Asia Roundup: Marts mostly lower after Wall St losses

15-Jan-2014 Intellasia | Business Times | Reuters | AFP | Bloomberg | AP | 7:45 AM Print This Post

Asian markets mostly suffered a sell-off yesterday Tuesday January 14 after heavy losses on Wall Street fuelled by last week’s worse-than-expected United States jobs figures.

The yen eased back against the dollar and euro, although that was not enough to prevent a dive on Japan’s Nikkei as it reopened after a long weekend.

Tokyo tumbled 3.08 per cent, or 489.66 points, to 15,422.40, Sydney slipped 1.51 per cent, or 80.1 points, to 5,212.0, Seoul fell 0.15 per cent, or 2.85 points, to 1,946.07.

However, Shanghai finished 0.86 per cent higher, adding 17.28 points to 2,026.84. Jakarta was closed for public holiday.

“The jobs data came in so far below expectations that a sharp knee-jerk market reaction is natural, especially considering how far the dollar has fallen,” Monex market analyst Toshiyuki Kanayama said.

“The selling is unlikely to have a long-lasting effect on market sentiment, but could lead to a more thorough shakeout of what has been a very bullish two-month period.”

HONGKONG: STOCKS fell 0.43 per cent yesterday following a negative lead from Wall Street in response to a worse-than-expected batch of US jobs data.
The benchmark Hang Seng Index shed 97.48 points to end at 22,791.28 yesterday.
Industrial and Commercial Bank of China shares fell 0.4 per cent to HK$4.93 while China Construction Bank slumped 0.5 per cent to HK$5.55.
Chinese motor-vehicle maker Great Wall Motor slid 12.2 per cent to HK$34.45.

SINGAPORE:  THE Straits Times Index lost 11.74 points, or 0.37 per cent, to 3123.75 yesterday.
The FTSE ST Mid Cap Index was down 0.67 per cent while the FTSE ST Small Cap Index added 0.18 per cent.
Among the top actives, SingTel fell 1.13 per cent, OCBC dropped 0.31 per cent, DBS dropped 0.12 per cent, UOB lost 1.10 per cent and Wilmar International declined 1.81 per cent.
Of the outperforming sectors, the FTSE ST Basic Materials Index added 2.42 per cent.
Of the underperforming sectors, the FTSE ST Health Care Index declined 1.59 per cent.

In other markets:

* Mumbai fell 0.48 per cent, or 101.33 points, to 21,032.88 points. Tata Steel fell 2.91 per cent to 374.90 rupees while private carrier Jet Airways fell 2.57 per cent to 261.70 rupees.

* Bangkok added 0.96 per cent, or 12.31 points, to 1,295.87. Thai Airways International jumped 11.63 per cent to 14.40 baht, while telecoms company True Corporation gained 9.79 per cent to 7.85 baht.

* Taipei fell 0.21 per cent, or 18.06 points, to 8,548.14. Taiwan Semiconductor Manufacturing Co was 0.49 per cent higher at T$103.5 while Cathay Financial Holdings shed 1.69 per cent to T$46.6.

* Wellington slipped 0.70 per cent, or 34.24 points, to 4,865.9. Fletcher Building was down 0.78 per cent at NZ$8.93 and Telecom rose 1.07 per cent to NZ$2.35.

* Manila ended flat, dipping 5.11 points to 5,935.56. Bank of the Philippine Islands fell 0.95 per cent to 83.20 pesos and BDO Unibank retreated 0.42 per cent to 71.50 pesos, while Philippine Long Distance Telephone slipped 0.37 per cent to 2,700 pesos.

VIETNAM: Vietnamese stocks extended gain for the eighth straight day with support from blue chips.
The benchmark VN Index added 1.2 points or 0.23% to 522.21. Volume rose 32% to 94.86 million worth of VND1.576 trillion. Put-through trading contributed 9.1 million shares worth of VND271.26 billion.
We saw 3.4 million FPT shares changed hands at extreme prices from floor to the ceiling level; 2.8 million SSI shares changed hands and 1.65 million VCB shares changed hands.
The market breadth was positive with 113 gainers, 91 losers and 80 unchanged.
The VN30 rose 3.98 points or 0.23% to 522.31. Among 30 constituents, 18 gained, 4 fell, 8 stood still.
Market opened in the green with 1.7 million shares changed hands. Trading was supported from early start with strong performance of blue chips. Money flows rotated from stocks to stocks keeping the market heat. The market ended off the peak but still healthy.
A series of blue chips rose today including BVH, DPM, DRC, FPT,  HAG, HPG, HSG, PVD, PPC.
Of note, Song Da Urban & Industrial Zone Investment and Development JSC (SJS), outperformed, hitting the ceiling level for a second straight day today.
SAM was very active and strong with 6.2 million shares changed hands, closing up 3.5%.
Property stocks are strong in general. HAG was active with 3.4 million shares changed hands, share price rose. ITA, ITC, DIC, DIG, OGC were among the gainers.
Top 5 large caps, which accounted for roughly 50% of market capitalization were mixed, GAS, VIC lost, while VCB gained, MSN, VNM stood still.
Banking shares were weak VCB, MBB, EIB gained, while CTG, STB stood still.
Securities stocks were mixed, big players SSI, HCM gained while smaller cap stocks such as BSI, AGR lost.
On the Hanoi Stock Exchange, the HNX gained 0.64 point or 0.91% to 71.69. Trading volume stood still at 47.5 million shares worth VND470.5 billion.
The breadth was still positive with 113 gainers, 91 losers, 80 unchanged and the rest untraded.
The HNX30 added 2.13 points or 1.57% to 137.91.

