Asia: Mostly down ahead of China data

08-Jul-2014 Intellasia | Business Times | Reuters | AFP | Bloomberg | AP | 7:27 AM Print This Post

Asian markets mostly fell yesterday Monday July 07 as investors await the release later in the week of Chinese economic data for June, while the dollar added to last week’s gains following a strong United States jobs report.

Tokyo shed 0.37 per cent, or 57.69 points, to finish at 15,379.44 and Sydney dipped 0.11 per cent, or 6.1 points, to close at 5,518.90. Seoul lost 0.23 per cent, or 4.54 points, to 2,005.12.

In the meantime, Shanghai was flat, edging up 0.55 points to end the day’s trade at 2,059.93 points.

With Wall Street was closed on Friday for the Independence Day holiday, there were few catalysts to drive regional markets after they ended last week mixed.

The Labour Department said on Thursday that the US economy added 288,000 jobs last month — well above expectations of 215,000, adding to the sense that a recovery is well on track.

The unemployment rate fell to 6.1 per cent from 6.3 per cent in May.

Focus is now on Beijing, where the government will release inflation data tomorrow, followed by trade statistics on Thursday.

HONGKONG: SHARES ended flat yesterday in quiet trade as investors await the release of China data later in the week.
The Hang Seng Index lost 5.44 points to 23,540.92 on turnover of HK$48.25 billion.
Cathay Pacific shed 0.55 per cent to HK$14.50, China Mobile rose 0.07 per cent to HK$76.15, HSBC dipped 0.06 per cent to HK$80.35 and Ping An Insurance added 0.49 per cent to HK$60.95.
“Companies are about to release their first-half earnings and I’m afraid overall profit growth might not be ideal,” Haitong Securities analyst Zhang Qi said.

SINGAPORE: THE Straits Times Index (STI) ended 19.32 points, or 0.59 per cent, higher to 3,291.57 points yesterday.
The FTSE ST Mid Cap Index shed 0.25 per cent while the FTSE ST Small Cap Index added 0.16 per cent.
Of the actives, UOB added 0.94 per cent, DBS gained 0.47 per cent, SingTel advanced 0.78 per cent, Global Logistic went up 0.74 per cent and OCBC Bank fell 0.11 per cent.
The outperforming sector, FTSE ST Industrials, rose 1.04 per cent.
Of its two biggest stocks, Jardine Matheson Holdings jumped up 2.02 per cent and Jardine Strategic Holdings advanced 2.52 per cent.

KUALA LUMPUR: BURSA Malaysia closed higher yesterday with the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) advancing 7.59 points to its new all-time high of 1,892.5.
The key index’s previous all-time
high of 1,892.33 was recorded on June 24. It also broke the intra-day high of 1,892.33
on June 24 — after reaching a high of 1,894.72 and a low 1,885.29 throughout the trading day.
A dealer said the local benchmark was supported by gains mostly in heavyweight counters due to renewed buying interest after it closed easier last week.
The Finance Index jumped 126.67 points to 17,346.63 and the Industrial Index inched up 22.82 points to 3,273.89, while the Plantation Index eased 9.31 points to 9,220.44.
The FBM Emas Index climbed 68.73 points to 13,161.41, the FBMT100 Index rose 65.23 points to 12,771.52, the FBM ACE Index gained 54.93 points to 6,790.3 and the FBM 70 surged 127.6 points to 14,426.62.
Market breadth was positive as advancers outpaced decliners by 491 to 357, with 314 counters unchanged, 452 untraded and 14 others suspended.
Of the heavyweights, Maybank rose
seven sen to RM9.90, Public Bank soared eight sen to RM19.98, TNB climbed two sen at RM12.48 and CIMB Bhd surged nine sen to RM7.26.
Meanwhile, FBM KLCI futures contracts on Bursa Malaysia Derivatives closed higher in tandem with the better cash market.
Spot month July 2014 and September 2014 rose 5.5 points each to 1,894.5 and 1,890.5, respectively, August 2014 added 4.5 points to 1,894 and December 2014 advanced seven points to 1,890.
Turnover declined to 1,930 lots from 3,110 lots last Friday while open interest narrowed to 32,574 contracts from 34,560 contracts previously.

