25 Aug 2008 | 15:57
Wall Street Rally Boost Asian Markets
The
stock markets across the Asian region were trading sharply higher after
Wall Street rallied and oil prices plunged, as supply fears eased
following Russia's pullback from Georgia. Financials were higher, but
resources were weak on lower commodity prices. Exporters gained as the
U.S. dollar strengthened against major Asian currencies. Wall Street's
rally on Friday and a steep fall in crude oil prices boosted investor
sentiment in Asian markets.
A report that state-run Korea
Development Bank is considering the acquisition of Lehman Brothers and
Federal Reserve Chairman Ben Bernanke's comments that inflationary
pressures are likely to moderate also added to the positive sentiment.
The Dow jumped 1.73%, the broader S&P 500 rose 1.13% and the Nasdaq
climbed 1.44%.
Oil prices tumbled $6.59 a barrel or 5.43% on
Friday, the biggest one-day percentage plunge in nearly four years,
following a rebounding dollar and Russian troop pullback from Georgia.
The contract for October delivery settled at US$114.59 a barrel. In
late Asian session Monday, oil was up 88 cents at US$115.47 a barrel by
3:53 p.m. ET.
On the currency front, the U.S. dollar traded in
the upper 109-yen levels, down slightly from lower 110-yen levels in
early trade. The local unit finished Friday's session at 109.10-109.11
yen.
The Australian dollar closed weaker on lower commodity
prices. The local unit finished the session at US$0.8652-0.8654
compared to Friday's close of US$0.8786-0.8790.
The New Zealand
dollar finished weaker against the U.S. dollar. The kiwi closed the
session at US$0.7050, down from US$0.7187 late Friday.
The South
Korean won fell 1.6% to a near four-year low against the dollar. The
won finished the local session at 1,078.9 a dollar, down from Friday's
close of 1,062.5 a dollar.
Coming back in equity market, the
Japanese market closed sharply higher on Monday, ending a four-day
losing streak. The benchmark Nikkei 225 index closed up 1.68% at
12,878.66 after losing nearly 500 points during the previous four
sessions. The broader Topix index advanced 1.88% to finish at 1,239.25.
Meanwhile,
Bank of Japan Governor Masaaki Shirakawa assured business executives in
Osaka that the economic growth is likely remain sluggish on high-energy
costs and slowing export growth, but a deep adjustment is unlikely.
Speaking
at conference of business executives in Osaka, western Japan Shirakawa
said, at present, Japan does not have big excess in capital spending,
employment and debt. As such the economy will not worsen sharply even
if it faces downward pressure. But the economy is a living thing so we
need to watch developments closely.
The Chinese market closed
higher, ending a two-day losing streak. The benchmark Shanghai
Composite Index closed up 0.34% at 2,413.37. In Shenzhen, the All Share
index plunged by 0.49% to 673.45.
In Hong Kong, the Hang Seng
China Enterprises tracked Shanghai stocks zoomed up by 3.74% at
11,324.25. The benchmark Hang Seng Index jumped by 3.5% to 21,104.79.
The
Australian market closed higher for a second straight trading session
on Monday after a positive start following Wall Street's rally Friday.
Financial stocks gained, but resources were lower on weaker commodity
prices. The benchmark S&P/ASX 200 index closed up 1.7% at 5,014.9
and the broader All Ordinaries index advanced 79.9 points or 1.6% to
finish at 5,090.1.
The New Zealand stock market closed higher,
led by Telecom, but off day's highs. After opening on a firm note,
tracking Wall Street's rally, the market gave away some of its gains
going into the close of the trading session. The benchmark NZX 50 index
closed up 0.46% at 3,326.92 and the broader NZX All Capital Index
gained 0.74% to finish at 3,372.14.
On the economic front,
Statistics New Zealand said that food prices increased 0.6% in July
from the previous month. The on-month increase was led by fruits and
vegetables, which increased 3.6% from June. Food prices in July were
7.6% higher compared to their levels in July 2007.
