11 Jul 2008 | 15:39
Asian Markets Ends Week On A Mixed Note
The
stock markets across the Asian region traded mixed after Wall Street
finished yesterday's volatile session with moderate gains as a
multibillion-dollar deal between Dow Chemical and rival Rohm and Haas
helped offset concerns about the financial sector and oil prices.
Asian
financial stocks were weak amid lingering U.S. credit market worries,
but energy stocks surged after crude oil futures soared $5.6 to settle
at $141.65 a barrel on the NYMEX overnight amid turmoil in the Middle
East.
Oil prices had shot higher on yesterday, rising by almost
$6 a barrel, on the back of simmering geopolitical tensions over key
producer Iran and lingering worries over stretched global crude
supplies. It continued to rise further amid tensions over crude
producer Iran and at the end of an extremely volatile week of trading.
Brent
North Sea oil for August delivery jumped by $1.64 to $143.67 a barrel
in electronic deals. New York's main oil contract, light sweet crude
for August delivery, won $1.80 to $143.45.
In currency trading,
the U.S. dollar was trading slightly weaker in the upper 106-yen levels
compared to lower 107-yen levels late Thursday. The dollar opened
weaker at 999.0 won compared to previous day's close of 1,002.9 won.
The Australian dollar opened firmer at US$0.9618-0.9622 and the kiwi
was higher at US$0.7583 in early local trade.
On Wall Street,
the Dow Jones Industrial Average rose 81.58 points to 11,229.02 after a
volatile trading session. The S&P 500 index climbed 8.71 points to
1,253.39, while the Nasdaq Composite added 22.96 points to 2,257.85
Coming
back to Asian equities the Japanese stock market ended lower, led by
financial stocks amid lingering credit worries. The benchmark Nikkei
225 Index was 0.2% down at 13,039.69, while the broader Topix Index
lost 0.4% to 1,285.91.
On the economic front, Japan's Ministry
of Economy, Trade and Industry said in a latest report that industrial
production grew 2.8% month-on-month in May, revised down from the 2.9%
initially expected.
The monthly increase in shipments was
lowered to 2% from 2.1% earlier. Meanwhile, the growth in inventories
was left unchanged at 0.5%.
On a year-on-year basis, industrial output rose 1.1%, downwardly revised from the initially reported 1.2%.
The
capacity utilization was revised up to 2.2% from the preliminary number
of 2.1%. The production capacity index was down 0.1% month-on-month,
while it rose 2.2% over the year-ago period.
Japan's consumer
confidence continued to decrease for the third month in a row in June.
A report from the Cabinet Office showed Friday that the household
consumer confidence indicator decreased to 32.6 in June from 33.9 in
May.
In China the Shanghai Composite dropped 0.7% to 2,856.63,
adding to yesterday's losses. On the economic front, there wasn?t any
good news either as China's trade surplus decreased 20.7% year-on-year
to US$21.35 billion in June. In May, China recorded a surplus of
US$20.2 billion.
Exports increased at a slower pace of 17.6%
year-on-year compared to 28.1% increase in May and 22.4% rise
projected. On the other hand, imports climbed 31% over the previous
year, following a 40% increase in May. The consensus forecast for
imports was 37.1% rise.
During the first half of the year, trade surplus fell nearly 12% to US$99.04 billion.
In
Hong Kong, the Hang Seng Index rose 1.2% to 22,088.18, after dropping
as low as 21,761.04 earlier in the day. The Hang Seng China Enterprises
Index gained 2.3% to 12,324.27.
The Australian market closed
higher, led by the resources sector. After a firm start the market
pared some of the gains by noon, but recovered in the late afternoon
session as banks trimmed losses on a report that the American
government was considering a takeover of top U.S. mortgage lenders
Fannie Mae and Freddie Mac.
The benchmark S&P/ASX 200 index
closed up by 0.9% at 4,979.9, reversing yesterday's 1.5% decline. The
broader All Ordinaries index gained 0.9% to finish at 5,067.80.
