16 Jul 2008 | 16:16
Asian Markets Trades Lower As Wall Street Provides A Mixed Lead
The
stock markets across the Asia-Pacific region have turned mostly
declined after seeing some strength in early trade following a sharp
pullback in crude oil prices. Wall Street provided a mixed lead, with
the Dow Jones Industrial Average slid 0.8% to 10,962.54 and the S&P
500 index lost 1.1% to 1,214.91, while the Nasdaq Composite added 0.1%
to 2,215.71.
Crude-oil prices tumbled $6.44 to $138.74 a barrel
yesterday on the New York Mercantile Exchange, suffering their biggest
daily drop in more than 17 years, as concerns that slowing economic
growth will dampen oil demand triggered a broad sell-off. The
front-month August contract was recently added as much as one cent at
$138.75 a barrel in electronic trading. In Asian deals Wednesday, crude
is currently adding 7 cents to $138.81 a barrel.
The region's
energy stocks dropped following an overnight drop in crude oil prices
however it helped the airline shares to climb up. The technology stocks
climbed on strong earnings from U.S. chipmaker Intel, but exporters
like Nintendo Co. were dragged down in Tokyo as the U.S. dollar fell
below the 105-yen level. In Asian currency trading, the U.S. dollar
bought 104.58 yen, compared with 105.16 yen late yesterday.
In
the currency market, the U.S. dollar traded in the upper 104-yen level
in early Tokyo deals, down from mid 105-yen levels late Tuesday. In
South Korea, the dollar opened lower at 1,007.0 won. The Australian
dollar opened higher at US$0.9790-0.9794 and the kiwi was firmer at
US$0.7715 in early local trade.
The Japanese market closed mixed
after posting losses for the previous three sessions. The market moved
sideways, as a better-than-expected earnings from semiconductor chip
giant Intel boosted some of the high-tech stocks, but lower crude
prices weighed on oil-related stocks and a stronger yen hurt some
exporters. The benchmark Nikkei 225 index closed up 0.05% at 12,760.80,
while the broader Topix index of all First Section issues on the Tokyo
Stock Exchange closed down 0.31% at 1,249.28.
On the economic
front, The Ministry of Economy, Trade and Industry said that its
tertiary industry index recorded first decline in three months due to
lower spending in the information/communications service and real
estate sectors. Services sector spending in Japan declined 0.2% in May
from its level in April and May 2007.
Meanwhile, Japanese
machine tool orders fell a revised 2.5% on year in June to 128.42
billion yen, according to data released by the Japan Machine Tool
Builders Association. However, the decline was better than the
preliminary estimate of a 2.7% loss in the month. Orders rose 1.4% in
May and 0.4% in April.
The Chinese market closed lower extending losses for a second straight trading session.
The
market sentiment was also impacted by a state media report that
domestic output expanded at a slower pace in the first six months and
the head of the United States central bank warned of increased risks to
the world's largest economy. The statistics bureau will release CPI and
PPI data for June and GDP data. The benchmark Shanghai Composite Index
closed down 2.65% at 2,705.87.
In Hong Kong, the Hang Seng Index
increased 0.2% to 21,223.50, while the Hang Seng China Enterprises
Index slipped 0.3% to 11,716.78.
The South Korean market closed
lower, after a volatile session, extending losses for a third straight
session. The benchmark Korea Composite Stock Price Index shed 0.13% to
end the session at 1,507.4 after gaining more than 1% in early trade.
On
the economic front, a government report showed that South Korea's major
discount outlets reported a drop in sales in June, while department
stores continued to post solid growth. The combined sales of the
nation's top three discount stores dipped 1.9% on year in June, mainly
due to lower than expected temperatures that reduced demand for air
conditioners and summer clothing, the Ministry of Knowledge Economy
said.
Meanwhile, South Korea's unemployment rate rose to 3.1%
last month from 3.0% in May, according to a report by the National
Statistical Office.
The Australian stock market closed higher
after two straight sessions of losses. After opening lower and trading
sideways in the morning session, the stocks saw some strength in the
afternoon session. While banking stocks gained on bargain hunting,
miners lost ground on lower commodity prices. The benchmark
S&P/ASX200 index closed up 1.1% at 4,870.6 and the broader All
Ordinaries index gained 0.8% to finish at 4,947.5.
On the
economic front, Australia's leading index posted slower growth in May,
according to the latest survey by Westpac Bank and the Melbourne
Institute. The group's leading index showed an annualized growth rate
of 2.1% for the leading index, lower than the 2.6% growth rate posted
in April. However, the coincident index, measuring the current state of
the economy, rose 0.2% in May. The annualized growth of the coincident
index slowed to 3.0% from 3.2% in April.
