Asia: Mostly down after losses in New York

10-Jan-2014 Intellasia | Business Times | Reuters | AFP | Bloomberg | AP | 8:00 AM Print This Post

Asian markets mostly fell yesterday Thursday January 9 following losses on Wall Street, as minutes from the Federal Reserve’s recent policy meeting showed officials are confident the United States economy can withstand stimulus cuts.

Tokyo dropped 1.50 per cent, or 241.12 points, to 15,880.33 and Seoul fell 0.66 per cent, or 12.85 points, to close at 1,946.11. Shanghai closed down 0.82 per cent, or 16.72 points, at 2,027.62.

Bucking the trend was Sydney, which rose 0.16 per cent — or 8.4 points — to 5,324.40, despite news that Moody’s had become the second agency to cut Australian carrier Qantas’s debt rating to junk status after it announced a profit warning last month.

In Tokyo, the Nikkei-255 fell on continued profit-taking with a weaker yen failing to lift the market into positive territory.

Seoul’s slide came after after South Korea’s central bank froze its key interest rate for an eighth consecutive month. China, official figures showed inflation at 2.6 per cent in 2013, well below Beijing’s 3.5 per cent target.

HONGKONG:  STOCKS finished 0.91 per cent lower yesterday, tracking losses in other major Asian markets and after a fall on Wall Street following the release of Federal Reserve meeting minutes.
The benchmark Hang Seng Index fell 209.26 points to 22,787.33 on turnover of HK$72.33 billion Industrial & Commercial Bank of China fell two per cent to HK$4.94, China Construction Bank slid 1.77 per cent to HK$5.54 while Tencent was down 1.69 per cent at HK$493.

SINGAPORE:  THE Straits Times Index dropped 5.24 points, or -0.17 per cent, to 3145.41The FTSE ST Mid Cap Index declined -0.30 per cent while the FTSE ST Small Cap Index eased by 0.21 per cent.
Among the top actives, OCBC lost 0.21 per cent, DBS fell 0.17 per cent, SingTel added 0.28 per cent, UOB gained 0.24 per cent and GoldenAgri was down 2.75 per cent.
Of the outperforming sectors, the FTSE ST Technology Index added 1.16 per cent.
Of the underperforming sector, the FTSE ST Oil & Gas Index declined -1.18 per cent.

KUALA LUMPUR: SHARE prices on Bursa Malaysia closed lower yesterday on profit-taking amid weak sentiment regionally following losses on Wall Street overnight.
The market come under selling pressure, especially from foreign funds, as investors turned cautious after the losses on United States markets, said an analyst.
The FTSE Bursa Malaysia KLCI (FBM KLCI) fell 3.09 points to 1,828.21.
Market tone was negative as losers outnumbered gainers by 427 to 392.
Volume rose to 1.85 billion shares worth RM1.95 billion from Wednesday’s 1.67 billion shares valued at RM1.92 billion.
The Finance Index rose 35.951 points to 16,756.97, the Plantation Index fell 100.87 points to 8,613.76 and the Industrial Index was 4.97 points lower at 3,099.51.
The FBM Emas Index dropped 18.22 points to 12,660.08, the FBMT100 Index rose 21.2 points to 12,366.12, the FBM 70 increased 25.4 points to 14,082.21 and the FBM ACE Index went down 20.45 points to 5,942.23.
An analyst said he remained optimistic of the FBM KLCI’s ability to build strength near the 1,820-point level before trending upwards towards the 1,850-1,860 levels.
Among the volume leaders, Iris rose half-a-sen to 38.5 sen and Asian Pac added two sen to 21 sen. Heavyweights Maybank rose four sen to RM9.85, while Tenaga fell eight sen to RM11.72. Meanwhile, FBM KLCI futures contracts on Bursa Malaysia Derivatives also ended lower yesterday.
Spot month January 2014 and March 2014 declined 4.0 points each to 1,828.5 and 1,828, respectively. February 2014 fell 5.5 points to 1,827.5 and June 2014 dropped 3.5 points to 1,824. Turnover slipped to 5,490 lots while open interest decreased to 43,774 contracts

In other markets:
Taipei fell 0.48 per cent, or 41.33 points, to 8,514.68. TSMC slid 2.88 per cent to T$101 while Hon Hai rose 1.26 perent to T$80.5.

