Asian markets extend new year rally on China, Fed hopes

HONG KONG - Asian markets resumed their strong start to the year Monday, tracking a surge on Wall Street fuelled by optimism over China's reopening and hopes the Federal Reserve will slow its pace of interest rate hikes.

All three main indexes in New York soared more than two percent Friday after a closely watched report showed a forecast-busting rise in new jobs but a slowdown in wages growth.

That came as separate figures showed a shock contraction in the crucial services sector -- the first since spring 2020 at the height of the pandemic.

The readings, while suggesting the world's top economy was showing signs of weakness, were seized on by traders hopeful that the Fed will begin to temper its monetary tightening campaign.

Investors are now betting officials will lift borrowing costs about 25 basis points at their next meeting at the end of the month.

However, policymakers have warned that rates will continue to go up as they aim to bring decades-high inflation under control, with some saying they will not likely be cut until 2024.

In a further sign of hope, data Friday showed eurozone inflation slowed for a second month in a row in December, to 9.2 percent -- the first time in single digits since September.

"If Friday's price action tells us anything it's that investors really want to believe the peak inflation narrative that has helped support the rebound in equity markets that we've seen so far this year," said CMC Markets analyst Michael Hewson.

Asian equities started the day on the front foot, with Hong Kong sharply higher and Shanghai also well up.

Traders in the two cities have been on a high at the start of the year as they welcome China's emergence from zero-Covid as well as pledges to help the struggling economy, particularly the property sector.

The borders between Hong Kong, Macau and China were partially opened Sunday, providing a much-needed boost to Hong Kong. Macau-based casinos surged on the move.

"The U-turn in China's Covid policy is consequential to growth and equity returns," said SPI Asset Management's Stephen Innes.

"So with the lifting of border restrictions between China/Hong Kong/Macau and international travel reopening, local travellers are not only in a celebratory mood but also investors."

Sydney, Seoul, Singapore, Taipei, Manila, Mumbai, Bangkok and Wellington also enjoyed a strong start to the week. Tokyo was closed for a holiday.

London and Frankfurt rose at the open but Paris dipped.

Easing expectations about US rates were also weighing on the dollar, which extended Friday's retreat against its major peers.

Oil prices rose, having plunged around eight percent last week on demand concerns caused by a spike in Covid infections in China as containment measures are lifted.

However, while the commodity is now at more than a one-year low, observers say it could rally again as China reopens and the global economy recovers.

"I think oil will go upwards of $140 a barrel once Asia fully reopens, assuming there will be no more lockdowns," said hedge fund manager Pierre Andurand. He added that the "market is underestimating the scale of the demand boost that it will bring".

Key figures around 0820 GMT 

Hong Kong - Hang Seng Index: UP 1.9 percent at 21,388.34 (close)

Shanghai - Composite: UP 0.6 percent at 3,176.08 (close)

London - FTSE 100: UP 0.2 percent at 7,714.36

Tokyo - Nikkei 225: Closed for a holiday

Dollar/yen: DOWN at 132.00 yen from 132.13 yen on Friday

Euro/dollar: UP at $1.0690 from $1.0647 

Pound/dollar: UP at $1.2156 from $1.2095

Euro/pound: DOWN at 87.94 pence from 88.01 pence

West Texas Intermediate: UP 1.9 percent at $75.20 a barrel

Brent North Sea crude: UP 1.9 percent at $80.04 a barrel

New York - Dow: UP 2.1 percent at 33,630.61 (close)

-- Bloomberg News contributed to this story --

Agence France-Presse

Asian markets mostly up as vaccine, data add to recovery hopes

HONG KONG – Asian markets mostly edged up Wednesday but gains were tempered as investors took a breather following a recent run-up, though another round of healthy data provided cause for continued optimism for the global recovery.

President Joe Biden gave cause to cheer by saying all adults in the United States would be eligible for a vaccine by April 19, almost two weeks earlier than previously pledged, reinforcing hope that the world’s top economy will get back on its feet more quickly.