In other markets:

Bangkok added 0.49 per cent, or 7.38 points, to 1,503.21 points. Oil company PTT gained 2.19 per cent to 326 baht, while Siam Cement rose 2.14 per cent to 478 baht.

Jakarta ended up 1.70 per cent, or 83.21 points, to close at 4,989.03. Bank Negara Indonesia climbed two per cent to 4,845 rupiah, while Indah Kiat Pulp & Paper depreciated by 0.74 per cent to close at 1,350 rupiah.

Manila rose 0.53 per cent, or 36.82 points, to 6,999.10.

Mumbai rose 0.53 per cent to end at 26,100.08 points. It had touched a new high of 26,123.55 points during the session. In the meantime, IDFC rose 6.23 per cent to 142.30 rupees, while Container Corp gained 6.20 per cent to 1,348.05 rupees.

Taipei edged up 0.11 per cent, or 10.15 points, to 9,520.20. Taiwan Semiconductor Manufacturing Co was 0.74 per cent higher at T$136, while Formosa Plastics closed down 0.65 per cent at T$77.

Wellington was flat, edging down 2.55 points to 5,186.36. Telecom fell 0.93 per cent to NZ$2,67 and Trade Me rose 1.67 per cent to NZ$3.65.

VIETNAM: The benchmark VN Index added 1.34 points or 0.23% to 590.69, highest level since April 14. Volume eased 4% to 128 million shares worth of VND2.106 trillion. Put-through trading contributed 12.8 million shares worth of VND374.11 billion.
The market breadth was positive with 126 gainers, 94 losers and 62 unchanged.
The VN30 gained 5.73 points or 0.91% to 636.75. Among 30 constituents 16 gained, 9 fell and 5 stood still.
On the Hanoi Stock Exchange, the HNX-Index, the measure of 361 stocks, bucked trend to close down 0.52 point, or 0.65%, to end at 78.92.
The traded volume fell 17% from a day earlier, totaling 55 million shares worth VND675 billion.
The market breadth was positive on the northern exchange. Among index members, 97 stocks rose, 89 tumbled, 71 closed unmoved, and the rest were untraded.
The HNX 30 Index – the tracker of top 30 stocks calculated based on free float adjusted market capitalization – lost 1 point, or 0.62%, to end at 160.38.

EUROPE: Europe’s main stock markets sank yesterday, making a negative start to the week as investors took profits and reacted to poor German economic data, dealers said.
London’s Paris’ CAC 40 slid 0.33 per cent to 4,454.23 points and Frankfurt’s DAX 30 lost 0.15 per cent to 9,994.28 compared with Friday’s close.
“European shares are starting out the new trading week on a slightly negative note, as a combination of moderate profit-taking, lack of fresh impulses and somewhat disappointing German industrial production numbers putting pressure on stocks,” said Markus Huber at broker Peregrine & Black.
In the meantime, the pan-European FTSEurofirst 300 index, which hit a 6½-year high of 1,399.62 points in June, was down by 0.3 per cent at 1,389.56 points by the middle of the trading day.

AMERICA: After pushing stocks to records last week, investors turned cautious on Monday ahead of a batch of corporate earnings reports.

The Dow Jones industrial average ended almost 50 points lower after closing above 17,000 for the first time last week. Investors moved money into stocks traditionally thought of as safer than the broader market: utilities, telecommunication companies and consumer staples such as soft drinks and detergent.

Stocks that depend the most on a growing economy were among the biggest decliners, including small companies, consumer discretionary names, materials and industrial stocks.

“All eyes have turned to earnings,” said Joe Tanious, global market strategist with J.P. Morgan Funds.

There’s a lot riding on this quarter’s earnings season. Investors largely believe the weather had an unusually large impact on the U.S. economy in the first three months of year, and that economic activity rebounded in the second three months of this year. Many companies blamed the weather for their disappointing first quarter results.

