Dow loses 132 despite
rebound in Hong Kong

Wall Street stocks fall as investors
fret over Asia's economic troubles

NEW YORK -- A rebound in Hong Kong's stock market today could not convince investors worldwide that Asia's economic problems are over. U.S. stocks dropped and European markets gave up most of their early gains while most of Asia's markets fell.

On Wall Street, the Dow Jones industrial average fell 132.36 today to close at 7,715.41. The downturn erased a 92-point leap to start the day on enthusiasm about the turnaround in Hong Kong's market. But big gains on Monday and Tuesday meant the index lost only 131.62 for the week.

"Many investors are sitting on the sidelines and will take the weekend to sit back and try to figure out what is going on in Asia," said Brian Belski, analyst at Dain Bosworth in Minneapolis.

Investors grew uncertain about Hong Kong's future in light of forecasts for a long-term slowdown in Hong Kong's influential property market, renewed speculative attacks on its currency and continued high interest rates. That could mean an overall slowdown of Hong Kong's vibrant economy, although no one is sure how much.

"I wouldn't rule out that the Hong Kong share market will never again see the high of three months ago," said independent investment analyst Marc Faber.

The blue-chip Hang Seng index ended the day at 11,144.34 points, up 718.04 or 6.88 percent, as investors shopped for shares cheapened by the market's 10-percent plunge yesterday. It was Hong Kong's second-biggest plunge since the global 1987 crash.

The surge helped Tokyo's stock market recover. But the Dow industrials, an index of 30 multinational companies whose profits already have been pinched by the mounting economic turmoil in Southeast Asia, retreated as European markets turned mixed.

On the New York Stock Exchange, decliners led advancers by a 9-to-8 margin and volume was 671.36 million shares, the fourth biggest tally ever.

The Standard & Poor's 500 list fell 9.06 to close at 941.63, the NYSE composite index fell 3.72 to close at 495.77, and American Stock Exchange composite index fell 2.21 to 701.18. The Nasdaq index closed 20.33 lower at 1,650.92, hurt by weakness in Intel, Microsoft, Dell Computer and Applied Materials.

The price of the Treasury's main 30-year bond closed up 14-32 point while its yield dropped to 6.27 percent from 6.30 percent late yesterday.

In overseas markets, stocks in London finished lower after a morning rally fizzled in the late afternoon. The Financial Times-

Stock Exchange 100-share index closed with a loss of 21.3 points, or 0.4 percent, at 4,970.

In Asia, Tokyo stocks rebounded after their two-year low yesterday, with the benchmark 225-issue Nikkei Stock Average gaining 212.19 points, or 1.24 percent, to 17,363.74.

In Seoul, however, the Korea Stock Exchange plunged at the close of trading today to finish at 570.91 points, down 5.5 percent, the biggest one-day loss in history.

Singapore's benchmark index shed 1.9 percent, following on a 5-percent loss yesterday. Malaysian stocks were down 1.9 percent.