23 Jun 2008 | 15:00
The Fall Continues In Asian Markets
The
Asian Markets continued their downward slide with a gain in momentum
from the soaring crude oil prices and rebound in the Japanese Yen. In
the regional view, the Japanese and Hong Kong indexes declined for a
third straight session, with exporters reacting to a strengthened yen
in Tokyo, while energy stocks retreated in Hong Kong on a rebound in
crude -oil prices.
The Japanese yen saw strength against the
other majors and recouped some of its recent losses. The currency moved
away from a multi-month low against the euro and reached a near-term
high against the dollar. The yen climbed to a nine-day high against the
dollar. In Asian currency trading, the yen climbed to 107.16 against
its U.S. rival settling at 107.27 yen compared with 107.40 yen late
Friday in Tokyo. The yen has been trending higher since Wednesday.
August
crude-oil futures rose as much as 24 cents to $135.60 a barrel in
electronic trading, after climbing $2.76 to finish at $135.36 Friday on
the New York Mercantile Exchange, when the July contract expired. The
rise followed an announcement from Saudi Arabia, the world's biggest
oil exporter that plans to raise production for a third-straight month
in July and make further increases as needed to curb record prices.
Saudi
Arabia will raise daily crude output by 200,000 barrels to 9.7 million
barrels next month, Saudi Oil Minister Ali al- Naimi told officials
from 35 producing and consuming countries at the summit yesterday in
the Red Sea port of Jeddah. OPEC President Chakib Khelil and ministers
from Venezuela and Libya said the Saudi initiative would fail to lower
prices, blaming oil's climb above $130 a barrel on speculation, rather
than a lack of crude.
In the regional action, the Nikkei 225
Average lost 0.6% to 13,857.47, on top of the 1.3% drop Friday, and the
broader Topix index gave up 0.7% to 1,347.93.
China's Shanghai
Composite, which jumped 3% Friday on oil retailers after Beijing
allowed the companies to raise prices of motor fuels by as much as 18%,
surrendered some of those gains. The benchmark index, which has lost
more than 46% so far in 2008, was recently down 2.5% at 2,760.42.
Meanwhile
according Xinhua news service report, the Chinese stock market
regulator, China Securities Regulatory Commission has planned to
control the pace at which listed companies raise funds and clamp down
on market rumors to bring stability to a market that ranks among the
worst performers in Asia in 2008 to date. The stock market regulator is
making efforts to efforts to stabilize the mainland stock markets, and
likely buying activity by institutional investors in Hong Kong to shore
up the value of their portfolios by the end of June, could provide
support to the Hang Seng Index in the near-term. Meanwhile the Hang
Seng Index fell 0.1% to 22,714.96, after slipping 0.2% in the previous
session, while the Hang Seng China Enterprises Index shed 0.9% to
12,236.31.
Elsewhere, South Korea's Kospi shed 0.9% to
1,715.59, while New Zealand's NZX 50 index slipped 0.1% to 3,287.56.
The Taiwan's weighted index fell 0.3% to 7,876.49.
In Australia
the new motor vehicle sale, which is a closely watched indicator of
discretionary spending, fell 1.6% to a seasonally adjusted 87,821 in
May from April. The May fall follows a 0.6% decline in April,
suggesting that a rapid tightening of monetary policy rates in the
first quarter and soaring fuel prices are putting a brake on car sales.
The Australia's S&P/ASX 200 index lost 0.1% to 5,283.70
In
Singapore the Straits Times Index declined 0.7% to 2,980.12 as
inflation in Singapore remained at a 26-year high of 7.5% in May from a
year ago led by the surge in housing and food costs, while high crude
oil prices continued to push up transportation costs.
The rise
in oil prices and worries about the U.S. financial sector hurt stocks
on Wall Street on Friday, where the Dow Jones Industrial Average
dropped 220.40 points to 11,842.69, finishing below the 12,000-point
level for the first time in three months. The S&P 500 fell 24.9
points to 1,317.93 and the Nasdaq Composite dropped 55.97 points to
2,406.09.
Turning towards the European Markets which advanced in
opening trade, as higher crude prices gave oil firms a lift and gains
from Dexia helped lift the banking sector in a heavy day for economic
data.
Of national indexes, the U.K. FTSE 100 index rose 0.6% to
5,654.20; the German DAX 30 index climbed 0.2% to 6,591.45 and the
French CAC-40 index traded flat at 4,509.48. At 9.09 GMT the U.K. FTSE
100 index had gave up its early gain registering an fall of 0.2% to
5,612 while German DAX 30 index has square off its early gains trading
flat at 6,580.70. The French CAC-40 index also failed to keep its
initial gain intact falling by 0.3% to 4,497.97. The fall was on the
back of some sour economic releases, which showed a contraction in
manufacturing sector of the euro zone. The activity in the euro-zone
economy dropped to its weakest level for five years in June, with the
services sector and manufacturing sectors driving the decline.
According
to the preliminary estimate of the Purchasing Managers Index for the
euro zone's services sector slipped into contraction in June, sliding
to 49.5 from 50.6 in May touching to the lowest figure since June 2003.
Manufacturing sector activity also slowed in June, registering a
reading of 49.1, down from 50.6 in May.
The composite
Purchasing Managers Index - a measure of private sector activity in the
euro zone - dropped to its lowest level since June 2003, to 49.5 in
June from 51.1 in May.
Meanwhile, Germany - region?s biggest
economy showed deterioration in business confidence in the wake of
record high oil prices and a weaker export outlook. The Ifo business
climate index fell to 101.3 in June from 103.5 in May. The indicator
for the current trading situation fell to 108.3 from 110.1 in May,
while the index measuring firms' business expectations for the next six
months edged down to 94.7 from 97.2.