The South
Korean stock market closed today's volatile session higher, snapping a
five-day losing streak. The benchmark Kospi closed up 0.35% at 1,502.11
after closing below the 1,500 mark for the first time in sixteen months
on Friday.
On the economic front, a government report showed
that around 3 out of 10 households in South Korea spent more than they
earned during the second quarter of this year amid rising inflation and
increased costs of buying necessities. According to a report by the
National Statistical Office, 28.1% of South Korean households reported
that they spent more than they earned during the April-June period, up
from 27.8% recorded a year earlier. A weakening won and a fall in crude
oil prices supported exporters and transporters.
The Indian
market pared further gains in mid-afternoon trade mirroring subdued
European markets. A sharp slump in the price of oil and notable gains
in US stocks on Friday, 22 August 2008, had triggered firm opening. The
market had pared gains in afternoon trade. The market breadth was
strong.
At 15.46 IST, the BSE 30-share Sensex was up 48.86
points or 0.34% to 14,450.35. Sensex opened with an upward gap of
241.88 points at 14,643.37 and advanced to hit an intra-day high of
14,672.69 in mid-morning trade. At the day?s high, the Sensex gained
271.20 points. At the day?s low of 14,489.11 hit in mid-afternoon
trade, the Sensex rose 87.62 points.
In Taiwan the industrial
output in July was up 0.62 pct from June and up 1.10 pct from a year
earlier. The Ministry of Economic Affairs (MoEA) industrial output
index, which is based on the 2006 benchmark of 100, stood at 113.88 in
July. In June, industrial output fell 2.56 pct from the preceding month
but posted a revised 5.10 pct year-on-year increase. The MoEA also said
the manufacturing sector index in July gained 0.87 pct from the
preceding month and was up 2.25 pct from the year before. The July
construction sector index was down 13.48 pct from June and down 27.12
pct from the corresponding period last year, it said. The Taiwan's
weighted index gained 1.72% to 7030.72.
Elsewhere, Singapore?s
Straits Times index increased by 0.37% to 2,733.45 while Malaysia the
KLSE Composite Index dropped down by 0.63% to 1,078.73. In Indonesia,
the Jakarta Composite increased 0.32% to 2,127.22.
In the other
part of the world, stocks in Europe drifted lower in thin volumes,
paced by a decline in engineering firms such as Alstom and Siemens.
In
the opening trade, the German DAX 30 fell 0.2% to 6,329.91; the French
CAC 40 fell 0.6% to 4,372.44. The London Stock Exchange was closed
Monday for a local holiday. At 10.07 GMT all this national indices
continued to remain in red. The German DAX 30 index fell 0.3% to
6,323.69, while the French CAC-40 index decreased by 0.60% to 4,374.68.
On
the economic front, Spanish producer prices rose to a 23-year high of
10.2% in July from the year-earlier period. Producer prices surged amid
a jump in the price of oil refining, food and beverage production. It
was the steepest rise since October 1984 when producer prices rose
10.5%.
The increase was spurred by a 52.1% price rise in the
area of coking and oil refining in July; a 14.1% rise in the
electricity- and gas-production; and a 10% rise in the price of food
and beverage production.
The price of the production of all
energy - including oil products - soared 30.3% for the period. The
price of durable consumer goods output rose 3.3% in July from a year
earlier, while nondurable consumer goods production rose 5.6%. The
price of intermediary goods output rose 7.3%. The increase in producer
prices for products not related to food or energy was much more
subdued. The July price increase in the textile industry rose 2.1% on
the year earlier.
Meanwhile, the Sweden's trade surplus rose to
9.4 billion Swedish crowns ($1.5 billion) in July from an upwardly
revised 9.0 billion the previous month.
Today?s economic
calendar is schedule to release existing home sales from US for the
month of July, which will be followed by a data on trade balance from
New Zealand for the month of July. In the late night we have corporate
service price index from Japan for the month of July.
