Asia Roundup: Mixed on another Wall St record

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

Asian share markets began the new year mixed yesterday January 2 2014, with another record-breaking close on Wall Street offset by a slowdown in Chinese manufacturing growth.

Sydney added 0.29 per cent, or 15.7 points, to 5,367.9 while Seoul tumbled 2.20 per cent, or 44.15 points, to close at 1,967.19.

Shanghai lost 0.31 per cent, or 6.59 points, to 2,109.39.

Bangkok shares saw a steep fall, plunging 5.23 per cent, or 67.94 points, to 1,230.77 as worries mounted about the country’s political crisis following weeks of anti-government protests.

Tokyo and Wellington were closed for public holidays.

US shares gave a positive lead going into 2014, with investors in New York upbeat after a series of strong data indicating the world’s top economy is getting back up to speed.

However, while the performance in New York provided a catalyst for buying, figures showing that factory activity in China had slowed weighed on sentiment. On Wednesday Beijing’s official purchasing managers’ index for December came in at 51.0, down from November’s 51.4 and below the median 51.2 forecast by economists.

HONGKONG: STOCKS closed 0.14 per cent higher yesterday after the Dow and S&P 500 ended 2013 at record highs on Wall Street, although gains were capped by weak Chinese manufacturing data.
The benchmark Hang Seng Index rose 33.66 points to 23,340.05 on turnover of HK$48.76 billion.
“The data suggests that the economy is drifting slightly downward and the manufacturing sector is not strong,” said analyst Zhang Yanbing.
Tencent gained two per cent to HK$504.5, AIA rose 1.16 per cent to HK$39.35 while China Mobile dropped 0.25 per cent to HK$80.2.

SINGAPORE:  THE Straits Times Index gained 7.22 points, or 0.23 per cent, to 3,174.65, taking the year-to-date performance to 0.31 per cent higher.
The FTSE ST Mid Cap Index rose 0.26 per cent while the FTSE ST Small Cap Index gained 0.64 per cent.
Among the top active stocks, HanKore added 8.33 per cent, GSH Corp climbed 7.41 per cent, DBS was unchanged, SIIC Environment rose 3.83 per cent and SingTel remained unchanged.
Meanwhile, Oversea-Chinese Banking Corp eased 0.20 per cent to S$10.18 and oil rig maker Keppel Corp gained 0.09 per cent to S$11.20.

KUALA LUMPUR: SHARES on Bursa Malaysia ended lower on the first trading day of the year, weighed down by profit-taking after recent gains.
At the close, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell by 14.01 points to settle at 1,852.95, after opening 1.23 points lower at 1,865.73.
The benchmark index fluctuated between 1,848.83 and 1,868.29 throughout the day.
Market breadth was negative as losers thumped gainers 406 to 347, with 302 counters unchanged, 493 untraded and 16 others suspended.
Volume declined to 1.24 billion shares worth RM1.35 billion from 1.49 billion shares valued at RM1.67 billion on Tuesday.
On the scoreboard, the Finance Index lost 68.859 points to 16,886.74, the Industrial Index fell 27.68 points to 3,160.79 and the Plantation Index slipped 107.38 points to 8,838.36.
The FBM Emas Index declined 80.07 points to 12,773.56 and the FBMT 100 Index lost 86.54 points to 12,502.84.
The FBM ACE fell 9.96 points to 5,665.83, while the FBM 70 slid 65.89 points to 14,116.24.
Of the heavyweights, Maybank fell one sen to RM9.93, Tenaga lost 20 sen to RM11.18 and Axiata fell four sen to RM6.86.
Meanwhile, the FBM KLCI futures contracts on Bursa Malaysia Derivatives were traded mostly lower.
Spot month January lost 14 points to 1,853 and the new contract month, February 2014, declined 14 points to 1,853.
March 2014 also fell 13.5 points to 1,851 and June 2014 lost 16 points to 1,845.
Turnover declined to 6,166 lots from 9,500 lots on Tuesday while open interest fell to 46,145 contracts from 55,359 contracts previously.

In other markets:

* Jakarta rose 1.24 per cent, or 53.09 points, to 4,327.26. Carmaker Astra International gained 2.21 percent to 6,950 rupiah while Indah Kiat Pulp & Paper rose 1.43 per cent to 1,420 rupiah.

* Manila closed 1.60 per cent higher, adding 94.43 points, to 5,984.26. Universal Robina gained 4.33 per cent to 118 pesos while International Container Terminal Services rose 10 per cent to 102.10 pesos.

* Mumbai dropped 1.19 per cent, or 252.15 points, to 20,888.33 points. Wind energy giant Suzlon Energy fell 7.14 per cent to 10.54 rupees and Reliance Communications fell 5.89 per cent to 130.85 rupees.

* Taipei ended flat, edging up 1.03 points, to 8,612.54. Taiwan Semiconductor Manufacturing Co fell 0.95 per cent to T$104.5 while Hon Hai rose 0.37 per cent to T$80.4.

