Asian stocks mixed as shock of Paris attacks fades

BEIJING — Asian stocks were mixed Wednesday as the shock of the Paris terror attacks faded and an uptick in U.S. inflation added support for a possible interest rate hike.

KEEPING SCORE: Tokyo’s Nikkei 225 gained 0.8 percent to 19,785.73 points and the Shanghai Composite Index shed 0.3 percent to 3,593.89. Hong Kong’s Hang Seng was unchanged at 22,264.42. Sydney’s S&P ASX/200 shed 0.2 percent to 5,107.30 and Seoul’s Kospi advanced 0.2 percent to 1,966.63. Jakarta and New Zealand also gained while Taiwan and Singapore retreated. On Tuesday, Wall Street ended little changed, with the Dow Jones industrial average up 0.04 percent and the Standard & Poor’s 500 index down 0.1 percent. The Nasdaq composite gained 0.03 percent.

TERRORISM JITTERS: Investors restored calm in European markets following the attacks in Paris that left 129 people dead and more than 350 injured. Travel and tourism stocks suffered but markets were unexpectedly resilient. Germany’s DAX rose 2.4 percent, helped by a report showing German business optimism rose in November due to strong domestic demand. The data didn’t fully reflect the Paris attacks, though the survey’s authors say it does not appear to have had a significant impact. France’s CAC 40 jumped 2.8 percent. Britain’s FTSE 100 rose 2 percent.

US INFLATION: The consumer price index rose 0.2 percent in October after falling the prior two months. That could increase the likelihood the Federal Reserve will begin raising interest rates from historic lows as early as next month. That would be “a psychological boost that the economy is self-sustaining enough that the Fed could get off the zero interest rate policy,” said David Chalupnik, head of equities at Nuveen Asset Management.

ANALYST’S TAKE: “Markets are fading risk-aversion moves despite still elevated terror-related tensions,” said Mizuho Bank in a report. U.S. inflation data “suggests that price pressures are rising towards the Fed’s 2% inflation goal, supporting calls for the Fed to hike rates next month.”

WALL STREET: Investors weighed mixed results from retailers ahead of the start of the Christmas shopping season amid worries sales will be weak. Urban Outfitters fell 3.8 percent after the retailer’s latest quarterly sales fell short of expectations. Wal-Mart Stores rose 3.5 percent after the company reported improved customer traffic and an increase in a key sales figure for the third quarter, even as a stronger dollar pressured its performance overseas. Energy stocks were among the biggest decliners due to a fall in oil prices.

ENERGY: Benchmark U.S. crude gained 32 cents to $40.98 per barrel in electronic trading on the New York Mercantile Exchange. The contract plunged $1.07 on Tuesday to close at $40.67. Brent crude, used to price international oils, rose 40 cents to $43.97 per barrel in London. It fell 99 cents the previous session to $43.57.

CURRENCY: The dollar gained to 123.4150 yen from Tuesday’s 123.4090. The euro edged down to $1.0636 from $1.0645. TVJ

source: business.inquirer.net

Dollar edges up in Asia after New York sell-off

TOKYO — The dollar edged up against the yen in Asia on Friday after plunging on weak Chinese data which sparked worries over emerging markets.

In Tokyo afternoon trade, the dollar fetched 103.44 yen, up from 103.34 yen in New York Thursday afternoon but still nearly one yen lower than levels in Tokyo on Thursday.

The euro, which climbed Thursday on upbeat eurozone data, bought $1.3684 from $1.3692 in US trade Thursday while it was unchanged at 141.59 yen.

“Risk assets suffered as a much bigger than expected fall in Chinese manufacturing (activity) dented global sentiment,” Credit Agricole said.

Traders moved into the safe-haven yen Thursday as US shares sank on the weak China report and lacklustre corporate earnings, while they look ahead to a Federal Reserve policy meeting next week.

“The poor China data merely exacerbates the worries about emerging markets, and is pushing an acceleration in the investor pullout from these economies, which is not limited to China,” said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

The data from China — a key driver of global growth — fuelled concerns about emerging markets at a time when the Fed is winding down its stimulus programme, leading foreigners to repatriate their investments to the West.

