28 Aug 2008 | 16:42
Asian Market Swing Between Gains And Losses
The
stock markets across the Asian region closed mixed in seesaw trading
after Wall Street finished firm overnight on a rebound in financial
stocks and better-than-expected durable goods orders. The U.S. stocks
closed higher yesterday as unexpectedly strong data on durable goods
orders eased concerns about the growth of the U.S. economy, while
mortgage-finance giants Fannie Mae and Freddie Mac led a rally in the
financial sector. The Dow closed up 0.8% at 11,502, the Nasdaq advanced
0.9% to end at 2,382 and the broader S&P 500 climbed 0.8% to finish
at 1,281.
Crude oil futures continued to rise for a fourth day
on fears that Tropical Storm Gustav could enter the Gulf of Mexico as a
powerful hurricane and disrupt oil and natural gas production. Light,
sweet crude for October delivery rose by $1.88 to settle at $118.15 a
barrel on the New York Mercantile Exchange. By 5:23 a.m. ET, crude oil
was quoted at $118.86 a barrel, up 71 cents, after the contract for
October settlement rose by $1.88 to settle at $118.15 a barrel.
On
Currency front the U.S. dollar finished weaker against major Asian
currencies. The U.S. dollar fell to lower 109-yen levels in late Tokyo
deals from mid 109-yen levels in early trade, but was little changed
compared to the levels late Wednesday in Tokyo.
The greenback closed weaker at 1,081.8 South Korean won, down from 1,084.1 won late Wednesday.
The
Australian dollar rose to its highest in three days, pulling away from
recent 11-month lows, on the back of strong second-quarter investment
data. Higher gold prices and a weaker U.S. dollar also supported the
Aussie. In late trade, the dollar was quoted at US$0.8679-0.8682, up
from US$0.8593-0.8595 late Wednesday.
The New Zealand dollar
closed stronger against the U.S. dollar. The kiwi gained after the U.S.
dollar slipped from its recent highs and following a recovery in
business confidence reported by the National Bank of New Zealand on
Wednesday. The local unit finished the session at US$0.7056 compared to
US$0.7025 late Wednesday.
The Japanese stock market closed mixed
on Thursday after posting gains for the previous two trading sessions.
The market started off higher, tracking Wall Street's gains overnight,
but Nikkei index moved into negative territory by mid-morning as
investors turned cautious ahead of the release of key local economic
data on Friday and U.S. GDP data slated for release later Today. The
Nikkei index moved back into positive terrain going into close of the
trading session.
The benchmark Nikkei 225 index closed up 0.12% at 12,768.25 and the broader Topix Index lost 0.3% to finish at 1,219.53.
On
the economic front, Japan's Finance Ministry said shortly before the
market opened that foreign residents sold a net 214.5 billion yen worth
of Japanese stocks for the week ended August 23. Foreigners were net
sellers for the fourth time in five weeks. Meanwhile, foreigners were
net purchasers of Japan bonds and notes for the week, as they bought a
net 557.9 billion yen in Japan bonds and notes during the period.
Chinese
market closed higher Thursday, led by financial stocks, ending a
two-day losing streak. Property stocks fell after the central bank
called on commercial banks to tighten lending to property developers.
The benchmark Shanghai Composite Index closed up 0.34% at 2,350.14. In
Shenzhen, the All Share index plunged by 0.08% to 642.31.
The
Hang Seng China Enterprises tracked Shanghai stocks broke its three
days winning streak losing by 2.40% at 11,497.68 while the benchmark
Hang Seng index closed down 2.29% at 20,972.29.
The Australian
stock market closed higher, extending gains for a second consecutive
trading session. The market opened higher, and finished near day's
highs as resources gained on strong commodity prices.
The
benchmark S&P/ASX 200 index closed up 1.1% at 5,066.5 and the
broader All Ordinaries index advanced 1.1% to end at 5,143.3.
On
the economic front, the Australian Bureau of Statistics said that new
private sector capital expenditures on buildings and equipment in
Australia increased 5.7% in the second quarter of 2008 over the
previous quarter. Private capital expenditure totaled A$22.59 billion
for the quarter, up from A$21.37 billion in the first quarter.