VIETNAM: Vietnamese stocks opened the New Year in a mixed trading today even though the Manufacturing activity expanded for the fourth-straight month….
The benchmark VN Index lost 0.12point or 0.02% to 504.51. Volume fell 5.3% to 57.7 million worth of VND906.3 trillion. Put-through trading contributed 2.7 million shares worth of VND176 billion. We saw 1.9 million MSN shares changed hands at the flat line of VND82,500 each and 0.53 million SVC shares changed hands at VND15,300 each.
The market breadth was still positive with 105 gainers, 95 losers and 70 unchanged.
The VN30 lost 0.2 point or 0.04% to 562. Among 30 constituents, 7 gained, 14 fell, 9 stood still.
Market opened in the green with 2.4 million shares changed hands. Market extended gaining in most of the trading hours, however, the aggressive selling in the last 15 minutes of the ATC session sent the index to the negative ground.
The market got support from rising Manufacturing activity. The HSBC Vietnam Manufacturing Purchasing Managers”””” Index was 51.8 in December compared with 50.3 in November. The reading is the highest since April 2011.
High beta stocks continued to perform well, FLC, HAR, VHG limited up.
Meanwhile, top 5 large caps, which accounted for roughly 50% of market capitalization were mixed, GAS, VIC, VNM stood still, MSN, VCB lost.
Banking shares were mixed STB, VCB, MBB lost while EIB, CTG gained.
On the Hanoi Stock Exchange, the HNX bucked trend to gain 0.09 point or 0.13% to 67.93. Trading volume fell 16% to 33.4 million shares worth VND268 billion.
The breadth was positive  with 113 gainers, 73 losers, 76 unchanged and the rest untraded.
The HNX30 lost 0.35 point or 0.28% to 126.79.

EUROPE: European stock markets fell yesterday, reversing initial gains, as investors reacted to poor Chinese manufacturing data and took profits on the first trading day of 2014.
Financial markets also digested mixed news on the health of the eurozone’s manufacturing sector.
The pan-European FTSEurofirst 300 was down 0.5 per cent at 1,309.89 at 1041GMT.
London’s FTSE 100 index fell 0.43 per cent to 6,719.82 points and the Paris CAC 40 sank 0.94 per cent to 4,255.48 points, compared with the close on Tuesday.
Frankfurt’s DAX 30 index declined 0.63 per cent to 9,491.81 points.
“The rally witnessed in the past week has been subjected to profit-taking,” said strategist Brenda Kelly at trading firm IG.
“It was a cracking end of the year for European stocks, and I expect a continuation of the same,” said chief European equity strategist at Standard & Poor’s.

AMERICA: Investors may already feel a little nostalgic for 2013.

The Standard & Poor’s 500 index began the New Year with its worst performance in three weeks as energy and technology companies pulled down the stock market.

Stocks started the year at lofty heights after a combination of rising company earnings and economic stimulus from the Federal Reserve pushed major indexes to record levels in 2013. The S&P 500 surged almost 30 percent, its best year since 1997, and the Dow Jones industrial average climbed 26.5 percent, the most since 1995.

“The market was grossly overbought and needed to pull back,” said Peter Cardillo, chief market economist at Rockwell Global Capital. “But fundamentally everything is looking pretty good.”

The S&P 500 dropped 16.38 points, or 0.9 percent, to 1,831.98, its worst start to a year’s trading since Jan. 2, 2008, when the index slumped 1.4 percent.

The Dow fell 135.31 points, or 0.8 percent, to 16,441.35. The Nasdaq composite slid 33.52 points, or 0.8 percent, to 4,143.07.

Energy stocks fell as the price of oil dropped $2.98, or 3 percent, to $95.44 a barrel. Oil slumped after reports that an end to protests at a major Libyan oil field could return 300,000 barrels of daily production to the global market.

Technology stocks lost ground after analysts published gloomy notes on companies in the sector. Analog Devices lost $1.65, or 3.2 percent, to $49.28 after analysts at Goldman Sachs advised its clients to sell the chipmaker’s stock, saying it’s overvalued compared to its peers.

Apple fell $7.89, or 1.4 percent, to $553.13, after Wells Fargo cut its outlook on the stock to “market perform” from “outperform,” saying profit margins may come under pressure later this year.

Some analysts said investors shouldn’t read too much into the lackluster start to the year because trading volumes were below normal as the holiday season wound down with many market participants still away from their desks.

“I don’t think we can really start counting till Monday,” said Dan Morris, Global Investment Strategist at TIAA-CREF. “A lot of people are still on holiday.”

Investors will be hoping that the stock market steadies because its performance in January often gives an indication of how the rest of the year might turn out. The January barometer has proven accurate almost 90 percent of years since 1950, according to the Stock Trader’s Almanac.

The yield on the 10-year Treasury note climbed to 2.99 percent from 2.97 percent after some encouraging reports on the economy. The yield on the note, which rises when investors sell bonds, is close to its highest since July 2011.

The number of Americans seeking unemployment benefits last week fell by 2,000, extending a recovery in the job market, and U.S. manufacturing grew at a healthy pace in December as factories stepped up hiring and received more orders.

Among other stocks making big moves, Martha Stewart Living Omnimedia climbed 37 cents, or 8.8 percent, to $4.56 after it announced an end to its bitter standoff with Macy’s over a breach-of-contract lawsuit involving J.C. Penney.

Stewart’s company and Penney signed a merchandising deal in December 2011. That prompted Macy’s to sue both companies for violating its exclusive agreement with Martha Stewart. Terms of the settlement are not being released. Macy’s fell 1 cent to $53.39.

Benchmark Currency Rates

USD EUR JPY GBP CHF CAD AUD HKD

USD

1.3666 0.0095 1.6455 1.1119 0.9376 0.8903 0.1290

EUR

0.7318 0.0070 1.2040 0.8137 0.6861 0.6515 0.0944

JPY

104.8100 143.2200 172.4390 116.5440 98.2600 93.3170 13.5160

GBP

0.6078 0.8304 0.0058 0.6758 0.5698 0.5411 0.0784

CHF

0.8994 1.2290 0.0086 1.4798 0.8431 0.8007 0.1160

CAD

1.0665 1.4577 0.0102 1.7550 1.1860 0.9498 0.1376

AUD

1.1231 1.5348 0.0107 1.8480 1.2487 1.0531 0.1449

HKD

7.7540 10.5959 0.0740 12.7606 8.6218 7.2700 6.9035

Source: Bloomberg

 


Category: FinanceAsia

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