30 Jul 2008 | 16:06
Asian Market Rebound On Wall Street Advance, Weaker Crude Oil
Asian
markets rebounded, with exporters and banks advanced on the back of
Wall Street gains overnight, while airline and automobile stocks across
the region climbed after a pullback in crude-oil prices.
Wall
Street's bounced back overnight on the back of upbeat U.S. consumer
confidence data and a drop in crude oil prices encouraged investors to
buy banking stocks, which were hit by credit concerns over the previous
few sessions. On Wall Street, the Dow Jones Industrial Average soared
2.4% to 11,397.56 and the Nasdaq Composite jumped 2.5% to 2,319.62,
while the S&P 500 index gained 2.3% to 1,263.19
A fall in
crude oil prices also contributed to the positive sentiment in the
market. Oil prices tumbled overnight to its lowest level in seven weeks
on stronger dollar and demand worries. Light, sweet crude for September
delivery fell $2.54 to settle at $122.19 a barrel on the New York
Mercantile Exchange. In late Asian session, oil is currently up 21
cents at $122.40 a barrel.
In the currency market, the dollar
traded in the upper 107-yen levels in late Tokyo deals, slightly weaker
compared to lower 108-yen levels in early trade, but firmer compared to
mid 107-yen levels late Tuesday. The dollar moved upward as U.S.
economic fears eased following Conference Board's upbeat consumer
confidence report for July. The U.S. dollar closed at 1,013.5 won, up
from Tuesday's close of 1,008.8 won. The Aussie was quoted at
US$0.9471-0.9473 in late local session, down 1.1% from Tuesday's late
quotes of US$0.99575-0.9577. The local unit hit a six-week low of
US$0.9466 during the session. The kiwi finished the local session at
US$0.7345-0.7355, down from Tuesday's late quotes of US$0.7551.
Coming
back in Asian equity market the Japanese stock market closed higher on
Wednesday, following positive earnings reported by local companies and
a weaker yen. The market started off higher as investor sentiment was
boosted by Wall Street's rally overnight on the back of a drop in crude
oil prices and an upbeat U.S. consumer confidence report.
The
benchmark Nikkei 225 index closed up 1.58% at 13,367 after plunging
1.5% on yesterday. The broader Topix index advanced 1.67% to finish at
1,281.64.
On the economic front, government data showed that
Japanese industrial output fell 2.0% on month in June, marking the
first drop in two months. Industrial output rose 2.8% on month in May
following a 0.2% slide in April, the Ministry of Economy, Trade and
Industry said. Additionally, manufacturers polled expect that their
output will fall 0.2% on month in July, and decrease 0.6% in August.
Meanwhile,
the Japan Automobile Manufacturers Association said that Japanese auto
production increased 4.5% in June from the previous year. In May,
vehicle production posted an annual growth of 6.8%. Automobile
production in June totaled 1.03 million units compared to 990,114 units
in the prior year. Meanwhile, domestic sales dropped 3.3% to 446,990
vehicles. During the first half of 2008, auto production showed 6%
growth on an annual basis. Production rose to 6.05 million units from
5.71 million units produced in the first half of 2007.
The
Chinese market closed lower, extending losses for a second day. Coal
producers lost ground on speculation that a decline in the price of
crude oil will reduce demand for the alternative fuel. The benchmark
Shanghai composite index closed down 0.48% at 2,836.66 after losing
1.8% on Tuesday.
In Hong Kong, the Hang Seng Index rose 1.9% to 22,690.60 and the Hang Seng China Enterprises Index jumped 2.6% to 12,469.10.
The
Australian stock market closed sharply higher, snapping a three-day
losing streak. The benchmark S&P/ASX 200 index closed up 1.8% at
4,936.70and the broader All Ordinaries index gained 1.7% to finish at
5,008.7.
On the economic front, new home approvals unexpectedly
fell in June on high interest rates and rising building costs. The
seasonally adjusted estimate for total dwelling units approved fell
0.7% in the previous month to 12,237 units, the Australian Bureau of
Statistics said, following a revised fall of 7.2% in May and was worse
than the expectations for a 1.0% increase. On an annual basis, building
permits were down 7.8% after a revised fall of 0.4% in May.