That came as California’s governor said he aims to fully reopen the most populous US state by the middle of June if the current pace of inoculations continues.

In a further sign the United States was bouncing back, officials said job openings had surged to a two-year high in February, well above the level expected by most analysts.

That followed last week’s forecast-busting employment report and data showing a strong pick-up in the manufacturing and key services sector.

The string of healthy data — along with Biden’s $1.9 trillion stimulus and $2.25 trillion infrastructure proposal — have helped world markets climb to record or multi-month highs.

Recent concerns that the recovery and expected spending splurge will fan inflation and force central banks to lift interest rates have eased for now, with benchmark 10-year US Treasury yields dipping.

The International Monetary Fund backed up the view of a strong rebound by hiking its 2021 growth forecast for the second time in three months, predicting a 6.0 percent expansion, from its 5.5 percent prior estimate.

Toshiba set to surge

“Early signs show the recovery is accelerating, suggesting a faster return to ‘normal’ than many had dared to hope a few months ago,” said JP Morgan Asset Management’s David Kelly.

“While this is very good news in general, it brings with it challenges for investors in making sure their portfolios are positioned for the very different financial landscape of a post-pandemic world.”

Wall Street was unable to maintain the momentum Tuesday, however, and all three main indexes retreated slightly.

But observers were confident the gains will continue.

“Central banks are continuing to keep interest rates so low so people are looking for some place to put their money where they can get a return,” Sarah Hunt of Alpine Woods Capital Investors told Bloomberg TV.

“I think that’s also why you have stocks priced somewhat for perfection.”

In early trade, Hong Kong dipped as it reopened after an extended holiday weekend, while Shanghai and Tokyo also dropped.

Analysts said buying was dampened by the Chinese central bank’s move to slow loan growth owing to concerns about the development of bubbles.

Elsewhere in Asia, Sydney, Singapore, Seoul, Taipei, Manila, Jakarta and Wellington were in positive territory.

Shares in Japanese giant Toshiba were set to soar Wednesday after it confirmed it had received a buyout offer from a British private equity firm that a report said could be worth $20 billion.

The Nikkei newspaper said CVC Capital Partners was considering a 30 percent premium over the industrial group’s current share price. A flood of buy offers that outweighed sell orders meant the stock could not be traded in early business.

Toshiba said it would “request detailed information and carefully discuss” the offer.

Key figures around 0245 GMT

Tokyo – Nikkei 225: FLAT at 29,685.77 (break)  

Hong Kong – Hang Seng Index: DOWN 0.5 percent at 28,790.62

Shanghai – Composite: DOWN 0.6 percent at 3,460.87

Euro/dollar: DOWN at $1.1869 from $1.1876 at 2100 GMT

Pound/dollar: DOWN at $1.3821 from $1.3823

Euro/pound: DOWN at 85.87 pence from 85.89 pence

Dollar/yen: UP at 109.80 yen from 109.73 yen

West Texas Intermediate: DOWN 0.2 percent at $59.24 per barrel

Brent North Sea crude: DOWN 0.1 percent at $62.65 per barrel

New York – Dow: DOWN 0.3 percent at 33,430.24 (close)

London – FTSE 100: UP 1.3 percent at 6,823.55 (close)

Agence France-Presse 

Asian shares mixed, Hong Kong tumbles after protests

HONG KONG–Asian markets were mixed Monday, with Hong Kong tumbling more than two percent at one point after a weekend of unrest as pro-democracy demonstrations led to the closure of parts of the city.

The stand-off, the worst since the handover in 1997, saw police fire tear gas into crowds of thousands of protesters on Sunday and has led to the closure of several businesses, bank branches and schools.

Protest leaders have vowed not to back down until Beijing gives in to their demands for full universal suffrage.

Hong Kong slumped 1.90 percent, or 449.20 points, to 23,229.21, recovering somewhat after losing 2.31 percent during intraday trade.

