Asia: Markets take cue from Wall St rally

11-Apr-2014 Intellasia | Business Times | Reuters | AFP | Bloomberg | AP | 8:34 AM Print This Post

Asian markets rose yesterday Thursday April 10, taking their lead from a Wall Street rally after minutes from the United States Federal Reserve’s latest policy meeting showed no support for an early rise in interest rates.
While early gains were pared after China said imports and exports fell sharply in March, Hong Kong and Shanghai were lifted by hopes of new government stimulus and news of a plan to increase access between the two cities’ stock exchanges.
Tokyo ended flat, edging up 0.43 points to 14,300.12, and Seoul added 0.48 per cent, or 9.66 points, to 2,008.61.
Sydney closed up 0.31 per cent, or 17 points, at 5,480.8 after data showed unemployment had dropped in March below six per cent. Shanghai jumped 1.38 per cent, or 29.06 points, to 2,134.30.
Regional investors were given a positive lead from the United States after the Fed minutes showed bank policymakers were broadly in favour of continuing a steady reduction in its stimulus programme.

HONGKONG: SHARES rallied yesterday as dealers welcomed plans to link the two cities’ bourses and allow cross-market investments.
The benchmark Hang Seng Index rose 1.51 per cent, or 343.79 points, to 23,186.96.
Companies with dual listings in both Shanghai and Hong Kong – one of the beneficiaries of the move.
China Mobile gained 1.9 per cent to HK$75.10, Tencent jumped 7.55 per cent to HK$563 and HSBC surged 1.51 per cent to HK$80.80. China Construction Bank lost 1.07 per cent to HK$5.55 and ICBC eased 0.81 per cent to HK$4.89.

SINGAPORE: THE Straits Times Index dropped 6.34 points, or 0.20 per cent, to 3203.58.
The FTSE ST Mid Cap Index fell 0.22 per cent while the FTSE ST Small Cap Index lost 0.26 per cent.
Among the top actives, DBS added 0.67 per cent, CapitaMalls Asia rose 2.56 per cent, Keppel Corp gained 1.09 per cent, Olam added 1.36 per cent and AusGroup fell 4.90 per cent.
Of the outperforming sectors, the FTSE ST Basic Materials Index gained 0.77 per cent. Of its two biggest stocks, Midas Holdings was flat and SunVic Chemical fell 0.79 per cent.

KUALA LUMPUR: SHARE prices on Bursa Malaysia higher yesterday on late buying support prompted by overnight gains on Wall Street, dealers said.
A dealer said the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) moved in line with regional markets, which rose after the United States Federal Reserve’s March meeting, which eased worries of potential interest rate rise.
Active buying in the final 10 minutes pushed the FBM KLCI to close at 1,859.52, up 3.77 points.
The gainer-to-loser ratio was 546 to 307, while 306 counters were unchanged, 458 untraded and 14 others suspended.
Turnover declined to 2.08 billion shares worth RM2.32 billion from 2.22 billion shares worth RM2.38 billion on Wednesday.
The Finance Index increased 42.08 points to 16,937.88, the Industrial Index rose 11.85 points to 3,208.41 and the Plantation Index added 51.82 points to 8,995.38.
The FBM Emas Index advanced 47.22 points to 12,904.55, the FBMT100 Index added 42.7 points to 12,547.41 and the FBM 70 jumped 115.49 points to 14,169.29.
The FBM ACE Index, however, slipped 8.61 points to 6,784.76.
Among the top gainers, BAT advanced RM1.06 to RM61.42, Panasonic Manufacturing rose 54 sen to RM22.54 and Bonia added 22 sen to RM5.37.
Meanwhile, FBM KLCI futures contracts on Bursa Malaysia Derivatives closed lower on profit-taking despite firmer cash market.
Spot month April 2014 fell three points to 1,855, May 2014 eased two points to 1,850, June 2014 slipped 2.5 points to 1,848 and September 2014 decreased 0.5 point to 1,844.
Turnover declined to 4,716 lots from Wednesday’s 5,879 lots, while open interest decreased to 33,333 contracts from 35,048 contracts before.

In other markets:
* Bangkok rose 0.55 per cent, or 7.54 points, to 1,389.56. Telecoms company Total Access Communication added 2.18 per cent to 117 baht, while coal producer Banpu fell 1.80 per cent to 27.25 baht.
* Jakarta dropped 3.16 per cent, or 155.68 points, to 4,765.73. Palm oil producer Sinar Mas Agro Resources gained 0.37 per cent to 6,850 rupiah, while state miner Aneka Tambang fell 2.67 per cent to 1,095 rupiah.
* Manila rose 0.78 per cent, or 51.40 points, to 6,638.89. SM Prime Holdings gained 1.16 per cent to 15.68 pesos while Megaworld jumped 3.20 per cent to 4.51 pesos.
* Mumbai gained 0.06 per cent, or 12.99 points, to 22,715.33. Adani Enterprises was up 23.15 per cent, or 88.40 rupees, at 470.25, and TV18 Broadcast was down 3.64 per cent, or one rupee, to 26.50.
* Taipei rose 0.20 per cent, or 17.53 points, to 8,948.10. Taiwan Semiconductor Manufacturing Co was 0.42 per cent higher at T$119.5, while MediaTek added 1.73 per cent to T$469.5.
* Wellington rose 48.08 points, or 0.95 per cent, to 5,115.45. Air New Zealand ended up 1.46 per cent at NZ$2.08 and Fletcher Building gained 1.05 per cent to NZ$9.64.

