26 Aug 2008 | 16:35
Asian Markets Ends Lower Following Wall Street Tumble
The
stock markets across the Asian region closed lower, on renewed concerns
about the strength of the U.S. financial sector. Wall Street tumbled
overnight after a Credit Suisse analyst cut his price target on
American International Group and the National Association of Realtors
reported weaker-than-expected existing home sales for July. The Dow
Jones industrial average slumped 2.08% and the tech-heavy Nasdaq
composite index lost 2.03%.
Oil prices rose yesterday, edging
above $115 a barrel on concerns about Tropical Storm Gustav brewing in
the Caribbean. Light, sweet crude for October delivery closed up 52
cents at $115.11 a barrel on the New York Mercantile Exchange. In late
Asian session Tuesday, oil was up 43 cents at $115.54 a barrel.
In
the currency market, the U.S. dollar strengthened to the upper 109-yen
levels from mid 109-yen levels in early Tokyo deals, but was lower
compared to near 110-yen range in late local trade on Monday.
The
Australian dollar closed at its weakest level in local trade this year.
The Aussie finished the session at US$0.8559-0.8563, down almost one
U.S. cent from Monday's close of US$0.8652-0.8654.
The New
Zealand dollar hit its lowest level in a weak after the Statistics New
Zealand reported worse-than-expected trade balance data. The kiwi eased
to US$0.6970 from US$0.7050 late Monday. Against the Aussie, it slipped
to A$0.8111 from A$0.8167.
South Korea's won plunged to a
45-month low against the U.S. dollar. The local unit closed at 1,089.4
a dollar, down from Monday's close of 1,078.9 a dollar.
The
Japanese stock market closed lower, as investors locked in profits
following yesterday's sharp gains and fresh worries about the U.S.
credit market. After opening lower, tracking the negative lead from
Wall Street, the market came off day's lows in the afternoon session as
the dollar rose to the upper 109-yen levels.
The benchmark Nikkei 225 index closed down 0.8% at 12,778.71 and the broader Topix Index lost 0.8% to finish at 1,229.35.
On
the economic front, the Bank of Japan said that Japan's corporate
service price index climbed 1.3% on year in July, posting a score of
95.6. The increase was slightly below analyst expectations for an
increase of 1.4% on year, but was higher compared to the 1.2% annual
increase in June. The data also represented the 24th straight month of
increase for the index. The index eased 0.1% from a month ago.
The
Chinese market closed sharply lower, with the benchmark Shanghai
Composite Index closing down 2.62% at 2,350.08, near its 20-month
closing low. In Shenzhen, the All Share index plunged by 4.01% to
646.47.
In Hong Kong, the Hang Seng China Enterprises tracked
Shanghai stocks zoomed up by 0.73% at 11,406.64. The benchmark Hang
Seng Index plunged by 0.23% to 21,056.66.
The Australian stock
market closed slightly lower, recovering substantially from a sharp
fall in early trade. The market opened with a deep cut, tracking Wall
Street's triple-digit loss overnight on fresh concerns related to the
health of the U.S. financial sector, but recovered over the course of
the trading session to end slightly below the flat line as big miners
recovered and banks trimmed their losses.
The benchmark
S&P/ASX 200 index closed down 0.1% at 5,007.5 after losing as much
as 2% in the morning session. The broader All Ordinaries index lost
0.2% to finish at 5,082.3.
On the economic front, traders had
little data to digest on Tuesday. Conference Board leading index for
June, private capital expenditure for July and HIA new home sales for
July are scheduled for release on Thursday.
The New Zealand
stock market closed lower on Tuesday, giving away some of Monday's
gains. After opening lower and losing ground in the morning session,
tracking Wall Street's plunge overnight, the market recovered in the
second half of the day to end slightly below the flat line. The
benchmark NZX 50 index closed down 0.18% at 3,321.00 and the broader
NZX All Capital index fell 0.51% to finish at 3,355.06.
New
Zealand's trade deficit stood at NZ$781 million in July, well above
analysts' expectation of around NZ$525 million, compared to NZ$808
million in July last year. Exports rose 29.6% on year, while imports
increased 21.9% from a year earlier.
The South Korean market
closed lower Tuesday after it snapped a five-day losing streak on
Monday. Wall Street's plunge overnight and a steep fall of the won
against the greenback weighed on most blue chips. The benchmark Kospi
closed down 0.79% at 1,490.25. The key index tumbled to the 1,450-level
in the morning, but managed to trim its losses as bargain hunting set
in at lower levels.
On the economic front, the central bank's
minutes showed that policymakers at the Bank of Korea unanimously voted
to hold the key interest rate steady in July as concerns over spiraling
inflation outweighed woes over the slowing economy. In a rate-setting
meeting on July 10, the central bank froze the benchmark 7-day repo
rate at 5% for the 11th straight month.
