17 Jun 2008 | 15:17
Asian Markets Follows Wall Street with Mixed Closing
Most
Asian markets were unsettled and moved within a range around
break-even, an advance in financials and shipping firms countered a
decline in exporters. The region's volatility came after a mixed finish
for stocks on Wall Street, where the Dow Jones Industrial Average gave
up 38.27 points to 12,269.08, the S&P 500 flat at 1,360.14 and the
Nasdaq Composite rose 20.28 points to 2,474.78.
In Asian Markets
the Nikkei 225 Average was marginally down by 0.1% closing at
14,348.37, after moving between 14,299.67 and 14,387. The broader Topix
index squared off the early losses, closing the day at par, with
1,408.23 on the screen. On the economic arena, Japan's tertiary index,
which measures spending in the services sector, rose 1.8 % in April
from March due to higher spending on information/communication service
and wholesale/retail sector.
According to the Ministry of
Economy, Trade and Industry the tertiary index increased to 110.4 in
April from 108.5 in the previous month. The index was unchanged in
March from February. Spending in the information/communication service
sector rose 9.6 % in April while spending in the wholesale/retail
sector increased 1.5 %. The services sector employs more than half of
Japan's workforce. Spending on services such as retailing, dining and
travel is closely tied to changes in income and consumer confidence.
The tertiary index rose 0.6 % in April from a year earlier after
falling 0.5 % in March.
In another release Japanese machine tool
orders showed a rise of 1.4% on year in May to a revised Y132.82
billion. The result was slightly below the preliminary reading of
Y132.85 billion released earlier this month. In May, orders from
overseas rose 10.4% on year to Y77.74 billion, while domestic orders
slipped 9.0% to Y55.09 billion.?
In Hong Kong, airline shares
fell on worries about the impact of high fuel costs, while financials
climbed after a string of losses recently. The Hang Seng Index rose
0.1% to 23,057.99, coming off the day's low at 22,930.44, while the
Hang Seng China Enterprises Index rose 0.1% to 12,568.03.
China's
Shanghai Composite tanked 2.8% to 2,794.75 while the Shenzhen stock
market was down 4.5% at 801.97. On the data release side the urban
fixed-asset investment rose 25.6% year-on-year in the first five months
to 4.026 trillion Yuan. According to the National Bureau of Statistics
the fixed-asset investment in the property sector was 951.9 billion
Yuan in the first five months, up 31.9 % year-on-year.
Australia's
S&P/ASX 200 index gained 1% to 5,422.70 in the volatile session,
after it dropped as low as 5,310.10 earlier in the day. In economic
news, Reserve Bank of Australia justified the current monetary stance
as an appropriate to deal with the inflationary pressures. According to
the minutes of the meeting held on 3 June, the members noted that the
bulk of indicators becoming available over the preceding month
continued to suggest moderation in domestic demand growth. The
indicators included flat retail sales, declining household and
commercial loan approvals, lower growth in housing and business credit,
and subdued business and consumer confidence.?
In other regional
markets, the South Korea's Kospi lost 0.6% to 1,750.71, after opening
higher while New Zealand's NZX 50 index fell 0.1% to 3,404.57.
Singapore's Straits Times index slipped 0.4% to 3,025.05 and Taiwan's
weighted index gained 0.4% to 8,201.79.?
In the afternoon
trading India's Sensitive Index, or Sensex, was up by 1.5% to 15,626.46
and the broader S&P/CNX Nifty fell 1.5% to 4,638.60.
In
energy trading, July crude-oil futures dipped as much as 10 cents to
$134.51 a barrel in electronic trading. The benchmark contract closed
at $134.61 a barrel on Monday after earlier spiking to an all-time high
of $139.89 during floor trading at the New York Mercantile Exchange.?
In
Asian currency trading, the U.S. dollar bought 107.88 yen, compared
with 108.38 yen late Monday. The greenback changed hands for 108.06 yen
late Monday in New York.
The shares in European markets moved
higher with airlines and automakers advanced supported by decline crude
oil futures from its all time high.
Of national indexes, the
U.K. FTSE 100 index rose 0.6% to 5,828.80, the German DAX 30 index
climbed 0.6% to 6,771.65 and the French CAC-40 index advanced 0.6% to
4,687.41.
On the economic arena, the started with a bang as U.K.
consumer price inflation saw a 0.6% monthly rise in May, pushing the
annual rate to 3.3%, requiring the Bank of England to explain the
reasons for missing the government's 2% inflation target.?
Germany
wasn?t different as the sentiment among German financial analysts and
institutional investors plummeted in June, hitting its lowest level
since December 1992,.?
The Center for European Economic Research
(ZEW) economic expectations index fell to -52.4 points from -41.4
points in May - below its historical average of 29.2 points. That
leaves the closely watched index even below levels seen at the height
of financial turmoil in January 2008.
Meanwhile in Italy, the
trade deficit narrowed in April as exports outpaced imports. The trade
deficit totaled EUR1.0 billion April, compared with a deficit of
EUR1.29 billion in the corresponding period last year. In April,
exports rose 18.8% on the year and 2.7% on the month. Imports rose 17%
on the year and 3.0% on the month.?
Looking ahead the day is
ready to release US Producer Price index data for May that will be
accompanied by housing starts and building permits data. The whole
series will be followed by industrial production and capacity
utilization figures. In the late evening we have a weekly consumer
confidence to be released by ABC/Washington post.
