Asian shares lost ground and the dollar fell to its lowest level against the yen this year yesterday Friday July 16 due to weak US and Chinese economic data, although Mumbai was lifted by positive earnings.
Sentiment took a hit from news out of the US earlier of a drop in manufacturing activity in New York state and only a modest rise in industrial production across the country last month.
Data also showed a decline in US producer prices, suggesting a slow recovery and possible deflation. The data sent the dollar to its lowest level so far this year against the yen.
TOKYO shares closed down 2.86 percent, with exporters such as Sony and Nissan hit hardest due to the strong yen.
SHANGHAI was similarly weighed by AgBank’s slow performance. The Shanghai Composite Index fell 0.03 points at 2,424.27. Over the week it was down 2 percent.
AgBank’s IPO underwhelmed on its Hong Kong debut, following a tepid start in Shanghai on Thursday. Its shares closed up 2.2 percent from their HK$3.20 IPO price.
“Investors are waiting on the sidelines as they think AgBank will fall below its IPO price in no time,” said Wang Junqing at Guosen Securities.
SYDNEY closed down 0.45 percent, or 19.9 points, at 4,422.7, with new leader Julia Gillard expected to call national elections for August over the weekend.
MUMBAI was more exuberant, edging up 0.26 percent, or 46.36 points, to 17,955.82, buoyed by strong quarterly earnings data from top software exporter TCS.
HONG KONG: Shares ended flat yesterday as investors worried about the latest negative US economic data and as China’s massive AgBank IPO got off to a lukewarm start.
The benchmark Hang Seng index closed down 5.46 points at 20,250.16. It is down 0.6 percent over the week.
“Investors are treading water to cross the river,” said Jackson Wong, an investment manager at Tanrich Securities. “There’s a lot of uncertainty.”
SINGAPORE: The stock market hit its highest in more than 10 weeks as investors sought out shares in companies likely to report good results.
The Straits Times Index closed up 0.48 percent, or 14.17 points, at 2,957.72.
“Investors are cautiously optimistic on second-quarter growth in the region, and hopes over better earnings are driving them to buy,” saidSong Seng Wun, a regional economist at CIMB-GK Research.
KUALA LAMPUR: The FTSE Bursa Malaysia Composite Index (FBM KLCI) staged a follow-through technical rebound for the week ended yesterday, continuing to stay above its psychological resistance of 1,300 points when it closed at 1,336.65 yesterday.
The FBM KLCI staged a very mild follow-through rebound on Monday, trending between its intra-day low of 1,323.55 and intra-day high of 1,331.74. It closed at 1,326.74, with a day-on-day gain of 2.43 points, or 0.18 percent.
In other markets:
MANILA closed down 0.72 percent, or 24.95 points, at 3,442.68 points.
TAIPEI fell 0.52 percent, or 39.95 points, to 7,664.57.
SEOUL closed down 0.73 percent, with auto and technology stocks pulling down the index amid lingering fears of a double-dip global recession. The benchmark Kospi ended down 12.84 points at 1,738.45.
BANGKOK closed up 0.79 percent, or 6.52 points, at 827.54.
JAKARTA rose 0.40 percent, or 11.86 points, to a record closing high of 2,992.45 as foreign funds bought banks and blue chip mining stocks.
VIETNAM: The VN Index reversed to increase by 1.02 points or 0.2 percent to end at 506.21 points with total matching order trade of 43.11 million shares valued at 1.297 trillion dong.
The HNX index of northern bourse reported a slight increase of 0.41 point or 0.26 percent to 161.12 points with total market trade of 40.73 million shares for 1.212 trillion dong.
EUROPE: European shares fell yesterday, after downbeat US economic data and disappointing results at Citigroup, Bank of America and General Electric heightened concerns over the pace of economic recovery.
The pan-European FTSEurofirst 300 index of top shares closed 2 percent lower at 1,012.94 points, ending the week at its lowest level since July 7.
US companies Citigroup, GE and Bank of America reported better than expected quarterly earnings, but revenues fell from a year earlier.
Adding to concerns for recovery in the world’s largest economy, data showed US consumer prices fell for a third straight month in June while an indicator of consumer sentiment tumbled to an 11-month low in July.
In London, the FTSE 100 index of leading shares closed down 1.00 percent at 5,158.85 points. In Paris, the CAC 40 tumbled 2.28 percent to 3,500.16 points and in Frankfurt the DAX lost 1.77 percent at 6,040.27 points.
AMERICA: Investors are finding disappointment everywhere and taking out their frustration on stocks.
Stocks slumped Friday after banks’ second-quarter earnings fell short of expectations and a new survey found that consumers are becoming more pessimistic.
The Dow fell 261.41, or 2.5 percent, to 10,097.90. The Standard & Poor’s 500 index fell 31.60, or 2.9 percent, to 1,064.88. The Nasdaq composite index fell 70.03, or 3.1 percent, to 2,179.05.
For the week, the Dow is down 1 percent, the S&P 500 is down 1.2 percent, and the Nasdaq is down 0.8 percent.
About four stocks fell for every one that rose on the New York Stock Exchange, where consolidated volume came to 5.4 billion shares, up from Thursday’s 4.6 billion.
Bond prices rose in what’s known as a flight to safety. That sent their yields lower. The yield on the benchmark 10-year Treasury note, which helps set interest rates on mortgages and other kinds of loans, fell to 2.93 percent from 3.00 percent late Thursday.
Bank of America’s stock fell $1.41, or 9.2 percent, to $13.98. Citigroup was off 26 cents, or 6.3 percent, at $3.90. Both companies beat analysts’ expectations. However, the drop in their revenue as a result of the stock market’s slide had investors worried about how banks would make money in the future under new government regulations.
The Dow ended its seven-day winning streak on Thursday. It was down as much as 126 points early in the day, but closed down just 7 as word spread about the Goldman Sachs settlement.
A government report on consumer prices for June was mainly in line with analysts’ expectations. The Consumer Price Index dipped 0.1 percent last month, largely due to lower energy bills.
The euro climbed above $1.29 as it recovers following a steep plunge earlier this year amid fears that government debt in many European nations would send the continent back into recession.
Benchmark Currency Rates USD EUR JPY GBP CHF CAD AUD HKD HKD 7.7752 10.0535 0.0898 11.8966 7.3983 7.3475 6.7558 AUD 1.1509 1.4881 0.0133 1.761 1.0951 1.0876 0.148 CAD 1.0582 1.3683 0.0122 1.6191 1.0069 0.9195 0.1361 CHF 1.051 1.3589 0.0121 1.608 0.9931 0.9131 0.1352 GBP 0.6536 0.8451 0.0075 0.6219 0.6176 0.5679 0.0841 JPY 86.573 111.939 132.462 82.3759 81.8108 75.2215 11.1344 EUR 0.7734 0.0089 1.1833 0.7359 0.7308 0.672 0.0995 USD 1.293 0.0116 1.5301 0.9515 0.945 0.8689 0.1286 Bloomberg