Meanwhile, South Korea's
consumer sentiment fell to the lowest observed level since the country
was hit by an unprecedented financial crisis in late 1997, amid
concerns over rising inflation and an economic slowdown. An index
gauging consumer sentiment in the economy and living conditions for the
third quarter of the year stood at 37.7, compared to 47.8 recorded in
the previous quarter, according to the Samsung Economic Research
Institute.
In India the key benchmark indices shrugged off weak
global cues to post marginal gains after a weak start, boosted by
reports of a near normal monsoon. The BSE 30-share Sensex rose 0.30% to
14,493.20, as per provisional closing. At the day?s high of 14,495.27
hit in late trade, the Sensex gained 44.92 points. Sensex hit a low of
14,286.38 in early trade. At the day?s low, the Sensex lost 163.97
points. The S&P CNX Nifty gained 7.90 points or 0.18% to 4,343.25
as per provisional closing
In Singapore the Straits Times index
decreased by 0.96% to 2,707.19. On the economic front, July factory
output showed an unexpected fall of 1.8% after seasonal adjustments
from June, as the economic slowdown in the United States and Europe
continues to hit Asian exporters. The monthly manufacturing data
follows a rise of 4.4 percent in June, revised from a rise of 4.5
percent, and a 6.2 percent decline in May.
From a year earlier,
factory output in July slumped 21.9 percent, compared with a market
forecast for a 17.1 percent drop. Manufacturing accounted for about a
quarter of Singapore's S$229 billion ($162 billion) trade-dependent
economy in 2007.
Elsewhere, Malaysia the KLSE Composite Index
dropped down by 0.76% to 1,070.50. In Indonesia, the Jakarta Composite
increased 0.92% to 2,107.55. The Taiwan's weighted index fell 0.94% to
6964.60.
In the other part of the world, European shares moved
lower again, led by oil producers and mineral extractors as many
commodity-sector companies restarted trading after a long holiday
weekend in the U.K.
In the opening trade, the U.K. FTSE 100
index dropped 1.4% to 5,426.60, while the German DAX 30 fell a more
modest 0.4% to 6,272.80 and the French CAC-40 also lost 0.4% to
4,336.94. At 10.37 GMT all this national indices continued to slump
further. U.K. FTSE 100 index fell further at 1.8% to 5,405. The German
DAX 30 index fell 0.18% to 6,285.89, while the French CAC-40 index
decreased by 0.71% to 4,324.86.
On the economic front, German
business confidence plummeted in August, hitting its lowest level in
three years, raising fears that Germany is already in recession. The
Ifo business climate index fell to 94.8 from 97.5 in July. The drop
came despite lower oil prices and a weaker euro. The index measuring
firms' business expectations hit its lowest level since February 1993,
when Germany was mired in recession, after falling to 87.0 from a
revised 89.9. The indicator for the current trading situation fell to
103.2 from a revised 105.6 in July.
Prior to this the German
economy confirmed its slowdown as growth rate shrank in the first
quarter. Gross domestic product fell 0.5% on the quarter between April
and June when adjusted for seasonal and calendar effects after
increasing 1.3% in the first quarter. The annual growth rate rose a
seasonally adjusted 1.7%. That compares with unadjusted growth of 3.1%
and 1.4% when adjusted for working days.
In U.K., the net
mortgage lending and approvals for home loans were stable at a low
level in July as the credit crunch and economic uncertainty continued
to weigh on the housing market. According to the data released by the
British Bankers' Association showed the number of mortgages approved
rose to 22,448 in July from 22,369 in June, but remain 65% weaker on
the year. The average of the previous six months was 34,104.
Net
mortgage lending was steady at GBP4.3 billion in July, but was 22.7%
weaker on the year. Gross mortgage lending eased to GBP14.6 billion
from GBP15.0 billion in June, leaving it 25.2% weaker than in July last
year.
In Spain the statistical organization has revised down
its 2007 gross domestic product growth to 3.7% from a previously
reported 3.8%.
Looking ahead the day is scheduled to release
Nationwide data on housing prices for U.K, which will be followed by
S&P Shiller home price index for U.S. In the evening we have
consumer confidence index for the month of August, which will be
accompanied by the new home sales stats. In the late evening we have
Richmond Fed manufacturing index for the month of August, which will be
followed by ABC Washington Post weekly consumer confidence index.
However the focus of the day will be on FOMC minutes giving us the
insights about the thinking process of the policymakers.