The city’s banking giants took a heavy hit, with HSBC ending down 1.77 percent, Hang Seng Bank 2.42 percent lower and Standard Chartered down 2.54 percent.

The index was already on a downtrend owing to concerns about the Chinese economy following a string of weak indicators recently. It has lost 6.5 percent since hitting its 2014 high at the start of the month.

A report by New York-based advisory firm JL Warren Capital said: “We are likely to see (a) major sell-off and volatility for days to come” in the Hong Kong stock market.

Elsewhere Sydney ended 0.93 percent lower, shedding 49.2 points to 5,264.2, while Seoul eased 0.25 percent, or 5.04 points, to close at 2,026.60.

However, Tokyo finished 0.50 percent higher, adding 80.78 points to 16,310.64. Shanghai put on 0.43 percent, or 9.99 points, to 2,357.71, with mainland investors seemingly unfazed by events in Hong Kong.

US economy picks up pace

Japanese shares ticked up as the dollar pushed up against the yen, heading toward the 110 yen mark after US data showed the economy expanded at its fastest pace since 2011 during the April-June quarter.

Gross domestic product grew 4.6 percent, the Commerce Department said, better than the previous 4.2 percent estimate.

The figure showed a strong rebound from the first quarter’s 2.1 percent contraction, which was blamed in part on unusually severe winter weather.

The news sent the dollar higher in New York, hitting 109.28 in late trade Friday. On Monday the greenback bought 109.60 yen.

In Tokyo Monday the euro was at $1.2686 compared with $1.2683 while it was also at 139.05 yen, from 138.60 yen.

Wall Street Friday provided a strong lead for Asia, with the Dow rising 0.99 percent, the S&P 500 adding 0.86 percent and the Nasdaq rallying 1.02 percent.

On oil markets US benchmark West Texas Intermediate for November delivery dropped 54 cents to $93.00. Brent crude for November fell 31 cents to $96.69 in afternoon trade.

Gold was at $1,219.65 an ounce at 1323 GMT against $1,223.10 late Friday.

In other markets:

— Taipei fell 0.32 percent, or 29.06 points, to 8,960.76.

Taiwan Semiconductor Manufacturing Co. was 0.41 percent lower at Tw$120.5, while Hon Hai Precision Industry gained 0.51 percent to Tw$97.6.

— Wellington rose 0.11 percent, or 6.02 points, to 5,259.51.

Spark was up 0.34 percent at NZ$2.96 and Xero added 1.69 percent to NZ$21.00.

— Manila was marginally higher, adding 4.06 points to 7,265.36.

Philippine Long Distance Telephone fell 3.38 percent to 3,090 pesos while Globe Telecom declined 5.61 percent to 1,667 pesos. BDO Unibank was unchanged at 97 pesos.

— Singapore was flat, dipping 2.49 points to 3,289.72.

Singapore Telecommunications rose 0.26 percent to Sg$3.81 while United Overseas Bank fell 0.27 percent to Sg$22.56.

— Malaysia edged up 5.84 points to 1,846.34, a gain of 0.32 percent.

Banking group CIMB rose 2.86 percent to 7.19 ringgit while conglomerate Berjaya Corp added 2.63 percent to 0.585 ringgit.

— Mumbai ended little changed, easing 0.11 percent, or 29.21 points, to 26,597.11.

Strides Arcolab rose 9.20 percent to 701.95 rupees, while Suzlon Energy fell 4.90 percent to 13.60 rupees.

— Bangkok lost 0.90 percent, or 14.37 percent, to close at 1,585.79.

Coal producer Banpu fell 1.65 percent, or 0.50 baht, to 29.75, while Bangkok Bank lost 2.40 percent, or 5 baht, to 203.

— Jakarta ended up 0.18 percent, or 9.45 points, at 5,142.01.

