18 Jun 2008 | 16:25
Asian Markets Advanced Further as Shanghai Shrugs Off Early Losses
Asian
shares posted some strong gains, advancing for the fourth day. The BHP
Billiton was fronting gains in the resource sector while banks such as
National Australia Bank were among decliners in Sydney.
Tokyo's
Nikkei 225 climbed 0.7% to 14,452.82 while the Topix index was up 0.6%
to 1,409.64. On the economic front the news was good as Japan's index
of leading economic indicators stood at 92.8 in April, in line with the
initial reading. The leading index is based on 12 indicators, of which
data for 11 were available for the revision, with seven pointing to
expansion and four pointing to contraction.
Meanwhile the
coincident index, which measures the current state of the economy,
stood at 101.7, also in line with the initial estimate of 101.7. The
coincident index is composed of 11 indicators, of which 10 were
available for the revision, with three pointing to expansion and seven
pointing to contraction.
The lagging index was at 103.7 compared
to the preliminary reading of 103.0. This index is made up of six
indicators, of which data for five were used in the latest figure, with
one pointing to expansion, three pointing to contraction and one being
neutral.
China's Shanghai Composite ended higher, rebounding
from a 15-month low in early trading, supported by gains in refining
giant Sinopec. China's Shanghai Composite reversed a more than 2%
deficit to end day up 5.2% at 2,941.12 while the Shenzhen stock market
zoom up by 5.1% at 843.19.
In Hong Kong the Hang Seng Index climbed 1.2% to 23,325.80 while the Hang Seng China Enterprises Index rose 2.8% to 12,829.33.
In
Sydney S&P/ASX 200 was up 0.4% at 5,443.20; however on the economic
front the sentiment wasn?t that good. Australia's economy is in the
midst of a slowdown, likely to last until at least the end of the year.
According to the monthly Westpac-Melbourne Institute leading index,
which indicates the likely pace of economic activity three to nine
months into the future, was at 2.8% in April, down from 3.3% in March.
South Korea's Kospi Composite index firmed 1.3% to 1,774.13, and New Zealand's NZX-50 eased 0.4% to 3,391.63.
Taiwan's
Weighted Price Index climbed 0.2%; Singapore's Straits Times Index
added 0.4%, while Indonesia's JSX Composite loosed 0.6%.
Among
markets trading on a weaker note, Thailand's SET fell 1.5%, Malaysia's
KLSE Composite gave up 1.2% and India's Bombay Sensex retreated 1.9%.
Front-month
crude-oil futures were down as much as 64 cents to $133.37 a barrel in
electronic trading in Tokyo. The July contract closed 60 cents lower at
$134.01 a barrel Tuesday on the New York Mercantile Exchange.
In
currencies, the yen was exchanged at 107.99 against the U.S. dollar,
compared with 107.97 yen late Tuesday in New York and 108.06 yen late
Monday.
Moving to Wall Street, the markets ended lower, led down
by declines in financial shares and accompanied by series of negative
economic news.
The Dow Jones Industrial Average fell 108.78
points, the S&P 500shed 9.21 points and the Nasdaq Composite shed
17.05 points.
In European region, the markets gave back some of
the previous session's gains, with banks under notable pressure amid
lingering worries about the fallout from the credit crisis.
In
the opening session the U.K. FTSE 100 index declined 0.7% to 5,821.80,
the German DAX 30 index moved down 0.2% to 6,783.55 and the French
CAC-40 index slipped 0.4% To 4,668.40. At 10.46 GMT the FTSE 100 was
down by 1.5% to 5,776.80 while the DAX 30 was down by 0.7% slipping to
6,748.32. The French CAC 40 moved down further by 1.2% to 4,633.59.
The
downward movement in the stocks was backed by the minutes of the Bank
of England's latest Monetary Policy Committee meeting showed that the
rate-setting body considered raising interest rates.
The
minutes revealed an 8-1 vote in favour of leaving interest rates on
hold at 5.00%, with only arch dove David Blanch flower opting for
quarter point reduction given his mounting fears of a UK recession.
The
majority of the nine-member MPC, however, felt that the upside risks to
medium-term inflation had increased in recent months and there was no
case for a rate cut. For some, the news had even been sufficient to
consider a rate rise, as delay would only increase the eventual costs
of bringing inflation back to target.
Looking at the day ahead,
the economic calendar features EIA Crude oil stocks for US preceded by
MBA mortgage application data. In the late evening Bank of England?s
governor Mervyn King will deliver a speech that will be followed by all
industry activity index for Japan.
