Friday, June 25, 2010

Asia Market Report: US data nobbles Nikkei

Date: Friday 25 Jun 2010
Far East markets raced to catch up with losses posted on Wall Street overnight, causing a slump of more than 200 points in Japan at one stage Friday.

The Nikkei ended down almost 2%, or 190 points, at a two-week low as investors worried about signs of weaker than expected consumer demand in America, raising fears about corporate earnings.

Traders predict further falls if there’s no encouraging news out of this weekend’s G20 summit in Canada where world leaders are due to discuss the globe’s emergence from recession.

In company news, a Credit Suisse downgrade to ‘underperform’ from ‘neutral’ had camera group Canon all a blur. Tokyo Electron also fell foul of the Swiss broker.

Similar concerns hit exporters over in Hong Kong, while blue chip oil giant PetroChina suffered a hiccup.

Contract mobile phone maker Foxconn was among the biggest losers as investors think any decline in consumer spending will hit profits at the firm which supplies handset giants like Nokia.

The leading Hang Seng index is down 86 points at 20,646. 

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