Secondly, stocks are trading at all-time highs and investors will need Corporate America to deliver on profits in order to justify these record-high prices.

“As we’ve emphasized in recent weeks, stocks are not cheap, but we believe they can climb modestly higher in the second half (of the year) amid continued economic improvement,” said Russ Koesterich, global chief investment strategist at BlackRock, in a note to investors.

The Dow Jones industrial average lost 44.05 points, or 0.3 percent, to 17,024.21. The Standard & Poor’s 500 index lost 7.79 points, or 0.4 percent, to 1,977.65 and the Nasdaq composite fell 34.40 points, or 0.8 percent, to 4,451.53.

The Dow reached a record and a new 1,000-point milestone last Thursday by closing above 17,000 for the first time. That followed a strong U.S. jobs report. U.S. markets were closed Friday for the Independence Day holiday.

The Russell 2000 index, which is made up primarily of small-company stocks, fell more than the rest of the market. The index lost 1.7 percent, versus the 0.4 percent decline in the S&P 500, which is made up of large companies.

Another sign that investors were hesitant to place big bets ahead of corporate earnings reports could be seen in Monday’s low trading volume. Roughly 2.6 billion shares traded hands on the New York Stock Exchange, well below the 3.2 billion shares that moves on an average trading day.

Aluminum mining giant Alcoa reports its latest results on Tuesday and Wells Fargo, the No. 1 U.S. mortgage lender, reports on Friday. Investors are expecting second quarter profits to be up 4.9 percent from a year ago, according to FactSet.

“I think we’re going to exceed expectations,” Tanious said. “Companies were able to post 6 percent earnings growth in the first quarter, even with the U.S. economy contracting. Now that we’ve seen a rebound in economic activity, I think we’re looking at a pretty good earnings season.”

Major airlines stocks fell after the Transportation Security Administration announced new security measures that would impact international flights into the United States. The TSA said that all electronic devices would need to have power in order to travel, including tablet computers and cell phones, which could impact the number of passengers able to travel.

United Continental fell $1.26, or 3 percent, to $38.62, Delta fell $1.70, or 4.5 percent, to $36.90 and American Airlines fell $1.52, or 4 percent, to $40.10. Domestic U.S. airlines fell as well, but the declines were tamer. JetBlue fell 27 cents, or 2.5 percent, to $10.62 and Southwest fell 54 cents, or 2 percent, to $27.17.

Investors also tried to reduce their exposure to risk by buying U.S. government bonds. The yield on the U.S. 10-year note fell to 2.62 percent from 2.64 percent late Thursday.

In other company news:

— Archer Daniels Midland rose 73 cents, or 2 percent, to $46.50 after the company announced it was buying Swiss food flavorings company Wild Flavors for $3 billion in cash. Wild Flavors makes flavors and oils that are used in processed foods.

— BioDelivery Sciences International was up 9 percent after the drug developer said its treatment for severe pain fared better than a placebo in another late-stage study. The company said the trial triggered another $10 million payment from Endo International Plc, which has a licensing agreement with BioDelivery. BioDelivery’s stock rose $1.07 to $13.06.

Benchmark Currency Rates

USD

1.3608 0.0098 1.7137 1.1197 0.9362 0.9376 0.1290

EUR

0.7349 0.0072 1.2593 0.8228 0.6880 0.6890 0.0948

JPY

101.7000 138.4000 174.2970 113.8810 95.2130 95.3570 13.1223

GBP

0.5835 0.7941 0.0057 0.6534 0.5463 0.5471 0.0753

CHF

0.8931 1.2153 0.0088 1.5305 0.8361 0.8373 0.1152

CAD

1.0682 1.4536 0.0105 1.8306 1.1961 1.0015 0.1378

AUD

1.0666 1.4514 0.0105 1.8278 1.1943 0.9985 0.1376

HKD

7.7503 10.5467 0.0762 13.2818 8.6780 7.2555 7.2658

 

Source: Bloomberg

 


Category: FinanceAsia

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