Financial stocks led most Asian markets higher yesterday August 03 after two of Europe’s biggest banks posted strong earnings, with sentiment also lifted by better-than-expected US data.
Markets rose after HSBC, Europe’s biggest bank, on Monday reported its first half net earnings had leapt to $6.76 billion, as bad debts in the US eased and profit from emerging markets increased.
TOKYO: Nikkei index gained 1.29 per cent.
SYDNEY rose 0.66 per cent and Hong Kong closed up 0.21 per cent.
The bank results lifted confidence in the financial sector, especially after European banking “stress tests” last month showed just seven out of 91 lenders looked at would be under-capitalised in the event of a new financial crisis.
SHANGHAI fell 1.70 per cent on profit-taking, losing 45.85 points to 2,627.00 after the index posted strong gains recently.
HONG KONG: Stocks ended 0.21 per cent higher yesterday lifted by a Wall Street rally but restrained by profit-taking after a string of positive sessions.
The benchmark Hang Seng Index closed 44.87 points up at 21,457.66. Turnover was HK$68.32 billion.
Market was boosted by Monday’s 1.99 per cent rise on the Dow, which was caused by encouraging data on industrial activity in the US and Europe as well as better-than-expected earnings from HSBC and BNP Paribas.
SINGAPORE closed 0.34 per cent, or 10.27 points, lower at 3,014.77, reversing early gains to a 2010 high despite healthy corporate earnings and confidence the economy would be supported over the rest of the year.
Wilmar International dropped 0.16 per cent to S$6.29 and Singapore Airlines gained 0.64 per cent to S$15.86.
Gaming group Genting Singapore dropped 3.1 per cent due to profit-taking, said a Singapore-based analyst.
KUALA LUMPUR: Share prices on Bursa Malaysia continued to edge marginally higher yesterday. Its overall declining counters outpaced its advancing counters by 479 to 250.
The Kuala Lumpur Composite Index (KLCI) fell from its intra-day high of 1,370.52 to its intra-day low of 1,359.55 yesterday. It closed at 1,363.83 points, giving a day-on-day gain of 0.23 points, or 0.02 per cent.
In other markets:
SEOUL closed up 0.47 per cent, or 8.33 points, at 1,790.60.
TEIPEI rose 0.58 per cent, or 45.85 points, to 7,957.53.
HONHAI rose 1.88 per cent to NT$136.0 while HTC fell 4.27 per cent to 583.0.
JAKARTA lost 2.79 per cent, or 85.32 points, to 2,973.66.
The index was hit by worries that rising inflation will prompt the central bank today to hike its key interest rate.
MANILA closed up 0.83 per cent, or 28.84 points, at 3,484.08, with the index posting its highest close since December 2008.
WELLINGTON rose 0.20 per cent, or 6.21 points, to 3,050.39.
Telecom ended up 1 per cent at NZ$2.02 and Property For Industry rose 1.8 per cent to 1.15.
BANGKOK edged up 0.15 per cent, or 1.30 points, to close at 864.48.
BANPU fell 4.00 baht to 626.00 but PTT plc added 1.00 baht to 258.00.
MUMBAI rose 0.19 per cent in choppy trade, led by banking stocks. The benchmark 30-share Sensex index rose 33.62 points to 18,114.83.
VIETNAM: The strong rally in blue-chips yesterday lifted shares on the Hochiminh City Stock Exchange, resulting in the VN Index gaining 0.57 percent to close the week’s trades at nearly 494 points.
The HNX-Index gained 0.22 percent to close at 153.33. Market liquidity fell 23 percent in volume and value.
EUROPE: European shares ended flat yesterday as strong corporate results from the likes of Deutsche Post offset some worries about the economic recovery fuelled by disappointing US data.
The pan-European FTSEurofirst 300 index of top shares ended barely changed at 1,070.79 points after closing at a three-month high on Monday.
The index has gained almost 66 per cent from its lifetime low of March 9 2009, but is down 4 per cent from a 2010 peak in mid-April.
Concern over the pace of economic recovery was reinforced by data showing US consumer spending and incomes were flat in June while the index for pending sales of previously owned homes fell to a record low.
In London, the FTSE 100 index was virtually unchanged at 5,396.48 points.
In Paris, the CAC 40 slipped 0.12 per cent to 3,747.51 points but in Frankfurt the DAX gained 0.25 per cent to 6,307.91 points.
AMERICA: The stock market has retreated from its big gain after disappointing earnings and economic reports reminded investors of the obstacles still facing the economy.
From the start of trading Tuesday, investors had a bleaker view of the recovery than they did during a rally on Monday.
Losing stocks were ahead of gainers by about 2 to 1 on the New York Stock Exchange. Volume was very light at 997 million shares.
The stock market pulled back Tuesday from its big rally after disappointing earnings and economic reports raised investors’ concerns about the strength of the recovery.
In late trading, the Dow Jones industrial average fell 31.18, or 0.3 percent, to 10,643.20. The Standard & Poor’s 500 index fell 4.05, or 0.4 percent, to 1,121.81, while the Nasdaq composite index fell 8.48, or 0.4 percent, to 2,286.88.
Rising stocks slightly outpaced those that fell on the New York Stock Exchange where volume came to 585 million shares. Volume remains light, which can intensify the market’s price swings.
Investors sought the safety of Treasury bonds, which pushed interest rates lower. Reports the Federal Reserve could start buying bonds again also added to their strength. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.91 percent from 2.97 percent late Monday.
Tuesday’s pullback in stocks was also to be expected after such a big gain on Monday, which came on renewed optimism about the economy. Trading has been erratic since the spring amid the conflicting signals about the recovery, and many traders are quick to cash in any profits.
The National Association of Realtors said its index of pending home sales fell to its lowest level since it began keeping records in 2001. The index dropped 2.6 percent to a reading of 75.7. Economists had predicted that the index that measures the number of people who signed contracts to purchase homes would rise to 78.1.
Benchmark Currency Rates USD EUR JPY GBP CHF CAD AUD HKD HKD 7.7614 10.262 0.0904 12.375 7.4618 7.5801 7.092 AUD 1.0944 1.447 0.0127 1.7449 1.0521 1.0688 0.141 CAD 1.0239 1.3538 0.0119 1.6326 0.9844 0.9356 0.1319 CHF 1.0402 1.3753 0.0121 1.6584 1.0159 0.9504 0.134 GBP 0.6272 0.8293 0.0073 0.603 0.6125 0.5731 0.0808 JPY 85.875 113.54 136.92 82.560 83.869 78.468 11.064 EUR 0.7563 0.0088 1.2059 0.7271 0.7386 0.6911 0.0974 USD 1.3222 0.0116 1.5944 0.9614 0.9766 0.9138 0.1288 Bloomberg