Asian investors yet to regain confidence

11-Dec-2009 Intellasia | Business Times | Reuters | AFP | Bloomberg | AP | 2:41 PM Print This Post

Asian markets were pushed further down yesterday Thursday Dec 10 as economic turmoil in Europe and Dubai’s debt woes weighed on hopes for a strong global recovery.

Investors have been spooked by Dubai’s multi-billion-dollar debt problems, which were compounded when Fitch on Tuesday downgraded Greece’s rating as its economy struggles. That was followed on Wednesday by Standard and Poor’s putting Spain on a downgrade warning.

TOKYO: Down 1.42 percent. The Nikkei-225 lost 141.90 points to 9,862.82.

“The yen’s strength remains the market’s biggest concern for now,” Tachibana Securities market analyst Kenichi Hirano told Dow Jones Newswires.

HONG KONG: Shares finished 0.19 percent lower yesterday as Chinese property companies were weighed down by Beijing’s moves to rein in asset bubbles on the mainland.

The benchmark Hang Seng Index dropped 41.72 points to 21,700.04.

The market has fallen for five days in a row, with Chinese banks also weighing on sentiment due to persistent fund-raising concerns.

SINGAPORE: Shares closed 0.55 percent lower yesterday as traders stayed on the sidelines, dealers said.

The blue-chip Straits Times Index fell 15.35 points to 2,781.86

“People are pretty much on the sidelines after taking profits. I don’t think sustained buying interest will come back until early next year,” said a dealer at a foreign brokerage.

SYDNEY: Down 0.67 percent. The S&P/ASX200 dropped 31.2 points to 4,606.7.

“The local market did receive a bit of a spark with the release of the monthly employment picture … but the market just cannot hold onto gains and seems to lack both the energy and inspiration to push higher,” said IG Markets analyst Cameron Peacock.

SHANGHAI: Up 0.45 percent. The composite index, which covers both A and B shares, was up 14.69 points at 3,254.26.

Analysts said Beijing’s planned stimulus measures, especially those targeting the housing and car markets, failed to impress.

SEOUL: Up 1.14 percent. The Kospi gained 18.56 percent to 1,652.73.

Min Sang-Il, an analyst at E*Trade Securities, told Dow Jones Newswires programme trade dominated the market, influencing the index throughout the session on a day when options and futures expire.

TAIPEI: Down 1.53 percent. The weighted index shed 119.51 to 7,677.91.

The market opened stable but slid into negative territory around midday, hitting an intraday low of 7,631.06 before gaining slightly at the close.

KUALA LAMPUR: Share prices on Bursa Malaysia staged a rebound yesterday. Overall declining counters outpaced advancing counters by 334 to 279.

The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) rebounded from its intra-day low of 1,255.80 to its intra-day high of 1,260.24 on Wednesday. It closed at 1,259.90 yesterday, giving a day-on-day gain of 4.14 points, or 0.33 percent.

JAKARTA: Up 0.21 percent. The composite index rose 5.14 points to 2,486.43.

Traders expect shares to continue to consolidate today in the absence of fresh leads.

MANILA: Up 0.85 percent. The composite index added 25.32 points to 3,006.57, while the all-share index gained 0.56 percent or 10.33 points to 1,870.69.

Joseph Roxas of Eagle Equities put the next resistance at 3,100 with the support at 3,000, as market activity winds down towards the Christmas break.

MUMBAI: Up 0.37 percent. The 30-share Sensex closed up 64.09 points at 17,189.31.

VIETNAM:
December 10 marked the consecutive point-losing session for the two indexes. The selling pressure continued increasing while the demanding order slumped, causing a massive of declining share codes. The market liquidity suddenly dropped.
VN Index kept reducing by 11.91 points or 2.53 percent to 458.72 points with a total matching order trade of 36.54 million shares worth 1.386 trillion dong, plunging by 17.92 percent in volume and 20.33 percent in value against the previous session.
Sharing the same scenario, HNX Index climbed down by 3.38 points or 2.29 percent to end at 144.53 points with a total market trade of 16.401 million shares for 470.161 billion dong in value.

EUROPE:
LONDON: European shares snapped their three-day losing streak yesterday, helped by banks recovering from recent losses on worries over some of the region’s more exposed economies and Dubai’s debt problems.

The FTSEurofirst 300 index of top European shares provisionally closed up 1 percent at 1,004.36 points, after losing 3 percent in the pervious three sessions.

London’s FTSE index gained 0.78 percent to close at 5,244.37 points.

In Paris the CAC 40 rose 1.09 percent to 3,798.38 while in Frankfurt the Dax added 1.08 percent to finish at 5,709.02 points.

AMERICA:
A jump in exports lifted stocks Thursday, offsetting concerns about an increase in unemployment claims.

The market came away with moderate gains for the day after the Commerce Department said rising exports helped narrow the nation’s trade gap to $32.9 billion in October. Economists had been expecting an increase.

The Dow Jones industrial average rose 66.78, or 0.7 percent, to 10,405.83, pushing it back into the winning column for the month. The Dow is up 120 points in two days after falling 104 on Tuesday on worries about rising debt loads in a number of countries.

The Standard & Poor’s 500 index rose 6.40, or 0.6 percent, to 1,102.35, while the Nasdaq composite index rose 7.13, or 0.3 percent, to 2,190.86.

Chan said investors are not only eager to guard their gains as the end of the year approaches but are also harder to impress following the government’s report last week that employers cut fewer jobs in November than at any time since the recession began two years ago.

“It raises the hurdle to get the market excited,” he said.

The S&P 500 index is up 22 percent for the year after a nine-month rally but hasn’t gained much ground in the past month.

In other trading, Treasury prices fell for a second day after an auction of 30-year bonds drew weak demand. The slump in prices for long-dated bonds pushed yields higher. The yield on the benchmark 10-year Treasury note rose to 3.50 percent from 3.44 percent late Wednesday, while the yield on the 30-year bond rose to 4.51 percent from 4.42 percent.

Gold rose after a four-day slide, while oil fell for a seventh day, losing 13 cents to settle at $70.54 a barrel at the New York Mercantile Exchange.

Three stocks rose for every two that fell on the New York Stock Exchange, where consolidated volume came to 3.9 billion, compared with 4.2 billion Wednesday.

The Russell 2000 index of smaller companies fell 2.65, or 0.4 percent, to 595.38.

Benchmark Currency Rates
	USD	EUR	JPY	GBP	CHF	CAD	AUD	HKD
HKD	7.7506	11.4161	0.0878	12.6146	7.5527	7.3703	7.1027	 
AUD	1.0912	1.6073	0.0124	1.776	1.0634	1.0377	 	0.1408
CAD	1.0516	1.5489	0.0119	1.7115	1.0248	 	0.9637	0.1357
CHF	1.0262	1.5115	0.0116	1.6702	 	0.9758	0.9404	0.1324
GBP	0.6144	0.905	0.007	 	0.5987	0.5843	0.5631	0.0793
JPY	88.294	130.051	 	143.704	86.0398	83.9616	80.9135	11.3919
EUR	0.6789	 	0.0077	1.105	0.6616	0.6456	0.6222	0.0876
USD	 	1.4729	0.0113	1.6276	0.9745	0.9509	0.9164	0.129
                                                              Bloomberg

 


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