Carmaker Astra International rose 0.71 percent to 7,050 rupiah, while state miner Aneka Tambang fell 1.82 percent to 1,080 rupiah.

source: business.inquirer.net

Asian shares slip on profit-taking

HONG KONG–Asian markets mostly slipped Monday on profit-taking after the big gains at the end of last week, while the dollar eased from more than six-year highs against the yen.

Investors seemed unimpressed after the Group of 20 said the world’s biggest economies were on track to achieve an extra 1.8 percent growth on top of current projections within five years.

Tokyo, which on Friday ended at an almost seven-year high, slipped 0.71 percent, or 115.27 points, to 16,205.90, while Sydney shed 1.29 percent, or 70.1 points, to 5,363.0. Seoul lost 0.71 percent, or 14.55 points, to 2,039.27.

Shanghai fell 1.70 percent, or 39.59 points, to 2,289.87 and Hong Kong sank 1.44 percent, or 350.67 points, to 23,955.49 as investors await the release Tuesday of preliminary manufacturing data out of China.

Desmond Chua, market analyst at CMC Markets in Singapore, said a series of economic reports had come in below expectations. He added that another weak reading “will underscore weakness in the Chinese economy.”

Wellington was the stand-out performer, jumping 1.06 percent, or 54.95 points, to 5,236.29 after the pro-business National Party won a resounding election victory at the weekend.

Regional markets ended last week on a high, helped by news that Scottish voters had rejected independence from the United Kingdom.

But there are still concerns about the Chinese economy as dealers look ahead to the release of HSBC’s purchasing managers index (PMI) that market watchers expect to indicate further weakness in the economy.

Softbank falls despite Alibaba surge

On Wall Street a surge in new listing Alibaba helped the Dow rise 0.08 percent Friday to hit a new record high. But the S&P 500 finished down 0.96 points and the Nasdaq dipped 0.30 percent.

Alibaba rallied 38.1 percent to $93.89 on its debut after its IPO raised a world record $25 billion.

However, in Tokyo Monday Softbank, which holds about a third of Alibaba’s shares, slipped 6.1 percent on profit-taking despite saying it would probably book a gain of about $4.6 billion from the IPO. The firm rose about 30 percent in the six weeks leading up to the listing.

The dollar bought 108.86 yen, compared with 108.99 yen in New York and sitting close to levels not seen since 2008. While it is well off the 109.21 yen earlier Friday in Asia, analysts are tipping it to break the 110 yen barrier soon.

The euro bought $1.2858 and 139.99 yen, against $1.2832 and 139.84 yen in US trade.

The G20 at the weekend said members could overcome geopolitical tensions and financial problems to boost global growth.

Finance ministers and central bank governors at the two-day meeting said in a communique that reforms agreed so far–including accelerating infrastructure investment, financial reform and encouraging free trade–could add 1.8 percent to GDP and create millions of new jobs.

But more work was needed to meet a desired two percent goal agreed in Sydney earlier this year.

In New Zealand investors cheered a third straight election win for the party of Prime Minister John Key, who has been credited with hauling the economy out of torpor following the financial crisis.

On oil markets US benchmark West Texas Intermediate for October delivery eased 40 cents to $92.01, while Brent crude for November fell 48 cents to $97.91 in afternoon trade.

Gold was at $1,213.14 an ounce at 1140 GMT, against $1,221.56 an ounce late Friday.

In other markets:

— Taipei closed down 1.14 percent, or 105.80 points, at 9,134.65.

Taiwan Semiconductor Manufacturing Co. shed 2.40 percent to Tw$122.0, while Hon Hai Precision was 0.50 percent lower at Tw$100.5.

— Manila was 0.10 percent lower, dipping 7.43 points to 7,279.86.

Philippine Long Distance Telephone Co. fell 0.97 percent to 3,270 pesos, while SM Prime Holdings bucked the trend to rise 1.13 percent to 17.90 pesos.

— Bangkok added 0.29 percent, or 4.60 points, to 1,589.51.

Concert promoters BEC World soared 5.56 percent to 47.50 baht, while Delta Electronics rose 2.81 percent to 64 baht.

