Nikkei hit by rate rise fears

13 April 2012

ASIAN stock markets closed mostly lower following losses on Wall Street caused by fears that interest rates may rise soon to head off a consumer spending surge.

Tokyo's Nikkei Stock Average of 225 issues fell 29.64 points, or 0.24%, to 12,098.18. On Tuesday, the index gained 85.12 points, or 0.71%, to 12,127.82, finishing at a new 32-month high.

But the broader index of all issues on the Tokyo Stock Exchange's first section edged up 1.27 points, or 0.10%, to finish at 1,217.87.

Losses by technology heavyweights such as Advantest and Tokyo Electron weighed on the Nikkei. The sector was targeted for selling following a pullback by similar US issues on Wall Street overnight.

The broader market finished in positive territory, however, as retailers, property developers and other sectors poised to profit from an upturn by the Japanese economy continued to draw buyers' interest.

In currency trading, the dollar was quoted at 107.22 yen, up 1.57 yen from Tuesday in Tokyo, and also above the 106.63 yen it bought in New York later that day.

In Hong Kong, the blue-chip Hang Seng Index fell 361.95 points, or 2.8%, to 12,669.86. On Tuesday, the index gained 122.44 points, or 0.94%.

Brokers said prices fell as investors took their cue from Tuesday's slump on Wall Street, where the Dow Jones industrial average fell 134 points and the Nasdaq composite index fell 35.

In Thailand the market remained closed for a public holiday. Elsewhere, in

Singapore shares closed lower on concerns about a possible rise in US interest rates. The Straits Times Index fell 25.84 points, or 1.36%, to 1,869.67.

Taiwan shares closed higher for a third straight session. The Weighted Price Index rose 85.85 points, or 1.3%, to 6,880.18.

New Zealand shares closed slightly lower. The benchmark NZSX-50 Gross Index fell 2.40 points, or 0.09%, to 2,602.41.

Philippine shares fell on profit-taking following Wall Street's losses. The 30-company Philippine Stock Exchange Index fell 2.04 points, or 0.1%, to 1,483.43.

In Australia, the All Ordinaries Index fell 3.0 points, or 0.09%, to 3,440.80.

In South Korea the Kospi, fell 1.32 points, or 0.1%, to 916.31, while in Kuala Lumpur, the weighted Composite Index of 100 blue-chip stocks fell 14.08 points, or 1.6%, to 866.29.

The only one to buck the trend was Jakarta, where the Composite Index rose 6.24 points, or 0.8%, to 777.98.

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