EUROPE: European stock markets fell yesterday as traders digested regional economic data awaiting key figures out of the United States and after indices slid across Asia and on Wall Street.
London’s FTSE 100 index fell 0.24 per cent to 6,741.04 points amid official data showing Britain’s annual inflation rate had fallen to two per cent, reaching the lowest level for more than four years.
Frankfurt’s DAX 30 lost 0.60 per cent to 9,452.83 points and Paris’ CAC 40 shed 0.50 per cent to 4,242.15 in midday deals. Madrid’s IBEX 35 stocks index fell 0.41 per cent at 10,323 points.
Eurozone industrial output rebounded sharply in November, offering some reassurance that a modest recovery remains on track after heavy falls in October, official data showed yesterday.
“All major European indices are on the lower side, losing ground on the back of poor performance in the US and Asia,” said Varengold Bank analyst Anita Paluch

AMERICA: The good followed the bad for the stock market on Tuesday.

One day after logging its worst performance of the year, the stock market bounced back with its best day of 2014. The Standard & Poor’s 500 index climbed more than 1 percent and erased most of its loss from a day earlier.

Technology stocks led the gains as Wall Street analysts raised their assessments of Intel and electronics company Jabil Circuit.

A report on retail sales also boosted investor confidence. Excluding spending on autos, gas and building supplies, sales increased 0.7 percent in December, the Commerce Department reported Tuesday. That was better than the increase of 0.4 percent forecast by economists.

While the rise in December sales was modest, it helped ease investors’ concerns about the health of the economy after a surprisingly weak jobs report was published on Friday.

“This is a preview of what 2014 will be like…it’s going to be more volatile than it was last year,” said Andres Garcia-Amaya, a global market strategist at JPMorgan Funds. “The market’s bouncing back and saying the world’s not ending, things are pointing in the right direction.”

The S&P 500 index gained 19.68 points, or 1.1 percent, to 1,838.88, its biggest gain since Dec. 18. It rose steadily throughout the day and finished close to its high on Tuesday.

The Dow Jones industrial average rose 115.92 points, or 0.7 percent, to close at 16,373.86, just below of its high of the day. The technology-heavy Nasdaq composite rose 69.71 points, or 1.7 percent, to 4,183.02.

Technology companies rose 1.9 percent, the most of the 10 sectors that make up the S&P 500. The nine other sectors also finished higher.

Intel climbed $1.01, or 4 percent, to $26.51 after analysts at JPMorgan raised their rating on the chipmaker’s stock and predicted that demand for PCs will stabilize this year and that the company’s CEO will focus on improving margins and returns.

Jabil Circuit jumped $1.30, or 7.8 percent, to $17.89 after Goldman Sachs recommended buying the stock of the electronics company, forecasting that its earnings next year could be better than most analysts are expecting.

Stocks have had a sluggish start to the year after an exceptional 2013. The S&P 500 index is down 0.5 percent in January after climbing nearly 30 percent last year.

Despite the slow start, many investors remain optimistic that stocks will end this year higher as well, and that the current slump will wind up being a pause rather than a collapse.

“Valuations have certainly been pushed higher, so (stocks) are no longer cheap,” said Eric Wiegand, senior portfolio manager at U.S. Bank Wealth Management. “But we would contend that they are still fair.”

Investors were also watching results from two big banks. JPMorgan Chase, the nation’s biggest bank by assets, rose 4 cents, or 0.1 percent, to $57.74 after reporting gains in most of its divisions except for investment banking.

Wells Fargo rose 3 cents, or 0.1 percent, to $45.59 after the bank’s net income rose 11 percent, despite a sharp drop in its mortgage business.

The outlook for bank earnings should improve as the economy strengthens said, Jerry Braakman, chief investment officer at First American Trust. Banks should get a lift as long-term interest rates rise, helping to lift the margins on their lending, he said.

The yield on the 10-year note climbed to 2.87 percent from 2.83 percent on Monday as investors sold bonds. The yield was as low as 1.63 percent in early May of last year.

In commodities trading, the price of oil climbed 79 cents, or 0.9 percent, to $92.59. Gold fell $5.70, or 0.5 percent, to $1,245.40 an ounce.

Among other stocks making big moves:

— Time Warner Cable rose $3.60, or 2.7 percent, to $136 after Charter Communications intensified its pursuit of the company. Charter said Monday it would bring an offer directly to shareholders if needed after getting rebuffed by Time Warner Cable’s management.

— Intuitive Surgical jumped $26.81, or 6.8 percent, to $419.88. The company said it will report revenue in the fourth quarter that is higher than Wall Street analysts are forecasting, as procedures performed with its robotic da Vinci system increased.

— GameStop plunged $9.01, or 20 percent, to $36.31 after the world’s largest video game retailer gave a profit forecast that fell below Wall Street’s expectations for its crucial holiday quarter, despite higher-than-expected sales.

Benchmark Currency Rates

USD EUR JPY GBP CHF CAD AUD HKD

USD

1.3671 0.0096 1.6432 1.1076 0.9132 0.8970 0.1290

EUR

0.7315 0.0070 1.2018 0.8102 0.6679 0.6561 0.0943

JPY

104.1300 142.3700 171.1300 115.3470 95.0910 93.4080 13.4303

GBP

0.6086 0.8319 0.0058 0.6740 0.5557 0.5458 0.0785

CHF

0.9029 1.2343 0.0087 1.4836 0.8245 0.8099 0.1164

CAD

1.0951 1.4972 0.0105 1.7995 1.2129 0.9823 0.1412

AUD

1.1149 1.5242 0.0107 1.8321 1.2348 1.0180 0.1438

HKD

7.7542 10.6011 0.0745 12.7417 8.5879 7.0807 6.9553

Source: Bloomberg

 


Category: FinanceAsia

Print This Post

Comments are closed.