The
Australian dollar closed higher against the U.S. dollar. The Aussie
finished the session at US$0.9605-0.9609, compared to Thursday's close
of US$0.9594-0.9597.
The South Korean market was trading flat
after opening slightly higher, as investors turned cautious following a
surge in crude oil prices. The benchmark KOSPI index was down 1.96
points or 0.13% at 1,535.47, reversing Thursday's 1.2% gains.
From
the economy point of view, the consumer confidence tumbled to its
lowest level since December 2004 in June as worries about soaring oil
prices and economic slowdown hit consumers' sentiment. According to the
National Statistical Office said in a report that the index measuring
consumer confidence dropped to 86.8 in June from 92.2 in May. The
current rate is the lowest since December 2004, when the index recorded
a reading of 86.5. A year ago, the index stood at 101.5.
In
Malaysia, the Kula Lumpur stock market was up by 1.3% to 1,150.39. On
the economic front, Malaysia's industrial production increased 2.5%
year-on-year in May, the Department of Statistics said Friday. This
followed a 4.8% increase in April. On a monthly basis, production
increased 1.7%. During the first five months of the year, output
increased 5%.
Net inflows of foreign direct investments into
Philippines increased by more than fourfold to US$269 million in April.
The Bangko Sentral ng Pilipinas, central bank of Philippines noted that
all FDI components posted robust increases over their previous year
level. FDI net inflows in equity capital in April more than doubled
from last year's level to reach US$106 million, mainly due to higher
gross equity capital placements aggregating US$127 million.
Reinvestment earnings as well as other capital also recorded
considerable gains. The positive development in April took the
four-month FDI to US$820 million. However, the net inflows was lower
than the prior year level due to the sluggish economic growth in major
investor countries and the existing cautious investor sentiment. The
benchmark index for Philippines was down by 0.5% at 2.437.99.
The
New Zealand market closed slightly higher, reversing yesterday?s sharp
decline. After opening higher, tracking a positive lead from Wall
Street, the market slid to a fresh three-year low by noon following the
release of house prices data. But recovered some ground going into
close of the trading session as other regional markets pared their
early losses and moved into positive territory. However, higher oil
prices raised concerns about consumer spending and corporate profits
and capped the gains. The benchmark NZX 50 index closed up 0.3% at
3,121.54.
Singapore's Straits Times Index gained 0.9% to
2,926.84 as real gross domestic product rose by an estimated 1.9%
year-on-year in the second quarter. However it was also down from the
6.9% annual expansion in the previous quarter. On a quarterly and
seasonally adjusted basis, real GDP was down 6.6% after recording a
strong increase of 15.6% in the previous quarter.
The Indian
market is currently drifting down after positive earnings and outlook
by Infosys generated some positive sentiment in early trading. After
opening up 105 points, the BSE Sensex pared its gains it came down
rapidly as it was down by 3% in its closing minutes hovering at
13,501.20. The plunge in stocks was attributed to negative figure from
Inflation data as well from the industrial production data.
Inflation
based on the wholesale price index rose 11.89% in 12 months to 28 June
2008, above the previous week's annual rise of 11.63%, government data
released today, 11 July 2008, afternoon showed. It was the reading
since annual numbers in the current series became available in April
1995. Inflation for the year through 3 May 2008 was revised upwards to
8.73% from 7.83%.
Adding more concern the index for industrial
production plunged to 3.8% versus 10.6% in May 2007. April Industrial
Growth revised to 6.2% versus 7% from a year earlier.
European shares rose in early trading, with commodity firms leading the advance in a day of deal making in the financial sector.
In
the opening trade, the German DAX 30 index edged down 0.1% to 6,300.93,
the French CAC-40 index rose 0.5% to 4,250.82 and U.K. FTSE 100 index
climbed 0.8% to 5,447.30.
The day ahead is scheduled to release
unemployment data for Canada followed by the import price index for US.
It will be accompanied by housing price index for Canada as well as the
trade balance data for US. In the late evening we have Reuters/Michigan
consumer confidence index for US, which will be followed by the monthly
budget statement.
