04 Aug 2008 | 16:20
Asian Markets Trade Lower As Nikkei Ends Below 13,000 Mark
The
stock markets across the Asian region were trading lower on the first
day of the week, as the concerns about the health of the U.S. economy
remain elevated. The Wall Street fell Friday after a report showed that
U.S. employers cut jobs for the seventh straight month in July and a
rise in crude oil prices. On Wall Street the Dow industrials fell 0.45%
to 11,326.32, the broader S&P 500 index lost 0.56% to 1,260.31 and
the Nasdaq dropped 0.63% to 2,310.96 on Friday after a government
report showed that the U.S. employers cut jobs for the seventh straight
month in July.
Oil prices continued to rise today on fresh
worries about Iran's disputed nuclear program and a new storm brewing
in the Gulf of Mexico. In the Asian session, oil is currently adding 49
cents to $125.59 after the contract for September delivery settled at
$125.10 a barrel, up $1.02 on the New York Mercantile Exchange on
Friday.
In the currency market, the dollar strengthened to the
upper 107-yen levels in late Tokyo deals from mid 107-yen levels in
early trade and late Friday. The Australian dollar closed weaker after
hitting a three-month low ahead of the monetary policy decision from
the central bank on Tuesday. The local unit finished the session at
US$0.9313-0.9316, down from Friday's close of US$0.9364-0.9366.
In
case of South Korean won the U.S. dollar closed at 1,017.4 won, up from
Friday's close of 1,014.6 won. The New Zealand dollar posted modest
gains against the U.S. dollar. The kiwi finished the session at
US$0.7286 after falling to a new 10-month low around US$0.7245 early on
Saturday. The kiwi had closed at US$0.7274 on Friday.
Coming
back in equity markets which mostly registered declined, with Japanese
stocks extending losses after automobile giants Toyota Motor Corp. and
Honda Motor Co. reported lower U.S. sales in July. The Japanese market
closed sharply lower after losing 2.1% on Friday. The key Nikkei index
fell below the 13,000 mark for the first time in two weeks, as dismal
earnings outlook for Japanese companies and uncertainty about the U.S.
economy weighed on investor sentiment. The benchmark Nikkei 225 index
closed down 1.23% at 12,933.18. The broader Topix index lost 1.94% to
finish at 1,248.25.
On the economic front, the Bank of Japan
said that Japan's monetary base fell 0.7% to 87.85 trillion yen in July
from a year earlier, marking the first fall in two months. Later in the
day, Japan Machine Tool Builders Association releases preliminary data
on machine tool orders for the month of July.
The Chinese market
closed sharply lower, reversing Friday's gains. The market started off
weak after Wall Street finished lower Friday and extended losses after
China South Locomotive & Rolling Stock Corp. said that it might
raise US$1.5 billion from dual Shanghai and Hong Kong initial public
offerings. The benchmark Shanghai Composite index closed down by 2.14%
at 2,741.74.
In Hong Kong, the Hang Seng Index continued its
upward movement as it registered a fall of 1.5% at 22,514.92, while the
Hang Seng China Enterprises Index declined by 2% to 12,296.59.
The
Australian stock market closed lower, extending Friday's losses. Wall
Street's decline on Friday, following a weak jobs report and a rise in
crude oil prices, dampened investor sentiment. The market traded
briefly in positive territory in early trade, after a weak opening, but
moved back into negative terrain soon as Lend Lease Corp announced a
profit downgrade. While miners lost ground on lower metals prices,
energy stocks gained on rising oil prices.
The benchmark
S&P/ASX 200 index closed down 0.3% at 4,887.7, after losing as much
as 1.5% on Friday, and the broader All Ordinaries index lost 20.4
points or 0.4% to finish at 4,957.6.
On the economic front,
Australian house prices fell for the first time in almost three years
in the second quarter. However, the drop was smaller than the fall that
analysts had expected. Weighted average prices for established houses
in Australia's eight largest cities dipped 0.3% in the quarter,
compared to a 0.4% rise the previous quarter.
Meanwhile, a
survey by Australia and New Zealand Banking Group showed that job
advertisements around the country has fallen for the third successive
month. Newspaper and Internet job ads fell by a seasonally adjusted
0.3% in July to 261,936 a week, but were up 5.5% on year. Jobs
advertised in newspapers dived by 5.1% to 15,739 last month, while
Internet ads were flat at 246,197.
