Friday, June 25, 2010

Asia Markets Report

Asian Markets Slip On Weak Wall Street Cues
The markets in Asia ended in negative territory for the second successive session, Friday, on concerns about sustaining global economic recovery. Weak trading on Wall Street in the previous session amid weak economic reports and European concerns led to weaker sentiment across the markets in Asia. Traders stayed on the sidelines awaiting the results from the weekend G20 summit and other global cues for future direction.

In Japan, the 
benchmark Nikkei 225 Index lost 190.86 points, or 1.92% to 9,737, while the broader Topix index of all First Section issues dropped 12.47 points, or 1.42 percent, to 867.

On the economic front, inflation data released by the Ministry of Internal Affairs and Communications revealed that core inflation in the country was down 1.2% on year in May, falling for the 15th consecutive month. The data was roughly in line with analyst expectations for a 1.3% annual contraction following the 1.5% fall in April. Overall inflation eased 0.9% on year versus forecasts for a 1.1% decline after the 1.2% fall in the previous month. On a monthly basis, inflation added 0.1%.
Real estate stocks declined on concerns about economic recovery. Sumitomo Realty & Development plunged 3.53%, Mitsubishi Estate declined 3.41%, Mitsui Fudosan fell 3.30%, Tokyu Land Corp. lost 3.30% and Heiwa Real Estate slumped 4.02%.
Electric machinery stocks, relying on exports for bulk of their businesses, ended in negative territory on stronger local currency. Fanuc Ltd plunged 4.63%, Tokyo Electron slumped 5.61%, Canon Inc. declined 4.47%, TDK Corp. fell 2.29%, Kyocera Corp. slipped 1.31%, Advantest Corp.lost 3.71%, Sony Corp. shed 2.05% and Panasonic Corp. was down 2.10%.

Shipping related 
stocks also ended weaker on concerns about global recovery and its impact on demand. Mitsui OSK Lines fell 2.17%, Nippon Yusen slipped 1.45% and Kawasaki Kisen Kaishalost 2.28%.

Glass and ceramic stocks also ended in negative territory. NGK Insulators declined 3.17%, Asahi Glass lost 3.26%, Tokai Carbon Co., plunged 4.39% and Nippon Sheet Glass slumped 4.53%.

yin yangBanking stocks also ended weaker on global economic conditions. 
Sumitomo Mitsui Financial slipped 0.67%, Mitsubishi UFJ Financial lost 1.43% and Mizuho Financial declined 1.29%.Resona Holdings, on the other hand, bucked the trend and ended in positive territory with a gain of 0.09%.

In Australia, the 
benchmark S&P/ASX200 Index declined 66.70 points, or 1.49% and closed at 4,413, while the All-Ordinaries Index ended at 4,439, representing a loss of 64.70 points, or 1.49%.
Banks ended in negative territory on global economic concerns. ANZ Bank declined 1.58%,Commonwealth Bank lost 1.61%, National Australia Bank plunged 2.38% and Westpac Banking Corp., was down 1.67%. Investment banker Macquarie Group was down 2.83%.
Mining stocks ended in negative territory on concerns about the resource super tax and global demand conditions. BHP Billiton declined 2.14%, Rio Tinto Ltd fell 2.97%, Fortescue Metalsplunged 3.96%, Gindalbie Metals was down 3.60%, Macarthur Coal slipped 2.03%, Murchison Metals slumped 4.02% and Oz Minerals decreased 2.91%.
Gold related stocks ended in positive territory on higher gold prices in the international market. Lihir Gold advanced 1.60% and Newcrest Mining advanced 0.98%.

Oil related 
stocks ended weaker on lower crude oil prices in the international market. Woodside Petroleum fell 2.87%, Santos Ltd slipped 0.86%, Oil Search Ltd edged down 0.18% and Origin Energy lost 0.53%. ROC Oil Co, however, managed to end unchanged from previous close.

Mixed trading was witnessed among the major retailers. David Jones declined 1.59%, , JB Hi-Fi Ltd slipped 1.22%, Pacific Brands fell 1.62%, Wesfarmers plunged 2.52% and Woolworths was down 0.72%. However, Harvey Norman managed to end in positive territory with a nominal gain of 0.29%.

In Hong Kong, the 
benchmark Hang Seng Index ended in the negative territory with a marginal loss of 42.70 points, or 0.21% at 20,691, on weak cues from Wall Street where the major averages ended sharply lower and weaker than expected new home sales data and jobless claims. Fresh concerns about sustaining economic recovery and weak closing across other markets in the neighborhood also impacted market sentiment. Traders preferred to stay in the sidelines ahead of the G20 summit in Toronto over the weekend.

blue yin yangWith global economic environment remaining uncertain and weekend profit taking putting additional pressure, India's benchmark 
30-share BSE Sensex ended Friday's session down 0.88% or 156 points at 17,575. The 50-share Nifty also fell by about 52 points or 0.97% to 5,269, while the BSE small-cap and mid-cap indexes closed down 0.54% and 0.70%, respectively. Banking stocks likeAxis BankSBIICICI and HDFC Bank fell between 1.20% and 3.10% on concerns that a spike in fuel-price inflation will spur the central bank to raise its policy rates before the the July 27 policy meet. Rate-sensitive realty stocks like DLF eased 0.88% and Unitech fell 1.28%.

Among the other major markets open for trading, 
China's Shanghai Composite Index declined 13.93 points, or 0.54%, and closed at 2,553 and Taiwan's Weighted Index lost 115.18 points, or 1.52%, to close at 7,472. However, Indonesia's Jakarta Composite Index bucked the trend and ended in positive territory with a gain of 32.93 points, of 1.13%, at 2,947 and so did Singapore's Strait Times Index with a gain of 4.03 points, or 0.14% at 2,852.

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