Reserve Bank of
Australia Governor Glenn Stevens said in Sydney that he did not expect
the country to face the same sort of economic challenges that now
plagued the United States and the U.K. Answering questions after a
speech to business economists, Stevens also said that interest rates
could come down before inflation came back within the central bank's
target band, just as it was often necessary to raise them before
inflation climbed above the band.
The New Zealand stock market
closed higher, reversing a two-day losing streak. After falling to a
new three-year low of 3,001 in early trade, the benchmark NZX 50 index
moved into positive territory in the afternoon session as bargain
hunting picked up momentum. The key index, which has lost about 16%
since the beginning of June, closed up 18.90 points or 0.62% at
3,059.36.
The Indian market is currently trading firm after
opening on a positive note. The rebound in Asian markets after the
initial slide and a sharp fall in the price of oil boosted sentiment.
After
opening with a positive gap of 65 points, the BSE Sensex closed in
negative territory closing at 12,575.80 a fall of 101 points or 0.8%.
Meanwhile, the S&P CNX Nifty was down by 44 points or 1.2%.
Thailand's
central bank raised its benchmark interest rate for the first time in
two years to combat the fastest inflation in a decade and said further
increases are possible. The Bank of Thailand increased its one-day bond
repurchase rate by a quarter percentage point to 3.50%. The Thai Set 50
Index dropped 4% closing at 469.63.
Elsewhere, Taiwan's Taiex
gave up 1.8% to 6,710.64, on top of a 4.5% tumble in the previous
session, on worries about slowing global economic growth. Singapore?s
Straits Times Index inched up 0.2% to 2,835.32.
Turning toward
European markets, edged higher with record production numbers helping
to lift Rio Tinto in a stronger mining sector, as investors took a
break from the heavy selling that has so far characterized this week's
action. In the opening trade, the U.K. FTSE 100 index climbed 0.4% to
5,194.20; the German DAX 30 index advanced 0.3% to 6,097.03 and the
French CAC-40 index ticked up 0.3% to 4,071.25.
On the economic
front, the day doesn?t belong to the region as hoards of negative
economic sentiments hits the sentiment hard. Starting from U.K?s, where
the claimant count jobless figure posted the biggest rise for almost 16
years in June, marking a significant deterioration in the labor market.
According
to data from the Office for National Statistics the claimant count rose
15,500, the biggest rise since it increased by 71,000 in December 1992.
May's gain in the claimant count was also revised up to 14,300 from
9,000.
The claimant count jobless rate for June was unchanged at
2.6% of the workforce after May's rate was revised up from 2.5%,
marking the first rise since September 2006.
The pound fell
after figures showed unemployment rose by more than expected in June
while wage inflation remained muted. At 8.33 GMT the pound was trading
at $2.0045, having been at $2.0091 shortly before the figures were
released. Meanwhile the euro climbed to 0.7953 pence having been at
0.7930 pence shortly before the figures came out.
Meanwhile,
the amount of people on employment both increased in the quarter to May
in the United Kingdom despite a strong increase in the claimant count
rate. From March to May, the ILO unemployment rate has declined to 5.2%
from the 5.3% in the three months to April. The number of employed
people increased by 12,000 persons on the mentioned period.
Continuing
the flow of negative sentiments, the annual rate of inflation in euro
zone rose further above the European Central Bank's comfort zone in
June, as energy and food prices continued to rise.
According to
the Eurostat consumer prices increased 0.4% in June from May, and were
up 4.0% from June 2007. In the 12 months to May, consumer prices rose
3.7%. The inflation rate's latest surge marks a new record high for the
measure, which is at its highest level since Eurostat began collecting
data in 1997.
The rise in prices was broad based, but led by a
2.5% increase in energy prices from May. Over the year, energy prices
were up 16%, a significant pick up from the 13.7% rise in the 12 months
to May. Food prices also rose again, although by a relatively modest
0.2% on the month. Over the year, however, they were up 6.4%, a
year-on-year rise that was unchanged from May.
But, prices of
other goods and services are also on the increase, with the annual
measure of core inflation - which excludes food, energy, alcohol and
tobacco - rising to 1.8% from 1.7% in May and 1.6% in April. Excluding
tobacco prices, the consumer price index rose 0.4% on the month and
4.0% on the year.
After all this, the European markets came back
in negatives. At 10.21 GMT the U.K. FTSE 100 index fall by 1.3% to
5,103.50; the German DAX 30 index fell by 1.1% to 6,015.13 and the
French CAC-40 index trickle down by 1% to 4,019.32.
