Asia: Shares mostly higher after Wall St gains

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

Asian markets were mostly higher yesterday after Wall Street advanced in response to an upbeat outlook for the US economy by the US Federal Reserve, while Chinese trade growth picked up pace in June. An indication from the Fed that it will keep interest rates at record lows well into next year kept downward pressure on the dollar.

Sydney added 0.22 per cent, or 11.92 points, to close at 5464.4 despite soft jobs figures, while Seoul added 0.12 per cent, or 2.34 points, to 2,002.84 and Shanghai was flat, nudging 0.27 per cent down to 2,038.34.

Tokyo dipped 0.56 per cent, or 36.89 points, to 15,265.76 as the strong yen hit exporters.

Jakarta rallied on projections the business-friendly Joko Widodo would win a close presidential election, while Mumbai slipped 0.28 per cent to 25,372.75 as India’s new government unveiled its a much-anticipated first budget that lacked any major reforms.

US shares provided a positive lead as investors picked up bargains after a two-day losing streak thanks to an upbeat assessment of the US economy by Fed policymakers in the minutes of their June board meeting.

The minutes showed the bank plans to end its five-year-long, economy-boosting bond-buying scheme in October. “If the economy progresses about as the committee expects… this final reduction would occur following the October meeting,” the minutes said.

In China, the General Administration of Customs said exports rose 7.2 per cent year-on-year in June while imports gained 5.5 per cent.

HONGKONG: SHARES ended 0.27 per cent higher yesterday, taking the lead from Wall Street while Chinese data showed export growth picking up in June.
The Hang Seng Index rose 62.92 points to 23,238.99 on turnover of HK$47.61 billion.
Tencent added 0.83 per cent to HK$122.2, Ping An insurance slipped 1.58 per cent to end the day’s trading at HK$59.10 and Bank of China fell 0.86 per cent to HK$3.46.
Cathay Pacific Airways eased 0.14 per cent to HK$14.22, HSBC slipped 0.13 per cent to close at HK$78.90 and CNOOC dipped 0.15 per cent to HK$13.44.

SINGAPORE: THE Straits Times Index (STI) ended 5.96 points, or 0.18 per cent, lower to 3,269.50 yesterday.
The FTSE ST Mid Cap Index gained 0.28 per cent while the FTSE ST Small Cap Index rose 0.01 per cent.
Among the active stocks, UOB was unchanged, Ezion lost 1.25 per cent, SingTel shed 0.52 per cent, Jardine Matheson Holdings fell 0.20 per cent and DBS dipped 0.24 per cent.
Of the outperforming sector, FTSE ST Real Estate Investment Trusts gained 0.52 per cent. Of its biggest stocks, CapitaMall Trust added 0.78 per cent and Ascendas REIT advanced by 1.31 per cent.

KUALA LUMPUR: BURSA Malaysia ended higher on continued buying interest yesterday, dealers said.
The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) closed 1.46 points higher at 1,892.62, after hovering between 1,889.19 and 1,893.19 throughout the trading day.
The Finance Index rose 58.82 points to 17,489.85, the Industrial Index improved 9.86 points to 3,273.7 and the Plantation Index added 13.99 points to 9,227.84.
The FBM Emas Index advanced 19.66 points to 13,172.16, the FBMT100 Index improved 14.42 points to 12,777.73, the FBM 70 Index gained 33.99 points to 14,454.51 and the FBM ACE Index rose 48.98 points to 6,797.62.
Market breadth was positive as advancers outpaced decliners 440 to 354, with 357 counters unchanged, 484 untraded and 36 others suspended.
Total volume declined to 1.62 billion units worth RM1.98 billion from Wednesday’s 1.78 billion shares worth RM1.99 billion.
Among actives, KNM Group earned 1.5 sen to RM1.01, Insas jumped seven sen to RM1.31, OSK Holdings surged 28 sen to RM2.28, but China Stationery eased one sen to nine sen.
Heavyweights Maybank dipped one sen to RM9.98, Public Bank added two sen to RM20.06, Axiata was one sen higher at RM6.90 and TNB was flat at RM12.46.
Main Market volume declined to 1.17 billion units worth RM1.91 billion.
Meanwhile, FBM KLCI futures contracts on Bursa Malaysia Derivatives closed mostly lower amid the better cash market.
Spot month July 2014 lost one point to 1,891, August 2014 dropped 2.5 points to 1,889.5, and September 2014 slipped two points to 1,886.5, while December 2014 fell three points to 1,885.5.
Turnover slipped to 2,537 lots from 4,730 lots on Wednesday, while open interest widened to 32,272 contracts from 35,645 contracts previously.

In other markets:

Taipei rose 0.79 per cent, or 75.14 points, to 9,565.12. PC maker Acer rose 2.55 per cent to T$22.1 while Taiwan Semiconductor Manufacturing Co was 0.37 per cent higher at T$134.5.

Wellington added 0.10 per cent, or 5.27 points, to 5,128.01. Fletcher Building was up 0.45 per cent at NZ$8.90 and Telecom edged 0.56 per cent higher to NZ$2.69.

Manila rose 0.48 per cent, or 33.42 points, to 6,937.21. BDO Unibank gained 0.11 per cent to 92 pesos while Alliance Global Group rose 0.34 per cent to 29.80 pesos.

Bangkok gained 0.67 per cent to 1,518.01. Property developer Pruksa Real Estate soared 6.20 per cent to 34.25 baht, while hospitality company Minor International rose 3.97 per cent to 32.75 baht.