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Wall Street Rally Boost Asian Markets
The
stock markets across the Asian region were trading sharply higher after
Wall Street rallied and oil prices plunged, as supply fears eased
following Russia's pullback from Georgia. Financials were higher, but
resources were weak on lower commodity prices. Exporters gained as the
U.S. dollar strengthened against major Asian currencies. Wall Street's
rally on Friday and a steep fall in crude oil prices boosted investor
sentiment in Asian markets.
A report that state-run Korea
Development Bank is considering the acquisition of Lehman Brothers and
Federal Reserve Chairman Ben Bernanke's comments that inflationary
pressures are likely to moderate also added to the positive sentiment.
The Dow jumped 1.73%, the broader S&P 500 rose 1.13% and the Nasdaq
climbed 1.44%.
Oil prices tumbled $6.59 a barrel or 5.43% on
Friday, the biggest one-day percentage plunge in nearly four years,
following a rebounding dollar and Russian troop pullback from Georgia.
The contract for October delivery settled at US$114.59 a barrel. In
late Asian session Monday, oil was up 88 cents at US$115.47 a barrel by
3:53 p.m. ET.
On the currency front, the U.S. dollar traded in
the upper 109-yen levels, down slightly from lower 110-yen levels in
early trade. The local unit finished Friday's session at 109.10-109.11
yen.
The Australian dollar closed weaker on lower commodity
prices. The local unit finished the session at US$0.8652-0.8654
compared to Friday's close of US$0.8786-0.8790.
The New Zealand
dollar finished weaker against the U.S. dollar. The kiwi closed the
session at US$0.7050, down from US$0.7187 late Friday.
The South
Korean won fell 1.6% to a near four-year low against the dollar. The
won finished the local session at 1,078.9 a dollar, down from Friday's
close of 1,062.5 a dollar.
Coming back in equity market, the
Japanese market closed sharply higher on Monday, ending a four-day
losing streak. The benchmark Nikkei 225 index closed up 1.68% at
12,878.66 after losing nearly 500 points during the previous four
sessions. The broader Topix index advanced 1.88% to finish at 1,239.25.
Meanwhile,
Bank of Japan Governor Masaaki Shirakawa assured business executives in
Osaka that the economic growth is likely remain sluggish on high-energy
costs and slowing export growth, but a deep adjustment is unlikely.
Speaking
at conference of business executives in Osaka, western Japan Shirakawa
said, at present, Japan does not have big excess in capital spending,
employment and debt. As such the economy will not worsen sharply even
if it faces downward pressure. But the economy is a living thing so we
need to watch developments closely.
The Chinese market closed
higher, ending a two-day losing streak. The benchmark Shanghai
Composite Index closed up 0.34% at 2,413.37. In Shenzhen, the All Share
index plunged by 0.49% to 673.45.
In Hong Kong, the Hang Seng
China Enterprises tracked Shanghai stocks zoomed up by 3.74% at
11,324.25. The benchmark Hang Seng Index jumped by 3.5% to 21,104.79.
The
Australian market closed higher for a second straight trading session
on Monday after a positive start following Wall Street's rally Friday.
Financial stocks gained, but resources were lower on weaker commodity
prices. The benchmark S&P/ASX 200 index closed up 1.7% at 5,014.9
and the broader All Ordinaries index advanced 79.9 points or 1.6% to
finish at 5,090.1.
The New Zealand stock market closed higher,
led by Telecom, but off day's highs. After opening on a firm note,
tracking Wall Street's rally, the market gave away some of its gains
going into the close of the trading session. The benchmark NZX 50 index
closed up 0.46% at 3,326.92 and the broader NZX All Capital Index
gained 0.74% to finish at 3,372.14.
On the economic front,
Statistics New Zealand said that food prices increased 0.6% in July
from the previous month. The on-month increase was led by fruits and
vegetables, which increased 3.6% from June. Food prices in July were
7.6% higher compared to their levels in July 2007.
