Asia: Most marts tick up after sell-off

12-Mar-2014 Intellasia | Business Times | Reuters | AFP | Bloomberg | AP | 8:16 AM Print This Post

Asia’s markets rose yesterday Tuesday March 11, 2014 following big losses in the previous session, but investors were largely unmoved by Bank of Japan’s (BoJ) decision to stand pat on its stimulus programme.

The gains came despite a negative lead from Wall Street, while the dollar and euro edged up slightly against the yen.

Tokyo added 0.69 per cent, or 103.97 points, to 15,224.11, Seoul climbed 0.48 per cent, or 9.56 points, to close at 1,963.87 and Sydney was flat, edging up 2.3 points to 5,413.8.

Shanghai advanced 0.10 per cent, or 2.09 points, to 2,001.16.

Global markets suffered a sell-off on Monday in response to a shock trade deficit in China that raised fears about the world’s number two economy while Japan revised down its growth for 2013.

Investors had been waiting for BoJ’s two-day meeting to end expecting it to hold steady on monetary policy but hoping it would give some idea of its plans for the scheme.

The bank said it would keep its powder dry for now, adding the economy was picking up, despite slowing growth in the last quarter of 2013 and fears that a sales tax hike due next month will dent the recovery.

“The Bank of Japan’s decision to stay the course at meeting came as no surprise, but we remain convinced that further easing will be required in coming months,” said Marcel Thieliant from London-based Capital Economics.

HONGKONG: The leading shares index closed flat yesterday, as an early rally fuelled by bargain-hunting fizzled out in the afternoon owing to ongoing concerns about China’s economy.
The benchmark Hang Seng Index edged up 4.68 points to 22,269.61 on turnover of HK$56.33 billion.
Hong Kong and Chinese shares led global markets lower on Monday after Beijing said on Saturday it had seen an unexpected trade deficit of US$22.98 billion in February.
Tencent rose 0.16 per cent to HK$617.50 while HSBC eased 0.12 per cent to HK$80.35. China Mobile added 0.14 per cent to HK$71.15.

SINGAPORE: THE Straits Times Index rose 2.77 points, or 0.09 per cent, to 3129.4.
Among the top active stocks, DBS fell 0.31 per cent, Keppel Corp added 1.13 per cent, Noble Group rose 2.78 per cent, Olam gained 4.23 per cent and HanKore was up 4.69 per cent.
Of the outperforming sectors, the FTSE ST Utilities Index added 2.53 per cent. Of the two biggest stocks, Hyflux gained 1.64 per cent and HanKore was up 4.69 per cent.

KUALA LUMPUR: SHARES on Bursa Malaysia ended firmer yesterday, supported by continued buying interest in heavyweights.
The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) improved 6.49 points to end at 1,828.55.
Gainers outpaced losers 416 to 354, with 330 counters unchanged, 531 untraded and 15 others suspended.
Volume rose to 1.69 billion shares worth RM2.05 billion, from 1.69 billion shares valued at RM1.86 billion on Monday.
Maybank Investment Bank head of retail research and chief chartist, Lee Cheng Hooi, said local buying and short covering emerged following Monday’s losses, which helped the local bourse.
The Plantation Index added 40.69 points to 8,968.77, the Finance Index increased 40.82 points to 16,467.41 and the Industrial Index rose 34.91 points to 3,186.4.
The FBM Emas gained 42.6 points to 12,678.85, the FBMT100 increased 42.54 points to 12,349.29, the FBM 70 added 43.27 points to 13,987.96 and the FBM ACE rose 18.93 points to 6,615.35.
Among the actives, Xidelang rose three sen to 42.5 sen and Infortech Alliance added half-a-sen to 44.5 sen.
Of the heavyweights, Maybank lost one sen to RM9.60 while CIMB improved four sen to RM7.07.
Malaysia Airlines ended flat at 24 sen with 70.937 million units transacted.
Meanwhile, FBM KLCI futures contracts on Bursa Malaysia Derivatives also closed higher yesterday.
March 2014 added two points to 1,822.5, April 2014 rose 2.5 points to 1,822, June 2014 gained three points to 1,820 and September 2014 improved 1.5 points to 1,818.5.
Turnover fell to 4,074 lots from 6,810 while open interest eased to 34,798 contracts from 37,494 on Monday.

In other markets:

* Bangkok rose 1.13 per cent, or 15.23 points, to 1,364.28. Banpu fell 1.92 per cent to 25.50 baht while Bangkok Bank rose 1.15 per cent to 176.50 baht.

* Jakarta ended up 0.58 per cent, or 26.97 points, at 4,704.21. Aneka Tambang rose 1.36 per cent to 1,115 rupiah, while Astra International lost 0.34 per cent to 7,250 rupiah.

* Mumbai fell 0.49 per cent or 108.41 points to end at 21,826.42 points. Tata Steel shed 5.52 per cent to 344.15 rupees and Financial Technologies fell 4.99 per cent to 382.60 rupees.

* Taipei rose 0.43 per cent, or 37.09 points, to 8,702.33. TSMC rose 0.88 per cent to T$114 while Hon Hai fell 0.47 per cent to T$84.2.

* Wellington fell 0.31 per cent, or 15.90 points, to 5,101.94. Fletcher Building slipped 1.7 per cent to NZ$9.69 and telecoms firm Chorus added 0.6 per cent to to NZ$1.57.

* Manila added 0.65 per cent, or 42.35 points, to 6,529.58.