Wellington rose 35.07 points, or 0.73 per cent, to 4,814.87. Fletcher Building was up 2.14 per cent at NZ$8.61 and Fonterra Shareholders’ Fund was down 1.71 per cent at NZ$5.76 on news it will face a lawsuit over a botulism scare last year.

Manila was 0.82 per cent, or 48.97 points, lower at 5,937.51. Metropolitan Bank plunged 5.01 per cent to 73.90 pesos while International Container Terminal Services fell 2.51 per cent to 97 pesos.

Bangkok was flat, adding 0.53 points to 1,258.26. Oil company PTT lost 0.35 per cent to 284 baht, while telecoms company Advanced Info Service fell 1.46 per cent to 203 baht.

Jakarta finished flat, up 0.63 points at 4,201.22. State miner Aneka Tambang fell 0.50 per cent to 1,005 rupiah, while Bank Negara Indonesia rose 2.55 per cent to 3,820 rupiah.

Mumbai ended flat, falling 16.01 points to 20,713.37. India’s Future Retail fell 4.68 per cent to 86.60 rupees while Larsen and Toubro fell 2.68 percent to 971.60 rupees.

VIETNAM: Vietnamese stocks extended gain today on broad-based efforts as market sentiment rose on hope of coming supportive policies and Q4 earnings.
The benchmark VN Index added 3.08 points or 0.6% to 516.98. Volume rose 30% to 91.5 million worth of VND1.356 trillion. Put-through trading contributed 2.54 million shares worth of VND124.2 billion.
The market breadth was positive with 137 gainers, 65 losers and 81 unchanged.
The VN30 gained 4.08 points or 0.71% to 577.19. Among 30 constituents, 21 gained, 1 fell, 8 stood still.
Market opened in the red with 3.1 million shares changed hands. However, soon, the market sentiment rose with support from buying into securities shares and blue chips. The morning session happened in a caution move but then afternoon session buyers became more aggressive and the market ended at the high of the day.
Market sentiment improved with the coming policy of higher foreign room and listing of one of the biggest banks in Vietnam, BIDV.
Broker shares performed well second straight day. Saigon Securities Inc. (SSI), continued to support the market with 3.6 million shares traded, closing up VND500 to VND19,500 each.  BSI limited up third day after the new that BIDV will soon list its shares this year, 1.1 million BSI shares were changed hands today, the most heavily trade for multi months. Other securities shares also got a boost, HCM, AGR gained.
A series of blue chips also gained, and high beta stocks performed well too.
Top 5 large caps, which accounted for roughly 50% of market capitalization were mostly gainers, GAS, MSN, VCB, VIC gained only VNM stood still.
Banking shares were mixed, CTG gained, EIB, MBB, STB stood still while  VCB.
On the Hanoi Stock Exchange, the HNX gained 1.17 points or 1.68% to 71.16. Trading volume rose 40.6% to 79 million shares worth VND638 billion.
The breadth was positive with 156 gainers, 57 losers, 54 unchanged and the rest untraded.
The HNX30 gained 3.01 points or 2.26% to 135.88.

EUROPE: European stock markets rose yesterday as investors awaited monetary policy decisions from the ECB and Bank of England (BoE) and reacted to an upbeat outlook from the US Federal Reserve.
Frankfurt’s DAX 30 index advanced 0.43 per cent to 9,538.92 points and Paris’ CAC 40 gained 0.32 per cent to 4,274.80 points compared with Wednesday’s closing values — and as the European Central Bank prepares to give its latest decisions on eurozone interest rates.
The benchmark FTSE 100 index climbed also by 0.32 per cent to 6,743.37 points before the conclusion of the BoE’s monthly policy meeting at midday.
Spain’s IBEX 35 jumped 1.06 per cent to 10,362.30 points as the eurozone member’s long-term borrowing costs fell in its first bond sale of the year and amid signs of financial strengthening across the single-currency bloc.