The
Australian dollar fell to a six-week low, hurt by speculation that
domestic interest rates could be cut as early as this year and by
softer commodity prices. Worse-than-expected home-building approvals
data also took the shine off the local currency.
The New
Zealand stock market closed higher, recouping yesterday's losses. The
benchmark NZX 50 Index closed up 1.62% at 3,287.76, while the NZX All
Capital Index rose 48.76 points or 1.46% to finish at 3,330.83.
On
the economic front, the Reserve Bank of New Zealand announced that M3,
the broadest measure of monetary aggregate, increased 7.4% year-on-year
in June, faster than the 5% rise reported in May. However, money supply
grew less than the 10.9% recorded in the corresponding period of prior
year. The money supply amounted to NZ$205.17 billion compared with
May's NZ$201.35 billion. Further, the central bank said that M3,
excluding funds from non-residents climbed 9.8%. At the same time, M3
excluding repurchase agreements moved up 7.8%, following a 5.7% rise in
the prior month.
In the currency market, The New Zealand dollar
fell to 10-month lows on the central bank governor's comments, at a
speech to a business group in Auckland, that there was plenty of room
for further interest rate cuts in the slowing economy. The kiwi
finished the local session at US$0.7345-0.7355, down from Tuesday's
late quotes of US$0.7551.
The South Korean market closed higher
on Wednesday, reversing Tuesday's steep losses. The market started off
on a firm note, tracking Wall Street's gains overnight following a drop
in crude oil prices and an upbeat consumer confidence report, but gave
up some ground during the afternoon session. The benchmark Kospi index
closed up 0.67% at 1,577.7 after hitting a high of 1,595.84 in opening
trade and a low of 1,572.17 in late trade.
On the economic
front, a government report showed that South Korea's software exports
jumped 23.5% to $1.66 billion in 2007 from $1.34 billion a year
earlier, bolstered by increased overseas sales of package software and
information technology services.
Elsewhere Singapore's Straits Times Index rose 1.35% to 2,925.50 while Taiwan Taiex gained 0.8% to 7,070.35.
In
India the markets opened in positive territory and continued to track
the recovery in other global markets. After opening with a positive gap
of 216 points, the BSE Sensex closed on firm note of 14,287.21 on
screen i.e. 3.6% up from yesterday closing.
In the other part
of the world, the European stocks traded higher as a flurry of earnings
from companies including the world's top steel maker, ArcelorMittal,
and engineering giant Siemens received a thumbs-up.
In the
opening trade the German DAX 30 rose 1.1% to 6,467.92, the French CAC
40 added 1.2% to 4,373.91 and the U.K. FTSE 100 rose 1.4% to 5,393.50.
On
the economic front, the European Commission said its euro zone economic
sentiment indicator for July sank to its lowest level since March 2003,
dropping 5.3 points to 89.5 from 94.8 in June, the largest
month-on-month decline since October 2001. The June sentiment indicator
was revised down from a provisional reading of 94.9.
Confidence
fell in all sectors, although the decline was particularly pronounced
in services and also worsened among consumers, the commission said. The
services confidence indicator fell to +1 from +9 in June, while the
consumer confidence indicator declined to -20 from -17. The industrial
confidence indicator fell to -8 in July from -5 a month earlier, retail
trade dropped to -9 from -4 in June and construction was down at -14
from -11.
In another data release, the Bloomberg retail PMI for
Euro zone for the month of July increased to 46 from the initial
reading of 44 while the reading from Germany showed an increase to 46.4
from 44.9 of June.
Meanwhile, in Italy the producer prices rose 0.8% in June from May and increased 8.2 percent year-on-year.
Looking
ahead the market will have its focus on Weekly Crude oil inventory data
released by the EIA of US, which will be preceded by ADP employment
change statistics and also by MBA mortgage application statistics. In
the late evening we have Gfk consumer confidence for UK for the month
of June.
Visit site at – http://investorline.co.in/
Newsroom - http://newsroom.investorline.co.in/
Learning Center- http://learning.investorline.co.in/
Mutual funds - http://mutualfunds.investorline.co.in/
Life Insurance - http://insurance.investorline.co.in/
Investor Journal - http://research.investorline.co.in/
Newscatcher- http://forums.investorline.co.in/
Asian Market Rebound On Wall Street Advance, Weaker Crude Oil
Asian
markets rebounded, with exporters and banks advanced on the back of
Wall Street gains overnight, while airline and automobile stocks across
the region climbed after a pullback in crude-oil prices.