Meanwhile,
the leading index for Australia declined 0.5% and the coincident index
remained unchanged in June, the Conference Board said on Thursday,
after a 0.1% decrease in May. The leading index declined for the fifth
month in June, while the coincident index was unchanged for the second
straight month.
The New Zealand stock market closed higher after
a volatile trading session. The market opened slightly higher, boosted
by overnight gains on Wall Street, but lost ground as crude oil
continued to rise for a fourth day. However, the major averages staged
a recovery in the afternoon session and moved into positive terrain.
The
benchmark NZX 50 index closed up 0.19% at 3,324.80, ending a two-day
losing streak. Meanwhile, the NZX All Capital Index rose 0.31% to
finish at 3,369.86, extending gains for a second trading session.
On
the economic front, the Reserve Bank of New Zealand reported that M3,
the broadest measure of monetary aggregate, increased at a faster pace
of 7.6% year-on-year in July compared to 7.4% in June. However, money
supply rose less than the 9.4% growth reported in the prior year. Money
supply amounted to NZ$203.66 billion in July.
The South Korean
market fell, led by technology stocks, after finishing higher on
Wednesday. After opening on a firm note, the market lost ground on the
back of rising crude oil prices. The Kospi closed down 1.32% at
1,474.15, a 16-month closing low. The Kospi has now fallen 22% from the
year's mid-May closing high of 1,888.88.
On the economic front,
the Bank of Korea said in a report that South Korea's manufacturing
sentiment index for September rose to 79 from 74 in August. The
sentiment index improved for the first time in September after
recording decreases in past three months.
In India, intense
selling in index heavyweight Reliance Industries and in bank stocks
triggered a sell-off in late trade. The BSE 30-share Sensex lost 219.81
points as per provisional closing. The barometer index hit a low
slightly above the psychological 14,000 level before cutting some of
the steep losses. Volatility was high in second half of the trading
session ahead of expiry of August 2008 derivatives contracts. On the
economic front the government will release the inflation data after
market hours today, 28 August 2008. India's inflation based on the
wholesale price index is forecast to have risen to a fresh 16-year high
for the year through 16 August 2008
The BSE 30-share Sensex lost
219.81 points or 1.54% to 14,076.98, as per provisional closing. At the
day?s low of 14,002.43 struck in late trade, the Sensex lost 294.36
points. Sensex gained 50.40 points at day?s high of 14,347.19 hit in
early trade. The S&P CNX Nifty slipped 74.30 points or 1.66% to
4,221 as per provisional closing.
In Philippine the central bank
raised its interest rates by a 0.25%, tightening policy as expected for
a third month in a row as inflation runs at 17-year highs despite a
slowing economy. The latest rate increase brings the overnight
borrowing rate to 5.75/6.00 percent and the overnight lending rate to
7.75/8.00 percent. The Philippines stock exchange gained 0.34% to
2,665.75
Elsewhere, Taiwan's Taiex closed down 0.67% at
7,033.37; Singapore's Strait Times closed down 0.5% at 2,691.00;
Malaysia's KLCI closed up 0.3% at 1,070.46; Indonesia's Jakarta
Composite index closed up 0.65% at 2,144.85.
In the other part
of the world, European shares weakened in early trading, as an up tick
in oil prices pressured stocks sensitive to consumer spending such as
automaker Daimler.
Of national indexes, the French CAC-40 index
lost 0.4% to 4,365.70, the German DAX 30 index fell 0.7% to 6,280.51
and the U.K. FTSE 100 index declined 0.2% to 5,514.60. At 10.52 GMT all
this national indices were back in green. U.K. FTSE 100 index gained at
0.23% to 5,540.70. The German DAX 30 index was still down by 0.3% to
6,300.65, while the French CAC-40 index came at par with 4,373.05.
