Asia stocks slacken on US, China outlooks

HONG KONG: Asian shares lost ground and the dollar fell to its lowest level against the yen this year on Friday due to weak US and Chinese economic data, although Mumbai was lifted by positive earnings.

Sentiment took a hit from news out of the United States earlier of a drop in manufacturing activity in New York state and only a modest rise in industrial production across the country last month.

Data also showed a decline in US producer prices, suggesting a slow recovery and possible deflation. Google”s second-quarter revenue also disappointed as it was only one percent up from the first quarter.

The data sent the dollar to its lowest level so far this year against the yen.

The greenback fell briefly to 86.93 yen in the afternoon, its first dip below 87 yen since July 1 and its lowest since early December.

The euro bought 1.2921 dollars in Tokyo compared with 1.2922 dollars in New York earlier after soaring past 1.29 for the first time in over two months. The euro fell to 112.44 yen from 113.11 yen.

“The US economy, which had been believed to be staging a solid recovery, now seems to be stalling,” said Hachijuni Bank dealer Masatsugu Miyata.

Tokyo shares closed down 2.86 percent, with exporters such as Sony and Nissan hit hardest due to the strong yen.

Hong Kong and Shanghai both closed flat, as Agricultural Bank of China”s IPO underwhelmed on its Hong Kong debut, following a tepid start in Shanghai on Thursday.

AgBank”s shares closed up 2.2 percent from their 3.20 Hong Kong dollar IPO price.

“Investors are waiting on the sidelines as they think Agbank will fall below its IPO price in no time,” said Wang Junqing at Guosen Securities.

Shanghai was down two percent for the week as a whole and Hong Kong down 0.6 percent.

Zijin Mining fell 3.73 percent in Hong Kong in the fall-out from a toxic spill that has killed off vast numbers of fish.

Sydney closed down 0.45 percent, or 19.9 points, at 4,422.7, with new leader Julia Gillard expected to call national elections for August over the weekend.

However Mumbai was more exuberant, edging up 0.26 percent, or 46.36 points, to 17,955.82, buoyed by strong quarterly earnings data from top software exporter TCS.

TCS rose 6.16 percent after announcing that its net profit for the quarter ended June had jumped 21 percent to 18.44 billion rupees (402 million dollars), beating forecasts thanks to improved demand for outsourcing.

India”s largest private bank ICICI Bank rose 2.32 percent on hopes it too would announce strong earnings amid higher demand for loans.

Singapore”s Straits Times Index closed up 0.48 percent, or 14.17 points, at 2,957.72. DBS Group gained 18 cents to 14.80, while Singapore Airlines fell two cents to 15.02.

Oil hovered around 76 dollars in volatile Asian trade.

New York”s main contract, light sweet crude for delivery in August, was down 24 cents at 76.38 dollars a barrel in the afternoon. Brent North Sea crude for September delivery turned lower and was down 35 cents at 75.74 dollars.

“Some economic data in the United States are signalling slower economic growth and that has put a lid on any price rally,” said Victor Shum, an analyst with energy consultancy Purvin and Gertz in Singapore.

Gold closed at 1,208.00-1,209.00 US dollars an ounce, down from Thursday”s close of 1,211.00-1,212.00 dollars.

In other markets:
– Manila closed down 0.72 percent, or 24.95 points, at 3,442.68 points.
Top-traded Philippine Long Distance Telephone Co. was unchanged at 2,460 pesos but Ayala Land Inc. was down 1.67 percent. Aboitiz Power Corp. also fell 1.26 percent.

– Taipei fell 0.52 percent, or 39.95 points, to 7,664.57.
Acer rose 1.93 percent, while TSMC fell 0.67 percent despite announcing a nearly 10-billion-dollar investment to build a new plant.

– Seoul closed down 0.73 percent, with auto and technology stocks pulling down the index amid lingering fears of a double-dip global recession. The benchmark KOSPI ended down 12.84 points at 1,738.45.

