Asia Steadies

After nearly a week of deep declines, Asian markets steadied in Tuesday's trading, but most indices still ended in the red.

After plunging 8.5% over the past week, in Hong Kong, the Hang Seng rose by 136 points, or 0.5%, to 26,732, after bargain hunters returned to snap up shares in consumer stocks. In South Korea, the Kospi also jumped 21 points, or 1.2%, to 1861, but other indices couldn't make the lift.

China's Shanghai Composite Index fell 40 points, or 0.8%, to 4836, while the Nikkei gave up 41 points, or 0.3%, to 15,207.

Dealers in Hong Kong warned that today's buying could be short-lived, and that the market may sell-off further later in the week.

"I would still hold off buying a little bit, and start again in a couple of phases next year," says Marc Leyder, a fund manager for ABN Amro. "I would go for local companies that have activities in China, not big exporters."

Hong Kong's gainers were mixed, and were trading on rebounds from recent selling activity, rather than stock specific news.

Among top gainers, China Telecom (CHA) surged 5%, to HK$5.78, while China Life Insurance (LFC) jumped 2.8%, to HK$39.70, and Cathay Pacific (CPCAY) rose 1%, to HK$19.92.

Property stocks continued a steep decline into the red however, as Sun Hung Kai (SUHJY) dropped 3.8%, to HK$9.60, Swire Pacific (SWRAY) lost 1.9%, to HK$100, and Hang Lung Properties (HLPPY) dipped 1.8%, to HK$31.70.

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