Most Asian markets decline, tracking Wall Street weakness
Thursday, 12 July 2007
HONG KONG, July 11 (AP): Most Asian markets fell Wednesday, tracking overnight weakness on Wall Street, with Japanese stocks declining for a second day while Hong Kong shares snapped a six-session rally.
In Tokyo, the Nikkei 225 index dropped 203.16 points, or 1.11 per cent, to 18,049.51 points. On Monday, the index had hit a seven-year high.
Sentiment took a hit in the wake of a drop Wednesday in the US stock market, where the Dow fell 1.10 per cent, and the yen's recent appreciation against the dollar, which hurts Japan's exporters.
Auto manufacturers and technology companies led the losses. Nissan Motor Company fell 1.88 per cent to 1,305 yen (US$10.79) and Advantest Corporation, which shed 0.92 per cent to 5,400 yen ($44.63).
Precision instrument and computer makers also moved lower, with Olympus Corp. losing 1.46 per cent to 4,720 yen ($39.01) and Fujitsu Limited shedding 2.10 per cent to 838 yen ($6.93).
In Hong Kong, shares retreated after hitting six straight record highs in previous sessions, dragged down by overnight weakness on Wall Street and profit-taking in major heavyweights.
The blue chip Hang Seng Index fell 278.82 points, or 1.22 per cent, to 22,607.02. Before Wednesday's pull-back, the Hang Seng Index gained 1,093 points over the last six trading sessions.
Analysts said the market will be mired in negative territory in the short term, due to a build-up of selling pressure after the recent gains. But they said they remain optimistic about the market's long-term prospects.
"The local market will likely continue to consolidate in the coming days after recent gains," said Castor Pang, a Hong Kong-based strategist at Sun Hung Kai Research Ltd. "The benchmark index could fall as much as 5 per cent before the market resumes its uptrend."
China Mobile (Hong Kong) Ltd. and HSBC, the two biggest constituents of the benchmark index by market capitalization, were among the biggest decliners. China Mobile fell 0.70 per cent to HK$85.90.
HSBC fell 1.50 per cent to HK$143.20 on worries over the bank's exposure to problems in the sub-prime mortgages market in the United States, traders said.
BANGKOK: Thai shares closed down 1.40 per cent at 846.26 on profit-taking in blue chips.
JAKARTA: Indonesian shares lost 0.40 per cent to close at 2,273.42.
KUALA LUMPUR: Malaysian shares ended down 0.90 per cent at 1,359.27 in moderate volume on sustained selling in blue chips and heavyweights, tracking Wall Street's overnight decline.
MANILA: Philippine shares slid for the fourth straight session, with sentiment taking a hit after an overnight drop on Wall Street. The benchmark 30-company Philippine Stock Exchange Index dropped 16.74 points, or 0.40 per cent, to 3,703.22.
SEOUL: South Korean shares ended lower, snapping a seven-session winning streak as gains in utility stocks were more than offset by losses in banks and brokerage stocks. The Korea Composite Stock Price Index, or Kospi, ended down 4.57 points, or 0.20 per cent, at 1,889.96.
SHANGHAI: Chinese stocks rose moderately as property developers gained on expectations for a stronger Chinese currency, which rose to a fresh high against the US dollar. The benchmark Shanghai Composite Index advanced 12.70 points, or 0.30 per cent, to 3,865.72. The Shenzhen Composite Index of China's smaller, second market rose 10.14 points, or 0.90 per cent, to 1,086.24.
SINGAPORE: Singapore's benchmark Straits Times Index closed lower due to concerns about a possible rise in U.S. interest rates, but high expectations for the coming earnings season prevented greater losses. The STI closed down 25.4 points, or 0.70 per cent, at 3,594.9.
SYDNEY: Australian shares closed weaker, dragged lower by mining stocks on the back of falling base metal prices. The benchmark S&P/ASX 200 index ended down 36.4 points, or 0.60 per cent, at 6,325.1.
TAIPEI: Taiwanese shares broke their seven-session rally, falling on weakness on Wall Street and profit taking. The Weighted Price Index of the Taiwan Stock Exchange lost 93.78 points, or 1.0 per cent, to close at 9,290.95 on heavy volume.