On
the economic front, British retail sales fell at their sharpest annual
pace in at least a quarter of a century in August as the housing market
contraction and wet weather hit retailers hard. The Confederation of
British Industry's distributive trades survey balance fell to -46, the
lowest since the series began in 1983, from -36 in July. Retailers were
also very gloomy about the outlook for next month; with the
expectations balance for September also hitting a series low of -42.
In
another data release, British house prices fell 1.9 percent in the
month of August to post their biggest annual drop since monthly records
began in 1991. The decline, pushed the average price of a property to
164,654 pounds ($303,700), the lowest since May 2006. The 10th
consecutive monthly decline highlights the reversal of fortune for the
property market since the credit crunch took hold last summer, bringing
an end to a decade in which property values almost trebled.
In
Germany, the number of jobless people in Germany declined by 40,000 in
August in seasonally adjusted terms compared with July. It said the
adjusted jobless rate in August was at 7.6 percent, down from 7.7
percent in July. The total number of unadjusted number of jobless
people stood at 3.196 million, it added. The unadjusted jobless rate
also fell to 7.6 percent from 7.7 percent in July, it said.
In
Euro zone, M3 money supply growth in the 15-nation euro zone
decelerated to an annual rate of 9.3% in July from 9.5% in June, the
European Central Bank reported Thursday. Three-month average annual
growth declined to 9.6% in the May-July period, down from 10% in
April-June, slightly above expectations of 9.5%.
Looking ahead
the day is schedule to release some of the most important event of the
data release calendar. First of all Bureau of Labor supply will release
the weekly data on continuous jobless claims and initial jobless
claims. It will be accompanied by personal consumption data for the
second quarter. However the focus will be on preliminary estimates of
gross domestic product for the second quarter of 2008. In the late
evening we have a series of data from the Japanese statistical house
starting with purchasing managers index of manufacturing for the month
of August, which will be followed by data on industrial production and
unemployment. Data on large retail sales and retail trade will
accompany them. However the market will focus on data on inflation,
which will show by the national consumer price index for the month of
July.
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Asian Market Swing Between Gains And Losses
The
stock markets across the Asian region closed mixed in seesaw trading
after Wall Street finished firm overnight on a rebound in financial
stocks and better-than-expected durable goods orders. The U.S. stocks
closed higher yesterday as unexpectedly strong data on durable goods
orders eased concerns about the growth of the U.S. economy, while
mortgage-finance giants Fannie Mae and Freddie Mac led a rally in the
financial sector. The Dow closed up 0.8% at 11,502, the Nasdaq advanced
0.9% to end at 2,382 and the broader S&P 500 climbed 0.8% to finish
at 1,281.
Crude oil futures continued to rise for a fourth day
on fears that Tropical Storm Gustav could enter the Gulf of Mexico as a
powerful hurricane and disrupt oil and natural gas production. Light,
sweet crude for October delivery rose by $1.88 to settle at $118.15 a
barrel on the New York Mercantile Exchange. By 5:23 a.m. ET, crude oil
was quoted at $118.86 a barrel, up 71 cents, after the contract for
October settlement rose by $1.88 to settle at $118.15 a barrel.
On
Currency front the U.S. dollar finished weaker against major Asian
currencies. The U.S. dollar fell to lower 109-yen levels in late Tokyo
deals from mid 109-yen levels in early trade, but was little changed
compared to the levels late Wednesday in Tokyo.
The greenback closed weaker at 1,081.8 South Korean won, down from 1,084.1 won late Wednesday.
The
Australian dollar rose to its highest in three days, pulling away from
recent 11-month lows, on the back of strong second-quarter investment
data. Higher gold prices and a weaker U.S. dollar also supported the
Aussie. In late trade, the dollar was quoted at US$0.8679-0.8682, up
from US$0.8593-0.8595 late Wednesday.
The New Zealand dollar
closed stronger against the U.S. dollar. The kiwi gained after the U.S.
dollar slipped from its recent highs and following a recovery in
business confidence reported by the National Bank of New Zealand on
Wednesday. The local unit finished the session at US$0.7056 compared to
US$0.7025 late Wednesday.