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Asian Markets Trades Lower As Wall Street Provides A Mixed Lead
The
stock markets across the Asia-Pacific region have turned mostly
declined after seeing some strength in early trade following a sharp
pullback in crude oil prices. Wall Street provided a mixed lead, with
the Dow Jones Industrial Average slid 0.8% to 10,962.54 and the S&P
500 index lost 1.1% to 1,214.91, while the Nasdaq Composite added 0.1%
to 2,215.71.
Crude-oil prices tumbled $6.44 to $138.74 a barrel
yesterday on the New York Mercantile Exchange, suffering their biggest
daily drop in more than 17 years, as concerns that slowing economic
growth will dampen oil demand triggered a broad sell-off. The
front-month August contract was recently added as much as one cent at
$138.75 a barrel in electronic trading. In Asian deals Wednesday, crude
is currently adding 7 cents to $138.81 a barrel.
The region's
energy stocks dropped following an overnight drop in crude oil prices
however it helped the airline shares to climb up. The technology stocks
climbed on strong earnings from U.S. chipmaker Intel, but exporters
like Nintendo Co. were dragged down in Tokyo as the U.S. dollar fell
below the 105-yen level. In Asian currency trading, the U.S. dollar
bought 104.58 yen, compared with 105.16 yen late yesterday.
In
the currency market, the U.S. dollar traded in the upper 104-yen level
in early Tokyo deals, down from mid 105-yen levels late Tuesday. In
South Korea, the dollar opened lower at 1,007.0 won. The Australian
dollar opened higher at US$0.9790-0.9794 and the kiwi was firmer at
US$0.7715 in early local trade.
The Japanese market closed mixed
after posting losses for the previous three sessions. The market moved
sideways, as a better-than-expected earnings from semiconductor chip
giant Intel boosted some of the high-tech stocks, but lower crude
prices weighed on oil-related stocks and a stronger yen hurt some
exporters. The benchmark Nikkei 225 index closed up 0.05% at 12,760.80,
while the broader Topix index of all First Section issues on the Tokyo
Stock Exchange closed down 0.31% at 1,249.28.
On the economic
front, The Ministry of Economy, Trade and Industry said that its
tertiary industry index recorded first decline in three months due to
lower spending in the information/communications service and real
estate sectors. Services sector spending in Japan declined 0.2% in May
from its level in April and May 2007.
Meanwhile, Japanese
machine tool orders fell a revised 2.5% on year in June to 128.42
billion yen, according to data released by the Japan Machine Tool
Builders Association. However, the decline was better than the
preliminary estimate of a 2.7% loss in the month. Orders rose 1.4% in
May and 0.4% in April.
The Chinese market closed lower extending losses for a second straight trading session.
The
market sentiment was also impacted by a state media report that
domestic output expanded at a slower pace in the first six months and
the head of the United States central bank warned of increased risks to
the world's largest economy. The statistics bureau will release CPI and
PPI data for June and GDP data. The benchmark Shanghai Composite Index
closed down 2.65% at 2,705.87.
In Hong Kong, the Hang Seng Index
increased 0.2% to 21,223.50, while the Hang Seng China Enterprises
Index slipped 0.3% to 11,716.78.
The South Korean market closed
lower, after a volatile session, extending losses for a third straight
session. The benchmark Korea Composite Stock Price Index shed 0.13% to
end the session at 1,507.4 after gaining more than 1% in early trade.
On
the economic front, a government report showed that South Korea's major
discount outlets reported a drop in sales in June, while department
stores continued to post solid growth. The combined sales of the
nation's top three discount stores dipped 1.9% on year in June, mainly
due to lower than expected temperatures that reduced demand for air
conditioners and summer clothing, the Ministry of Knowledge Economy
said.
Meanwhile, South Korea's unemployment rate rose to 3.1%
last month from 3.0% in May, according to a report by the National
Statistical Office.
The Australian stock market closed higher
after two straight sessions of losses. After opening lower and trading
sideways in the morning session, the stocks saw some strength in the
afternoon session. While banking stocks gained on bargain hunting,
miners lost ground on lower commodity prices. The benchmark
S&P/ASX200 index closed up 1.1% at 4,870.6 and the broader All
Ordinaries index gained 0.8% to finish at 4,947.5.
On the
economic front, Australia's leading index posted slower growth in May,
according to the latest survey by Westpac Bank and the Melbourne
Institute. The group's leading index showed an annualized growth rate
of 2.1% for the leading index, lower than the 2.6% growth rate posted
in April. However, the coincident index, measuring the current state of
the economy, rose 0.2% in May. The annualized growth of the coincident
index slowed to 3.0% from 3.2% in April.
