Asian markets fall on US recovery fears
Sunday, 18 July 2010
SINGAPORE, July 17 (Reuters): Asian stocks were mostly lower on profit-taking Friday after US stocks erased nearly all of their losses in the previous session after a pair of weak manufacturing reports and as JPMorgan's earnings failed to impress.
The dollar weakened to near 2-1/2-month lows against a basket of currencies Friday and was heading back towards a seven-month low of 86.96 yen hit in early July.
Exporters suffered as a result. Investors fret about a stronger yen since it eats into exporter profits when repatriated, and quarterly earnings reports pick up steam in several weeks, increasing investor jitters.
Canon declined 3.2 per cent to 3,380 yen and Tokyo Electron lost 2.8 per cent to 4,820 yen. Sony dropped five per cent to 2,404 yen.
One gainer was trader Mitsui & Co, which edged up 0.4 per cent to 1,135 yen after BP said Thursday that no oil was leaking from its blown-out well in the Gulf of Mexico for the first time since the accident began in April. Mitsui & Co owns 10 per cent of the well.
Shares of Land Co rallied 3.2 per cent to 32 yen after the real estate developer reported a group net profit of 75 million yen for the three months to May 31, after a 1.8 billion yen loss a year ago, thanks to a recovery in apartment sales.
Seoul shares retreated, pressured by concerns that slowing growth in China, South Korea's biggest export market, could hurt exports such as flat panels from LG Display.
The Korea Composite Stock Price Index (KOSPI) finished down 0.73 per cent at 1,738.45 points.
China's economy cooled in the second quarter, a slowdown that is likely to extend over the rest of the year.
Key exporters led losses, with LG Display, for which China is its third-biggest market, shedding 4.93 per cent.
Hynix Semiconductor tumbled 6.56 per cent on concerns about weak memory chip pricing and its second half outlook.
Data from DRAMeXchange, a semiconductor industry tracker, showed contract prices for key DRAM chips for July had fallen more than two per cent.
Shares in the country's leading automaker Hyundai Motor fell 4.3 per cent, hit by mounting worries about potential labor disputes after wage talks with its domestic union collapsed, analysts said.
Shares in Honam Petrochemical surged 8.75 per cent after the firm said it would pay 1.5 trillion won ($1.25 billion) to buy Malaysia's biggest petrochemical maker Titan Chemicals.
The acquisition will make Honam Asia's second largest petrochemical firm, fueling expectations of profit growth and business expansion.
POSCO rose 0.92 per cent after the world's No 3 steelmaker said Friday it would spend 194.7 billion won ($162 million) to buy a 24.5-per cent stake in the Australian Premium Iron Ore project.
Shinsegae advanced 1.85 per cent following a local media report that the retail giant would open 30 more stores of its discount chain E-Mart, fuelling hopes of sales growth.
Australian stocks closed 0.45 per cent lower amid concern over a US economic recovery, while there was some caution on reports an Australian election was set to be called at the weekend.
But the market gained for the second straight week, thanks largely to early gains in the week as US corporate earnings have so far been healthy.
Australian Prime Minister Julia Gillard is likely to call an election Saturday, broadcaster ABC said, taking advantage of a rebound in support for her party and a robust economy.
The benchmark S&P/ASX 200 index fell 19.85 points to 4,422.70, after being flat till afternoon trade. It fell 0.4 per cent Thursday.
New Zealand's benchmark NZX 50 index slipped 0.55 per cent to 2,985.76.
OZ Minerals climbed 1.4 per cent to A$1.13 after it said its contained copper production at its Prominent Hill mine in Australia for the quarter to June 30 was 28,236 tonnes, versus 31,909 tonnes in the March quarter.
Financials finished mixed, with Westpac down 0.7 per cent to A$22.58 and QBE Insurance up 0.5 per cent to A$18.31.
China's key stock index, the Shanghai Composite recouped early losses to close flat at 2,424.27 points. But further signs of big corporate fundraisings weighed on sentiment.
China Shipbuilding Industry announced a private share placement worth 17.3 billion yuan ($2.6 billion), adding more funding pressure to the market.
Taiwan stocks shed 0.52 per cent, tracking losses in regional bourses, as investors booked profits on recent gainers while looking ahead to tech company earnings reports due in the coming weeks.
The main TAIEX share index ended 39.95 points lower at 7,664.57, wrapping up this week with a meagre 0.2 per cent gain. The electronics sub-index was 1.1 per cent lower.
Smartphone maker HTC led the decliners, falling one per cent, though it was still up 7.4 per cent for the week.