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The Fall Continues In Asian Markets
The
Asian Markets continued their downward slide with a gain in momentum
from the soaring crude oil prices and rebound in the Japanese Yen. In
the regional view, the Japanese and Hong Kong indexes declined for a
third straight session, with exporters reacting to a strengthened yen
in Tokyo, while energy stocks retreated in Hong Kong on a rebound in
crude -oil prices.
The Japanese yen saw strength against the
other majors and recouped some of its recent losses. The currency moved
away from a multi-month low against the euro and reached a near-term
high against the dollar. The yen climbed to a nine-day high against the
dollar. In Asian currency trading, the yen climbed to 107.16 against
its U.S. rival settling at 107.27 yen compared with 107.40 yen late
Friday in Tokyo. The yen has been trending higher since Wednesday.
August
crude-oil futures rose as much as 24 cents to $135.60 a barrel in
electronic trading, after climbing $2.76 to finish at $135.36 Friday on
the New York Mercantile Exchange, when the July contract expired. The
rise followed an announcement from Saudi Arabia, the world's biggest
oil exporter that plans to raise production for a third-straight month
in July and make further increases as needed to curb record prices.
Saudi
Arabia will raise daily crude output by 200,000 barrels to 9.7 million
barrels next month, Saudi Oil Minister Ali al- Naimi told officials
from 35 producing and consuming countries at the summit yesterday in
the Red Sea port of Jeddah. OPEC President Chakib Khelil and ministers
from Venezuela and Libya said the Saudi initiative would fail to lower
prices, blaming oil's climb above $130 a barrel on speculation, rather
than a lack of crude.
In the regional action, the Nikkei 225
Average lost 0.6% to 13,857.47, on top of the 1.3% drop Friday, and the
broader Topix index gave up 0.7% to 1,347.93.
China's Shanghai
Composite, which jumped 3% Friday on oil retailers after Beijing
allowed the companies to raise prices of motor fuels by as much as 18%,
surrendered some of those gains. The benchmark index, which has lost
more than 46% so far in 2008, was recently down 2.5% at 2,760.42.
Meanwhile
according Xinhua news service report, the Chinese stock market
regulator, China Securities Regulatory Commission has planned to
control the pace at which listed companies raise funds and clamp down
on market rumors to bring stability to a market that ranks among the
worst performers in Asia in 2008 to date. The stock market regulator is
making efforts to efforts to stabilize the mainland stock markets, and
likely buying activity by institutional investors in Hong Kong to shore
up the value of their portfolios by the end of June, could provide
support to the Hang Seng Index in the near-term. Meanwhile the Hang
Seng Index fell 0.1% to 22,714.96, after slipping 0.2% in the previous
session, while the Hang Seng China Enterprises Index shed 0.9% to
12,236.31.
Elsewhere, South Korea's Kospi shed 0.9% to
1,715.59, while New Zealand's NZX 50 index slipped 0.1% to 3,287.56.
The Taiwan's weighted index fell 0.3% to 7,876.49.
In Australia
the new motor vehicle sale, which is a closely watched indicator of
discretionary spending, fell 1.6% to a seasonally adjusted 87,821 in
May from April. The May fall follows a 0.6% decline in April,
suggesting that a rapid tightening of monetary policy rates in the
first quarter and soaring fuel prices are putting a brake on car sales.
The Australia's S&P/ASX 200 index lost 0.1% to 5,283.70
In
Singapore the Straits Times Index declined 0.7% to 2,980.12 as
inflation in Singapore remained at a 26-year high of 7.5% in May from a
year ago led by the surge in housing and food costs, while high crude
oil prices continued to push up transportation costs.
The rise
in oil prices and worries about the U.S. financial sector hurt stocks
on Wall Street on Friday, where the Dow Jones Industrial Average
dropped 220.40 points to 11,842.69, finishing below the 12,000-point
level for the first time in three months. The S&P 500 fell 24.9
points to 1,317.93 and the Nasdaq Composite dropped 55.97 points to
2,406.09.
Turning towards the European Markets which advanced in
opening trade, as higher crude prices gave oil firms a lift and gains
from Dexia helped lift the banking sector in a heavy day for economic
data.
Of national indexes, the U.K. FTSE 100 index rose 0.6% to
5,654.20; the German DAX 30 index climbed 0.2% to 6,591.45 and the
French CAC-40 index traded flat at 4,509.48. At 9.09 GMT the U.K. FTSE
100 index had gave up its early gain registering an fall of 0.2% to
5,612 while German DAX 30 index has square off its early gains trading
flat at 6,580.70. The French CAC-40 index also failed to keep its
initial gain intact falling by 0.3% to 4,497.97. The fall was on the
back of some sour economic releases, which showed a contraction in
manufacturing sector of the euro zone. The activity in the euro-zone
economy dropped to its weakest level for five years in June, with the
services sector and manufacturing sectors driving the decline.
According
to the preliminary estimate of the Purchasing Managers Index for the
euro zone's services sector slipped into contraction in June, sliding
to 49.5 from 50.6 in May touching to the lowest figure since June 2003.
Manufacturing sector activity also slowed in June, registering a
reading of 49.1, down from 50.6 in May.
The composite
Purchasing Managers Index - a measure of private sector activity in the
euro zone - dropped to its lowest level since June 2003, to 49.5 in
June from 51.1 in May.
Meanwhile, Germany - region?s biggest
economy showed deterioration in business confidence in the wake of
record high oil prices and a weaker export outlook. The Ifo business
climate index fell to 101.3 in June from 103.5 in May. The indicator
for the current trading situation fell to 108.3 from 110.1 in May,
while the index measuring firms' business expectations for the next six
months edged down to 94.7 from 97.2.
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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