– Wellington slipped 0.55 percent, pushing the benchmark NZX 50 Index below 3,000 points, despite a five percent increase for New Zealand Refining company. The company, which produces about 80 percent of the diesel, petrol and jet fuel used in New Zealand, opened a new plant that lifts its capacity by 15 percent to around 135,000 barrels a day.
The NZX-50 index was down 16.56 points at 2,985.760.

– Kuala Lumpur closed up 0.29 percent, or 3.88 points, at 1,336.65.
Scomi Engineering climbed 31.3 percent, while Public Bank inched up 0.9 percent. Tobacco giant BAT slid 0.5 percent.

– Bangkok closed up 0.79 percent, or 6.52 points, at 827.54.
Banpu lost 4.00 baht to 610.00, but Bangkok Bank rose 3.00 baht to 129.50.

– Jakarta rose 0.40 percent, or 11.86 points, to an all-time closing high of 2,992.45 as foreign funds bought banks and blue chip mining stocks.

Bank Negara Indonesia jumped 7.6 percent, while tin miner Timah climbed 4.6 percent.

Dollar, euro firm as Asian stocks rebound

TOKYO: The dollar and the euro gained ground Monday, as rising Asian shares helped bolster risk appetite after recovery hopes were supported by a survey that showed US consumer confidence increasing.

The dollar rose to 91.87 yen in Tokyo morning trade, up from 91.65 in New York on Friday.

The euro rose to 1.2173 dollars from 1.2112 and to 111.85 yen from 111.00.

Gains across Asian bourses encouraged short-term investors to buy riskier assets, analysts said, reducing demand for the safe-haven yen.

On Friday a private survey showed a stronger-than-expected rise in US consumer sentiment in June, fuelling optimism that retail sales would pick up after falling in May, when markets were roiled by eurozone debt worries.

In Tokyo, the headline Nikkei index gained 1.56 percent in morning trade, while Hong Kong”s Hang Seng Index opened 1.03 percent higher.

The rise of the dollar against the yen was likely to continue “on expectations for stocks to be firmer,” Mitsuru Sahara, senior dealer at Bank of Tokyo-Mitsubishi UFJ, told Dow Jones Newswires.

However, investors were looking to sell the US currency once it hits above the 92.00 to 93.00 yen range, he said.

The South Korean won was up sharply against the US dollar, helped by a 0.97 percent rise in Korean stocks. The dollar was at 1,229.5 won, down from 1,246.1 Friday.

Traders said the announcement Sunday of measures to ease the impact of rapid capital flows on the local economy, including new rules to limit local and foreign banks” foreign exchange forward positions, had little impact on the markets as it had been well flagged.

Oil edges up in Asia

SINGAPORE: Oil edged up in Asian trade Tuesday as the European single currency recovered, spurring investor demand for crude futures, analysts said.

New York”s main futures contract, light sweet crude for delivery in July gained nine cents to 71.53 dollars a barrel while Brent North Sea crude for July delivery was up three cents to 72.15 dollars.

The euro changed hands at 1.1960 dollars in Tokyo morning trade, up from 1.1919 in New York on Monday. Against the yen, it fetched 109.32 against 109.00 in New York.

Oil prices fall below 70 dollars

SINGAPORE: Oil fell below 70 dollars in Asian trade Monday as a weak US jobs report continued to hurt investor sentiment, analysts said.

New York”s main futures contract, light sweet crude for delivery in July, fell 1.82 dollars to 69.69 dollars a barrel in morning trade.

Brent North Sea crude for July delivery shed 1.46 dollars to 70.63 dollars.

“Oil has continued to plunge this morning, and that is also consistent with Asian equities markets, which are tanking,” said Victor Shum, a Singapore-based analyst with Purvin and Gertz energy consultancy.

Major Asian bourses nosedived in early trade Monday, with the Japanese, Australian, South Korean and Hong Kong stock markets all falling after opening.

Prices could well drop below 2010 lows of 67.90 dollars a barrel experienced in May this year over the next few days, said Shum.

“It certainly could fall to that level… right now the sentiment is to sell, and the momentum could make prices drop further,” he said.

Oil and stock markets are being depressed by “disappointing US employment data,” he added. A weak US jobs report released Friday raised questions about the strength of the US economic recovery, souring international investor sentiment.

