Friday, July 30, 2010

Asia Market Report: US concerns knock confidence


Date: Friday 30 Jul 2010
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Concerns about the US economic recovery panicked investors in the Far East on Friday, causing a ripple of selling ahead of GDP data due out in the States later today.

Federal Reserve Bank of St Louis President James Bullard worries that America may suffer a similar fate as Japan, with prices and investment falling. 

“The US is closer to a Japanese-style outcome today than at any time in recent history,” he warned in a research paper yesterday. Economists reckon the US grew 2.5% in the second quarter compared with 2.7% in the first three months of 2010. 

Exporters struggled as the yen hit an eight-month high against the dollar, although there were some notable exceptions. 

Playstation firm Sony rose sharply after returning to profit in the first quarter. It also lifted its annual outlook following strong demand for its Bravia flat TVs and PlayStation 3 game consoles. 

Carmaker Honda and electronics giant Hitachi both posted strong quarterly profits, although the Nikkei sank 158 points to 9,537. 

Banks weighed on Hong Kong as investors took profits ahead of the weekend. HSBC was among the casualties, down almost 1%. 

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The leading Hang Seng index has fallen 104 to 20,989

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