Asia:Shares sink after losses on Wall St

05-Jul-2014 Intellasia | Business Times | Reuters | AFP | Bloomberg | AP | 8:39 AM Print This Post

Asian markets were mostly lower yesterday Friday July 04 following losses on Wall Street fuelled by anaemic United States consumer spending.

Investors were taking a breather ahead of the release next week of key economic data, including on global manufacturing activity, US jobs and Japanese business confidence.

Tokyo tumbled 1.39 per cent, or 213.49 points, to 15,095.00 as the strong yen hit exporters, Sydney fell 0.35 per cent, or 19.2 points, to close at 5,445.1 and Seoul slipped 0.33 per cent, or 6.54 points, to 1,988.51.

Shanghai closed 0.11 per cent lower, giving up 2.17 points to 2,036.51.

In New York, the three main indexes closed lower on Thursday after the government released figures showing consumer spending — which accounts for more than two-thirds of US economic activity — rose a mere 0.2 per cent in May after a flat April.

The figures came a day after news that the economy shrank a lot more than first thought in January-March, leading to worries that a recovery is still fragile.

HONGKONG: SHARES ended 0.10 per cent higher yesterday, thanks to a late buying spree, bucking a broad regional sell-off despite a negative lead from Wall Street.
The benchmark Hang Seng Index added 23.69 points to 23,221.52 on turnover of HK$48.28 billion.
The index spent most of the day in negative territory following New York’s losses.
HSBC slipped 0.82 per cent to HK79.05, Internet firm Tencent edged down 0.08 per cent to HK$118.3, ICBC bank was unchanged at HK$4.9 and China Mobile gained 0.33 per cent to HK$75.60.

SINGAPORE: THE Straits Times Index slipped 7.52 points, or 0.23 per cent, to close at 3,271.05 yesterday.
The FTSE ST Mid Cap Index declined 0.03 per cent and the FTSE ST Small Cap Index shed 0.24 per cent.
Among the actives, DBS lost 0.30 per cent, SingTel appreciated 0.26 per cent, OCBC Bank dropped 0.21 per cent, UOB lost 0.09 per cent and Keppel Corp gained 0.19 per cent.
The outperforming sector was FTSE ST Technology Index.
Of its two biggest stocks, Silverlake Axis surged 3.39 per cent and
STATS ChipPAC was unchanged.

KUALA LUMPUR: STOCKS on Bursa Malaysia fell sharply lower yesterday as traders booked profits ahead of the weekend amid the absence of major funds.
The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) ended 9.04 points lower at 1,880.93 after hovering between 1,880.25 and 1,889.34.
On the scoreboard, the Plantation Index declined 28.79 points to 9,239.49, the Finance Index fell 89.561 points to 17,141.58, and the Industrial Index depreciated 8.94 points to 3,247.51. The FBM Emas Index contracted 42.81 points to 13,040.53, the FBMT100 Index went down 46.76 points to 12,668.25, the ACE Index decreased 22.5 points to 6,695.77, but the FBM 70 Index was 2.149 points firmer at 14,212.88.
Decliners outpaced advancers 394 to 372 with 333 counters unchanged, 532 untraded and 39 others suspended.
Total volume rose to 1.64 billion units worth RM1.8 billion from Thursday’s 1.42 billion shares worth RM1.95 billion.
Among actives, 1Utopia eased half-a-sen to six sen, MAS earned half-a-sen to 21.5 sen, and Sumatec Resources gained 1.5 sen to 31.5 sen.
Main Market volume rose to 1.21 billion units worth RM1.7 billion from Thursday’s 1.1 billion units worth RM1.89 billion.
Meanwhile, FBM KLCI futures contracts on Bursa Malaysia Derivatives ended sharply lower.
Spot month June and July 2014 declined 8.5 points each to 1,884 and 1,880.5, respectively, while September 2014 fell 9.5 points to 1,886.5, and December 2014 eased 7.5 points to 1,881.5.
Turnover declined to 13,456 lots from 20,163 lots on Thursday, with open interest narrowing to 48,683 contracts from 68,759 contracts previously.

In other markets:

Bangkok added 0.39 per cent, or 5.76 points, to close at 1,483.24. Bank of Ayudhya gained 7.43 per cent to 47.00 baht, while coal producer Banpu rose 1.72 per cent to 29.50 baht.

Jakarta slipped 0.56 per cent, or 27.29 points, to 4,845.13. Palm oil producer Astra Agro Lestari fell 2.05 per cent to 28,700 rupiah, while carmaker Astra International gained 1.73 per cent to 7,350 rupiah.

Manila lost 0.73 per cent or 50.03 points, to 6,842.15. Ayala Land slipped 1.75 per cent to 30.85 pesos, SM Prime dropped 2.9 per cent to 15.92 pesos and SM Investments fell 2.46 per cent to 811.50 pesos.

Mumbai rose 0.15 per cent, or 37.25 points, to 25,099.92. Infosys gained 1.02 per cent to 3,221.95 rupees while rival Wipro closed up 1.9 per cent to 545.85 rupees.

Taipei fell 0.15 per cent, or 14.11 points, to 9,306.83. Taiwan Semiconductor Manufacturing Co rose 0.8 per cent to T$125.5 while Acer slipped 1.85 per cent to T$21.2.