The US economy created 431,000 non-farm jobs in May — the vast majority due to temporary government hiring for this year”s census. Most experts had expected 500,000 would be added.

Fears of the eurozone”s financial crisis spreading to other countries within the region was also dragging equities and oil markets south, Shum said.

“Both markets are reacting to concerns on the European market of the crisis spreading to other markets,” he said.

pound to dollar

The dollar rose against the yen and the British pound but slipped against the euro Friday, as traders reacted to apparent global support for Greece and the hung parliament in the U.K. after the Wall Street tumble on Thursday.

Markets were also eagerly awaiting the nonfarm payrolls report due at 8:30 a.m. Eastern.

Finance ministers from the Group of Seven were due to hold a telephone conference, which helped put a floor under the European unit /quotes/comstock/21o!x:seurusd (CUR_EURUSD 1.2706, +0.0079, +0.6255%) , which recovered to $1.2790 from $1.2606 earlier in Asian hours and from $1.2639 late Thursday.
Against its Japanese counterpart, the dollar
The pound was at $1.4866 in late North American trading on Thursday, a day in which it lost more than 1% against the greenback, and rose to $1.4895 in early Asian trading Friday.

“If we don’t get a clear majority — which looks like the most likely scenario at the moment — the overhang of uncertainly is still negative for sterling. And then it kind of depends on horse trading in the next hours or days,” said Adam Cole, foreign exchange strategist at RBC.
source:marketwatch

Asian markets rise as Goldman jitters ease

TOKYO: Asian stock markets rose Tuesday after a mostly higher finish on Wall Street as concerns eased about the U.S. government”s case against Goldman Sachs.

The region”s major benchmarks were up about 0.5 percent while oil regained some ground after a big tumble. The dollar fell against the yen and rose versus the euro.

Japan”s Nikkei 225 stock average added 0.4 percent to 10,955.01as a slightly weaker yen gave support to exporters.

South Korea”s Kospi was up 0.4 percent at 1,713.43, Hong Kong”s Hang Seng advanced 0.6 percent to 21,530.09 and Australia”s benchmark gained 0.3 percent. Stock markets in Taiwan and Singapore also rose, while shares in mainland China fell.

In New York on Monday, the Dow Jones industrial average rose 0.7percent to 11,092.05 as investors set aside some of their concerns about the government”s civil fraud charges against Goldman Sachs.

The advance followed a drop of 126 points Friday when the Securities and Exchange Commission filed civil fraud charges against Goldman Sachs related to mortgage investments.

Investor worries subsided after reports that the SEC”s vote was split 3-2 along party lines to press its case against Goldman Sachs.

Banking shares rose in Asia, with Japan”s Sumitomo Mitsui Financial Group Inc. up 1.1 percent and National Australia Bank ahead by 2.5 percent.

Benchmark crude for May delivery was up 63 cents at $82.08 in electronic trading on the New York Mercantile Exchange. The contract fell $1.79 on Monday to settle at $81.45.

In currencies, the dollar rose to 92.57 from 92.47 yen late Monday. The euro fell to $1.3473 from $1.3488.

Gold hits one-month high despite dollar rise

NEW YORK: Gold rose to a one-month high and euro-priced gold hit a record peak, as currency uncertainties and worries over smaller euro-zone economies prompted safe-haven buying in the metal.

Palladium climbed to a two-year high, extending its gains above $500 an ounce, driven by strong investment demand due to an improving auto-sector outlook.

Bullion”s gains in the face of a stronger dollar indicate the inverse relationship between the metal and the U.S. currency will occasionally break down, if risk-averse investors pile into gold due to related to economic jitters, traders said.

“People are still worried about the euro and the Greece situation, and gold is partially getting support from the economic recovery as people are looking to get ahead of the inflationary trade,” said Zachary Oxman, managing director of TrendMax Futures.

Oil prices inched up toward $87 a barrel, rising for a sixth consecutive session, as recent positive economic data boosted futures to a fresh 18-month high.