AMERICA: The stock market wavered for a second day Thursday as investors weighed disappointing news from the retail industry against more positive signals on the U.S. economy.

Investors were looking ahead to Friday’s jobs report, as well as the start of corporate earnings season.

Retailers were among the hardest hit stocks on Thursday.

Bed Bath & Beyond plunged $9.93, or 13 percent, to $69.75 and Family Dollar fell $1.37, or 2 percent, to $64.97, making them the biggest decliners in the S&P 500. Both companies cut their earnings forecasts following a disappointing holiday season.

The reports of tepid sales disappointed investors, who have been seeing signs for several weeks that the U.S. economy was improving and that shoppers were returning to the malls.

It appears that the economy, while improving, still has some weak spots.

L Brands, which owns Bath and Body Works and Victoria’s Secret, reported that its sales rose less than analysts had expected. The company also cut its full-year outlook, echoing Bed Bath and Beyond and Family Dollar. L Brands fell $2.44, or 4 percent, to $57.75.

“The consumers are supposed to be the fuel of this economy, and it doesn’t appear to be happening,” said Ian Winer, director of trading for Wedbush Securities. “If they’re not spending money at the retailers, what’s going on?”

Even the bright spots in the retail industry had caveats. Department store giant Macy’s jumped $3.96, or 8 percent, to $55.80 after the company forecast a 2014 profit that was above Wall Street’s forecasts. At the same time, Macy’s said it would eliminate 2,500 jobs as part of a reorganization that aims to save $100 million a year.

At the close of trading, the Dow Jones industrial average fell 17.98 points, or 0.1 percent, to 16,444.76. The S&P 500 added 0.64 points, or less than 0.1 percent, to 1,838.13 and the Nasdaq composite lost 9.42 points, or 0.2 percent, to 4,156.19.

The disappointing news from retailers was more than enough to offset another positive report on the U.S. economy.

The number of Americans seeking unemployment benefits fell by 15,000 last week to 330,000. The drop was slightly bigger than economists predicted, according to FactSet, a financial data provider.

The claims report sets the stage for the government jobs report for December, which will be released Friday morning. Economists expect employers added 196,000 jobs last month and the unemployment rate remained at 7 percent.

Stocks surged into the end of 2013, but the momentum hasn’t continued into the first trading days of 2014. The Dow and S&P 500 are down less than 1 percent this year.

In company news, Ford rose 30 cents, or 2 percent, to $15.84 after announcing an increase in its quarterly dividend to 12.5 cents per share from 10 cents per share. The news came a day after the stock gained 1 percent on word that Ford’s widely respected CEO, Alan Mulally, would not leave to run Microsoft.

Abercrombie & Fitch jumped $5.49, or 17 percent, to $38.70 in after-market trading after the company raised its full-year profit forecast. The company now expects earnings of $1.55 to $1.65 a share, well above the $1.47 per share that analysts were looking for.

Alcoa slumped 39 cents, or 4 percent, to $10.30 in after-market trading after the company reported a fourth-quarter profit that fell short of Wall Street’s expectations. Alcoa traditionally signals the start of earnings season, due to the fact it was a member of the Dow for many years. Alcoa was removed from the Dow in August.

Benchmark Currency Rates

USD EUR JPY GBP CHF CAD AUD HKD

USD

1.3607 0.0095 1.6477 1.1024 0.9212 0.8881 0.1290

EUR

0.7349 0.0070 1.2109 0.8102 0.6770 0.6526 0.0948

JPY

104.8400 142.6500 172.7250 115.5850 96.5670 93.0950 13.5207

GBP

0.6070 0.8258 0.0058 0.6692 0.5591 0.5390 0.0783

CHF

0.9072 1.2341 0.0087 1.4944 0.8356 0.8055 0.1170

CAD

1.0856 1.4771 0.0104 1.7887 1.1967 0.9640 0.1400

AUD

1.1261 1.5323 0.0107 1.8553 1.2414 1.0372 0.1452

HKD

7.7543 10.5505 0.0740 12.7765 8.5482 7.1426 6.8864

Source: Bloomberg

 


Category: FinanceAsia

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