Visit our site at – http://investorline.co.in/
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Asian Markets Ends Lower Following Wall Street Tumble
The
stock markets across the Asian region closed lower, on renewed concerns
about the strength of the U.S. financial sector. Wall Street tumbled
overnight after a Credit Suisse analyst cut his price target on
American International Group and the National Association of Realtors
reported weaker-than-expected existing home sales for July. The Dow
Jones industrial average slumped 2.08% and the tech-heavy Nasdaq
composite index lost 2.03%.
Oil prices rose yesterday, edging
above $115 a barrel on concerns about Tropical Storm Gustav brewing in
the Caribbean. Light, sweet crude for October delivery closed up 52
cents at $115.11 a barrel on the New York Mercantile Exchange. In late
Asian session Tuesday, oil was up 43 cents at $115.54 a barrel.
In
the currency market, the U.S. dollar strengthened to the upper 109-yen
levels from mid 109-yen levels in early Tokyo deals, but was lower
compared to near 110-yen range in late local trade on Monday.
The
Australian dollar closed at its weakest level in local trade this year.
The Aussie finished the session at US$0.8559-0.8563, down almost one
U.S. cent from Monday's close of US$0.8652-0.8654.
The New
Zealand dollar hit its lowest level in a weak after the Statistics New
Zealand reported worse-than-expected trade balance data. The kiwi eased
to US$0.6970 from US$0.7050 late Monday. Against the Aussie, it slipped
to A$0.8111 from A$0.8167.
South Korea's won plunged to a
45-month low against the U.S. dollar. The local unit closed at 1,089.4
a dollar, down from Monday's close of 1,078.9 a dollar.
The
Japanese stock market closed lower, as investors locked in profits
following yesterday's sharp gains and fresh worries about the U.S.
credit market. After opening lower, tracking the negative lead from
Wall Street, the market came off day's lows in the afternoon session as
the dollar rose to the upper 109-yen levels.
The benchmark Nikkei 225 index closed down 0.8% at 12,778.71 and the broader Topix Index lost 0.8% to finish at 1,229.35.
On
the economic front, the Bank of Japan said that Japan's corporate
service price index climbed 1.3% on year in July, posting a score of
95.6. The increase was slightly below analyst expectations for an
increase of 1.4% on year, but was higher compared to the 1.2% annual
increase in June. The data also represented the 24th straight month of
increase for the index. The index eased 0.1% from a month ago.
The
Chinese market closed sharply lower, with the benchmark Shanghai
Composite Index closing down 2.62% at 2,350.08, near its 20-month
closing low. In Shenzhen, the All Share index plunged by 4.01% to
646.47.
In Hong Kong, the Hang Seng China Enterprises tracked
Shanghai stocks zoomed up by 0.73% at 11,406.64. The benchmark Hang
Seng Index plunged by 0.23% to 21,056.66.
The Australian stock
market closed slightly lower, recovering substantially from a sharp
fall in early trade. The market opened with a deep cut, tracking Wall
Street's triple-digit loss overnight on fresh concerns related to the
health of the U.S. financial sector, but recovered over the course of
the trading session to end slightly below the flat line as big miners
recovered and banks trimmed their losses.
The benchmark
S&P/ASX 200 index closed down 0.1% at 5,007.5 after losing as much
as 2% in the morning session. The broader All Ordinaries index lost
0.2% to finish at 5,082.3.
On the economic front, traders had
little data to digest on Tuesday. Conference Board leading index for
June, private capital expenditure for July and HIA new home sales for
July are scheduled for release on Thursday.
The New Zealand
stock market closed lower on Tuesday, giving away some of Monday's
gains. After opening lower and losing ground in the morning session,
tracking Wall Street's plunge overnight, the market recovered in the
second half of the day to end slightly below the flat line. The
benchmark NZX 50 index closed down 0.18% at 3,321.00 and the broader
NZX All Capital index fell 0.51% to finish at 3,355.06.
New
Zealand's trade deficit stood at NZ$781 million in July, well above
analysts' expectation of around NZ$525 million, compared to NZ$808
million in July last year. Exports rose 29.6% on year, while imports
increased 21.9% from a year earlier.
The South Korean market
closed lower Tuesday after it snapped a five-day losing streak on
Monday. Wall Street's plunge overnight and a steep fall of the won
against the greenback weighed on most blue chips. The benchmark Kospi
closed down 0.79% at 1,490.25. The key index tumbled to the 1,450-level
in the morning, but managed to trim its losses as bargain hunting set
in at lower levels.
On the economic front, the central bank's
minutes showed that policymakers at the Bank of Korea unanimously voted
to hold the key interest rate steady in July as concerns over spiraling
inflation outweighed woes over the slowing economy. In a rate-setting
meeting on July 10, the central bank froze the benchmark 7-day repo
rate at 5% for the 11th straight month.