Gold tends to track crude prices, as the metal can be bought as a hedge against oil-led inflation.

Spot gold was at $1,135.05 at 3:53 p.m. EDT, against $1,129.70 late in New York on Monday. It hit a session high $1,138.40 an ounce, its firmest since March 5.

U.S. June gold futures on the COMEX division of the NYMEX settled up $2.20 at $1,136 an ounce.

Bullion”s strength in terms of euro also showed underlying currency concerns.

Euro-priced gold rose to a record 851.04 euros an ounce, against 837.68 late on Monday.

The euro declined broadly as reports that Greece wanted to amend a European Union aid deal rekindled fear about its ability to resolve its debt crisis.

Indian dealers said demand for the metal in the world”s biggest gold market was firm as traders took advantage of a price retreat to stock up ahead of a raft of festivals and for the spring wedding season.

“With gold doing well on the crosses and with good physical demand in India and China, there is still a group who are looking at gold as a currency,” said Simon Weeks, head of precious metals at the Bank of Nova Scotia.

Among other commodities, palladium also rose to two-year highs at $508.50 an ounce against $500, boosted by expectations demand will be strong this year from carmakers — who account for more than half of palladium consumption — and investors.

Platinum was at $1,699.50 an ounce against $1,703.

“We remain tactically bullish both metals this year, expecting their price increases to outstrip those for gold,” said UBS analyst Edel Tully in a note.

The gold-platinum ratio which shows how many ounces of gold are needed to buy an ounce of platinum, reached 1.51 on Tuesday, a UK-based news agency data showed, matching the previous session”s level, its highest since September 2008.

Among other precious metals, silver was at $17.95 an ounce against $18.02, as the market took a breather and tracked the decline of other industrial metals.

reuters

LONDON (Reuters) – The euro fell against both the dollar and yen on Tuesday on renewed worries about Greek debt while world shares were flat with Europe higher.

Jitters about Greece returned to the market after a newspaper report said it was seeking $5 billion to $10 billion from U.S. investors to help cover its May borrowing requirement. ]

The process of seeking the funding looks likely to be akin to an emerging market, including a roadshow.

Greece was also reported separately to be seeking to amend the deal struck late last month with European Union partners to provide an emergency safety net.

One result was a sell-off in the euro, which was down half a percent against the dollar at $1.3417 and around 1 percent against the yen at 125.94 yen.

“There’s speculation that the financial situation in Greece will become increasingly difficult,” said Lutz Karpowitz, currency strategist at Commerzbank in Frankfurt. “Negative news about Greece will continue to pressure the euro.”

Euro zone government debt also fell. The June Bund future was down 64 ticks on the day at 122.80.

The interest rate-sensitive two-year Schatz yield was up 5.5 basis points at 1.03 percent. The 10-year Bund yield was up eight basis points at 3.163 percent.

Five-year Greek credit default swaps — the cost of insuring Greek debt — rose to 354 basis points from 347 basis post on Friday, the last day they were priced.

Euro zone bonds were also catching up from the long Easter weekend, which saw some positive U.S. economic data, including on jobs.

EUROPE STOCKS RISE

Word stocks as measured by MSCI (^MIWD00000PUS – News) were flat to higher, with European stocks holding up the benchmark.

European shares hit a new 18-month high, tracking gains in the United States, where sentiment was boosted by a stronger labor market.

The FTSEurofirst 300 (^FTEU3 – News) index of top European shares was up half a percent after rising 1.4 percent in the previous session to its highest close since September 2008.

The European benchmark is up more than 70 percent from its low of March 9, 2009.

Earlier, Japan’s Nikkei average fell 0.5 percent, but only after successive days of 18-month highs.

Asian Stocks Rise Amid Greece Hopes

HONG KONG: Asian stock markets rose Wednesday amid growing hopes of a solution to Greece’s financial crisis.

Major markets added less than 1 percent as the region extended its gains for a fourth straight day. The dollar was lower against the yen and the euro, while oil prices were little changed.

Worries about Greece’s ability to stabilize its finances have eased in recent days amid speculation European leaders will orchestrate a bailout and the government will take needed steps to reduce its mountain of debt.