– Kuala Lumpur lost 3.4 points, or 0.19 percent, to end at 1,846.05.

Tenaga Nasional shed 1.45 percent to 12.20 ringgit, Petronas Gas fell 0.17 percent to 22.98 and Sime Darby added 0.11 percent to 9.12 ringgit.

— Jakarta ended down 0.15 percent, or 7.78 points, at 5,219.80.

Cigarette maker Gudang Garam gained 1.80 percent to 56,500 rupiah, while telecoms firm Telekomunikasi Indonesia slipped 2.55 percent to 2,870 rupiah.

— Mumbai closed up 116.32, or 0.43 percent, at 27,206.74.

Gitanjali Gems gained 6.55 percent to 73.25 rupees, while Suzlon Energy slid 9.80 percent to 18.40 rupees.

— Singapore closed down 0.26 percent, or 8.48 points, at 3,296.57.

DBS Bank rose 0.22 percent to Sg$18.17 while oil rig maker Keppel Corp eased 0.47 percent to Sg$10.50.

source: business.inquirer.net

Asian shares edge lower, reversing earlier gains

HONG KONG — Asian markets edged lower in holiday-hit trade on Monday, reversing earlier gains that were fuelled by upbeat US and Chinese manufacturing data as well as strong US auto sales.

The euro made a small gain after suffering selling pressure last week on expectations the European Central Bank (ECB) will cut interest rates at its next meeting Thursday.

Sydney slipped 0.38 percent, or 20.6 points, to close at 5,390.5 and Seoul fell 0.70 percent, or 14.25 points to 2,025.17. Shanghai closed flat, dipping 0.07 points to 2,149.63 and Hong Kong gave up 0.26 percent, or 60.17 points, to 23,189.62.

Tokyo and Mumbai were closed for public holidays.

US shares finished on a high Friday after figures showed manufacturing activity grew faster than expected in October. That came hours after China said its own purchasing managers’ index (PMI) came in at its highest level for 18 months.

News that October auto sales from the three largest US manufacturers — Chrysler, Ford and General Motors — saw double-digit percentage gains supported Wall Street Friday. The Dow added 0.45 percent, the S&P 500 tacked on 0.29 percent and the Nasdaq was flat.

Over the weekend data showed signs of growth in China’s services sector, as the official non-manufacturing PMI recorded its strongest reading in 14 months.

In China, attention is turning to a Communist Party policy meeting due to start Saturday, with traders looking for possible economic reforms.

Also, Washington will release third-quarter gross domestic product advanced estimates on Thursday and official October non-farm payrolls figures Friday.

On currency markets the euro ticked up slightly after tumbling last week on expectations the ECB would cut interest rates, after figures showed inflation in the region at a four-year low.

The euro bought $1.3492, compared with $1.3482 in New York but well down from $1.3750 on Wednesday. It was at 133.09 yen against 133.10 yen in New York.

“The eurozone has seen poor results in recent months, and there are serious concerns that the inflation rate has gone too low,” Desmond Chua, market analyst at CMC Markets in Singapore, told AFP.

“Investors will be watching if the ECB president Mario Draghi will indicate further monetary easing in the eurozone, with a new long-term refinancing option a viable option,” he said.

The dollar was at 98.65 yen from 98.69 yen in New York. The greenback is being buoyed by speculation the Federal Reserve will begin winding down its stimulus programme next month after it gave an upbeat assessment of the US economy last week.

Gold dropped to $1,313.15 at 0810 GMT compared with $1,316.15 on Friday.

In other markets:

– Taipei fell 0.41 percent, or 34.04 points, to 8,354.14.

Taiwan Semiconductor Manufacturing Co. was 0.46 percent lower at Tw$109.0 while chip design house MediaTek was up by its 7.0 percent daily limit at Tw$432.5.

– Wellington was flat, edging down 3.16 points to 4,910.68.