The South
Korean stock market closed today's volatile session higher, snapping a
five-day losing streak. The benchmark Kospi closed up 0.35% at 1,502.11
after closing below the 1,500 mark for the first time in sixteen months
on Friday.
On the economic front, a government report showed
that around 3 out of 10 households in South Korea spent more than they
earned during the second quarter of this year amid rising inflation and
increased costs of buying necessities. According to a report by the
National Statistical Office, 28.1% of South Korean households reported
that they spent more than they earned during the April-June period, up
from 27.8% recorded a year earlier. A weakening won and a fall in crude
oil prices supported exporters and transporters.
The Indian
market pared further gains in mid-afternoon trade mirroring subdued
European markets. A sharp slump in the price of oil and notable gains
in US stocks on Friday, 22 August 2008, had triggered firm opening. The
market had pared gains in afternoon trade. The market breadth was
strong.
At 15.46 IST, the BSE 30-share Sensex was up 48.86
points or 0.34% to 14,450.35. Sensex opened with an upward gap of
241.88 points at 14,643.37 and advanced to hit an intra-day high of
14,672.69 in mid-morning trade. At the day?s high, the Sensex gained
271.20 points. At the day?s low of 14,489.11 hit in mid-afternoon
trade, the Sensex rose 87.62 points.
In Taiwan the industrial
output in July was up 0.62 pct from June and up 1.10 pct from a year
earlier. The Ministry of Economic Affairs (MoEA) industrial output
index, which is based on the 2006 benchmark of 100, stood at 113.88 in
July. In June, industrial output fell 2.56 pct from the preceding month
but posted a revised 5.10 pct year-on-year increase. The MoEA also said
the manufacturing sector index in July gained 0.87 pct from the
preceding month and was up 2.25 pct from the year before. The July
construction sector index was down 13.48 pct from June and down 27.12
pct from the corresponding period last year, it said. The Taiwan's
weighted index gained 1.72% to 7030.72.
Elsewhere, Singapore?s
Straits Times index increased by 0.37% to 2,733.45 while Malaysia the
KLSE Composite Index dropped down by 0.63% to 1,078.73. In Indonesia,
the Jakarta Composite increased 0.32% to 2,127.22.
In the other
part of the world, stocks in Europe drifted lower in thin volumes,
paced by a decline in engineering firms such as Alstom and Siemens.
In
the opening trade, the German DAX 30 fell 0.2% to 6,329.91; the French
CAC 40 fell 0.6% to 4,372.44. The London Stock Exchange was closed
Monday for a local holiday. At 10.07 GMT all this national indices
continued to remain in red. The German DAX 30 index fell 0.3% to
6,323.69, while the French CAC-40 index decreased by 0.60% to 4,374.68.
On
the economic front, Spanish producer prices rose to a 23-year high of
10.2% in July from the year-earlier period. Producer prices surged amid
a jump in the price of oil refining, food and beverage production. It
was the steepest rise since October 1984 when producer prices rose
10.5%.
The increase was spurred by a 52.1% price rise in the
area of coking and oil refining in July; a 14.1% rise in the
electricity- and gas-production; and a 10% rise in the price of food
and beverage production.
The price of the production of all
energy - including oil products - soared 30.3% for the period. The
price of durable consumer goods output rose 3.3% in July from a year
earlier, while nondurable consumer goods production rose 5.6%. The
price of intermediary goods output rose 7.3%. The increase in producer
prices for products not related to food or energy was much more
subdued. The July price increase in the textile industry rose 2.1% on
the year earlier.
Meanwhile, the Sweden's trade surplus rose to
9.4 billion Swedish crowns ($1.5 billion) in July from an upwardly
revised 9.0 billion the previous month.
Today?s economic
calendar is schedule to release existing home sales from US for the
month of July, which will be followed by a data on trade balance from
New Zealand for the month of July. In the late night we have corporate
service price index from Japan for the month of July.
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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