Asian shares sank yesterday Tuesday July 13 as optimism about US corporate earnings tapered off and China denied it was easing restrictions aimed at curbing its red-hot property market.
TOKYO: The Nikkei index of the Tokyo Stock Exchange closed down 0.11 percent after a brief rally, continuing its slide from the previous session after a stinging weekend election setback for the government.
Improved results in the second quarter for US aluminium giant Alcoa initially provided the region with a lift but traders remained anxious about other results still to come from the US’ big corporate hitters.
“This week’s trading catalysts are short-lived,” a Japanese brokerage manager told Dow Jones Newswires.
SHANGHAI closed down 1.62 percent, led by mainland property developers after Beijing denied reports it had loosened controls on mortgage lending.
China’s housing ministry acknowledged “positive changes” in the property market but urged local governments to strictly comply with lending policies designed to curb speculative investment.
SYDNEY sank from a positive start, with the S&P/ASX 200 index closing down 0.67 percent, partly taking its cue from China and also due to worries about iron ore prices.
Indian stocks slackened after software exporter Infosys announced a fall of 2.4 percent in its first-quarter consolidated net profit.
MUMBAI: Sensex index ended up 0.27 percent, or 48.7 points, at 17,985.9.
HONG KONG: Stocks fell yesterday led by mainland property developers after Beijing denied it was easing curbs designed to cool a real estate boom.
The benchmark Hang Seng index closed down 0.18 percent, or 36.37 points, at 20,431.06.
Turnover remained low, with investors on the sidelines ahead of China’s GDP data, Agricultural Bank of China’s trading debut and JPMorgan Chase’s quarterly results, all expected tomorrow.
SINGAPORE: Stocks closed hardly changed yesterday. The benchmark Straits Times Index ended up 0.12 percent, or 3.38 points, at 2,928.70.
Analysts said they expect trading volumes to pick up from the latter part of July after the release of second-quarter gross domestic product data today.
Jardine Cycle and Carriage surged 50 cents to S$33.52 and Singapore Airlines gained 8 cents to S$14.96.
KUALA LAMPUR: Share prices on Bursa Malaysia extended their technical rebound for the sixth consecutive trading day yesterday.Advancing counters outpaced declining ones by 363 to 284.
The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) rebounded from its intra-day low of 1,328.71 to its intra-day high of 1,332.87 yesterday. It closed at 1,332.87, giving a day-on-day gain of 6.13 points, or 0.46 percent.
In other markets:
MANILA closed up 0.84 percent, or 28.89 points, at a fresh 30-month high of 3,435.85.
TAIPEI fell 0.55 percent, or 42.13 points, to 7,597.42.
SEOUL edged 0.06 percent higher amid profit-taking as investors await Intel’s second-quarter earnings. The benchmark Kospi gained 1.03 points to reach 1,735.08.
JAKARTA was flat at 2,961.51 in thin trading .
BANGKOK slipped 0.28 percent, or 2.26 points, to 817.35.
VIETNAM: The VN Index increased by 9.15 points or 1.83 percent to end at 509.08 points with total matching order trade of over 47 million shares being transferred.
The HNX Index jumped by 4.33 points or 2.75 percent to 161.9 points with over 41 million shares changing hands during the session
EUROPE: European shares advanced for a sixth straight session and closed at a three-week high yesterday after impressive results from some major US companies raised hopes for a strong regional quarterly earnings season.
Sentiment was also boosted by a successful Greek treasury bill auction, the country’s first debt sale since a massive emergency loan backstop from the European Union and International Monetary Fund was agreed in May.
The FTSEurofirst 300 index of top European shares ended 1.9 percent firmer at 1,045.47 points, the highest close since June 22. It is up 8 percent since hitting a low in early July on euro zone debt fears and concern over bank finances.
Across Europe, UK’s FTSE 100, Germany’s DAX, France’s CAC 40, Spain’s IBEX 35 and Italy’s FTSE MIB rose 1.6 to 2 percent.
AMERICA: The stock market got a shot of confidence from the start of second-quarter earnings season.
Investors sent stocks sharply higher Tuesday after better-than-expected profits from aluminum maker Alcoa Inc. and railroad operator CSX Corp. The Dow Jones industrial average rose more than 145 points for its sixth straight gain, and the major indexes were up well over 1 percent.
The Dow rose 146.75, or 1.4 percent, to 10,363.02. The Standard & Poor’s 500 index rose 16.59, or 1.5 percent, to 1,095.34, while the Nasdaq composite index rose 43.67, or 2 percent, to 2,242.03.
Only 376 stocks fell on the New York Stock Exchange while 2,669 rose. Volume came to 1.13 billion shares.
Bond prices dipped as investors taking more chances on stocks retreated from the safety of government debt. The yield on the 10-year note rose to 3.12 percent from 3.07 percent late Monday. Its yield helps set interest rates on consumer loans and mortgages.
The Russell 2000 index of smaller companies rose 21.21, or 3.4 percent, to 642.82.
Benchmark Currency Rates USD EUR JPY GBP CHF CAD AUD HKD HKD 7.7748 9.8837 0.0873 11.8324 7.3652 7.5435 6.8783 AUD 1.1303 1.4369 0.0127 1.7202 1.0708 1.0967 0.1454 CAD 1.0306 1.3102 0.0116 1.5685 0.9764 0.9118 0.1326 CHF 1.0556 1.3419 0.0119 1.6065 1.0242 0.9339 0.1358 GBP 0.6571 0.8353 0.0074 0.6225 0.6375 0.5813 0.0845 JPY 89.035 113.186 135.502 84.3454 86.3872 78.7693 11.4518 EUR 0.7866 0.0088 1.1972 0.7452 0.7632 0.6959 0.1012 USD 1.2712 0.0112 1.5219 0.9473 0.9703 0.8847 0.1286 Bloomberg