The Japanese stock market closed mixed
on Thursday after posting gains for the previous two trading sessions.
The market started off higher, tracking Wall Street's gains overnight,
but Nikkei index moved into negative territory by mid-morning as
investors turned cautious ahead of the release of key local economic
data on Friday and U.S. GDP data slated for release later Today. The
Nikkei index moved back into positive terrain going into close of the
trading session.
The benchmark Nikkei 225 index closed up 0.12% at 12,768.25 and the broader Topix Index lost 0.3% to finish at 1,219.53.
On
the economic front, Japan's Finance Ministry said shortly before the
market opened that foreign residents sold a net 214.5 billion yen worth
of Japanese stocks for the week ended August 23. Foreigners were net
sellers for the fourth time in five weeks. Meanwhile, foreigners were
net purchasers of Japan bonds and notes for the week, as they bought a
net 557.9 billion yen in Japan bonds and notes during the period.
Chinese
market closed higher Thursday, led by financial stocks, ending a
two-day losing streak. Property stocks fell after the central bank
called on commercial banks to tighten lending to property developers.
The benchmark Shanghai Composite Index closed up 0.34% at 2,350.14. In
Shenzhen, the All Share index plunged by 0.08% to 642.31.
The
Hang Seng China Enterprises tracked Shanghai stocks broke its three
days winning streak losing by 2.40% at 11,497.68 while the benchmark
Hang Seng index closed down 2.29% at 20,972.29.
The Australian
stock market closed higher, extending gains for a second consecutive
trading session. The market opened higher, and finished near day's
highs as resources gained on strong commodity prices.
The
benchmark S&P/ASX 200 index closed up 1.1% at 5,066.5 and the
broader All Ordinaries index advanced 1.1% to end at 5,143.3.
On
the economic front, the Australian Bureau of Statistics said that new
private sector capital expenditures on buildings and equipment in
Australia increased 5.7% in the second quarter of 2008 over the
previous quarter. Private capital expenditure totaled A$22.59 billion
for the quarter, up from A$21.37 billion in the first quarter.
Meanwhile,
the leading index for Australia declined 0.5% and the coincident index
remained unchanged in June, the Conference Board said on Thursday,
after a 0.1% decrease in May. The leading index declined for the fifth
month in June, while the coincident index was unchanged for the second
straight month.
The New Zealand stock market closed higher after
a volatile trading session. The market opened slightly higher, boosted
by overnight gains on Wall Street, but lost ground as crude oil
continued to rise for a fourth day. However, the major averages staged
a recovery in the afternoon session and moved into positive terrain.
The
benchmark NZX 50 index closed up 0.19% at 3,324.80, ending a two-day
losing streak. Meanwhile, the NZX All Capital Index rose 0.31% to
finish at 3,369.86, extending gains for a second trading session.
On
the economic front, the Reserve Bank of New Zealand reported that M3,
the broadest measure of monetary aggregate, increased at a faster pace
of 7.6% year-on-year in July compared to 7.4% in June. However, money
supply rose less than the 9.4% growth reported in the prior year. Money
supply amounted to NZ$203.66 billion in July.
The South Korean
market fell, led by technology stocks, after finishing higher on
Wednesday. After opening on a firm note, the market lost ground on the
back of rising crude oil prices. The Kospi closed down 1.32% at
1,474.15, a 16-month closing low. The Kospi has now fallen 22% from the
year's mid-May closing high of 1,888.88.
On the economic front,
the Bank of Korea said in a report that South Korea's manufacturing
sentiment index for September rose to 79 from 74 in August. The
sentiment index improved for the first time in September after
recording decreases in past three months.
