A summary of financial and business news from The Associated Press at 1200 GMT. Stories carry ``f'' or ``i'' category codes and move on this circuit in expanded form: HONG KONG AP Most Asian stock markets closed sharply lower Tuesday on the back of Wall Street's 2.3 percent decline with the key index in Hong Kong tumbling for a third straight session. Hong Kong's blue chip Hang Seng Index plummeted 4.1 percent or 426.47 points to close at 9975.85 below the psychologically important level of 10000 points. The market has shed 7.1 percent since Friday when Hong Kong announced its gross domestic product fell by 7 percent in the third quarter. Since then two major companies Hong Kong Aircraft Engineering Company and Citibank announced layoffs and the government hinted at a budget deficit for the second year. Singapore shares also tumbled 3.4 percent or 47.85 points to close at 1368.70. In Tokyo the Nikkei average of 225 selected issues fell 48.29 points or 0.3 percent to 14835.41. The U.S. dollar bought only 122.78 yen in late Tuesday trading in Tokyo 1.04 yen lower than Monday's rate. ASIAN MARKETS HONG KONG-ECONOMY BRUSSELS Belgium AP France's oil giant Total SA agreed to take over the Belgian petrochemicals company Petrofina SA to create the sixth-largest oil company in the world the companies announced Tuesday. The move was the latest in a series of mergers affecting the global oil market. The new company known as Total Fina will be quoted on the Paris Brussels New York and London stock exchanges a joint statement said. ``The combination of Total and Petrofina will allow the new entity to capture substantial productivity gains particularly in the North Sea and to expand its positions in the deep offshore United States Angola'' the statement said. BELGIUM-PETROFINA-TOTAL BEIJING AP China still plans to break up the country's telephone monopoly but foreign investors can't expect a slice of the fast-growing sector any time soon government officials said Tuesday. Even with the eventual end of China Telecom's monopoly senior officials with the Ministry of Information Industry said conditions were not ripe for foreign investors to operate in its highly protected telecommunications services sector. China Telecom towers over the huge market serving most of the 110 million telephone subscribers. That network is set to grow to 170 million in two years. Mobile phone users alone are expected to jump to 40 million from 23 million according to ministry figures. CHINA-PHONE MONOPOLY FRANKFURT Germany AP Even before Europe's single currency is launched politicians are challenging the independence of the central bank that will keep tabs on the new euro. Germany's new leaders have led the campaign demanding that the European Central Bank after it takes over monetary policy Jan. 1 lower interest rates to spur economic growth and create more jobs. The push reflects growing demands across the European Union for a more hands-on approach to monetary policy as the euro launch nears and some fear the tussle between politicians and bankers could damage the historic project. The contest between the usual monetary goal of promoting low inflation and the broader political goal of spurring job creation challenges the new central bank's guiding strategy: price stability modeled on the successful German Bundesbank. GERMANY-EURO PRESSURE PARIS AP Two of Europe's largest drug makers Hoechst of Germany and Rhone-Poulenc of France announced Tuesday they are merging their pharmaceutical and agrochemical operations. The new company will be called Aventis said a statement released by the two companies. It is to be based in Strasbourg eastern France. The agreement launches the first phase of a plan ``which will eventually lead to a full merger of Hoechst and Rhone Poulenc.'' Analysts have warned against a full merger until the heavily indebted firms reduce costs. With annual sales of around dlrs 20 billion the new company will be tied for the No. 1 ranking with Switzerland's Novartis in the life-sciences sector. RHONE POULENC-HOECHST APW19981201.0025.txt.body.html APW19981201.0707.txt.body.html