Wellington added 0.27 per cent, or 14.09 points, to 5,144.25 but trading was curtailed by a technical glitch. Telecom advanced 0.93 per cent to NZ$2.72 and Freightways was unchanged at NZ$5.11.

VIETNAM: Vietnam’s benchmark VN Index was up 0.81 percent at Friday’s break, led by Vinamilk on the dairy product maker’s stock dividend plan, an analyst said.
“Vinamilk will pay stock dividends of 5:1 to shareholders in August, which is a good rate,” said Viet Capital Securities manager Nguyen The Minh, adding the company’s board of directors confirmed the move.
Shares of VNM, the country’s second-biggest listed firm by capitalisation, was up 2.36 percent at 130,000 dong after hitting 131,000 dong, their highest intra-day level since May 9.
Steady growth and solid volume indicate that the index may gain further in the coming weeks, to at least 600 points, analysts said.
Volume had reached 74 million shares by the midday break, close to the five-day average level of 98 million, Reuters data showed.

EUROPE: Europe’s main stock markets recovered slightly yesterday as traders focused on regional growth data, a day after the release of poorly received United States numbers.
London’s benchmark FTSE 100 index of top companies rose 0.19 per cent to stand at 6,747,75 points around midday in the British capital.
Frankfurt’s DAX 30 climbed 0.11 per cent to 9,815.25 points and the CAC 40 in Paris rose 0.22 per cent to 4,449.24 compared with Thursday’s closing values.
The FTSEurofirst 300 index of top European shares was flat at 1,370.55 points.
The eurozone’s blue-chip Euro STOXX 50 index was down 0.07 per cent at 3,230.93 points, but its losses were limited by a strong support level at 3,225.
“European stock markets have performed poorly, weighed down by concerns about the wider economy, as well as geopolitical tensions,” noted Michael Hewson, chief market analyst at trading group CMC Markets UK.

AMERICA: It’s a big round number, 17,000, so what does that mean for the stock market when the Dow Jones Industrial Average closed Thursday above that line for the first time.

For average traders, such as many of those in Southwest Florida, it’s an upside trend that adds value to their 401ks, IRAs and other investment accounts.

“It makes for good conversation and good cocktail party chatter,” said Jim Applegate, Southwest Florida Regional Director for Financial Services Advisory, an investment firm headquartered in Maryland. “It’s just a number. Markets are driven by greed and fear by participants.”

In a shortened trading session in advance of today’s holiday when the markets are closed, the equity markets surged Thursday following a better-than-expected jobs report. The Dow closed up 92.04 to close at 17,068. The S&P 500 also climbed to a record high of 1,985.

Applegate said even though the Dow passed a big, headline-grabbing threshold, it shouldn’t have any bearing on an individual’s long-term goals.

“Just because it hit a particular number shouldn’t change how you invest,” he said. “You should always invest within your time horizons and risk levels.”

After a robust year in 2013, stocks faltered in January, but since the Dow hit its year-to-date low on Jan. 3, the trend has been steadily up.

“We are trend followers,” Applegate said. “If there are no signs of faltering, we’re probably going to stay more fully invested.”

Many analysts say big round numbers are a bullish signal. But, Applegate said, there certainly can be a different way to look at it.

“An opposite view might be that when people look at the high level of the market, maybe it’s a good time to take some chips off the table. We haven’t had a correction in a while. Corrections are healthy for the market.”

Part-time Sanibel resident and long-time Wall Street executive David Jones said big numbers are looked at as a benchmark of sort — such as 17,000 for the Dow.

“Perhaps most important,” Jones said, “is to ask the question ‘why?’ ”

He said there are three major reasons why the stock market has remained hot.

“The Federal Reserve is flooding the system with liquidity,” he said. “This goes back to the credit crisis in 2008. Never in history has the Fed been so intent with flooding the system with more and more money. Half of that 30 percent rally last year accounted for all of the Fed’s highly stimulative, highly liberal monetary policy. You have to ask, is the continued gain this year an artificial high?”

However, Jones said as his second reason for the upward trend, there doesn’t seem to be a stock bubble. “Valuations in the market … the price to earning ratio shows that the market is pretty fairly valued.”

Reason No. 3, he said, is investors are sticking closer to home. “It looks like investors are giving up on some of the emerging markets like China,” he said. “Many are saying that the best bet for investing is on the U.S.”

Lost to many in the hullabaloo over the Dow, is the surge in the Nasdaq. Thursday, for example, it hit a 15-year high. Not since the crazy days of 1999 has the Nasdaq been as high as its close of 4,485 after a gain of 28.19.

Benchmark Currency Rates

USD

1.3595 0.0098 1.7160 1.1184 0.9387 0.9365 0.1290

EUR

0.7356 0.0072 1.2623 0.8226 0.6905 0.6889 0.0949

JPY

102.0600 138.7500 175.1340 114.1480 95.8050 95.5760 13.1690

GBP

0.5828 0.7922 0.0057 0.6517 0.5470 0.5458 0.0752

CHF

0.8941 1.2157 0.0088 1.5345 0.8395 0.8375 0.1154

CAD

1.0653 1.4483 0.0104 1.8280 1.1914 0.9976 0.1375

AUD

1.0678 1.4517 0.0105 1.8324 1.1942 1.0024 0.1378

HKD

7.7501 10.5360 0.0759 13.2990 8.6677 7.2749 7.2575

 

Source: Bloomberg

 


Category: FinanceAsia

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