Asian Markets Follows Wall Street with Mixed Closing
Most
Asian markets were unsettled and moved within a range around
break-even, an advance in financials and shipping firms countered a
decline in exporters. The region's volatility came after a mixed finish
for stocks on Wall Street, where the Dow Jones Industrial Average gave
up 38.27 points to 12,269.08, the S&P 500 flat at 1,360.14 and the
Nasdaq Composite rose 20.28 points to 2,474.78.
In Asian Markets
the Nikkei 225 Average was marginally down by 0.1% closing at
14,348.37, after moving between 14,299.67 and 14,387. The broader Topix
index squared off the early losses, closing the day at par, with
1,408.23 on the screen. On the economic arena, Japan's tertiary index,
which measures spending in the services sector, rose 1.8 % in April
from March due to higher spending on information/communication service
and wholesale/retail sector.
According to the Ministry of
Economy, Trade and Industry the tertiary index increased to 110.4 in
April from 108.5 in the previous month. The index was unchanged in
March from February. Spending in the information/communication service
sector rose 9.6 % in April while spending in the wholesale/retail
sector increased 1.5 %. The services sector employs more than half of
Japan's workforce. Spending on services such as retailing, dining and
travel is closely tied to changes in income and consumer confidence.
The tertiary index rose 0.6 % in April from a year earlier after
falling 0.5 % in March.
In another release Japanese machine tool
orders showed a rise of 1.4% on year in May to a revised Y132.82
billion. The result was slightly below the preliminary reading of
Y132.85 billion released earlier this month. In May, orders from
overseas rose 10.4% on year to Y77.74 billion, while domestic orders
slipped 9.0% to Y55.09 billion.?
In Hong Kong, airline shares
fell on worries about the impact of high fuel costs, while financials
climbed after a string of losses recently. The Hang Seng Index rose
0.1% to 23,057.99, coming off the day's low at 22,930.44, while the
Hang Seng China Enterprises Index rose 0.1% to 12,568.03.
China's
Shanghai Composite tanked 2.8% to 2,794.75 while the Shenzhen stock
market was down 4.5% at 801.97. On the data release side the urban
fixed-asset investment rose 25.6% year-on-year in the first five months
to 4.026 trillion Yuan. According to the National Bureau of Statistics
the fixed-asset investment in the property sector was 951.9 billion
Yuan in the first five months, up 31.9 % year-on-year.
Australia's
S&P/ASX 200 index gained 1% to 5,422.70 in the volatile session,
after it dropped as low as 5,310.10 earlier in the day. In economic
news, Reserve Bank of Australia justified the current monetary stance
as an appropriate to deal with the inflationary pressures. According to
the minutes of the meeting held on 3 June, the members noted that the
bulk of indicators becoming available over the preceding month
continued to suggest moderation in domestic demand growth. The
indicators included flat retail sales, declining household and
commercial loan approvals, lower growth in housing and business credit,
and subdued business and consumer confidence.?
In other regional
markets, the South Korea's Kospi lost 0.6% to 1,750.71, after opening
higher while New Zealand's NZX 50 index fell 0.1% to 3,404.57.
Singapore's Straits Times index slipped 0.4% to 3,025.05 and Taiwan's
weighted index gained 0.4% to 8,201.79.?
In the afternoon
trading India's Sensitive Index, or Sensex, was up by 1.5% to 15,626.46
and the broader S&P/CNX Nifty fell 1.5% to 4,638.60.
In
energy trading, July crude-oil futures dipped as much as 10 cents to
$134.51 a barrel in electronic trading. The benchmark contract closed
at $134.61 a barrel on Monday after earlier spiking to an all-time high
of $139.89 during floor trading at the New York Mercantile Exchange.?
In
Asian currency trading, the U.S. dollar bought 107.88 yen, compared
with 108.38 yen late Monday. The greenback changed hands for 108.06 yen
late Monday in New York.
The shares in European markets moved
higher with airlines and automakers advanced supported by decline crude
oil futures from its all time high.
Of national indexes, the
U.K. FTSE 100 index rose 0.6% to 5,828.80, the German DAX 30 index
climbed 0.6% to 6,771.65 and the French CAC-40 index advanced 0.6% to
4,687.41.
On the economic arena, the started with a bang as U.K.
consumer price inflation saw a 0.6% monthly rise in May, pushing the
annual rate to 3.3%, requiring the Bank of England to explain the
reasons for missing the government's 2% inflation target.?
Germany
wasn?t different as the sentiment among German financial analysts and
institutional investors plummeted in June, hitting its lowest level
since December 1992,.?
The Center for European Economic Research
(ZEW) economic expectations index fell to -52.4 points from -41.4
points in May - below its historical average of 29.2 points. That
leaves the closely watched index even below levels seen at the height
of financial turmoil in January 2008.
Meanwhile in Italy, the
trade deficit narrowed in April as exports outpaced imports. The trade
deficit totaled EUR1.0 billion April, compared with a deficit of
EUR1.29 billion in the corresponding period last year. In April,
exports rose 18.8% on the year and 2.7% on the month. Imports rose 17%
on the year and 3.0% on the month.?
Looking ahead the day is
ready to release US Producer Price index data for May that will be
accompanied by housing starts and building permits data. The whole
series will be followed by industrial production and capacity
utilization figures. In the late evening we have a weekly consumer
confidence to be released by ABC/Washington post.
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