The South Korean market
closed sharply lower on Monday, led by shipbuilders. The market started
off weak amid worries about the U.S. economy and rising oil prices and
extended losses after shipbuilders reported cancellation of orders. The
benchmark Korea Composite Stock Price Index or KOSPI closed down 1.95%
at 1,543.05.
On the economic front, the Bank of Korea said that
South Korea's foreign exchange reserves declined for the fourth
consecutive month in July. Foreign exchange reserves fell US$10.58
billion to US$247.5 billion by the end of July. In June, reserves
totaled US$258.1 billion.
The New Zealand stock market closed
higher on Monday, reversing a portion of the losses that it posted on
Friday. The market started off lower, tracking a weak lead from Wall
Street, but moved into positive territory by mid morning. The benchmark
NZX 50 Index closed up 0.49% at 3,319.22 and the broader NZX All
Capital Index rose 0.47% at 3,358.44.
On the economic front,
Statistics New Zealand said that the number of New Zealanders in
full-time employment and the amount they earned both increased for the
year ending in June 2008. Employment, as measured by full-time
equivalent workers, increased 2.5% for the 12 months through the June
2008 quarter, but slowed from the 3.5% annualized rate at the end of
the March 2008 quarter. Meanwhile, earnings rose by the highest amount
on record. The Labor Cost Index from Statistics NZ showed an increase
of 3.5% in overall salary and wage rates for the year through June.
The
Indian market were trading firm after opening on a positive note today
morning. The market pared gains within a few minutes of trading, but it
is currently trading firm amid alternate bouts of buying and selling.
After
opening higher at 14,595, the Sensex pared gains within a few minutes.
Although the benchmark recouped some of its losses, finally closing at
14,577.87, down 0.54% over the previous close. Meanwhile, the S&P
CNX Nifty is trading at 4,395.35, down 0.41%.
Elsewhere in the
region, Singapore's Straits Times index declined 1.03% while Taiwan's
weighted index declined 0.3%. In Thailand, the Thai Set 50 index
decreased by 0.6% to 472.42.
In the other part of the world the
European shares declined, weighed down by losses from the banking
sector, although sharp gains from oil majors such as BP and Eni helped
place a floor under losses. Of national indexes, the U.K. FTSE 100
index climbed 0.2% to 5,364.70; the French CAC-40 index dipped 0.3% to
4,302.68 while the German DAX 30 index lost 0.7% to 6,352.40
On
the economic front, the British construction activity fell at a record
pace in July, a further sign that the sector is weakening sharply in
the wake of the credit crunch. The Chartered Institute of Purchasing
and Supply's (CIPS) construction PMI fell to 36.7 last month -- the
weakest reading since the survey began in 1997 -- from an initially
reported 38.8 in June. The housing sub-index fell to a series low of
18.7 in July, the eighth consecutive fall.
However the focus of
the markets was on the industrial producer prices across the euro zone,
which rose at a monthly pace of 0.9% in June for an annual rise of 8%.
Excluding energy, producer prices rose 0.4% from May for a 4% annual
rise. The annual increase is the highest since June 1982 when it has
touched the level of 8.6%.
In another data release, Euro Zone?s
Sentix confidence index for August has declined six points from July,
posting lowest drop in the last five years.
According to the
Sentix Institute for economic research the investor confidence has
plummeted in August to a level of -15.3, from -9.3 in July. The index
assessing the actual situation has declined to 0 from 11.75 in July,
while the expectations index has posted a more moderate decline to
-29.50 from -28.25 in July.
After this slew of negative news the
stock market dived further into the negative territory. The U.K. FTSE
100 index was down by 0.1% to 5,352.30; the French CAC-40 index dipped
0.4% to 4,297.51 while the German DAX 30 index lost 0.8% to 6,348.79.
Looking
ahead the day is left with series of economic indicators from the U.S.
The focus of the market will be on the Core personal consumption
expenditure, which is gauged as the key inflationary measure by the
Fed. It will be followed by the data on the personal income and
spending. In the late evening we have data on Factory orders for the
month of June 2008.