Argentina’s peso was at 7.9 to the dollar Friday against 8.01 on Thursday, when it had plunged 11.1 percent in the sharpest one-day fall since 2002.

The South American nation is embroiled in a currency crisis that has seen the peso slump about 19 percent so far this year, creating challenges for a government wrestling with falling foreign reserves and mounting inflation.

Boosting the euro, a closely watched report Thursday showed private-sector activity in the eurozone hit a 31-month high in January as a modest recovery gathered pace across the economic bloc.

The dollar was mostly higher against other Asia-Pacific currencies.

It rose to 1,076.70 South Korean won from 1,072.76 won on Thursday, to 12,180 Indonesian rupiah from 12,168 rupiah and to 62.16 Indian rupees from 61.97 Indian rupees.

The dollar also firmed to 45.32 Philippine pesos from 45.30 pesos and to Tw$30.22 from Tw$30.19.

It slipped to 32.86 Thai baht from 32.97 baht and to Sg$1.2785 from Sg$1.2814.

The Australian dollar eased to 87.59 US cents from 87.98 cents, while the Chinese yuan weakened to 17.07 yen from 17.23 yen.

source: business.inquirer.net

Dollar edges down in Asia ahead of Yellen remarks – Lead

TOKYO- The dollar edged down in Asia Wednesday, taking a breather from a rally driven by speculation the Fed will soon start tapering its huge stimulus drive.

The greenback bought 99.48 yen in Tokyo afternoon trade, weakening from 99.62 yen in New York Tuesday.

The euro strengthened to $1.3447 from $1.3433 while it bought 133.76 yen compared with 133.82 yen in US trade.

Dealers are awaiting remarks Thursday from Janet Yellen, President Barack Obama’s nominee to succeed Chairman Ben Bernanke at the Federal Reserve, said a senior dealer at a major bank in Tokyo.

Some investors want to push the dollar above the 100-yen mark but “many of us just don’t want to make aggressive moves before we confirm Ms Yellen makes no negative surprises,” the dealer said.

Yellen will appear before US senators Thursday to defend her nomination as Fed policymakers debate whether the stimulus policy known as quantitative easing is still needed to support the world’s largest economy.

The central bank will hold its regular two-day policy meeting next month after upbeat US data fuelled speculation that it could start tapering its $85-billion-a-month bond-buying program before year’s end.

Traders also are awaiting eurozone industrial production figures for September, due later Wednesday, which will be followed by July-September economic growth data on Thursday.

The dollar was higher against other Asia-Pacific currencies.

It rose to Sg$1.2495 from Sg$1.2486 on Tuesday, to Tw$29.59 from Tw$29.56, to 63.73 Indian rupees from 63.53 rupees, and to 43.77 Philippine pesos from 43.70 pesos.

The greenback inched up to 31.59 Thai baht from 31.57 baht and to 1,072.93 South Korean won from 1,071.20 won.

The Australian dollar fell to 93.04 US cents from 93.29 cents, while the Chinese yuan was at 16.30 yen against 16.31 yen.

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

Asia stocks muted on prospect Fed to trim stimulus

MUMBAI, India—Asian stocks markets were muted Friday despite an uptick in China’s manufacturing as investors continued to fret that the Fed will begin cutting its stimulus as soon as January.

Two measures of China’s manufacturing improved in October in a possible sign of economic recovery. China’s growth rebounded to 7.8 percent in the three months ended September from the previous quarter’s two-decade low but there are doubts whether the improvement will continue over the remainder of the year.

Worries about less expansive US monetary stimulus continued to preoccupy investors. Stocks fell in Tokyo, Australia, Taiwan and Singapore fell. Greater China benchmarks were mixed.

The Federal Reserve’s announcement this week that it would maintain its monthly bond purchases at $85 billion was widely expected. But the central bank no longer expressed concern, as it did in September, that higher mortgage rates could hold back hiring and economic growth. And its statement made no reference to the 16-day government shutdown, which economists say slowed growth this quarter. Some analysts said that suggests reduction of the stimulus could begin early next year.

