Monday, August 9, 2010

Asia: Jobs data and yen take Nikkei lower


Date: Monday 09 Aug 2010
Clipart Illustration of a Blue Shiny Arrow Circling Planet Earth
The Nikkei slipped 0.72% on Monday after sentiment was hit by Friday’s disappointing US jobs data. The stronger yen also reduced buyer appetite. 

Exporters such as 
Honda Motor ran out of steam. Toyota also fell 1.61%. Canon lost 1.74% while Sony 1.06%. Nikon fell 0.9%.

On a brighter note shares in 
Bridgestone rose 1% after solid earnings. Pioneer Corpslumped over 7% after it posted weaker than expected first quarter results.

Investors also took note of comments from Japanese Minister of Finance Yoshihiko Noda. In regards to the yen’s strength against the dollar he said, “Excessive foreign exchange moves can adversely affect the economy 
  and monetary conditions."

The comments came after the dollar almost touched a 15 month low of 85 yen after disappointing jobs data rattled confidence in the economic recovery 


Meanwhile Goldman Sachs cut Japan's GDP growth forecast to 3.3% for this year, from a previous forecast of 3.4% as stimulus is reduced. Growth for 2011 was reduced to 1.4% from 1.7%.

The benchmark Nikkei 225 index closed down 69 points at 9,572 in Tokyo.

The Hang Seng gained momentum after a weak start as traders mulled disappointing US job numbers and fresh hopes about the Hong Kong real estate market.
HSBC fell 0.73% while ICBC lost 0.33%. 
Clipart Illustration of a Group Of Five Orange People Holding Hands Around A Shiny Globe

Real estate provided some relief on fresh optimism about the local housing market.
Henderson Land rallied 3.7% while Cheung Kong rose 2% in Hong Kong.

Hong Kong phone giant 
PCCW surged 5.7%.

The Hang Seng index rose 122 points at 21,802.
Source:digitallook

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