Reserve Bank of
Australia Governor Glenn Stevens said in Sydney that he did not expect
the country to face the same sort of economic challenges that now
plagued the United States and the U.K. Answering questions after a
speech to business economists, Stevens also said that interest rates
could come down before inflation came back within the central bank's
target band, just as it was often necessary to raise them before
inflation climbed above the band.
The New Zealand stock market
closed higher, reversing a two-day losing streak. After falling to a
new three-year low of 3,001 in early trade, the benchmark NZX 50 index
moved into positive territory in the afternoon session as bargain
hunting picked up momentum. The key index, which has lost about 16%
since the beginning of June, closed up 18.90 points or 0.62% at
3,059.36.
The Indian market is currently trading firm after
opening on a positive note. The rebound in Asian markets after the
initial slide and a sharp fall in the price of oil boosted sentiment.
After
opening with a positive gap of 65 points, the BSE Sensex closed in
negative territory closing at 12,575.80 a fall of 101 points or 0.8%.
Meanwhile, the S&P CNX Nifty was down by 44 points or 1.2%.
Thailand's
central bank raised its benchmark interest rate for the first time in
two years to combat the fastest inflation in a decade and said further
increases are possible. The Bank of Thailand increased its one-day bond
repurchase rate by a quarter percentage point to 3.50%. The Thai Set 50
Index dropped 4% closing at 469.63.
Elsewhere, Taiwan's Taiex
gave up 1.8% to 6,710.64, on top of a 4.5% tumble in the previous
session, on worries about slowing global economic growth. Singapore?s
Straits Times Index inched up 0.2% to 2,835.32.
Turning toward
European markets, edged higher with record production numbers helping
to lift Rio Tinto in a stronger mining sector, as investors took a
break from the heavy selling that has so far characterized this week's
action. In the opening trade, the U.K. FTSE 100 index climbed 0.4% to
5,194.20; the German DAX 30 index advanced 0.3% to 6,097.03 and the
French CAC-40 index ticked up 0.3% to 4,071.25.
On the economic
front, the day doesn?t belong to the region as hoards of negative
economic sentiments hits the sentiment hard. Starting from U.K?s, where
the claimant count jobless figure posted the biggest rise for almost 16
years in June, marking a significant deterioration in the labor market.
According
to data from the Office for National Statistics the claimant count rose
15,500, the biggest rise since it increased by 71,000 in December 1992.
May's gain in the claimant count was also revised up to 14,300 from
9,000.
The claimant count jobless rate for June was unchanged at
2.6% of the workforce after May's rate was revised up from 2.5%,
marking the first rise since September 2006.
The pound fell
after figures showed unemployment rose by more than expected in June
while wage inflation remained muted. At 8.33 GMT the pound was trading
at $2.0045, having been at $2.0091 shortly before the figures were
released. Meanwhile the euro climbed to 0.7953 pence having been at
0.7930 pence shortly before the figures came out.
Meanwhile,
the amount of people on employment both increased in the quarter to May
in the United Kingdom despite a strong increase in the claimant count
rate. From March to May, the ILO unemployment rate has declined to 5.2%
from the 5.3% in the three months to April. The number of employed
people increased by 12,000 persons on the mentioned period.
Continuing
the flow of negative sentiments, the annual rate of inflation in euro
zone rose further above the European Central Bank's comfort zone in
June, as energy and food prices continued to rise.
According to
the Eurostat consumer prices increased 0.4% in June from May, and were
up 4.0% from June 2007. In the 12 months to May, consumer prices rose
3.7%. The inflation rate's latest surge marks a new record high for the
measure, which is at its highest level since Eurostat began collecting
data in 1997.
The rise in prices was broad based, but led by a
2.5% increase in energy prices from May. Over the year, energy prices
were up 16%, a significant pick up from the 13.7% rise in the 12 months
to May. Food prices also rose again, although by a relatively modest
0.2% on the month. Over the year, however, they were up 6.4%, a
year-on-year rise that was unchanged from May.
But, prices of
other goods and services are also on the increase, with the annual
measure of core inflation - which excludes food, energy, alcohol and
tobacco - rising to 1.8% from 1.7% in May and 1.6% in April. Excluding
tobacco prices, the consumer price index rose 0.4% on the month and
4.0% on the year.
After all this, the European markets came back
in negatives. At 10.21 GMT the U.K. FTSE 100 index fall by 1.3% to
5,103.50; the German DAX 30 index fell by 1.1% to 6,015.13 and the
French CAC-40 index trickle down by 1% to 4,019.32.
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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