Greece’s prime minister is set to announce deeper spending cuts later Wednesday. If the measures are tough enough, that could pave the way for a lifeline when Greek and German leaders meet on Friday, analysts said.

Further helping sentiment were overnight gains in the U.S., where stocks rose a third day amid renewed confidence that business leaders expect the economic recovery to stick.

In Japan, the Nikkei 225 stock average edged up 15.63 points, or 0.2 percent, to 10,237.47.

South Korea’s Kospi was up 0.2 percent at 1,618.86 and Hong Kong’s Hang Seng was little changed at 20,911.97.

Elsewhere, Australia’s market rose 0.7 percent, lifted by news the country’s economy expanded quickly last quarter. Indian stocks added 0.7 percent and Shanghai’s market was 0.4 percent higher.

In currencies, the dollar fell to 88.68 yen from 88.80 yen. The euro strengthened to $1.3647 from 1.3615.

Benchmark crude for April delivery was up 3 cents to $79.71 a barrel in Asia. The contract rose 98 cents to settle at $79.68 on Tuesday.

In the U.S. Tuesday, the Dow rose 2.19, or less than 0.1 percent, to 10,405.98. It is up 85 points in three days and is at its highest level since Jan. 20.

The broader Standard & Poor’s 500 index rose 2.60, or 0.2 percent, to 1,118.31, and the Nasdaq rose 7.22, or 0.3 percent, to 2,280.79.

Asia Stocks Rise As China Growth Forecast Upgraded

Asian stocks recovered Wednesday after two days of losses as the World Bank upped its growth forecasts for China’s economy and stronger commodities prices lifted the region’s powerhouse resource companies.

Asian stocks recovered Wednesday after two days of losses as the World Bank upped its growth forecasts for China’s economy and stronger commodities prices lifted the region’s powerhouse resource companies.

Every major market traded in the green, with Hong Kong, South Korean and Indian shares leading the way with gains of about 2 percent. Oil prices held above $79 a barrel, while the dollar was little changed against the yen and the euro.

Investors’ moods were helped by more optimism about China as the World Bank boosted its forecast for the world’s third-largest economy from 7.2 percent to 8.4 percent, reflecting the country’s enormous stimulus measures.

The strength of China’s rebound also led the Washington-based bank to increase its growth forecast for developing East Asia by 1.3 percentage points to 6.7 percent.

Markets have become more choppy in recent days amid growing worries about the scope of the U.S. economic recovery and durability of this year’s stock rally.

But some analysts say tremendous liquidity brought about by looser government policies around the world could continue to underpin stock prices.

It doesn’t matter so much about the fundamentals at the moment,” said Ben Pedley, Hong Kong-based managing director of LGT Investment Management Ltd. “Zero interest rates mean the money has to go somewhere. At least for now, we can defy gravity for a bit longer.”

Japan’s Nikkei 225 stock average rose 25.32 points, or 0.3 percent, to 9,828.27, and Hong Kong’s Hang Seng climbed 346.67 points, or 1.6 percent, to 21,586.73. Shanghai’s index traded up 0.6 percent.

In South Korea, the key stock measure advanced 1.6 percent to 1,574.40. India’s Sensex index jumped 2.1 percent. Markets in Australia, Taiwan and Thailand also gained.

Wall Street traded largely sideways in a volatile session Tuesday.

The Dow fell 17.53, or 0.2 percent, to 9,771.91, after being down as much as 86 points. The broader Standard & Poor’s 500 index rose 2.53, or 0.2 percent, to 1,045.41.

U.S. futures pointed to a modestly higher open on Wall Street Wednesday.

Oil prices were slightly lower in Asia after a sharp rise overnight, with benchmark crude for December delivery down 20 cents to $79.40 a barrel. The contract gained $1.47 overnight.

Gold, meanwhile, was mostly flat at $1,084 an ounce after hitting a new high of $1,087 an ounce overnight.

The dollar ticked up to 90.34 yen from 90.30 yen. The euro was higher at $1.4722 from $1.4717.

source:yahoo news