The U.S. central bank’s cheap money policy is aimed at supporting economic recovery and has also underpinned stock markets worldwide for several years

Speculation about the timing of the reduction in stimulus — known as tapering — will likely continue to roil markets in coming months, said Chris Weston, chief market strategist at IG in Melbourne, Australia.

“The Asian session has been pretty lifeless today,” Weston said in a market commentary. “Despite it mattering very little whether tapering occurs in January or March, we are still likely to see a negative equity response.”

Japan’s Nikkei 225, the regional heavyweight, fell 0.9 percent to 14,201.57, weighed down by the dollar falling below 98 yen and a 12 percent plunge in Sony Corp. shares after it Thursday reported a 19.3 billion yen ($196 million) quarterly loss.

Hong Kong’s Hang Seng crept up 0.4 percent to 23,290.46 while Australia’s S&P/ASX 200 shed 0.4 percent to 5,411.10. Markets in Taiwan, Singapore and Indonesia fell. Seoul’s Kospi added 0.5 percent to 2,039.42.

The exception to a dull Friday came in India’s stock market, where a modest gain was enough to push the Sensex to a record high — a stunning comeback from a few months ago when the bourse plunged and the Indian rupee fell to a lifetime low as foreign investors withdrew amid a bout of worry about withdrawal of the Fed’s stimulus.

Much of that foreign money has returned now that the rupee has stabilized at a lower level, making Indian stocks a bargain.

“I think clearly the largest driver of the market high is foreign currency inflow,” said Rajiv Mehta, an analyst with IIFL Capital in Mumbai. “Many people seem to think the worst is over.”

On Wall Street, the Dow lost 73.01 points, or 0.5 percent, to close at 15,545.75. The S&P 500 fell 6.77 points, 0.4 percent, to 1,756.54.

The Nasdaq composite dropped 10.91 points, or 0.3 percent, to 3,919.71.

Benchmark U.S. crude for December delivery was up 21 cents at $96.59 a barrel in electronic trading on the New York Mercantile Exchange. The contract had dropped 39 cents to close $96.38 on Thursday.

In currency trading, the euro was down at $1.3550 from $1.3586 late Thursday. The dollar fell to 97.95 yen from 98.31 yen.

source: business.inquirer.net

China, Singapore to allow direct trading between currencies

SINGAPORE—China and Singapore have agreed to allow direct trading between each other’s currency, Singapore’s central bank said Tuesday.

The move, along with other agreements on financial cooperation, is expected to bolster Singapore’s status as a leading offshore trading center for the Chinese yuan, officially called the renminbi(RMB).

“China and Singapore will introduce direct currency trading between the Chinese yuan and Singapore dollar,” the Monetary Authority of Singapore (MAS) said in a statement, adding that details will be announced separately.

The statement was issued after a meeting between senior officials from both countries led by Singapore Deputy Prime Minister Teo Chee Hean and visiting Chinese Vice Premier Zhang Gaoli.

China will also grant Singapore-based investors a 50 billion yuan ($8.2 billion) investment quota under its Renminbi Qualified Foreign Institutional Investor program, MAS said.

This would allow investors based in the city-state to use the yuan to invest in Chinese stocks and bonds.

The program “will help to diversify the base of investors in China’s capital markets and promote adoption of the RMB for investment”, MAS said.

Chinese institutional investors will also be allowed to use the yuan to invest in Singapore’s capital markets.

“The new initiatives will further promote the international use of the renminbi through Singapore,” the MAS said.

Its managing director Ravi Menon added: “Financial ties between the two countries have deepened considerably and Singapore is well placed to promote greater use of the RMB in international trade and investment in the years to come.”

China’s rise as the world’s second-biggest economy has seen the yuan take on a bigger role in international financial markets.

Britain last week said that direct trading between the yuan and the British pound will be allowed.

China also has similar direct trading arrangements for the yuan with the US dollar, the Japanese yen and the Australian dollar.

source: business.inquirer.net