Asia: Markets mixed after Wall St rally

18-Jul-2014 Intellasia | Business Times | Reuters | AFP | Bloomberg | AP | 7:43 AM Print This Post

Asian shares were mixed yesterday Thursday July 17 after the Dow on Wall Street ticked up another record high in response to strong earnings and a positive outlook on the United States economy by the US Federal Reserve.

An early rally in response to the US gains fizzled towards the end of the day as profit-takers moved in.

Tokyo ended flat, edging down 9.04 points to finish at 15,370.26 as the yen strengthened against the dollar, while Sydney was marginally higher, adding 3.54 points to 5,522.4 and Seoul gained 0.37 per cent, or 7.42 points, to 2,020.90.

In the meantime, Shanghai lost 0.57 per cent to close at 2,055.59.

The mood remained largely buoyant after China said on Wednesday that the world’s number two economy and key driver of global growth expanded more than expected in the second quarter of the year.

US shares resumed their uptrend on Wednesday as traders welcomed a report from the Fed that said all 12 economic regions of the country continued to expand in the six weeks to July 7.

On Wall Street the Dow jumped 0.45 per cent to a new record, while the S&P 500 gained 0.42 per cent and the Nasdaq added 0.22 per cent.

HONGKONG: SHARES closed flat yesterday as profit-taking wiped out early gains that were fuelled by a record close on Wall Street.
The Hang Seng Index edged down 2.41 points to 23,520.87 — the first loss in four days — on turnover of HK$52.06 billion.
Cathay Pacific Airways added 0.42 per cent to HK$14.48, HSBC rose 0.25 per cent to HK$79.80 and Ping An Insurance of China dipped 0.08 per cent to HK$58.95.
Tencent slipped 0.97 per cent to HK$123.10, China Mobile added 0.12 per cent to HK$81.75 and Sands China sank 1.24 per cent to HK55.75.

SINGAPORE: THE Straits Times Index (STI) ended 2.46 points, or 0.07 per cent, higher to 3,306.89 points yesterday.
The FTSE ST Mid Cap Index declined 0.09 per cent while the FTSE ST Small Cap Index appreciated by 0.18 per cent.
Among the actives, UOB fell 1.96 per cent, DBS rose 0.76 per cent, Ezion gained 1.95 per cent and Noble grew by 1.07 per cent.
Of the outperforming sector, FTSE ST Telecommunications advanced 0.75 per cent.
Of its biggest stocks, SingTel gained 0.76 per cent and StarHub went up 0.49 per cent.

KUALA LUMPUR: SHARE prices on Bursa Malaysia ended lower yesterday on selling pressure, in line with regional bourses, dealers said.
The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) was 3.57 points lower at 1,883.14, after opening 0.16 point higher at 1,888.15.
The index moved between 1,879.4 and 1,888.15 throughout the day.
Gainers led losers by 416 to 411, with 347 counters unchanged, 465 untraded and 26 others suspended.
Total volume fell to 2.12 billion units valued at RM2.21 billion from 2.40 billion units valued at RM2.63 billion previously.
“Local and regional share prices succumbed to profit-taking despite the uptrend performance on Wall Street,” a dealer said.
The Finance Index slipped 12.27 points to 17,559.02 and the Plantation Index dropped 37.66 points to 9,045.87 while the Industrial Index rose 2.15 points to 3,265.51.
The FBM Emas Index declined 22.521 points to 13,138.55, the FBMT100 Index eased 22.189 points to 12,730.78, the FBM ACE Index slipped 25.5 points to 6,878.63 and the FBM 70 Index lost 17.8 points to 14,466.99.
Among the actives, newly-listed Tanah Makmur advanced 69 sen to RM1.94 after opening at RM1.60 and AirAsia X rose 3.5 sen to 75.5 sen. Heavyweights Maybank was flat at RM10, Public Bank lost two sen to RM20.14 and Tenaga slipped 16 sen to RM6.94.
Meanwhile, FBM KLCI futures contracts on Bursa Malaysia Derivatives closed lower for the second consecutive day, in line with the cash market.
Spot month July 2014 slipped six points to 1,880.5, August 2014 declined six points to 1,881, September 2014 decreased five points to 1,879 and December 2014 fell five points to 1,880. Turnover rose to 4,212 lots from 3,403 lots on Wednesday, while open interest increased to 33,909 contracts from 32,860 contracts.