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Asian Markets Trade Lower As Nikkei Ends Below 13,000 Mark
The
stock markets across the Asian region were trading lower on the first
day of the week, as the concerns about the health of the U.S. economy
remain elevated. The Wall Street fell Friday after a report showed that
U.S. employers cut jobs for the seventh straight month in July and a
rise in crude oil prices. On Wall Street the Dow industrials fell 0.45%
to 11,326.32, the broader S&P 500 index lost 0.56% to 1,260.31 and
the Nasdaq dropped 0.63% to 2,310.96 on Friday after a government
report showed that the U.S. employers cut jobs for the seventh straight
month in July.
Oil prices continued to rise today on fresh
worries about Iran's disputed nuclear program and a new storm brewing
in the Gulf of Mexico. In the Asian session, oil is currently adding 49
cents to $125.59 after the contract for September delivery settled at
$125.10 a barrel, up $1.02 on the New York Mercantile Exchange on
Friday.
In the currency market, the dollar strengthened to the
upper 107-yen levels in late Tokyo deals from mid 107-yen levels in
early trade and late Friday. The Australian dollar closed weaker after
hitting a three-month low ahead of the monetary policy decision from
the central bank on Tuesday. The local unit finished the session at
US$0.9313-0.9316, down from Friday's close of US$0.9364-0.9366.
In
case of South Korean won the U.S. dollar closed at 1,017.4 won, up from
Friday's close of 1,014.6 won. The New Zealand dollar posted modest
gains against the U.S. dollar. The kiwi finished the session at
US$0.7286 after falling to a new 10-month low around US$0.7245 early on
Saturday. The kiwi had closed at US$0.7274 on Friday.
Coming
back in equity markets which mostly registered declined, with Japanese
stocks extending losses after automobile giants Toyota Motor Corp. and
Honda Motor Co. reported lower U.S. sales in July. The Japanese market
closed sharply lower after losing 2.1% on Friday. The key Nikkei index
fell below the 13,000 mark for the first time in two weeks, as dismal
earnings outlook for Japanese companies and uncertainty about the U.S.
economy weighed on investor sentiment. The benchmark Nikkei 225 index
closed down 1.23% at 12,933.18. The broader Topix index lost 1.94% to
finish at 1,248.25.
On the economic front, the Bank of Japan
said that Japan's monetary base fell 0.7% to 87.85 trillion yen in July
from a year earlier, marking the first fall in two months. Later in the
day, Japan Machine Tool Builders Association releases preliminary data
on machine tool orders for the month of July.
The Chinese market
closed sharply lower, reversing Friday's gains. The market started off
weak after Wall Street finished lower Friday and extended losses after
China South Locomotive & Rolling Stock Corp. said that it might
raise US$1.5 billion from dual Shanghai and Hong Kong initial public
offerings. The benchmark Shanghai Composite index closed down by 2.14%
at 2,741.74.
In Hong Kong, the Hang Seng Index continued its
upward movement as it registered a fall of 1.5% at 22,514.92, while the
Hang Seng China Enterprises Index declined by 2% to 12,296.59.
The
Australian stock market closed lower, extending Friday's losses. Wall
Street's decline on Friday, following a weak jobs report and a rise in
crude oil prices, dampened investor sentiment. The market traded
briefly in positive territory in early trade, after a weak opening, but
moved back into negative terrain soon as Lend Lease Corp announced a
profit downgrade. While miners lost ground on lower metals prices,
energy stocks gained on rising oil prices.
The benchmark
S&P/ASX 200 index closed down 0.3% at 4,887.7, after losing as much
as 1.5% on Friday, and the broader All Ordinaries index lost 20.4
points or 0.4% to finish at 4,957.6.
On the economic front,
Australian house prices fell for the first time in almost three years
in the second quarter. However, the drop was smaller than the fall that
analysts had expected. Weighted average prices for established houses
in Australia's eight largest cities dipped 0.3% in the quarter,
compared to a 0.4% rise the previous quarter.
Meanwhile, a
survey by Australia and New Zealand Banking Group showed that job
advertisements around the country has fallen for the third successive
month. Newspaper and Internet job ads fell by a seasonally adjusted
0.3% in July to 261,936 a week, but were up 5.5% on year. Jobs
advertised in newspapers dived by 5.1% to 15,739 last month, while
Internet ads were flat at 246,197.