Fletcher Building fell 2.34 percent to NZ$9.60, Air New Zealand was off 0.57 percent at NZ$3.52 and telecoms firm Chorus climbed 0.38 percent at NZ$2.63.

– Manila closed 0.64 percent lower, giving up 41.99 points to 6,543.39.

Philippine Long Distance Telephone Co fell 1.60 percent to 2,824 pesos.

source: business.inquirer.net

Asian shares lifted by bargain-buying, Wall St. rally

HONG KONG—Asian markets rose on Monday following a record close on Wall Street, and as investors picked up bargains after broad losses last week.

The dollar advanced against the yen but the gains were capped by expectations the US Federal Reserve will keep its monetary easing policy in place well into the new year.

Tokyo jumped 2.19 percent, or 307.85 points, to 14,396.04 thanks to the pick-up in the dollar. Sydney was up 1.02 percent, or 55.1 points, at 5,441.4, while Seoul closed 0.68 percent higher, adding 13.75 points to 2,048.14.

Shanghai ended flat, edging up 0.91 points to 2,133.87 while Hong Kong added 0.48 percent, or 108.24 points, to end at 22,806.58

The gains follow a lacklustre performance in the region last week following worse than expected jobs figures out of the United States that indicate the economy is not as strong as first thought.

Traders Monday took their cue from Wall Street, whose three main indexes posted healthy gains on Friday thanks to upbeat corporate results.

Amazon and Microsoft announced better than expected earnings for the July-September quarter, while there were also solid results from Procter & Gamble and UPS.

The Dow rose 0.39 percent, while the broad-based S&P 500 climbed 0.44 percent to a new record Friday. The Nasdaq tacked on 0.37 percent.

US shares, like most global stocks, have been given some support from traders betting the Fed will delay winding down its $85 billion-a-month bond-buying stimulus for some time.

There had been a widespread belief it would begin tapering by December at the latest, but analysts say the weak jobs data and this month’s government shutdown has made that unlikely.

The prospect of a continuation of the Fed’s pump-priming—which sees vast sums of dollars flooding the financial system—has weighed on the greenback in recent weeks, although it picked up a tad in Asia Monday.

In afternoon Tokyo trade the unit bought 97.67 yen compared with 97.43 yen in New York Friday, while the euro was at $1.3811 and 134.76 yen against $1.3805 and 134.50 yen.

“Amid growing expectations of continued Fed stimulus, the dollar will likely remain under pressure in the near term,” Naoya Nishimura, a strategist at Resona Bank, told Dow Jones Newswires.

On oil markets New York’s main contract, West Texas Intermediate for delivery in December, was down 18 cents at $97.67 in afternoon trade. Brent North Sea crude for December rose 37 cents to $107.30.
Gold rose to $1,350.24 at 1100 GMT compared with $1,340.35 on Friday.

In other markets:

– Mumbai fell 0.55 percent, or 113.24 points, to 20,570.28 points.

Private Future Retail fell 6.90 percent to 72.20 rupees while diversified conglomerate ITC fell 3.63 percent to 327.65 rupees.

– Bangkok lost 0.36 percent, or 5.26 points, to close at 1,449.62.

Coal producer Banpu fell 0.85 percent to 29.25 baht while Bangkok Bank rose 0.99 percent to 205 baht.

– Jakarta ended up 0.21 percent, or 9.69 points, at 4,590.54.

Indah Kiat Pulp and Paper gained 0.69 percent at 1,450 rupiah, while miner Aneka Tambang lost 1.88 percent at 1,570 rupiah.

– Kuala Lumpur’s main index gained 0.05 percent, 0.82 points, to close at 1,818.39.

UEM Sunrise lost 3.9 percent to 2.50, Felda Global Ventures Holdings eased 2.2 percent to 4.40 while Petronas Gas added 2.1 percent to 24.30 ringgit.

– Singapore gained 0.08 percent, or 2.61 points, to 3,207.85.

Agribusiness company Wilmar International rose 0.29 percent to Sg$3.46 while United Overseas Bank was down 0.19 percent at Sg$20.75.