In other markets:

Taipei fell 0.81 per cent to 9,408.24. Hon Hai shed 0.93 per cent to T$106.5 while smartphone maker HTC was 0.73 per cent lower at T$136.

Wellington was almost unchanged, dipping 1.86 points to 5,112.39. Contact Energy eased 0.19 per cent to NZ$5.34 and Freightways lost 0.59 per cent to end at NZ$5.02.

Manila closed 0.49 per cent higher, adding 33.32 points to 6,867.36. Philippine Long Distance Telephone rose 0.80 per cent at 3,030 pesos and Ayala Land added 0.16 per cent to 30.85 pesos.

Bangkok rose 0.34 per cent to 1,535.66. TMB Bank soared 7.41 per cent to 2.90 baht, while Bangchak Petroleum gained 4.17 per cent to 31.25 baht.

Jakarta fell 0.84 per cent to 5,071.20. Telco company Indosat gained 0.13 per cent to 3,800 rupiah whileminer Aneka Tambang lost 1.32 per cent to 1,125 rupiah.

Mumbai was flat, closing up 11.44 points at 25,561.16. Crompton Greaves surged 13.45 per cent to 210.85 rupees, while TTK Prestige rose 9.11 per cent to 3,812.85 rupees.

VIETNAM: Vietnamese stocks rose further today as investors continued to bet for a sustainable rally in long term.
The benchmark VN Index added 0.69 point or 0.12% to 590.37. Volume fell 30% to 96.6 million shares worth of VND1.442 trillion. Put-through trading contributed 2.2 million shares worth of VND72.36 billion.
The market breadth turned negative with 97 gainers, 102 losers and 82 unchanged.
The VN30 bucked trend to close down 0.83 point or 0.13% to 636.3. Among 30 constituents 12 gained, 11 fell and 6 stood still.
On the Hanoi Stock Exchange, The HNX-Index rebounded, sending the market benchmark HNX-Index to a three-month high, as blue-chips advanced. The HNX-Index, the measure of 360 stocks, rose 0.69 points, or 0.86%, to end at 80.85, the highest since April 23.
The traded volume was down over 40% from a day earlier to 41 million shares worth VND541 billion, down over 30% from yesterday.
PetroVietnam Construction Corporation (PVX) ended unchanged for a fifth straight day at VND4,400 on a trade of 3.7 million units – the third most active issue on the gauge.
The HNX 30 Index – the tracker of top 30 stocks calculated based on free float adjusted market capitalization – climbed 1.48 points, or 0.9%, to end at 164.81.

EUROPE: Europe’s stock markets fell yesterday after the United States and European Union announced that they would apply further sanctions against Russia over the crisis in Ukraine.
The news sent markets sliding as many investors sought to minimise risky investments amid heightened Ukraine concerns, dealers said.
In midday deals, London’s FTSE 100 fell 0.80 per cent to 6,730.46 points, Frankfurt’s DAX 30 shed 1.08 per cent to 9,753.03 points and Paris’ CAC 40 reversed 1.14 per cent to 4,319.1.
Milan stocks dropped 1.47 per cent, Madrid decreased by 1.24 per cent, and Lisbon was down 1.37 per cent.
“Risk aversion has returned to the markets on Thursday after the US and Europe announced a fresh round of sanctions against Russia in response to its part in the Ukrainian conflict,” said Alpari analyst Craig Erlam.

AMERICA: The downing of a passenger plane flying over Ukraine rattled U.S. financial markets Thursday, deepening a slide set off by a batch of disappointing company earnings and a weak home construction report.

All three major stock indexes ended lower for the first time in a week, but remained near record highs and positive for the year.

Ukrainian officials said a Malaysia Airlines passenger plane carrying 295 people was shot down over war-torn eastern Ukraine, although both the government and pro-Russia separatists fighting in the region denied responsibility. The situation raised concerns of wider geopolitical instability and an escalation of tensions between Russia and the West.

Investors responded by seeking refuge in U.S. government bonds. The yield on the 10-year Treasury note fell to its lowest level since May. Gold and oil prices rose.

SanDisk, AutoNation, Yum Brands and Mattel were among the biggest decliners after reporting earnings or profit forecasts that disappointed investors. Airline and homebuilder stocks also fell sharply.