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Asian Markets Ends Week On A Mixed Note
The
stock markets across the Asian region traded mixed after Wall Street
finished yesterday's volatile session with moderate gains as a
multibillion-dollar deal between Dow Chemical and rival Rohm and Haas
helped offset concerns about the financial sector and oil prices.
Asian
financial stocks were weak amid lingering U.S. credit market worries,
but energy stocks surged after crude oil futures soared $5.6 to settle
at $141.65 a barrel on the NYMEX overnight amid turmoil in the Middle
East.
Oil prices had shot higher on yesterday, rising by almost
$6 a barrel, on the back of simmering geopolitical tensions over key
producer Iran and lingering worries over stretched global crude
supplies. It continued to rise further amid tensions over crude
producer Iran and at the end of an extremely volatile week of trading.
Brent
North Sea oil for August delivery jumped by $1.64 to $143.67 a barrel
in electronic deals. New York's main oil contract, light sweet crude
for August delivery, won $1.80 to $143.45.
In currency trading,
the U.S. dollar was trading slightly weaker in the upper 106-yen levels
compared to lower 107-yen levels late Thursday. The dollar opened
weaker at 999.0 won compared to previous day's close of 1,002.9 won.
The Australian dollar opened firmer at US$0.9618-0.9622 and the kiwi
was higher at US$0.7583 in early local trade.
On Wall Street,
the Dow Jones Industrial Average rose 81.58 points to 11,229.02 after a
volatile trading session. The S&P 500 index climbed 8.71 points to
1,253.39, while the Nasdaq Composite added 22.96 points to 2,257.85
Coming
back to Asian equities the Japanese stock market ended lower, led by
financial stocks amid lingering credit worries. The benchmark Nikkei
225 Index was 0.2% down at 13,039.69, while the broader Topix Index
lost 0.4% to 1,285.91.
On the economic front, Japan's Ministry
of Economy, Trade and Industry said in a latest report that industrial
production grew 2.8% month-on-month in May, revised down from the 2.9%
initially expected.
The monthly increase in shipments was
lowered to 2% from 2.1% earlier. Meanwhile, the growth in inventories
was left unchanged at 0.5%.
On a year-on-year basis, industrial output rose 1.1%, downwardly revised from the initially reported 1.2%.
The
capacity utilization was revised up to 2.2% from the preliminary number
of 2.1%. The production capacity index was down 0.1% month-on-month,
while it rose 2.2% over the year-ago period.
Japan's consumer
confidence continued to decrease for the third month in a row in June.
A report from the Cabinet Office showed Friday that the household
consumer confidence indicator decreased to 32.6 in June from 33.9 in
May.
In China the Shanghai Composite dropped 0.7% to 2,856.63,
adding to yesterday's losses. On the economic front, there wasn?t any
good news either as China's trade surplus decreased 20.7% year-on-year
to US$21.35 billion in June. In May, China recorded a surplus of
US$20.2 billion.
Exports increased at a slower pace of 17.6%
year-on-year compared to 28.1% increase in May and 22.4% rise
projected. On the other hand, imports climbed 31% over the previous
year, following a 40% increase in May. The consensus forecast for
imports was 37.1% rise.
During the first half of the year, trade surplus fell nearly 12% to US$99.04 billion.
In
Hong Kong, the Hang Seng Index rose 1.2% to 22,088.18, after dropping
as low as 21,761.04 earlier in the day. The Hang Seng China Enterprises
Index gained 2.3% to 12,324.27.
The Australian market closed
higher, led by the resources sector. After a firm start the market
pared some of the gains by noon, but recovered in the late afternoon
session as banks trimmed losses on a report that the American
government was considering a takeover of top U.S. mortgage lenders
Fannie Mae and Freddie Mac.
The benchmark S&P/ASX 200 index
closed up by 0.9% at 4,979.9, reversing yesterday's 1.5% decline. The
broader All Ordinaries index gained 0.9% to finish at 5,067.80.