– Taipei finished up 0.73 percent, or 61.21 points, at 8,407.83.

Taiwan Semiconductor Manufacturing Co. gained 2.34 percent to Tw$109.5 while leading food producer Uni-President Enterprise was 2.21 percent higher at Tw$55.5.

– Manila was closed for village elections.

– Wellington was closed for a public holiday.

source: business.inquirer.net

Asian shares mixed ahead of US jobs data

HONG KONG – Asian markets were mixed in cautious trading on Tuesday as investors awaited the release of delayed US September jobs data later in the day.

The dollar edged up against the yen, returning to its upward trend after this month’s Washington standoff over the debt ceiling and budget had sent investors running to the Japanese unit.

Tokyo rose 0.13 percent, or 19.68 points, to 14,713.25 thanks to the weakening yen, while Sydney climbed 0.40 percent, or 21.3 points, to 5,373.1. Seoul added 0.15 percent, or 3.11 points, to end at 2,056.12.

However, Shanghai fell 0.83 percent, or 18.59 points, to end at 2,210.65 and Hong Kong lost 0.52 percent, or 122.16 points, to end at 23,315.99.

“Market participation levels are likely to remain low until data can help confirm the state of the US economic recovery,” said Hiroichi Nishi, general manager of equities at SMBC Nikko Securities.

With last week’s global rally – fuelled by the US deal to reopen the government after 16 days and avert a devastating default – out of the way, attention has turned back to economic numbers, with the non-farm payrolls figures in focus.

They had been due out at the beginning of the month but were put off because of the US government shutdown. Traders will pore over them for clues about the state of the US economy.

However, Kathy Lien, managing director at BK Asset Management, said there would likely be a cautious reaction to a strong report because it predates the shutdown, which likely depressed hiring.

She added that if jobs growth misses expectations, “the dollar could be in even more trouble because October payrolls are expected to be much weaker.”

Economists say there is a good chance the US Federal Reserve will delay winding down its stimulus program – which depressed the value of the dollar – until possibly the new year.

On currency markets, the dollar was changing hands at 98.34 yen in the afternoon compared with 98.15 yen in New York on Monday, while the euro fetched $1.3674 and 134.49 yen compared with 1.3681 and 134.26 yen.

Wall Street was unable to provide a strong lead as investors took a breather after last week’s strong gains.

The Dow was flat and the S&P 500 edged up marginally to another record high, while the tech-rich Nasdaq added 0.15 percent.

In oil trade, New York’s main contract, West Texas Intermediate for delivery in November, fell 80 cents to $98.42 a barrel, extending its slide after hitting three-month lows late Monday. However, Brent North Sea crude for December gained 22 cents to $109.86.

Gold cost $1,310.44 at 0841 GMT compared with $1,315.41 on Monday.

In other markets:

– Taipei was virtually unchanged, dipping 1.05 points to 8,418.27.

Taiwan Semiconductor Manufacturing Co. rose 1.36 percent to Tw$111.5 while Chunghwa Telecom fell 1.95 percent to Tw$90.6.

– Wellington rose 0.61 percent, or 29.23 points, to 4,831.79.

Fletcher Building was up 1.37 percent at NZ$9.64 and Air New Zealand added 1.92 percent to NZ$1.59.

– Manila ended flat, edging up 6.04 points to 6,603.60.

Ayala Land fell 0.15 percent to 30.60 pesos and its parent Ayala Corp. shed 0.57 percent to 612 pesos.

source: business.inquirer.net

Asian markets slip after weak Spain debt auction

HONG KONG - Asian markets were hit by renewed eurozone fears on Thursday after a weak Spanish auction raised the prospect that it could be the next country to be hammered by a debt crisis.

The news out of Madrid, as well as another batch of poor data from the eurozone, compounded downbeat sentiment after the US Federal Reserve indicated it would not provide any new stimulus to the economy in the near term.