“What happened with the plane today and things swirling around with what may have actually happened with the plane caused a bit of a sell-off,” said JJ Kinahan, chief strategist at TD Ameritrade. “The geopolitical risk is always the first one that people look for because it’s the one that changes the fastest. The market always hates uncertainty.”

Earlier Thursday, stock futures were down before the market opened as investors pored over the latest earnings and other news.

A pair of government reports pointed to an uneven U.S. recovery. The number of people seeking unemployment benefits fell last week, but home construction fell in June to the slowest pace in nine months, clouding the outlook for the housing recovery.

Homebuilders slumped on the news. M/I Homes led the decline, tumbling $1.38, or 5.8 percent, to $22.37.

“The housing starts numbers were weak, but housing has been incredibly volatile,” said Randy Frederick, managing director of trading and derivatives at the Schwab Center for Financial Research. “They were definitely disappointing.”

Stocks opened lower, but then drifted between small gains and losses, with the Dow inching briefly into positive territory.

That budding comeback stalled at midmorning when news broke of the downed plane.

The CBOE Volatility Index, also known as the “VIX,” jumped 33 percent, reflecting investors’ uneasiness. The index reflects investors’ expectations of future volatility in the stock market.

All told, the Standard & Poor’s 500 index fell 23.45 points, or 1.2 percent, to 1,958.12. The Dow slid 161.39 points, or 0.9 percent, to 16,976.81. The Nasdaq composite sank 62.52 points, or 1.4 percent, to 4,363.45.

The yield on the 10-year Treasury note fell to 2.46 percent from 2.53 percent late Wednesday. Benchmark U.S. crude oil for August delivery jumped $1.99 to $103.19 in New York. Gold surged $17.10 to $1,316.90 an ounce.

All 10 sectors in the S&P 500 declined, led by energy stocks.

SanDisk fell the most of the 500 stocks in the index, losing 13.6 percent after the flash memory maker issued a disappointing outlook. The stock fell $14.62 to $93.21.

Sherwin-Williams bucked the trend, ending up as the biggest gainer in the index. It rose $9.22, or 4.6 percent, to $210.95.

Despite Thursday’s decline, stocks remain near record territory.

The Dow closed at a record high on Wednesday, its second this month, and the S&P 500 is hovering near its most recent all-time high of 1,985.44 set on July 3.

That may have encouraged investors to sell some of their stock holdings Thursday, said Darrell Cronk, deputy chief investment officer for Wells Fargo Private Bank.

“It’s more of some position-squaring and a little bit of profit-taking over the next couple of days as we continue to set new highs,” Cronk said.

Even with growing geopolitical uncertainty, the market has remained focused on company earnings, which have been mostly favorable so far.

On Thursday, however, many companies disappointed.

AutoNation’s second-quarter earnings rose 12 percent, but fell short of Wall Street’s expectations. The stock of the nation’s largest auto dealership chain fell $5.01, or 8 percent, to $55.82.

Mattel fell $2.57, or 7 percent, to $36.46 after the toy maker reported that its income plunged 61 percent in the second quarter, weighed down by costs tied to its acquisition of Mega Brands.

Yum Brands shares slid $5.70, or 7 percent, to $77.01 after the operator of Taco Bell, Pizza hut and KFC reported higher second-quarter earnings but also sluggish sales in the U.S. at Pizza Hut and KFC chains.

Among other stocks making news:

Microsoft rose 45 cents, or 1 percent, to $44.53 after announcing early Thursday that it will eliminate up to 18,000 jobs over the next year as it works to integrate the Nokia business it bought in April. The company has about 127,000 employees now.

Benchmark Currency Rates

USD

1.3520 0.0099 1.7087 1.1138 0.9294 0.9344 0.1290

EUR

0.7396 0.0073 1.2638 0.8237 0.6874 0.6911 0.0954

JPY

101.2300 136.8800 172.9800 112.7500 94.0810 94.5850 13.0615

GBP

0.5852 0.7913 0.0058 0.6518 0.5439 0.5468 0.0755

CHF

0.8978 1.2140 0.0089 1.5343 0.8345 0.8390 0.1158

CAD

1.0760 1.4548 0.0106 1.8386 1.1985 1.0055 0.1388

AUD

1.0702 1.4469 0.0106 1.8287 1.1919 0.9945 0.1381

HKD

7.7508 10.4799 0.0766 13.2439 8.6322 7.2031 7.2422

Source: Bloomberg

 


Category: FinanceAsia

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