The
Australian dollar closed higher against the U.S. dollar. The Aussie
finished the session at US$0.9605-0.9609, compared to Thursday's close
of US$0.9594-0.9597.
The South Korean market was trading flat
after opening slightly higher, as investors turned cautious following a
surge in crude oil prices. The benchmark KOSPI index was down 1.96
points or 0.13% at 1,535.47, reversing Thursday's 1.2% gains.
From
the economy point of view, the consumer confidence tumbled to its
lowest level since December 2004 in June as worries about soaring oil
prices and economic slowdown hit consumers' sentiment. According to the
National Statistical Office said in a report that the index measuring
consumer confidence dropped to 86.8 in June from 92.2 in May. The
current rate is the lowest since December 2004, when the index recorded
a reading of 86.5. A year ago, the index stood at 101.5.
In
Malaysia, the Kula Lumpur stock market was up by 1.3% to 1,150.39. On
the economic front, Malaysia's industrial production increased 2.5%
year-on-year in May, the Department of Statistics said Friday. This
followed a 4.8% increase in April. On a monthly basis, production
increased 1.7%. During the first five months of the year, output
increased 5%.
Net inflows of foreign direct investments into
Philippines increased by more than fourfold to US$269 million in April.
The Bangko Sentral ng Pilipinas, central bank of Philippines noted that
all FDI components posted robust increases over their previous year
level. FDI net inflows in equity capital in April more than doubled
from last year's level to reach US$106 million, mainly due to higher
gross equity capital placements aggregating US$127 million.
Reinvestment earnings as well as other capital also recorded
considerable gains. The positive development in April took the
four-month FDI to US$820 million. However, the net inflows was lower
than the prior year level due to the sluggish economic growth in major
investor countries and the existing cautious investor sentiment. The
benchmark index for Philippines was down by 0.5% at 2.437.99.
The
New Zealand market closed slightly higher, reversing yesterday?s sharp
decline. After opening higher, tracking a positive lead from Wall
Street, the market slid to a fresh three-year low by noon following the
release of house prices data. But recovered some ground going into
close of the trading session as other regional markets pared their
early losses and moved into positive territory. However, higher oil
prices raised concerns about consumer spending and corporate profits
and capped the gains. The benchmark NZX 50 index closed up 0.3% at
3,121.54.
Singapore's Straits Times Index gained 0.9% to
2,926.84 as real gross domestic product rose by an estimated 1.9%
year-on-year in the second quarter. However it was also down from the
6.9% annual expansion in the previous quarter. On a quarterly and
seasonally adjusted basis, real GDP was down 6.6% after recording a
strong increase of 15.6% in the previous quarter.
The Indian
market is currently drifting down after positive earnings and outlook
by Infosys generated some positive sentiment in early trading. After
opening up 105 points, the BSE Sensex pared its gains it came down
rapidly as it was down by 3% in its closing minutes hovering at
13,501.20. The plunge in stocks was attributed to negative figure from
Inflation data as well from the industrial production data.
Inflation
based on the wholesale price index rose 11.89% in 12 months to 28 June
2008, above the previous week's annual rise of 11.63%, government data
released today, 11 July 2008, afternoon showed. It was the reading
since annual numbers in the current series became available in April
1995. Inflation for the year through 3 May 2008 was revised upwards to
8.73% from 7.83%.
Adding more concern the index for industrial
production plunged to 3.8% versus 10.6% in May 2007. April Industrial
Growth revised to 6.2% versus 7% from a year earlier.
European shares rose in early trading, with commodity firms leading the advance in a day of deal making in the financial sector.
In
the opening trade, the German DAX 30 index edged down 0.1% to 6,300.93,
the French CAC-40 index rose 0.5% to 4,250.82 and U.K. FTSE 100 index
climbed 0.8% to 5,447.30.
The day ahead is scheduled to release
unemployment data for Canada followed by the import price index for US.
It will be accompanied by housing price index for Canada as well as the
trade balance data for US. In the late evening we have Reuters/Michigan
consumer confidence index for US, which will be followed by the monthly
budget statement.
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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