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Asian Markets Advanced Further as Shanghai Shrugs Off Early Losses
Asian
shares posted some strong gains, advancing for the fourth day. The BHP
Billiton was fronting gains in the resource sector while banks such as
National Australia Bank were among decliners in Sydney.
Tokyo's
Nikkei 225 climbed 0.7% to 14,452.82 while the Topix index was up 0.6%
to 1,409.64. On the economic front the news was good as Japan's index
of leading economic indicators stood at 92.8 in April, in line with the
initial reading. The leading index is based on 12 indicators, of which
data for 11 were available for the revision, with seven pointing to
expansion and four pointing to contraction.
Meanwhile the
coincident index, which measures the current state of the economy,
stood at 101.7, also in line with the initial estimate of 101.7. The
coincident index is composed of 11 indicators, of which 10 were
available for the revision, with three pointing to expansion and seven
pointing to contraction.
The lagging index was at 103.7 compared
to the preliminary reading of 103.0. This index is made up of six
indicators, of which data for five were used in the latest figure, with
one pointing to expansion, three pointing to contraction and one being
neutral.
China's Shanghai Composite ended higher, rebounding
from a 15-month low in early trading, supported by gains in refining
giant Sinopec. China's Shanghai Composite reversed a more than 2%
deficit to end day up 5.2% at 2,941.12 while the Shenzhen stock market
zoom up by 5.1% at 843.19.
In Hong Kong the Hang Seng Index climbed 1.2% to 23,325.80 while the Hang Seng China Enterprises Index rose 2.8% to 12,829.33.
In
Sydney S&P/ASX 200 was up 0.4% at 5,443.20; however on the economic
front the sentiment wasn?t that good. Australia's economy is in the
midst of a slowdown, likely to last until at least the end of the year.
According to the monthly Westpac-Melbourne Institute leading index,
which indicates the likely pace of economic activity three to nine
months into the future, was at 2.8% in April, down from 3.3% in March.
South Korea's Kospi Composite index firmed 1.3% to 1,774.13, and New Zealand's NZX-50 eased 0.4% to 3,391.63.
Taiwan's
Weighted Price Index climbed 0.2%; Singapore's Straits Times Index
added 0.4%, while Indonesia's JSX Composite loosed 0.6%.
Among
markets trading on a weaker note, Thailand's SET fell 1.5%, Malaysia's
KLSE Composite gave up 1.2% and India's Bombay Sensex retreated 1.9%.
Front-month
crude-oil futures were down as much as 64 cents to $133.37 a barrel in
electronic trading in Tokyo. The July contract closed 60 cents lower at
$134.01 a barrel Tuesday on the New York Mercantile Exchange.
In
currencies, the yen was exchanged at 107.99 against the U.S. dollar,
compared with 107.97 yen late Tuesday in New York and 108.06 yen late
Monday.
Moving to Wall Street, the markets ended lower, led down
by declines in financial shares and accompanied by series of negative
economic news.
The Dow Jones Industrial Average fell 108.78
points, the S&P 500shed 9.21 points and the Nasdaq Composite shed
17.05 points.
In European region, the markets gave back some of
the previous session's gains, with banks under notable pressure amid
lingering worries about the fallout from the credit crisis.
In
the opening session the U.K. FTSE 100 index declined 0.7% to 5,821.80,
the German DAX 30 index moved down 0.2% to 6,783.55 and the French
CAC-40 index slipped 0.4% To 4,668.40. At 10.46 GMT the FTSE 100 was
down by 1.5% to 5,776.80 while the DAX 30 was down by 0.7% slipping to
6,748.32. The French CAC 40 moved down further by 1.2% to 4,633.59.
The
downward movement in the stocks was backed by the minutes of the Bank
of England's latest Monetary Policy Committee meeting showed that the
rate-setting body considered raising interest rates.
The
minutes revealed an 8-1 vote in favour of leaving interest rates on
hold at 5.00%, with only arch dove David Blanch flower opting for
quarter point reduction given his mounting fears of a UK recession.
The
majority of the nine-member MPC, however, felt that the upside risks to
medium-term inflation had increased in recent months and there was no
case for a rate cut. For some, the news had even been sufficient to
consider a rate rise, as delay would only increase the eventual costs
of bringing inflation back to target.
Looking at the day ahead,
the economic calendar features EIA Crude oil stocks for US preceded by
MBA mortgage application data. In the late evening Bank of England?s
governor Mervyn King will deliver a speech that will be followed by all
industry activity index for Japan.
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/
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