VIETNAM: Vietnamese stocks fell sharply today on profit taking, liquidity rose with aggressive exit efforts.
The benchmark VN Index lost 6.72 points or 1.14% to 584.88. Volume rose 39% to 153 million shares worth of VND2.176 trillion. Put-through trading contributed 4.8 million shares worth of VND88.3 billion.
The market breadth was negative with 53 gainers, 179 losers and 52 unchanged.
The VN30 closed down 7.86 points or 1.23% to 628.78. Among 30 constituents 3 gained, 27 fell and 0 stood still.
On the Hanoi Stock Exchange, the measure of 360 stocks, lost 0.53 point, or 0.67%, to end at 78.61.
The traded volume was up 55% from a day earlier to 100 million shares worth VND1,072 billion, up 60% from yesterday.
The market breadth was negative on the northern exchange. Among index members,81 stocks rose, 131 tumbled, 42 closed unmoved, and 139 were untraded.
The HNX 30 Index – the tracker of top 30 stocks calculated based on free float adjusted market capitalization – dropped 2.25 points, or 1.39%, to end at 159.51.

EUROPE: European stock markets dived yesterday on the back of weak industrial output data and a growing crisis engulfing Portuguese lender Banco Espirito Santo. Sentiment was also weighed down as Chinese exports fell short of expectations.
In early afternoon deals, London’s FTSE 100 dropped 0.85 per cent to 6,660.88 points, after the Bank of England held interest rates as expected at a record-low 0.50 per cent.
Frankfurt’s DAX 30 slid 1.52 per cent to 9,658.87 points, Paris’ CAC 40 slid 1.54 per cent to 4,292.93, and Milan’s FTSE MIB was down 2.14 per cent at 20,442.71 points.
Across in Portugal, Lisbon’s PSI 20 benchmark tumbled 4.34 per cent to 6,092.66 points, while Madrid’s Ibex 35 fell 2.48 per cent to 10,482.20.
“It looks like it is concerned about the health of Banco Espirito Santo that has dented market sentiment with bank shares losing ground across the board,” said Forex.com analyst Fawad Razaqzada.

AMERICA: Stocks fell Thursday as worries about the soundness of a European bank spooked U.S. investors, prompting them to sell stocks and snap up less risky assets like gold and governments bonds.

Fears emerged overnight about the financial stability of Espirito Santo International, a holding company that is the largest shareholder in a group of firms, including the parent of Portugal’s largest bank, Banco Espirito Santo.

Espirito Santo International reportedly missed a debt payment this week and was cited for accounting irregularities — similar to issues that sparked Europe’s debt crisis four years ago. The bank troubles had traders and investors talking about another European debt crisis.

Thursday’s stock selling started in Europe, and spread to the U.S, where the Dow Jones industrial average plunged as much as 180 points within the first half hour of trading.

But anxiety in the U.S. quickly subsided and the market clawed back in afternoon trading. While the market never fully bounced back, the decline in the Dow was roughly half of what it was at the beginning of the session.

“Today’s news did reignite some of those contagion fears,” said Ryan Larson, head of equity trading for RBC Global Asset Management.

Portugal is one of the smaller eurozone economies and, like Greece and Ireland, needed an international rescue in 2011 during the continent’s debt crisis. A three-year economic recovery program was supposed to have straightened out its finances.

That debt crisis in Europe was largely responsible for the U.S. stock market’s last decline of 10 percent or more, known as a “correction” in Wall Street parlance. Investors back then worried that the crisis would spread to the U.S., which was starting to recover from its own financial trauma.

On Thursday, the Dow fell 70.54 points, or 0.4 percent, to 16,915.07, erasing most of Wednesday’s advance.

The Standard & Poor’s 500 index fell 8.15 points, or 0.4 percent, to 1,964.88 and the Nasdaq composite fell 22.83 points, or 0.5 percent, to 4,396.20.

Traders and market strategists pointed to a couple of reasons why stocks didn’t continue falling in the U.S.

First, because it has been a relatively quiet week for Wall Street, with little economic data and only a couple companies reporting quarterly results, any negative news was likely “met with overreaction,” Larson said.

“After participants had time to step back and assess, many realized the U.S. is in a relatively good spot compared with (Europe),” he said.

Second, even with the U.S. market trading near all-time highs, many investors are sitting on large amounts of cash. Any noticeable fall in stock prices would likely mean investors would step in.

“Generally, people are willing to put money into this market when the opportunity presents itself,” said Erik Davidson, deputy chief investment officer of Wells Fargo Private Bank, which manages $170 billion in assets.

Investors did seek out some protection Thursday. Bond prices and gold rose as investors moved money into those traditional havens. The yield on the U.S. 10-year note fell to 2.54 percent from 2.55 percent late Wednesday. Gold rose $14.90, or 1.1 percent, to $1,339.20 an ounce.

In stocks, investors moved money into utility and telecommunication companies, also common areas to invest when uncertainty emerges in markets. Utility and telecom companies typically pay a higher-than-average dividend, which makes them attractive when investors don’t expect stock prices to go higher.

The Dow Jones utility index, a collection of 15 utility companies, rose 0.6 percent — the only major index to rise Thursday.

Benchmark Currency Rates

USD

1.3598 0.0099 1.7124 1.1197 0.9391 0.9382 0.1290

EUR

0.7354 0.0073 1.2593 0.8234 0.6905 0.6899 0.0949

JPY

101.2800 137.7200 173.4270 113.3980 95.1070 95.0120 13.0676

GBP

0.5840 0.7941 0.0058 0.6539 0.5484 0.5479 0.0753

CHF

0.8931 1.2145 0.0088 1.5294 0.8387 0.8379 0.1152

CAD

1.0649 1.4481 0.0105 1.8236 1.1924 0.9990 0.1374

AUD

1.0659 1.4494 0.0105 1.8253 1.1935 1.0009 0.1375

HKD

7.7500 10.5387 0.0765 13.2715 8.6777 7.2775 7.2709 – 

 

Source: Bloomberg

 


Category: FinanceAsia

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