Asian shares mixed as traders cash in gains
Tuesday, 9 November 2010
HONG KONG, Nov 8 (AFP): Asian stocks were mixed today as profit-taking tempered positive sentiment generated by upbeat US jobs data and the Federal Reserve's stimulus plans.
Traders in Sydney generally sold off Qantas shares after the flag-carrier said it would keep its fleet of A380 superjumbos grounded after finding "slight anomalies" following two engine blowouts.
Tokyo gained 1.11 per cent, or 106.93 points, to reach 9,732.92, with exporters benefiting from a slightly weaker yen. Shanghai was 0.72 per cent higher in the afternoon, while Seoul closed up 0.18 per cent, or 3.45 points, at 1,942.41.
Hong Kong was 0.10 per cent off by the break after strong gains last week, while Sydney fell 0.46 per cent, or 22.2 points, to close at 4,778.4.
Regional markets surged Thursday and Friday after the US central bank said it would pump 600 billion dollars into the world's biggest economy to kickstart a stuttering recovery.
Hopes for the United States were lifted further when the Labor Department reported 151,000 new jobs were created in October, although unemployment was unchanged at 9.6 per cent for the third consecutive month.
The jobless rate matched expectations, while the number of new jobs was more than double the 60,000 forecast by most analysts.
There was cautious optimism among dealers looking ahead to a Group of 20 summit in South Korea at the end of the week.
"We are increasingly convinced that 2011 will be the year in which the economic expansion finally puts down deeper roots and blossoms into a full- blown job-creating recovery," said Ian Shepherdson, chief US economist at High Frequency Economics.
"It will take time... but the key point here is that the conditions necessary for the economy to start performing are falling into place," he told Dow Jones Newswires.
The employment data lent support to the greenback, which was trading at 81.21 yen in Tokyo in the morning, hardly changed after strong gains late Friday.
The euro was trading at 1.3964 dollars, slightly down from 1.4032 dollars in New York, while it edged down to 113.42 yen from 114.02 yen.
Sydney stocks suffered after Qantas said it would keep all six of its double- decker A380s grounded due to safety fears.
Chief executive Alan Joyce said tests had found leaking oil in three of the aircraft's Rolls-Royce engines. The airline carried out the tests after an A380 was forced to make an emergency landing in Singapore on Thursday when one of its four Rolls-Royce Trent 900 engines exploded just minutes into its flight.
On Friday, a Qantas Boeing 747 -- which was carrying the stricken A380's captain-also had to turn back to Singapore after another model of Rolls- Royce engine failed in mid-air.
The carrier's shares closed 2.10 per cent off.
Oil staged its longest rally this year, extending gains into a seventh day in Asia due to the improving sentiment about the strength of the US economy.
New York's main contract, light sweet crude for December delivery, was up 39 cents at 87.24 dollars a barrel while Brent North Sea crude for December gained 40 cents to 88.51 dollars.
Gold opened at 1,395.50-1,396.50 US dollars an ounce in Hong Kong, up from Friday's finish of 1,385.00-1,386.00 dollars.
Traders in Sydney generally sold off Qantas shares after the flag-carrier said it would keep its fleet of A380 superjumbos grounded after finding "slight anomalies" following two engine blowouts.
Tokyo gained 1.11 per cent, or 106.93 points, to reach 9,732.92, with exporters benefiting from a slightly weaker yen. Shanghai was 0.72 per cent higher in the afternoon, while Seoul closed up 0.18 per cent, or 3.45 points, at 1,942.41.
Hong Kong was 0.10 per cent off by the break after strong gains last week, while Sydney fell 0.46 per cent, or 22.2 points, to close at 4,778.4.
Regional markets surged Thursday and Friday after the US central bank said it would pump 600 billion dollars into the world's biggest economy to kickstart a stuttering recovery.
Hopes for the United States were lifted further when the Labor Department reported 151,000 new jobs were created in October, although unemployment was unchanged at 9.6 per cent for the third consecutive month.
The jobless rate matched expectations, while the number of new jobs was more than double the 60,000 forecast by most analysts.
There was cautious optimism among dealers looking ahead to a Group of 20 summit in South Korea at the end of the week.
"We are increasingly convinced that 2011 will be the year in which the economic expansion finally puts down deeper roots and blossoms into a full- blown job-creating recovery," said Ian Shepherdson, chief US economist at High Frequency Economics.
"It will take time... but the key point here is that the conditions necessary for the economy to start performing are falling into place," he told Dow Jones Newswires.
The employment data lent support to the greenback, which was trading at 81.21 yen in Tokyo in the morning, hardly changed after strong gains late Friday.
The euro was trading at 1.3964 dollars, slightly down from 1.4032 dollars in New York, while it edged down to 113.42 yen from 114.02 yen.
Sydney stocks suffered after Qantas said it would keep all six of its double- decker A380s grounded due to safety fears.
Chief executive Alan Joyce said tests had found leaking oil in three of the aircraft's Rolls-Royce engines. The airline carried out the tests after an A380 was forced to make an emergency landing in Singapore on Thursday when one of its four Rolls-Royce Trent 900 engines exploded just minutes into its flight.
On Friday, a Qantas Boeing 747 -- which was carrying the stricken A380's captain-also had to turn back to Singapore after another model of Rolls- Royce engine failed in mid-air.
The carrier's shares closed 2.10 per cent off.
Oil staged its longest rally this year, extending gains into a seventh day in Asia due to the improving sentiment about the strength of the US economy.
New York's main contract, light sweet crude for December delivery, was up 39 cents at 87.24 dollars a barrel while Brent North Sea crude for December gained 40 cents to 88.51 dollars.
Gold opened at 1,395.50-1,396.50 US dollars an ounce in Hong Kong, up from Friday's finish of 1,385.00-1,386.00 dollars.