VIETNAM: Vietnamese stocks gained 5th straight day today as investors continued to buy shares for long term vision, liquidity stayed at high level.
The benchmark VN Index rose 4.81 points or 0.82% to 588.5. Volume rose 12% to 162 million shares worth of VND2.561 trillion.
Put-through trading contributed 3.75 million shares worth of VND132.35 billion. We saw 0.99 million HAG shares changed hands and 0.37 million HPG shares changed hands.
The market breadth was positive with 133 gainers, 97 losers and 66 unchanged.
The VN30 rose 5.81 points or 0.89% to 661.61. Among 30 constituents, 19 gained, 8 fell, 3 stood still.
On the Hanoi Stock Exchange, the HNX rose 0.83 point or 1.01% to 83.64. Trading volume rose 29% to 116.3 million shares worth VND1.112 trillion.
The breadth was positive with 167 gainers, 84 losers, 65 unchanged and the rest untraded.
The HNX30 gained 1.21 points or 0.73% to 167.13.

EUROPE:  Europe’s main stock markets diverged yesterday as traders assessed unease over China and Ukraine in the absence of major regional data releases, analysts said.
London’s FTSE 100 fell 0.3 per cent to stand at 6,691.62 points in afternoon trade.
Frankfurt’s DAX 30 climbed 0.58 per cent to 9,319.10 points and Paris’ CAC 40 slipped 0.36 per cent to stand at 4,354.90 compared with Monday’s closing values.
The STOXX Europe 600 index was flat at 331.30 points at 1157GMT. The narrower FTSEurofirst 300 was also flat at 1,320.37 points. Portugal’s PSI index was the best performer among smaller bourses, up 0.7 per cent.

AMERICA:  Without any big economic news or blowout company earnings to respond to, investors found little to get excited about Tuesday and sent the stock market lower for the second day in a row.

A few companies grabbed headlines for posting poor quarterly results or consummating long-running merger talks Tuesday. But the broader market barely budged for much of the day, then closed slightly lower. Investors didn’t see enough that they liked to drive up a market that hit three record highs last week.

The Standard & Poor’s 500 index slipped 9.54 points, or 0.5 percent, to close at 1,867.63. The Dow Jones industrial average lost 67.43 points, or 0.4 percent, to 16,351.25. The Nasdaq composite fell 27.26 points, or 0.6 percent, to 4,307.19.

The S&P 500 and the Nasdaq are both up for the year, though they lost some ground from the start of the week. The S&P 500 is up 1 percent, while the Nasdaq is up 3.1 percent. The Dow is down 1.4 percent so far this year.

General Motors, Men’s Wearhouse and American Eagle Outfitters were among the stocks in focus Tuesday.

GM dropped $1.91, or 5.1 percent, to $35.18 on news that a congressional committee is investigating the way the automaker and a federal safety agency handled a deadly ignition switch problem in compact cars.

The stocks of teen retailers American Eagle Outfitters and Urban Outfitters took a beating.

American Eagle tumbled $1.11, or 7.8 percent, to $13.10 after the store chain issued a fiscal first-quarter outlook that fell short of Wall Street’s expectations. The company also reported an 89 percent slide in its fourth-quarter net income as winter storms weighed on sales.

Urban Outfitters fell $1.60, or 4.3 percent, to $35.91 after reporting its own results.

Investors cheered word that Men’s Wearhouse agreed to buy Jos. A. Bank for $1.8 billion after months of on-again, off-again talks. Men’s Wearhouse rose $2.57, or 4.7 percent, to $57.14. Jos. A. Bank climbed $2.39, or 3.9 percent, to $64.22.

The declines were broad. Nine of the 10 sectors in the S&P 500 index fell, led by energy stocks. The one sector that rose, consumer staples, eked out a gain of just 0.01 percent. Stocks of those companies, which make consumer staple goods like soft drinks and detergents, tend to be in favor when investors are feeling cautious and want low-risk investments that produce steady income. Among consumer staples companies, PepsiCo rose $1.08, or 1.3 percent, to $82.81.

McDonald’s had the biggest gain among companies in the S&P 500 index, rising $3.58, or 3.8 percent, to $98.78. The stock is rebounding after slumping a day earlier.

Some other companies also mounted comebacks.

J.C. Penney rose 25 cents, or 3 percent, to $8.67 after analysts at Citigroup upgraded the department store chain, praising the retailer’s efforts to recover from a botched overhaul that alienated longtime customers.

The Labor Department said Tuesday that employers posted 3.9 million job openings in January, up 1.5 percent from December, a sign that hiring should remain steady in coming months. However, the increase fell short of what the market was expecting.

Investors are watching for any signs the job market is strengthening as they try to gauge how the Federal Reserve will manage its economic stimulus efforts. The central bank is expected to continue paring its bond purchases, which are aimed at keeping long-term loan rates low and encouraging borrowing and investing. But if economic data signal that the economy is weakening, the Fed could opt to keep the stimulus spigot open. The Fed holds its next policy meeting next week.

“The most important data really is the jobs data,” said David Roda, regional chief investment officer at Wells Fargo Private Bank. “We think that’s going to be a major driver of Fed policy response.”

Benchmark Currency Rates

USD EUR JPY GBP CHF CAD AUD HKD

USD

1.3859 0.0097 1.6620 1.1395 0.9001 0.8962 0.1288

EUR

0.7215 0.0070 1.1992 0.8222 0.6494 0.6466 0.0930

JPY

102.9200 142.6300 171.0430 117.2810 92.6310 92.2290 13.2600

GBP

0.6017 0.8339 0.0058 0.6856 0.5416 0.5392 0.0775

CHF

0.8776 1.2162 0.0085 1.4585 0.7899 0.7864 0.1131

CAD

1.1110 1.5398 0.0108 1.8465 1.2661 0.9957 0.1431

AUD

1.1157 1.5464 0.0108 1.8545 1.2716 1.0042 0.1438

HKD

7.7617 10.7577 0.0754 12.8997 8.8447 6.9860 6.9557

Source: Bloomberg

 


Category: FinanceAsia

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