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US STOCKS DIP OVERNIGHT
(10-Dec-1997)

US STOCKS DIP OVERNIGHT WALL STREET STOCKS SKIDDED OVERNIGHT ON A COUPLE OF DISAPPOINTING EARNINGS THAT TRIGGERED FEAR THAT MORE COULD BE ON THE WAY. DATABASE SOFTWARE MAKER *ORACLE* POSTED A SHORTFALL IN PROFIT, BLAMING IT ON A SLOWDOWN IN ASIAN SALES. THAT CAST A PALL OVER THE ENTIRE TECHNOLOGY SECTOR. NOT HELPING EITHER... WORD FROM *HILTON HOTELS* THAT IT'S EXPECTING WEAK FOURTH-QUARTER RESULTS. ALL THE MAJOR MARKET INDICES TOOK A BATTERING. THE TECHNOLOGY-HEAVY *NASDAQ COMPOSITE INDEX LOST 31-POINTS, OR ALMOST 2-PERCENT, TO 16-21. THE DOW JONES INDUSTRIAL SLIPPED 61-POINTS, TO 80-50. THE BROADER S-&-P 500 FELL 6-AND-A-HALF POINTS, TO 9-76. U-S TREASURIES ROSE MARGINALLY, AS THE FEDERAL RESERVE BOUGHT COUPONS TOTALLING ONE-POINT-8 BILLION DOLLARS. THAT NUDGED THE YIELD ON THE 30-YEAR BOND *DOWN TO 6-POINT-1-1 PERCENT.

HONG KONG STOCKS FALL
(10-Dec-1997)

HONG KONG STOCKS FALL In Hong Kong, the market has fallen more than 2-percent this afternoon. A lower close on Wall Street overnight and weaker markets elsewhere in the region weighed down sentiment. The Hang Seng index has also been hurt by higher interest rates. Traders say that expectations of lower earnings next year are also dragging shares down. The big conglomerates, like Hutchison and Citic Pacific were the hardest hit. But the biggest loser was banking giant HSBC Holdings, which was down HK$5 at HK$201.

INDONESIAN RUPIAH TUMBLES, DESPITE CENTRAL BANK INTERVENTIO
(10-Dec-1997)

The Indonesian rupiah is falling again today, after hitting an historic low of 4,600 to the dollar yesterday. The currency is weakening despite central bank intervention in the market. At midday, it was trading around 4,500 to the dollar. Investors are worried about rumours that President Suharto is ill, even though the government has denied the talk. There's also growing belief that the bailout package Indonesia has negotiated with the IMF, will not be enough to rescue the economy. Analysts say the Central Bank still has not revealed how much short-term debt Indonesian companies are holding, leading many to believe that the truth is even worse than thought. The weak currency is also dragging down the stock market, which was off more than 1% this morning.

JAPAN TRADE SOARS
(10-Dec-1997)

Japan registers a massive current account surplus for the month of October. The surplus in trade of goods and services jumped 220% That comes to more than one trillion yen or some US$8.3 billion. The surplus has been on the rise all year as the yen weakened. But the size of the October increase dwarfed recent gains. It shows a sharp downturn in imports as Japan's economy slows. A big increase in exports was also recorded as Japanese goods benefit from the falling yen. That boom in exports has become a source of friction with the US, which accuses Japan of trying to export its way to an economic recovery.

KOREAN WON PLUNGES TO ANOTHER ALL-TIME LOW
(10-Dec-1997)

The Korean won nosedived to yet another record low, to 1,565 to the U.S. dollar. Dealers say demand for dollars remains strong, as many local companies scramble to repay their foreign loans. Many companies are struggling to meet their debt payments, since the weaker won makes their overseas loans more expensive. Earlier, the Korean Pharmaceutical Manufacturers Association, called on the government to provide emergency loans of 100 billion won. The government is trying to prevent the financial crisis from getting worse. It ordered the temporary closure of another five merchant banks, in line with its US$57 billion bailout agreement with the IMF. It is also raising the ceiling for foreign stock ownership to 50% starting tomorrow, from the current 26%. This news boosted the Seoul stock market earlier, but investors have since lost heart, due to the falling won.

RUPIAH REBOUNDS
(10-Dec-1997)

The Indonesian rupiah is recovering after falling in early trade, but it still remains weak. The currency plunged to an historic low of 4,600 to the dollar yesterday on rumours President Suharto is seriously ill. But the market is discounting those rumours today after the government issued a denial. Modest intervention by the central bank also helped the rupiah off its low. But negatives remain. Companies are buying up dollars to pay back loans, many of which are due in the next few months. Analysts say the central bank still hasn't revealed how much short-term debt Indonesian companies are holding. This leads many to believe the situation is worse than many think. And there's a growing belief that the bailout package Indonesia has negotiated with the IMF will not be sufficent. The weak currency is also dragging down the stock market. It's down almost 2 percent this afternoon.

SEOUL RECOUPS LOSSES
(10-Dec-1997)

Korean stocks came roaring back today toward the end of trade, closing 3-percent higher. The market had been pulled in every direction. It fell in the morning, after a sharp drop in the korean won. Then surged in the afternoon as investors bought shares ahead of an increase in the ceiling on foreign-stock ownership. That ceiling is being lifted to 50 percent, from 26 percent now. And that new ceiling takes effect tomorrow which is several days earlier than planned. Blue chips and bank stocks chalked up the biggest gains. The Seoul composite index closed 12 points higher, just shy of 400-points. But despite the comeback, Korea's financial crisis still weighed heavily on the market. There are worries about more corporate bankruptcies, as Korean firms struggle to pay back loans. News that the finance ministry has suspended operations at another five merchant banks didn't help either. The suspension is due to the banks' inability to pay back loans and it is in line with terms laid down in the IMF rescue plan for Korea's economy. It also follows the closure of nine other merchant banks last week.

SEOUL RELAXES RULES
(10-Dec-1997)

Share prices in South Korea rallied this morning. They were boosted by news that starting tomorrow, foreigners will be able to buy up to 50% of a listed company. That is an increase from the current 26% ceiling on foreign stock ownership. The limit on a single foreign investor's shareholding is also being increased from 7% to 50% The move is part of conditions attached to the US$57 billion bailout deal from the IMF.

TAIWAN SALES SURGE
(10-Dec-1997)

The weakness in the Taiwan dollar brings some good news for the island. It is a big boost to the island's leading hi-tech manufacturers. Several companies have reported big sales increases for November. The new Taiwan dollar has dropped 15% in the past two months. Taiwan's largest chip maker, Taiwan Semiconductor Manufacturing Company, says its November sales soared 86% from the same month last year. that is a monthly record of over NT$5 billion. That is equal to about US$156 million. Personal computer leader, Acer, also reports record sales of NT$9 billion in November. That is a 62% jump from the year earlier month.

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