VIETNAM: Vietnamese stocks closed lower after holiday as investors took profit, liquidity eased.
The benchmark VN Index lost 1.92 points or 0.32% to 601.33. Volume fell 10% to 114.2 million shares worth of VND2.386 trillion.
Put-through trading contributed 3.7 million shares worth of VND249.9 billion. We saw 0.96 million MSN shares changed hands.
The market breadth was negative with 94 gainers, 131 losers and 66 unchanged.
The VN30 closed down 2 points or 0.3% to 670.06. Among 30 constituents, 10 gained, 17 fell, 3 stood still.
On the Hanoi Stock Exchange, the HNX lost 0.16 point or 0.2% to 87.64. Trading volume fell 20% to 58.8 million shares worth VND785.3 billion.
The breadth was negative with 103 gainers, 119 losers, 74 unchanged and the rest untraded.
The HNX30 gained 0.84 points or 0.46% to 183.

EUROPE: European stocks rebounded from earlier losses yesterday as investors hailed a triumphant return to the bond markets in Greece and positive news from the United States jobs market.
In late afternoon trading, London’s FTSE 100 index rose 0.39 per cent to 6,661.77 points as the markets largely shrugged off the Bank of England’s decision to hold interest rates.
Frankfurt’s DAX 30 rose 0.27 per cent to stand at 9,531.89 points and Paris’ CAC 40 eked out marginal gains of 0.10 per cent to 4,447.32.
“Greece is back. The troubled peripheral nation, who not that long ago was on the verge of being thrown out of the currency bloc and is still many billions in debt to the IMF and its European masters … is making a triumphant return to the bond markets,” said Forex.com research director Kathleen Brooks.

AMERICA: Biotech and Internet stocks tumbled again Thursday, and the broader market followed.

After a two-day respite, investors again started dumping shares of cutting-edge drug companies and other industries that have soared over the past year. Biotechnology stocks have turned volatile in recent weeks as regulators scrutinize the cost of their drugs and investors worry their earnings won’t justify lofty stock prices. Investors are also worried that high-growth companies like Twitter and Facebook have become too expensive.

On Thursday, the Nasdaq composite, which is weighted heavily toward tech and biotech companies, had its worst day since November 2011.

The rout started slowly and picked up speed throughout the day. By the close, the tech-heavy Nasdaq composite index had its worst day since November 2011. Few companies escaped the sell-off. Of the Nasdaq’s 100 largest stocks, only one, C.H. Robinson Worldwide, a freight company, ended higher.

The Nasdaq ended the day down 129.79 points, or 3.1 percent, to 4,054.11. It is now down 7 percent from its recent high reached March 5.

Other major index also fell, but not as much.

The Standard & Poor’s 500 index dropped 39.10 points, or 2.1 percent, to close at 1,838.08. The Dow Jones industrial average lost 266.96 points, or 1.6 percent, to 16,170.22.

Biogen Idec, Gilead Sciences and other biotech companies plunged. Facebook and Twitter, other recent investor favorites, also dropped.

The sudden downfall of these former high-flyers comes as investors shift from riskier investments to safer areas like utilities, health care and consumer staples. The sell-off in these former darlings, whose stock prices appealed to investors because their rise seemed unstoppable, has weighed on the overall market, especially the Nasdaq.

Gilead Sciences slid $5.17, or 7 percent, to $65.48 on Thursday. Biogen Idec dropped $13.33, or 4 percent, to $287.35. Both roughly doubled in value last year.

Facebook, another stock that doubled last year, sank $3.25, or 5 percent, to $59.16.

The market’s drop wiped out gains made earlier in the week. On Wednesday, minutes from the Federal Reserve’s latest meeting reassured investors that the central bank wasn’t in a hurry to raise interest rates. The S&P 500 had its best day in a month.

Brad McMillan, Chief Investment Officer for Commonwealth Financial, said it seems like investors had been searching for a reason to push the market up. “But there’s no compelling story,” he said. “Without a catalyst to move the market higher, people are going to start questioning their assumptions.”

Weaker sales at Bed Bath & Beyond drove the company’s stock down $4.19, or 6 percent, to $63.72. The company reported a drop in quarterly revenue and profit late Wednesday. Like many other retailers, Bed Bath & Beyond laid some of the blame on cold winter weather for keeping customers at home.

Among the handful of winners Thursday was Rite Aid, which surged after the retailer turned in quarterly results that topped analysts’ expectations. Rite Aid also announced the acquisition of RediClinic and said it plans to expand the Texas chain of health clinics. The company’s stock gained 54 cents, or 8 percent, to $6.94.

In government bond trading, the yield on the 10-year Treasury note dipped to 2.63 percent from 2.69 percent late Wednesday. The price of crude oil fell 20 cents to close at $103.40 a barrel. Gold climbed $14.60 to settle at $1,320.50 an ounce.

Benchmark Currency Rates

USD

1.3892 0.0098 1.6770 1.1413 0.9142 0.9373 0.1290

EUR

0.7198 0.0071 1.2071 0.8215 0.6580 0.6747 0.0928

JPY

101.6300 141.2000 170.4170 115.9890 92.8930 95.2690 13.1061

GBP

0.5963 0.8284 0.0059 0.6806 0.5451 0.5589 0.0769

CHF

0.8762 1.2172 0.0086 1.4693 0.8010 0.8212 0.1130

CAD

1.0939 1.5198 0.0108 1.8345 1.2485 1.0254 0.1411

AUD

1.0668 1.4823 0.0105 1.7890 1.2176 0.9752 0.1376

HKD

7.7538 10.7718 0.0763 13.0027 8.8495 7.0879 7.2669

 

Source: Bloomberg

 


Category: FinanceAsia

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