24 Jun 2008 | 15:12
Downward Ride Continues In Asian Markets
Asian
markets were broadly lower, with indexes in Hong Kong and Australia
declining for a fourth straight session on weakness in banking stocks.
Trading volumes were thin in most markets as investors stayed on the
sidelines ahead of the U.S. Federal Reserve's decision on interest
rates scheduled to release tomorrow.
In Hong Kong, the Hang
Seng Index fell 1.1% to 22,456.02 and the Hang Seng China Enterprises
Index gave up 1.8% to 12,018.51. In Sydney, the S&P/ASX 200 index
recorded a marginal gain of 0.1% gaining to 5,290 as lot of poor
performing stock are being closed out as the financial year in
Australia come to an end on 30 June 2008.
Chinese shares in
Shanghai wavered between positive and negative zones, as bargain-buying
in airline and insurance stocks after a string of recent losses was
countered by losses in Baoshan Iron & Steel Co., after the steel
maker agreed to an 85% price increase on iron ore supplies from Rio
Tinto. At the end of day the Shanghai Composite gained 1.5% to
2,803.02, bouncing off from the day's low at 2,728.83. The Shenzhen
Composite rose up by 2.8% reaching 801.50 levels.
In Tokyo,
shares continued slipping on high crude-oil prices and weakened yen. At
the closing bell the Nikkei 225 Average was marginally down by 0.1%
closing at 13,849.56, while the broader Topix index gained 0.1% to
1,349.19.
Elsewhere, South Korea's Kospi shed 0.3% to 1,710.84,
New Zealand's NZX 50 index rose 0.3% to 3,298.02, Singapore's Straits
Times Index lost 0.4% to 2,968.46 and Taiwan's weighted index dropped
1.8% to 7,738.12.
Malaysia's KLSE Composite gained by 0.4% to 1,200.28 while the Thailand's SET was marginally down by 0.5% at 546.33.
In
the afternoon trading India's Sensitive Index, or Sensex, was down by
1.2% to 14,125.49 and the broader S&P/CNX Nifty fell by 1.5% to
4,200.55.
In Asian currency trading, the U.S. dollar bought 108.07 yen, compared with 107.85 yen late Monday in New York.
Shares
of energy producers advanced, as August-crude oil futures rose as much
as six cents to $136.80 a barrel in electronic trading, after adding
$1.38 to $136.74 a barrel on the New York Mercantile Exchange.
On
Wall Street, the Nasdaq Composite fell 20.35 points to 2,385.74 and the
Dow Jones Industrial Average slipped 0.33 points to 11,842.36, while
the S&P 500 index rose 0.07 points to 1,318.
European shares
dragged lower from early highs, pulled down by a second day of notable
losses for the auto sector accompanied by negative economic news. In
the opening trade the national indexes were trading weaker, with the
U.K. FTSE 100 index was marginally up 0.1% at 5,672.80 while the German
DAX 30 index down 0.4% at 6,564.40 and the French CAC-40 index down
0.4% at 4,493.98.
On the economic front the day began with a
series of negative economic news. The GfK market research institute
said its consumer climate index for Germany is forecast to be at 3.9
points in July compared with 4.7 points in June. The GfK also revised
down the June figure from the 4.9 points it had forecast last month.
GfK said the German consumer climate deteriorated in June, due to
continuously rising energy prices and an impending further massive
increase in gas prices.
GfK cut its full-year 2008 forecast for
German consumer spending growth for the second time this year, to 0.5 %
from 1.0 %. In March, it cut its forecast to 1.0 % from 1.5 %.
At
9.22 GMT U.K. FTSE 100 index was back in red falling by 0.8% to 5,620.
The German DAX 30 index plunge further by 0.9% at 6,530.77 while the
French CAC-40 index down 1.3% at 4,451.92.
Looking ahead the day
is scheduled to release some of the key indicators for US. It will
start with S&P Shiller home price index that will be followed by
consumer confidence data for June. However the focus of the eve will be
on Housing price index and Richmond Fed manufacturing index. In the
late evening we have Merchandise trade balance data for Japan.