WELLINGTON: New Zealand's shares ended modestly lower on solid volumes, tracking the U.S. market fall overnight on subprime mortgage issues. The benchmark NZX-50 closed down 7.0 points, or 0.20 per cent, at 4,229.69.
In Tokyo, the Nikkei 225 index dropped 203.16 points, or 1.11 per cent, to 18,049.51 points. On Monday, the index had hit a seven-year high.
Sentiment took a hit in the wake of a drop Wednesday in the US stock market, where the Dow fell 1.10 per cent, and the yen's recent appreciation against the dollar, which hurts Japan's exporters.
Auto manufacturers and technology companies led the losses. Nissan Motor Company fell 1.88 per cent to 1,305 yen (US$10.79) and Advantest Corporation, which shed 0.92 per cent to 5,400 yen ($44.63).
Precision instrument and computer makers also moved lower, with Olympus Corp. losing 1.46 per cent to 4,720 yen ($39.01) and Fujitsu Limited shedding 2.10 per cent to 838 yen ($6.93).
In Hong Kong, shares retreated after hitting six straight record highs in previous sessions, dragged down by overnight weakness on Wall Street and profit-taking in major heavyweights.
The blue chip Hang Seng Index fell 278.82 points, or 1.22 per cent, to 22,607.02. Before Wednesday's pull-back, the Hang Seng Index gained 1,093 points over the last six trading sessions.
Analysts said the market will be mired in negative territory in the short term, due to a build-up of selling pressure after the recent gains. But they said they remain optimistic about the market's long-term prospects.
"The local market will likely continue to consolidate in the coming days after recent gains," said Castor Pang, a Hong Kong-based strategist at Sun Hung Kai Research Ltd. "The benchmark index could fall as much as 5 per cent before the market resumes its uptrend."
China Mobile (Hong Kong) Ltd. and HSBC, the two biggest constituents of the benchmark index by market capitalization, were among the biggest decliners. China Mobile fell 0.70 per cent to HK$85.90.
HSBC fell 1.50 per cent to HK$143.20 on worries over the bank's exposure to problems in the sub-prime mortgages market in the United States, traders said.
BANGKOK: Thai shares closed down 1.40 per cent at 846.26 on profit-taking in blue chips.
JAKARTA: Indonesian shares lost 0.40 per cent to close at 2,273.42.
KUALA LUMPUR: Malaysian shares ended down 0.90 per cent at 1,359.27 in moderate volume on sustained selling in blue chips and heavyweights, tracking Wall Street's overnight decline.
MANILA: Philippine shares slid for the fourth straight session, with sentiment taking a hit after an overnight drop on Wall Street. The benchmark 30-company Philippine Stock Exchange Index dropped 16.74 points, or 0.40 per cent, to 3,703.22.
SEOUL: South Korean shares ended lower, snapping a seven-session winning streak as gains in utility stocks were more than offset by losses in banks and brokerage stocks. The Korea Composite Stock Price Index, or Kospi, ended down 4.57 points, or 0.20 per cent, at 1,889.96.
SHANGHAI: Chinese stocks rose moderately as property developers gained on expectations for a stronger Chinese currency, which rose to a fresh high against the US dollar. The benchmark Shanghai Composite Index advanced 12.70 points, or 0.30 per cent, to 3,865.72. The Shenzhen Composite Index of China's smaller, second market rose 10.14 points, or 0.90 per cent, to 1,086.24.
SINGAPORE: Singapore's benchmark Straits Times Index closed lower due to concerns about a possible rise in U.S. interest rates, but high expectations for the coming earnings season prevented greater losses. The STI closed down 25.4 points, or 0.70 per cent, at 3,594.9.
SYDNEY: Australian shares closed weaker, dragged lower by mining stocks on the back of falling base metal prices. The benchmark S&P/ASX 200 index ended down 36.4 points, or 0.60 per cent, at 6,325.1.
TAIPEI: Taiwanese shares broke their seven-session rally, falling on weakness on Wall Street and profit taking. The Weighted Price Index of the Taiwan Stock Exchange lost 93.78 points, or 1.0 per cent, to close at 9,290.95 on heavy volume.
WELLINGTON: New Zealand's shares ended modestly lower on solid volumes, tracking the U.S. market fall overnight on subprime mortgage issues. The benchmark NZX-50 closed down 7.0 points, or 0.20 per cent, at 4,229.69.