933.80. For the week, the index is up 2,534 points or 12.43 per cent.
TOKYO
Japanese share prices fell 0.33 per cent in morning trade on Friday after Wall Street slumped overnight on renewed fears of a credit crunch, dealers said.
But the Japanese market contained more extensive losses, with investors buying on dips the day after Tokyo's key share index soared 2.61 per cent.
The Tokyo Stock Exchange's benchmark Nikkei-225 index of leading shares was down 53.51 points at 16,262.81 at the lunch break.
The broader Topix index of all first-section shares was down 6.56 points or 0.41 per cent at 1,585.25.
MALAYSIA
Malaysian share prices closed 0.8 per cent lower on profit taking amid low trading volumes as investors remained cautious over the impact of US subprime credit fears, dealers said.
The Kuala Lumpur Composite Index lost 10.10 points to 1,273.52.
CHINA
China's main stock index surged more than 1 per cent to a fresh record high on Friday, boosted by banking stocks after two of the nation's biggest banks reported slightly better-than-expected earnings.
The market was also buoyed by generally positive coverage in the official Chinese media of the index's rise above 5,000 points for the first time on Thursday.
The Shanghai Composite Index ended the morning 1.35 per cent higher at 5,100.480 points, off an intra-day high of 5,125.359.
Rising Shanghai stocks outnumbered losers by 447 to 390 while turnover in Shanghai A shares was 84.3 billion yuan (S$17.1 billion), similar to Thursday morning's level.
For the first time this week, the average premium of A shares over Hong Kong-listed H shares (HSCAHPI) rose, to 70 per cent from 66 per cent on Thursday. -- REUTERS, AFP
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