Wall
Street's bounced back overnight on the back of upbeat U.S. consumer
confidence data and a drop in crude oil prices encouraged investors to
buy banking stocks, which were hit by credit concerns over the previous
few sessions. On Wall Street, the Dow Jones Industrial Average soared
2.4% to 11,397.56 and the Nasdaq Composite jumped 2.5% to 2,319.62,
while the S&P 500 index gained 2.3% to 1,263.19
A fall in
crude oil prices also contributed to the positive sentiment in the
market. Oil prices tumbled overnight to its lowest level in seven weeks
on stronger dollar and demand worries. Light, sweet crude for September
delivery fell $2.54 to settle at $122.19 a barrel on the New York
Mercantile Exchange. In late Asian session, oil is currently up 21
cents at $122.40 a barrel.
In the currency market, the dollar
traded in the upper 107-yen levels in late Tokyo deals, slightly weaker
compared to lower 108-yen levels in early trade, but firmer compared to
mid 107-yen levels late Tuesday. The dollar moved upward as U.S.
economic fears eased following Conference Board's upbeat consumer
confidence report for July. The U.S. dollar closed at 1,013.5 won, up
from Tuesday's close of 1,008.8 won. The Aussie was quoted at
US$0.9471-0.9473 in late local session, down 1.1% from Tuesday's late
quotes of US$0.99575-0.9577. The local unit hit a six-week low of
US$0.9466 during the session. The kiwi finished the local session at
US$0.7345-0.7355, down from Tuesday's late quotes of US$0.7551.
Coming
back in Asian equity market the Japanese stock market closed higher on
Wednesday, following positive earnings reported by local companies and
a weaker yen. The market started off higher as investor sentiment was
boosted by Wall Street's rally overnight on the back of a drop in crude
oil prices and an upbeat U.S. consumer confidence report.
The
benchmark Nikkei 225 index closed up 1.58% at 13,367 after plunging
1.5% on yesterday. The broader Topix index advanced 1.67% to finish at
1,281.64.
On the economic front, government data showed that
Japanese industrial output fell 2.0% on month in June, marking the
first drop in two months. Industrial output rose 2.8% on month in May
following a 0.2% slide in April, the Ministry of Economy, Trade and
Industry said. Additionally, manufacturers polled expect that their
output will fall 0.2% on month in July, and decrease 0.6% in August.
Meanwhile,
the Japan Automobile Manufacturers Association said that Japanese auto
production increased 4.5% in June from the previous year. In May,
vehicle production posted an annual growth of 6.8%. Automobile
production in June totaled 1.03 million units compared to 990,114 units
in the prior year. Meanwhile, domestic sales dropped 3.3% to 446,990
vehicles. During the first half of 2008, auto production showed 6%
growth on an annual basis. Production rose to 6.05 million units from
5.71 million units produced in the first half of 2007.
The
Chinese market closed lower, extending losses for a second day. Coal
producers lost ground on speculation that a decline in the price of
crude oil will reduce demand for the alternative fuel. The benchmark
Shanghai composite index closed down 0.48% at 2,836.66 after losing
1.8% on Tuesday.
In Hong Kong, the Hang Seng Index rose 1.9% to 22,690.60 and the Hang Seng China Enterprises Index jumped 2.6% to 12,469.10.
The
Australian stock market closed sharply higher, snapping a three-day
losing streak. The benchmark S&P/ASX 200 index closed up 1.8% at
4,936.70and the broader All Ordinaries index gained 1.7% to finish at
5,008.7.
On the economic front, new home approvals unexpectedly
fell in June on high interest rates and rising building costs. The
seasonally adjusted estimate for total dwelling units approved fell
0.7% in the previous month to 12,237 units, the Australian Bureau of
Statistics said, following a revised fall of 7.2% in May and was worse
than the expectations for a 1.0% increase. On an annual basis, building
permits were down 7.8% after a revised fall of 0.4% in May.