In India, intense
selling in index heavyweight Reliance Industries and in bank stocks
triggered a sell-off in late trade. The BSE 30-share Sensex lost 219.81
points as per provisional closing. The barometer index hit a low
slightly above the psychological 14,000 level before cutting some of
the steep losses. Volatility was high in second half of the trading
session ahead of expiry of August 2008 derivatives contracts. On the
economic front the government will release the inflation data after
market hours today, 28 August 2008. India's inflation based on the
wholesale price index is forecast to have risen to a fresh 16-year high
for the year through 16 August 2008
The BSE 30-share Sensex lost
219.81 points or 1.54% to 14,076.98, as per provisional closing. At the
day?s low of 14,002.43 struck in late trade, the Sensex lost 294.36
points. Sensex gained 50.40 points at day?s high of 14,347.19 hit in
early trade. The S&P CNX Nifty slipped 74.30 points or 1.66% to
4,221 as per provisional closing.
In Philippine the central bank
raised its interest rates by a 0.25%, tightening policy as expected for
a third month in a row as inflation runs at 17-year highs despite a
slowing economy. The latest rate increase brings the overnight
borrowing rate to 5.75/6.00 percent and the overnight lending rate to
7.75/8.00 percent. The Philippines stock exchange gained 0.34% to
2,665.75
Elsewhere, Taiwan's Taiex closed down 0.67% at
7,033.37; Singapore's Strait Times closed down 0.5% at 2,691.00;
Malaysia's KLCI closed up 0.3% at 1,070.46; Indonesia's Jakarta
Composite index closed up 0.65% at 2,144.85.
In the other part
of the world, European shares weakened in early trading, as an up tick
in oil prices pressured stocks sensitive to consumer spending such as
automaker Daimler.
Of national indexes, the French CAC-40 index
lost 0.4% to 4,365.70, the German DAX 30 index fell 0.7% to 6,280.51
and the U.K. FTSE 100 index declined 0.2% to 5,514.60. At 10.52 GMT all
this national indices were back in green. U.K. FTSE 100 index gained at
0.23% to 5,540.70. The German DAX 30 index was still down by 0.3% to
6,300.65, while the French CAC-40 index came at par with 4,373.05.
On
the economic front, British retail sales fell at their sharpest annual
pace in at least a quarter of a century in August as the housing market
contraction and wet weather hit retailers hard. The Confederation of
British Industry's distributive trades survey balance fell to -46, the
lowest since the series began in 1983, from -36 in July. Retailers were
also very gloomy about the outlook for next month; with the
expectations balance for September also hitting a series low of -42.
In
another data release, British house prices fell 1.9 percent in the
month of August to post their biggest annual drop since monthly records
began in 1991. The decline, pushed the average price of a property to
164,654 pounds ($303,700), the lowest since May 2006. The 10th
consecutive monthly decline highlights the reversal of fortune for the
property market since the credit crunch took hold last summer, bringing
an end to a decade in which property values almost trebled.
In
Germany, the number of jobless people in Germany declined by 40,000 in
August in seasonally adjusted terms compared with July. It said the
adjusted jobless rate in August was at 7.6 percent, down from 7.7
percent in July. The total number of unadjusted number of jobless
people stood at 3.196 million, it added. The unadjusted jobless rate
also fell to 7.6 percent from 7.7 percent in July, it said.
In
Euro zone, M3 money supply growth in the 15-nation euro zone
decelerated to an annual rate of 9.3% in July from 9.5% in June, the
European Central Bank reported Thursday. Three-month average annual
growth declined to 9.6% in the May-July period, down from 10% in
April-June, slightly above expectations of 9.5%.
Looking ahead
the day is schedule to release some of the most important event of the
data release calendar. First of all Bureau of Labor supply will release
the weekly data on continuous jobless claims and initial jobless
claims. It will be accompanied by personal consumption data for the
second quarter. However the focus will be on preliminary estimates of
gross domestic product for the second quarter of 2008. In the late
evening we have a series of data from the Japanese statistical house
starting with purchasing managers index of manufacturing for the month
of August, which will be followed by data on industrial production and
unemployment. Data on large retail sales and retail trade will
accompany them. However the market will focus on data on inflation,
which will show by the national consumer price index for the month of
July.
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Latest News - http://investorline.co.in/blogger/?q=aggregator/categories/1
News Resources - http://investorline.co.in/blogger/?q=aggregator/sources
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Newsgroups- http://groups.google.com/group/india-investor
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