TSMC, the world's top contract chipmaker, fell 0.66 per cent. TSMC said it would invest more than T$300 billion ($9.34 billion) to build a new plant in central Taiwan.
The dollar weakened to near 2-1/2-month lows against a basket of currencies Friday and was heading back towards a seven-month low of 86.96 yen hit in early July.
Exporters suffered as a result. Investors fret about a stronger yen since it eats into exporter profits when repatriated, and quarterly earnings reports pick up steam in several weeks, increasing investor jitters.
Canon declined 3.2 per cent to 3,380 yen and Tokyo Electron lost 2.8 per cent to 4,820 yen. Sony dropped five per cent to 2,404 yen.
One gainer was trader Mitsui & Co, which edged up 0.4 per cent to 1,135 yen after BP said Thursday that no oil was leaking from its blown-out well in the Gulf of Mexico for the first time since the accident began in April. Mitsui & Co owns 10 per cent of the well.
Shares of Land Co rallied 3.2 per cent to 32 yen after the real estate developer reported a group net profit of 75 million yen for the three months to May 31, after a 1.8 billion yen loss a year ago, thanks to a recovery in apartment sales.
Seoul shares retreated, pressured by concerns that slowing growth in China, South Korea's biggest export market, could hurt exports such as flat panels from LG Display.
The Korea Composite Stock Price Index (KOSPI) finished down 0.73 per cent at 1,738.45 points.
China's economy cooled in the second quarter, a slowdown that is likely to extend over the rest of the year.
Key exporters led losses, with LG Display, for which China is its third-biggest market, shedding 4.93 per cent.
Hynix Semiconductor tumbled 6.56 per cent on concerns about weak memory chip pricing and its second half outlook.
Data from DRAMeXchange, a semiconductor industry tracker, showed contract prices for key DRAM chips for July had fallen more than two per cent.
Shares in the country's leading automaker Hyundai Motor fell 4.3 per cent, hit by mounting worries about potential labor disputes after wage talks with its domestic union collapsed, analysts said.
Shares in Honam Petrochemical surged 8.75 per cent after the firm said it would pay 1.5 trillion won ($1.25 billion) to buy Malaysia's biggest petrochemical maker Titan Chemicals.
The acquisition will make Honam Asia's second largest petrochemical firm, fueling expectations of profit growth and business expansion.
POSCO rose 0.92 per cent after the world's No 3 steelmaker said Friday it would spend 194.7 billion won ($162 million) to buy a 24.5-per cent stake in the Australian Premium Iron Ore project.
Shinsegae advanced 1.85 per cent following a local media report that the retail giant would open 30 more stores of its discount chain E-Mart, fuelling hopes of sales growth.
Australian stocks closed 0.45 per cent lower amid concern over a US economic recovery, while there was some caution on reports an Australian election was set to be called at the weekend.
But the market gained for the second straight week, thanks largely to early gains in the week as US corporate earnings have so far been healthy.
Australian Prime Minister Julia Gillard is likely to call an election Saturday, broadcaster ABC said, taking advantage of a rebound in support for her party and a robust economy.
The benchmark S&P/ASX 200 index fell 19.85 points to 4,422.70, after being flat till afternoon trade. It fell 0.4 per cent Thursday.
New Zealand's benchmark NZX 50 index slipped 0.55 per cent to 2,985.76.
OZ Minerals climbed 1.4 per cent to A$1.13 after it said its contained copper production at its Prominent Hill mine in Australia for the quarter to June 30 was 28,236 tonnes, versus 31,909 tonnes in the March quarter.
Financials finished mixed, with Westpac down 0.7 per cent to A$22.58 and QBE Insurance up 0.5 per cent to A$18.31.
China's key stock index, the Shanghai Composite recouped early losses to close flat at 2,424.27 points. But further signs of big corporate fundraisings weighed on sentiment.
China Shipbuilding Industry announced a private share placement worth 17.3 billion yuan ($2.6 billion), adding more funding pressure to the market.
Taiwan stocks shed 0.52 per cent, tracking losses in regional bourses, as investors booked profits on recent gainers while looking ahead to tech company earnings reports due in the coming weeks.
The main TAIEX share index ended 39.95 points lower at 7,664.57, wrapping up this week with a meagre 0.2 per cent gain. The electronics sub-index was 1.1 per cent lower.
Smartphone maker HTC led the decliners, falling one per cent, though it was still up 7.4 per cent for the week.
TSMC, the world's top contract chipmaker, fell 0.66 per cent. TSMC said it would invest more than T$300 billion ($9.34 billion) to build a new plant in central Taiwan.