Asian stocks mixed as dealers mull US, Japan bank moves
Friday, 19 March 2010
HONG KONG, March 18 (AFP): Lingering upbeat sentiment after the Japanese and US central banks held interest rates at record lows helped most Asian shares extend gains today although these were capped by profit-taking.
Hopes for an economic recovery were boosted on Wednesday after the Bank of Japan (BoJ) said it would keep rates at near zero and would double a loan facility available to other banks in order to increase credit.
That announcement came after the US Federal Reserve pledged to keep its lending rate at rock-bottom "for an extended period" in light of tame inflation and high unemployment in a bid to help a fragile recovery from recession.
The news gave impetus to the markets, sending shares higher Wednesday on hopes for the global recovery.
And those advances continued Thursday, with Sydney 0.20 per cent, or 9.9 points, higher at 4,863.1, while Hong Kong rose 0.16 per cent by the break and Shanghai advanced 0.13 per cent. Singapore was 0.17 per cent higher.
The BoJ said Wednesday it would raise to 20 trillion yen (220 billion dollars) a short-term loan facility that banks could access to free up money, as it tries to kickstart the nation's faltering recovery.
It also said it would keep interest rates at near-zero per cent-where they have been since December 2008 -- to fight deflation, which is holding back a rebound.
Wall Street provided a strong lead, rising 0.45 per cent after a Labor Department report showed US producer prices fell in February, snapping a four-month increase and stoking share-buying sentiment after the Fed move.
However, in Tokyo investors took profits the previous day's gains, sending the Nikkei 0.95 per cent, or 102.95 points, lower to 10.744.03.
"The Nikkei has gained sharply recently, so the market is overheated," Yukio Takahashi, market analyst at Mizuho Securities, told Dow Jones Newswires.
Daiwa Securities capital markets general manager Kazuhiro Takahashi said: "There aren't many incentives since the BoJ's policy board meeting."
"The environment, like the US market, is stable and favourable, but still the market needs something more-earnings prospects in particular."
Nissan ended 1.03 per cent lower at 766 yen despite trading higher earlier on after its announcement it would build the Leaf electric car in Sunderland, Britain. Toyota dropped 1.39 per cent to 3,530.
The greenback fell to 90.16 yen in Tokyo afternoon trade from 90.33 yen late Wednesday in New York. The euro declined to 1.3684 dollars from 1.3735 dollars in New York, while also dropping to 123.40 yen from 124.05 yen.
Oil was lower, with New York's main contract, light sweet crude for April delivery, falling 56 cents to 82.37 dollars a barrel.
Brent North Sea crude for May delivery was off 60 cents to 81.36 dollars.
Gold opened at 1,122.00-1,123.00 US dollars an ounce in Hong Kong, down from Wednesday's close of 1,130.00-1,131.00 US dollars an ounce. In other markets:
Seoul closed 0.46 per cent, or 7.69 points, lower at 1,675.17 and Taipei rose 0.49 per cent, or 38.5 points, to 7,886.34.
Formosa Plastics rose 0.57 per cent to 71 Taiwan dollars while Taiwan Semiconductor Manufacturing Co fell 0.17 per cent to 60.4.
Manila closed 0.42 per cent, or 12.90 points, higher at 3,100.95.
Top-traded Aboitiz Equity Ventures and Philippine Long Distance Telephone Co. were both unchanged at 13.50 pesos and 2,580 pesos respectively.
Ayala Corp. was up 0.86 per cent to 295 pesos while Universal Robina Corp. rose 5.7 per cent to 23.25 pesos.
Hopes for an economic recovery were boosted on Wednesday after the Bank of Japan (BoJ) said it would keep rates at near zero and would double a loan facility available to other banks in order to increase credit.
That announcement came after the US Federal Reserve pledged to keep its lending rate at rock-bottom "for an extended period" in light of tame inflation and high unemployment in a bid to help a fragile recovery from recession.
The news gave impetus to the markets, sending shares higher Wednesday on hopes for the global recovery.
And those advances continued Thursday, with Sydney 0.20 per cent, or 9.9 points, higher at 4,863.1, while Hong Kong rose 0.16 per cent by the break and Shanghai advanced 0.13 per cent. Singapore was 0.17 per cent higher.
The BoJ said Wednesday it would raise to 20 trillion yen (220 billion dollars) a short-term loan facility that banks could access to free up money, as it tries to kickstart the nation's faltering recovery.
It also said it would keep interest rates at near-zero per cent-where they have been since December 2008 -- to fight deflation, which is holding back a rebound.
Wall Street provided a strong lead, rising 0.45 per cent after a Labor Department report showed US producer prices fell in February, snapping a four-month increase and stoking share-buying sentiment after the Fed move.
However, in Tokyo investors took profits the previous day's gains, sending the Nikkei 0.95 per cent, or 102.95 points, lower to 10.744.03.
"The Nikkei has gained sharply recently, so the market is overheated," Yukio Takahashi, market analyst at Mizuho Securities, told Dow Jones Newswires.
Daiwa Securities capital markets general manager Kazuhiro Takahashi said: "There aren't many incentives since the BoJ's policy board meeting."
"The environment, like the US market, is stable and favourable, but still the market needs something more-earnings prospects in particular."
Nissan ended 1.03 per cent lower at 766 yen despite trading higher earlier on after its announcement it would build the Leaf electric car in Sunderland, Britain. Toyota dropped 1.39 per cent to 3,530.
The greenback fell to 90.16 yen in Tokyo afternoon trade from 90.33 yen late Wednesday in New York. The euro declined to 1.3684 dollars from 1.3735 dollars in New York, while also dropping to 123.40 yen from 124.05 yen.
Oil was lower, with New York's main contract, light sweet crude for April delivery, falling 56 cents to 82.37 dollars a barrel.
Brent North Sea crude for May delivery was off 60 cents to 81.36 dollars.
Gold opened at 1,122.00-1,123.00 US dollars an ounce in Hong Kong, down from Wednesday's close of 1,130.00-1,131.00 US dollars an ounce. In other markets:
Seoul closed 0.46 per cent, or 7.69 points, lower at 1,675.17 and Taipei rose 0.49 per cent, or 38.5 points, to 7,886.34.
Formosa Plastics rose 0.57 per cent to 71 Taiwan dollars while Taiwan Semiconductor Manufacturing Co fell 0.17 per cent to 60.4.
Manila closed 0.42 per cent, or 12.90 points, higher at 3,100.95.
Top-traded Aboitiz Equity Ventures and Philippine Long Distance Telephone Co. were both unchanged at 13.50 pesos and 2,580 pesos respectively.
Ayala Corp. was up 0.86 per cent to 295 pesos while Universal Robina Corp. rose 5.7 per cent to 23.25 pesos.