Asia Roundup: Mostly stronger

Asian markets mostly rose yesterday Thursday August 9 as data showing China’s output slowed and inflation hit a two-and-a-half-year low lifted hopes for fresh easing measures to boost the world’s number two economy.

However, weak European data dented recent optimism, while Wall Street and European traders provided an anaemic lead after a three-day rally lost momentum.

Tokyo stocks closed 1.10 per cent higher as the Bank of Japan stuck to its view that the economy was picking up moderately and held off fresh easing measures. The benchmark Nikkei 225 Index rose 97.44 points to 8,978.60.

“It’s difficult to attribute the market’s reaction to the central bank as anything more than a ‘relief rally’,” said Naomi Fink at Jefferies Japan.

Chinese shares closed up 0.61 per cent. The benchmark Shanghai Composite Index ended up 13.11 points to 2,174.10.

“The likelihood of a reserve requirement ratio cut this month is rising,” Jacky Zhang, an analyst at Capital Securities, told Dow Jones Newswires, referring to a cut in the amount of money that banks must place in reserve.

Seoul gained 1.96 per cent, or 37.36 points, to 1,940.59 but Sydney eased 0.10 percent, or 4.3 points, to 4,308.3.

HONG KONG:  STOCKS stocks rose to their highest level in three months yesterday after data showed China’s factory output slowed to its weakest in more than three years, missing forecasts and rising expectations that Beijing will move to boost growth.
But the gains came in turnover consistent with the average so far this week, suggesting investors remained guarded with more China data expected today for trade and loan growth in July.
The Hang Seng Index closed up 1.02 per cent, or 203.95 points, to end at 20,269.47, the highest since May 9. Chart resistance is next seen at around 20,439, the 23.6 percent Fibonacci retracement of its rise from October lows to February highs.
“We need to see clear signs that the slowdown has bottomed, but I’m not sure if this month’s data will help clarify anything. Policy easing may not help all sectors recover earnings-wise,” said Zhong Hua, a Shanghai-based equity strategist with Guotai Junan Securities.
Standard Chartered Bank ended 4.27 per cent higher at HK$166.10 after its chief executive hit back at US claims it had hidden US$250 billion in transactions with Iranian banks, breaking US sanctions. The lender had slumped 15 per cent in the previous two sessions.

KUALA LUMPUR: Share prices on Bursa Malaysia were higher at the close yesterday on continuous follow-through buying in selected heavyweights and blue chips, pushing the benchmark index to end at its day high, dealers said.
At the close, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 6.6 points to 1,642.52, pushed by gains mostly seen in Maybank, Genting Malaysia and Genting. The three heavyweight counters contributed 3.398 points to the FBM KLCI’s rise.
The benchmark index, which opened 0.25 point lower at 1,635.67, recorded an intra-day low of 1,635.59.
The Finance Index surged 69.62 points to 14,759.91, the Industrial Index improved 15.87 points to 2,867.36 and the Plantation Index rose 26.79 points to 8,705.09.
The FBM Emas Index chalked up 39.521 points to 11,234.48 and the FBMT100 gained 40.87 points to 11,054.99, the FBM70 Index jumped 28.96 points to 12,364.36 while the FBM ACE Index eased 4.23 points to 4,410.75.

In other markets:

* Taipei rose 1.56 per cent, or 113.9 points, to 7,433.70.

* Manila eased 0.98 per cent, or 52.06 points, to 5,256.61.

* Jakarta rose 0.99 per cent, or 40.46 points, to 4,131.17.

* Bangkok rose 0.29 per cent, or 3.57 points, to 1,217.70.

* Mumbai fell 0.23 per cent, or 39.69 points, to 17,560.87.

Singapore was closed for a public holiday.

VIETNAM: Vietnamese shares edged up today with support from heavy weighs, liquidity rose.
The benchmark VN Index gained 3.41 points or 0.8% to 426.98. Volume rose by 81% to 43.06 million shares worth of VND728.3 billion. Put through trading contribute 5.58 million shares worth of VND179 billion.
The VN30 added 4.84 points or 0.96%, to 508.58.  Amongst its 30 members, 21 gained, 4 lost and 5 unchanged.
On the Hanoi Stock Exchange, the HNX advanced 0.31 point or 0.44% to 70.79. Trading volume eased 0.3% to 39.5 million shares worth VND376.5 billion.
HNX30 gained 0.88 point or 0.65% to 135.98.

EUROPE: The pan-European FTSEurofirst 300 nudged closer to 2012 highs yesterday, led by miners after Chinese inflation data gave policymakers scope to boost economic growth in the world’s biggest consumer of raw materials.
By 1041 GMT, the FTSEurofirst 300 was up 1.26 points, or 0.1 per cent, at 1,097.31, holding at four-month highs after rising 0.2 per cent on Wednesday.
In morning deals, London’s benchmark FTSE 100 index added 0.07 per cent to 5,850.05 points and the Paris CAC 40 gained 0.15 per cent at 3,443.51.
Frankfurt’s DAX 30, however, slid 0.14 perc ent to 6,956.68 points on the back of disappointing German company earnings, traders said.
“Markets have gained a little … from Asia, as cooling Chinese consumer inflation lifted stocks on the hopes of further policy easing in China,” said trader Anita Paluch at Gekko Global Markets.

AMERICA:  U.S. stocks are closing mixed after flitting all day between tiny gains and losses. The Dow Jones industrial average is closing down 10 points to 13,165, a move of just 0.08 percent.

Moves in other indexes were also incremental. The Standard & Poor’s 500 rose about half a point to close at 1,403. The Nasdaq composite rose seven to 3,019.

Volume was 3 billion shares, well below the recent average. On the New York Stock Exchange, slightly more stocks rose than fell.

The U.S. reported that its trade deficit fell to the lowest level in 18 months. But China, which has been a major driver of the world economy, showed its own signs of slowing down. It reported lower growth in auto sales and factory output.

Benchmark Currency Rates

	USD	EUR	JPY	GBP	CHF	CAD	AUD	HKD
USD	–	1.2297	0.0127	1.5636	1.0237	1.0083	1.0567	0.1289
EUR	0.8133	–	0.0104	1.2716	0.8326	0.8200	0.8593	0.1049
JPY	78.5700	96.6200	–	122.8570	80.4400	79.2280	83.0260	10.1310
GBP	0.6396	0.7864	0.0081	–	0.6547	0.6449	0.6758	0.0825
CHF	0.9768	1.2011	0.0124	1.5272	–	0.9849	1.0321	0.1259
CAD	0.9918	1.2195	0.0126	1.5507	1.0154	–	1.0480	0.1279
AUD	0.9464	1.1638	0.0120	1.4798	0.9689	0.9542	–	0.1220
HKD	7.7558	9.5368	0.0987	12.1270	7.9402	7.8202	8.1957	–

 

Category: FinanceAsia