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Downward Ride Continues In Asian Markets
Asian
markets were broadly lower, with indexes in Hong Kong and Australia
declining for a fourth straight session on weakness in banking stocks.
Trading volumes were thin in most markets as investors stayed on the
sidelines ahead of the U.S. Federal Reserve's decision on interest
rates scheduled to release tomorrow.
In Hong Kong, the Hang
Seng Index fell 1.1% to 22,456.02 and the Hang Seng China Enterprises
Index gave up 1.8% to 12,018.51. In Sydney, the S&P/ASX 200 index
recorded a marginal gain of 0.1% gaining to 5,290 as lot of poor
performing stock are being closed out as the financial year in
Australia come to an end on 30 June 2008.
Chinese shares in
Shanghai wavered between positive and negative zones, as bargain-buying
in airline and insurance stocks after a string of recent losses was
countered by losses in Baoshan Iron & Steel Co., after the steel
maker agreed to an 85% price increase on iron ore supplies from Rio
Tinto. At the end of day the Shanghai Composite gained 1.5% to
2,803.02, bouncing off from the day's low at 2,728.83. The Shenzhen
Composite rose up by 2.8% reaching 801.50 levels.
In Tokyo,
shares continued slipping on high crude-oil prices and weakened yen. At
the closing bell the Nikkei 225 Average was marginally down by 0.1%
closing at 13,849.56, while the broader Topix index gained 0.1% to
1,349.19.
Elsewhere, South Korea's Kospi shed 0.3% to 1,710.84,
New Zealand's NZX 50 index rose 0.3% to 3,298.02, Singapore's Straits
Times Index lost 0.4% to 2,968.46 and Taiwan's weighted index dropped
1.8% to 7,738.12.
Malaysia's KLSE Composite gained by 0.4% to 1,200.28 while the Thailand's SET was marginally down by 0.5% at 546.33.
In
the afternoon trading India's Sensitive Index, or Sensex, was down by
1.2% to 14,125.49 and the broader S&P/CNX Nifty fell by 1.5% to
4,200.55.
In Asian currency trading, the U.S. dollar bought 108.07 yen, compared with 107.85 yen late Monday in New York.
Shares
of energy producers advanced, as August-crude oil futures rose as much
as six cents to $136.80 a barrel in electronic trading, after adding
$1.38 to $136.74 a barrel on the New York Mercantile Exchange.
On
Wall Street, the Nasdaq Composite fell 20.35 points to 2,385.74 and the
Dow Jones Industrial Average slipped 0.33 points to 11,842.36, while
the S&P 500 index rose 0.07 points to 1,318.
European shares
dragged lower from early highs, pulled down by a second day of notable
losses for the auto sector accompanied by negative economic news. In
the opening trade the national indexes were trading weaker, with the
U.K. FTSE 100 index was marginally up 0.1% at 5,672.80 while the German
DAX 30 index down 0.4% at 6,564.40 and the French CAC-40 index down
0.4% at 4,493.98.
On the economic front the day began with a
series of negative economic news. The GfK market research institute
said its consumer climate index for Germany is forecast to be at 3.9
points in July compared with 4.7 points in June. The GfK also revised
down the June figure from the 4.9 points it had forecast last month.
GfK said the German consumer climate deteriorated in June, due to
continuously rising energy prices and an impending further massive
increase in gas prices.
GfK cut its full-year 2008 forecast for
German consumer spending growth for the second time this year, to 0.5 %
from 1.0 %. In March, it cut its forecast to 1.0 % from 1.5 %.
At
9.22 GMT U.K. FTSE 100 index was back in red falling by 0.8% to 5,620.
The German DAX 30 index plunge further by 0.9% at 6,530.77 while the
French CAC-40 index down 1.3% at 4,451.92.
Looking ahead the day
is scheduled to release some of the key indicators for US. It will
start with S&P Shiller home price index that will be followed by
consumer confidence data for June. However the focus of the eve will be
on Housing price index and Richmond Fed manufacturing index. In the
late evening we have Merchandise trade balance data for Japan.
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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