Meanwhile, South Korea's
consumer sentiment fell to the lowest observed level since the country
was hit by an unprecedented financial crisis in late 1997, amid
concerns over rising inflation and an economic slowdown. An index
gauging consumer sentiment in the economy and living conditions for the
third quarter of the year stood at 37.7, compared to 47.8 recorded in
the previous quarter, according to the Samsung Economic Research
Institute.
In India the key benchmark indices shrugged off weak
global cues to post marginal gains after a weak start, boosted by
reports of a near normal monsoon. The BSE 30-share Sensex rose 0.30% to
14,493.20, as per provisional closing. At the day?s high of 14,495.27
hit in late trade, the Sensex gained 44.92 points. Sensex hit a low of
14,286.38 in early trade. At the day?s low, the Sensex lost 163.97
points. The S&P CNX Nifty gained 7.90 points or 0.18% to 4,343.25
as per provisional closing
In Singapore the Straits Times index
decreased by 0.96% to 2,707.19. On the economic front, July factory
output showed an unexpected fall of 1.8% after seasonal adjustments
from June, as the economic slowdown in the United States and Europe
continues to hit Asian exporters. The monthly manufacturing data
follows a rise of 4.4 percent in June, revised from a rise of 4.5
percent, and a 6.2 percent decline in May.
From a year earlier,
factory output in July slumped 21.9 percent, compared with a market
forecast for a 17.1 percent drop. Manufacturing accounted for about a
quarter of Singapore's S$229 billion ($162 billion) trade-dependent
economy in 2007.
Elsewhere, Malaysia the KLSE Composite Index
dropped down by 0.76% to 1,070.50. In Indonesia, the Jakarta Composite
increased 0.92% to 2,107.55. The Taiwan's weighted index fell 0.94% to
6964.60.
In the other part of the world, European shares moved
lower again, led by oil producers and mineral extractors as many
commodity-sector companies restarted trading after a long holiday
weekend in the U.K.
In the opening trade, the U.K. FTSE 100
index dropped 1.4% to 5,426.60, while the German DAX 30 fell a more
modest 0.4% to 6,272.80 and the French CAC-40 also lost 0.4% to
4,336.94. At 10.37 GMT all this national indices continued to slump
further. U.K. FTSE 100 index fell further at 1.8% to 5,405. The German
DAX 30 index fell 0.18% to 6,285.89, while the French CAC-40 index
decreased by 0.71% to 4,324.86.
On the economic front, German
business confidence plummeted in August, hitting its lowest level in
three years, raising fears that Germany is already in recession. The
Ifo business climate index fell to 94.8 from 97.5 in July. The drop
came despite lower oil prices and a weaker euro. The index measuring
firms' business expectations hit its lowest level since February 1993,
when Germany was mired in recession, after falling to 87.0 from a
revised 89.9. The indicator for the current trading situation fell to
103.2 from a revised 105.6 in July.
Prior to this the German
economy confirmed its slowdown as growth rate shrank in the first
quarter. Gross domestic product fell 0.5% on the quarter between April
and June when adjusted for seasonal and calendar effects after
increasing 1.3% in the first quarter. The annual growth rate rose a
seasonally adjusted 1.7%. That compares with unadjusted growth of 3.1%
and 1.4% when adjusted for working days.
In U.K., the net
mortgage lending and approvals for home loans were stable at a low
level in July as the credit crunch and economic uncertainty continued
to weigh on the housing market. According to the data released by the
British Bankers' Association showed the number of mortgages approved
rose to 22,448 in July from 22,369 in June, but remain 65% weaker on
the year. The average of the previous six months was 34,104.
Net
mortgage lending was steady at GBP4.3 billion in July, but was 22.7%
weaker on the year. Gross mortgage lending eased to GBP14.6 billion
from GBP15.0 billion in June, leaving it 25.2% weaker than in July last
year.
In Spain the statistical organization has revised down
its 2007 gross domestic product growth to 3.7% from a previously
reported 3.8%.
Looking ahead the day is scheduled to release
Nationwide data on housing prices for U.K, which will be followed by
S&P Shiller home price index for U.S. In the evening we have
consumer confidence index for the month of August, which will be
accompanied by the new home sales stats. In the late evening we have
Richmond Fed manufacturing index for the month of August, which will be
followed by ABC Washington Post weekly consumer confidence index.
However the focus of the day will be on FOMC minutes giving us the
insights about the thinking process of the policymakers.
Visit our site at – http://investorline.co.in/
Newsromm - 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/
Latest News - http://investorline.co.in/blogger/?q=aggregator/categories/1
News Resources - http://investorline.co.in/blogger/?q=aggregator/sources
Newscatcher- http://catcher.investorline.co.in/
Newsgroups- http://groups.google.com/group/india-investor
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