The
Australian dollar fell to a six-week low, hurt by speculation that
domestic interest rates could be cut as early as this year and by
softer commodity prices. Worse-than-expected home-building approvals
data also took the shine off the local currency.
The New
Zealand stock market closed higher, recouping yesterday's losses. The
benchmark NZX 50 Index closed up 1.62% at 3,287.76, while the NZX All
Capital Index rose 48.76 points or 1.46% to finish at 3,330.83.
On
the economic front, the Reserve Bank of New Zealand announced that M3,
the broadest measure of monetary aggregate, increased 7.4% year-on-year
in June, faster than the 5% rise reported in May. However, money supply
grew less than the 10.9% recorded in the corresponding period of prior
year. The money supply amounted to NZ$205.17 billion compared with
May's NZ$201.35 billion. Further, the central bank said that M3,
excluding funds from non-residents climbed 9.8%. At the same time, M3
excluding repurchase agreements moved up 7.8%, following a 5.7% rise in
the prior month.
In the currency market, The New Zealand dollar
fell to 10-month lows on the central bank governor's comments, at a
speech to a business group in Auckland, that there was plenty of room
for further interest rate cuts in the slowing economy. The kiwi
finished the local session at US$0.7345-0.7355, down from Tuesday's
late quotes of US$0.7551.
The South Korean market closed higher
on Wednesday, reversing Tuesday's steep losses. The market started off
on a firm note, tracking Wall Street's gains overnight following a drop
in crude oil prices and an upbeat consumer confidence report, but gave
up some ground during the afternoon session. The benchmark Kospi index
closed up 0.67% at 1,577.7 after hitting a high of 1,595.84 in opening
trade and a low of 1,572.17 in late trade.
On the economic
front, a government report showed that South Korea's software exports
jumped 23.5% to $1.66 billion in 2007 from $1.34 billion a year
earlier, bolstered by increased overseas sales of package software and
information technology services.
Elsewhere Singapore's Straits Times Index rose 1.35% to 2,925.50 while Taiwan Taiex gained 0.8% to 7,070.35.
In
India the markets opened in positive territory and continued to track
the recovery in other global markets. After opening with a positive gap
of 216 points, the BSE Sensex closed on firm note of 14,287.21 on
screen i.e. 3.6% up from yesterday closing.
In the other part
of the world, the European stocks traded higher as a flurry of earnings
from companies including the world's top steel maker, ArcelorMittal,
and engineering giant Siemens received a thumbs-up.
In the
opening trade the German DAX 30 rose 1.1% to 6,467.92, the French CAC
40 added 1.2% to 4,373.91 and the U.K. FTSE 100 rose 1.4% to 5,393.50.
On
the economic front, the European Commission said its euro zone economic
sentiment indicator for July sank to its lowest level since March 2003,
dropping 5.3 points to 89.5 from 94.8 in June, the largest
month-on-month decline since October 2001. The June sentiment indicator
was revised down from a provisional reading of 94.9.
Confidence
fell in all sectors, although the decline was particularly pronounced
in services and also worsened among consumers, the commission said. The
services confidence indicator fell to +1 from +9 in June, while the
consumer confidence indicator declined to -20 from -17. The industrial
confidence indicator fell to -8 in July from -5 a month earlier, retail
trade dropped to -9 from -4 in June and construction was down at -14
from -11.
In another data release, the Bloomberg retail PMI for
Euro zone for the month of July increased to 46 from the initial
reading of 44 while the reading from Germany showed an increase to 46.4
from 44.9 of June.
Meanwhile, in Italy the producer prices rose 0.8% in June from May and increased 8.2 percent year-on-year.
Looking
ahead the market will have its focus on Weekly Crude oil inventory data
released by the EIA of US, which will be preceded by ADP employment
change statistics and also by MBA mortgage application statistics. In
the late evening we have Gfk consumer confidence for UK for the month
of June.
Visit site at – http://investorline.co.in/
Newsroom - http://newsroom.investorline.co.in/
Learning Center- http://learning.investorline.co.in/
Mutual funds - http://mutualfunds.investorline.co.in/
Life Insurance - http://insurance.investorline.co.in/
Investor Journal - http://research.investorline.co.in/
Newscatcher- http://forums.investorline.co.in/
0 comments:
Post a Comment