Euro, Korean worries drag on choppy Asian trade
Tuesday, 30 November 2010
HONG KONG, Nov 29 (AFP): A sagging euro and tensions on the Korean peninsula made for a jittery day on Asian markets Monday, but signs of a strong US shopping season lifted Tokyo and Sydney while Hong Kong also revived.
Tokyo's Nikkei Index ended the session up 0.86 per cent, or 86.43 points, at 10,125.99, while Sydney's S&P/ASX 200 edged up 0.44 per cent, or 20.2 points, to 4,618.5.
Hong Kong's Hang Seng was up 0.12 per cent after lunch, but Shanghai's Composite Index was off 0.64 per cent and Seoul's Kospi ended the day down 0.33 per cent, or 6.26 points, at 1,895.54.
Japanese consumer electronics stocks such as Sony did particularly well on early signs of an enthusiastic start to the US shopping season over Thanksgiving, while a strong dollar also provided support.
However, the euro touched a fresh two-month low in Tokyo trade after Sunday's unveiling of an international bailout for Ireland, as traders awaited reaction on European markets amid concern about other eurozone countries.
Speaking in Tokyo, Bank of France governor Christian Noyer said he had "no doubt" that the 85 billion euro bailout of Ireland agreed by the European Union and International Monetary Fund would be successful.
However the euro fell to 1.3181 dollars -- its lowest since September -- before recovering to 1.3232 in afternoon trading in Tokyo, compared with 1.3247 in US markets last Friday afternoon. The currency was quoted at 111.30 yen, flat from the level in US trade, after dipping to 111.14 yen in Tokyo morning trade.
The dollar stood at 84.12 Japanese yen, slightly up from 84.07 yen last Friday, reflecting its safe-haven status.
On top of the eurozone jitters sentiment was also dented by tensions between the two Koreas follow a deadly exchange of cross-border fire last week, and pessimism among traders of Chinese stocks about measures to cool the economy.
In Shanghai, Zhang Yuheng at Capital Securities said investors were likely to remain on the sidelines until an annual central economic work conference in early December focussed on economic policy.
Wall Street ended a rollercoaster week on a low last Friday.
The Dow Jones Industrial Average fell one per cent for the week, while the S&P 500 was down 0.7 per cent as the news was dominated by Ireland's 85 billion euro bailout from the European Union and International Monetary Fund.
Tokyo's Nikkei Index ended the session up 0.86 per cent, or 86.43 points, at 10,125.99, while Sydney's S&P/ASX 200 edged up 0.44 per cent, or 20.2 points, to 4,618.5.
Hong Kong's Hang Seng was up 0.12 per cent after lunch, but Shanghai's Composite Index was off 0.64 per cent and Seoul's Kospi ended the day down 0.33 per cent, or 6.26 points, at 1,895.54.
Japanese consumer electronics stocks such as Sony did particularly well on early signs of an enthusiastic start to the US shopping season over Thanksgiving, while a strong dollar also provided support.
However, the euro touched a fresh two-month low in Tokyo trade after Sunday's unveiling of an international bailout for Ireland, as traders awaited reaction on European markets amid concern about other eurozone countries.
Speaking in Tokyo, Bank of France governor Christian Noyer said he had "no doubt" that the 85 billion euro bailout of Ireland agreed by the European Union and International Monetary Fund would be successful.
However the euro fell to 1.3181 dollars -- its lowest since September -- before recovering to 1.3232 in afternoon trading in Tokyo, compared with 1.3247 in US markets last Friday afternoon. The currency was quoted at 111.30 yen, flat from the level in US trade, after dipping to 111.14 yen in Tokyo morning trade.
The dollar stood at 84.12 Japanese yen, slightly up from 84.07 yen last Friday, reflecting its safe-haven status.
On top of the eurozone jitters sentiment was also dented by tensions between the two Koreas follow a deadly exchange of cross-border fire last week, and pessimism among traders of Chinese stocks about measures to cool the economy.
In Shanghai, Zhang Yuheng at Capital Securities said investors were likely to remain on the sidelines until an annual central economic work conference in early December focussed on economic policy.
Wall Street ended a rollercoaster week on a low last Friday.
The Dow Jones Industrial Average fell one per cent for the week, while the S&P 500 was down 0.7 per cent as the news was dominated by Ireland's 85 billion euro bailout from the European Union and International Monetary Fund.