The South Korean market
closed sharply lower on Monday, led by shipbuilders. The market started
off weak amid worries about the U.S. economy and rising oil prices and
extended losses after shipbuilders reported cancellation of orders. The
benchmark Korea Composite Stock Price Index or KOSPI closed down 1.95%
at 1,543.05.
On the economic front, the Bank of Korea said that
South Korea's foreign exchange reserves declined for the fourth
consecutive month in July. Foreign exchange reserves fell US$10.58
billion to US$247.5 billion by the end of July. In June, reserves
totaled US$258.1 billion.
The New Zealand stock market closed
higher on Monday, reversing a portion of the losses that it posted on
Friday. The market started off lower, tracking a weak lead from Wall
Street, but moved into positive territory by mid morning. The benchmark
NZX 50 Index closed up 0.49% at 3,319.22 and the broader NZX All
Capital Index rose 0.47% at 3,358.44.
On the economic front,
Statistics New Zealand said that the number of New Zealanders in
full-time employment and the amount they earned both increased for the
year ending in June 2008. Employment, as measured by full-time
equivalent workers, increased 2.5% for the 12 months through the June
2008 quarter, but slowed from the 3.5% annualized rate at the end of
the March 2008 quarter. Meanwhile, earnings rose by the highest amount
on record. The Labor Cost Index from Statistics NZ showed an increase
of 3.5% in overall salary and wage rates for the year through June.
The
Indian market were trading firm after opening on a positive note today
morning. The market pared gains within a few minutes of trading, but it
is currently trading firm amid alternate bouts of buying and selling.
After
opening higher at 14,595, the Sensex pared gains within a few minutes.
Although the benchmark recouped some of its losses, finally closing at
14,577.87, down 0.54% over the previous close. Meanwhile, the S&P
CNX Nifty is trading at 4,395.35, down 0.41%.
Elsewhere in the
region, Singapore's Straits Times index declined 1.03% while Taiwan's
weighted index declined 0.3%. In Thailand, the Thai Set 50 index
decreased by 0.6% to 472.42.
In the other part of the world the
European shares declined, weighed down by losses from the banking
sector, although sharp gains from oil majors such as BP and Eni helped
place a floor under losses. Of national indexes, the U.K. FTSE 100
index climbed 0.2% to 5,364.70; the French CAC-40 index dipped 0.3% to
4,302.68 while the German DAX 30 index lost 0.7% to 6,352.40
On
the economic front, the British construction activity fell at a record
pace in July, a further sign that the sector is weakening sharply in
the wake of the credit crunch. The Chartered Institute of Purchasing
and Supply's (CIPS) construction PMI fell to 36.7 last month -- the
weakest reading since the survey began in 1997 -- from an initially
reported 38.8 in June. The housing sub-index fell to a series low of
18.7 in July, the eighth consecutive fall.
However the focus of
the markets was on the industrial producer prices across the euro zone,
which rose at a monthly pace of 0.9% in June for an annual rise of 8%.
Excluding energy, producer prices rose 0.4% from May for a 4% annual
rise. The annual increase is the highest since June 1982 when it has
touched the level of 8.6%.
In another data release, Euro Zone?s
Sentix confidence index for August has declined six points from July,
posting lowest drop in the last five years.
According to the
Sentix Institute for economic research the investor confidence has
plummeted in August to a level of -15.3, from -9.3 in July. The index
assessing the actual situation has declined to 0 from 11.75 in July,
while the expectations index has posted a more moderate decline to
-29.50 from -28.25 in July.
After this slew of negative news the
stock market dived further into the negative territory. The U.K. FTSE
100 index was down by 0.1% to 5,352.30; the French CAC-40 index dipped
0.4% to 4,297.51 while the German DAX 30 index lost 0.8% to 6,348.79.
Looking
ahead the day is left with series of economic indicators from the U.S.
The focus of the market will be on the Core personal consumption
expenditure, which is gauged as the key inflationary measure by the
Fed. It will be followed by the data on the personal income and
spending. In the late evening we have data on Factory orders for the
month of June 2008.
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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