Markets get jitters despite Indonesia pact

Indonesia's fresh pact with the International Monetary Fund over the terms of a rescue package have failed to impress Asian markets.

Hong Kong's Hang Seng share index closed at 8,608.87, down 6.69% at the end of Thursday morning's trading.

The fall was partly down to huge drops in the share values of two companies, Sino Land and Sino Hotels, whose stock dropped by 45.71% and 47.06% respectively.

Both companies insist rumours of their financial difficulties are groundless.

Jakarta stocks also plummeted on profit-taking after President Suharto's announcement of sweeping reforms. The composite index fell 5.3% to 382.63 at about 0645 GMT.

However, some regional markets did show gains, as Singapore and Seoul continued to rally early on Thursday.

In the Philippines Manila's main index rose 1.2%, and Singapore's market rose 2.9% in early trading.

Thailand too showed gains, the market rising 9.92% by lunchtime.

At midday, Seoul's main index was up 4.1% at 494.51 points, having earlier breached the 500-point barrier for the first time since November.

Traders in Japan have had the day off as the stock market is closed on Thursday.