Tokyo fell 0.53 percent, or 52.38 points, to 9,767.61 and Sydney shed 0.33 percent, or 14.3 points, to 4,319.6 while Hong Kong slipped 0.95 percent, or 197.98 points, to 20,593.00.

Taipei fell 1.56 percent, or 121.03 points, to 7,639.82.

But Seoul gained 0.50 percent, adding 10.16 points to close at 2,028.77.

Shanghai, returning after a three-day break, jumped 1.74 percent, or 39.45 points, to 2,302.24 after Beijing on Wednesday hiked the amount of cash foreigners can invest on the nation's markets from $30 billion to $80 billion.

Spain's borrowing soared Wednesday in its first debt auction since an austerity budget last week, fuelling concern among traders of a rerun of Greece's strife last year when it narrowly avoided a messy default.

Madrid is racing to slash its public deficit to reassure markets that it will not follow Greece -- as well as Ireland and Portugal in needing a bail-out -- after it missed its 6.0 percent public-deficit target last year.

Adding to the country's problems is the fact it is heading back into recession, while the unemployment rate is tipped to hit 24.3 percent, according to government estimates.

And on Tuesday Budget Minister Cristobal Montoro warned that national debt will jump sharply to 79.8 percent of GDP this year from 68.5 percent last year.

"The rising cost of Spanish debt reignited fears in Europe as investors sold off equity investments," Miguel Audencial, sales trader at CMC Markets, said in a note.

"Lower-than-expected European retail sales figures and German factory orders both confirmed that a full recovery is still far from reach," Audencial said, according to Dow Jones Newswires.

The Spanish concerns come less than a week after eurozone finance chiefs agreed to boost a firewall aimed at avoiding another crisis on the scale of Greece.

Also Wednesday a study showed eurozone private sector activity retreated last month, adding to evidence that the region is in recession.

The composite Purchasing Managers Index (PMI) compiled by the Markit research firm hit a three-month low 49.1 points from 49.3 in February. A score below the neutral 50-point mark indicates contraction.

The news added to market gloom after minutes from the Fed's most recent policy-setting meeting showed it will play a wait-and-see game before further easing monetary policy, meaning there will be less liquidity.

"Apprehensions on the future state of the US economy in a world without quantitative easing overshadowed the slightly higher-than-expected ADP employment data," Audencial added.

Payrolls firm ADP said that while fewer jobs than expected were created in the private sector in March, figures for prior months were revised upwards.

Employment increased by a seasonally adjusted 209,000 last month, down from a revised 230,000 in February, and lower than forecasts of 217,000 net new positions. However, estimated gains for February rose 14,000, and for January by 9,000.

The figures come ahead of Friday's key government numbers, which include the public sector jobs and the unemployment rate.

Europe's woes overshadowed the jobs figures on Wall Street. The Dow sank 0.95 percent, the Nasdaq was down 1.46 percent and the S&P 500 shed 1.02 percent.

On currency markets the euro bought $1.3140 and 108.04 yen in late Asian trade, compared with $1.3141 and 108.35 yen in New York late Wednesday. The dollar was also at 82.22 yen, compared with 82.46 yen.

Oil prices bounced back from heavy losses late Wednesday in New York, where dealers staged a sell-off after the government reported a big jump in stockpiles.

New York's main contract, West Texas Intermediate crude for delivery in May, gained 87 cents to $102.34 per barrel in the afternoon, after losing 2.5 percent on Wednesday.

Brent North Sea crude for May rose $1.01 to $123.35 after it shed two percent in New York.

Gold was at $1,628.15 an ounce at 0820 GMT, compared with $1,633.75 late Wednesday.

Wellington slipped 0.36 percent, or 12.44 points, to 3,467.98.

Fletcher Building ended down 0.6 percent at NZ$6.20 and Telecom shed 1.4 percent to NZ$2.435 while Chorus was 0.3 percent lower at NZ$3.46.

Manila and Mumbai were closed for public holidays. - Agence France Presse

source: gmanetwork.com