Market News Alert Summary

General: Oil falls to US$126, storm concern eases.

1. Malaysia: KLCI up 29.84 points (2.7%) to close at 1,139.41.
i) CPI for June surges to 7.7%.
ii) EPF steps up purchase of stakes in local firms.
iii) Merril Lynch advises buy into commodities.
iv) M'sian steel mills under pressure to halt exports

2. Singapore: STI up 88.32 points to close at 2,978.98.
i) S'pore June CPI up 7.5%, 26-yr high
ii) New benchmark for rental rents on Orchard Road

3. Others
i) South Korea problems as severe as in Asian crisis. KOSPI up 30.53 points (1.96%). Close at 1591.76.
ii) East Asia inflation to rise at twice rate of past decade: ADB
iii) US consumer fears lead to profit warnings.
iv) Vietnam Inflation expected to climb
v) Australia core inflation hits 17-year high
vi) Hong Kong Consumer prices jump 6.1pc in June
vii) Thailand Exports jump to a record high



Current Market Sentiment: FEAR of RAPIDLY RISING INFLATION