Most Asian stocks inch lower
Thursday, 7 June 2007
SINGAPORE, June 06 (Reuters): Most major Asian share markets inched lower and the dollar slipped Wednesday, after comments from U.S. Federal Reserve Chairman Ben Bernanke dashed hopes for an interest rate cut this year in Asia's top export market.
European markets were seen opening down, with financial bookmakers in London forecasting the FTSE 100 .FTSE to open around 30 points lower, as several blue chips trade without the right to the latest dividend payout.
The dollar, already weak following Bernanke's comments, fell against the euro ahead of an expected European Central Bank interest rate increase as investors sought clues on how much higher they could go.
The mood remained cautious as Chinese stocks -- which staged a dramatic recovery late on Tuesday after earlier dropping more than 7 percent -- continued to see-saw, leaving investors unsure over how steep and how long the correction may be.
Shanghai's stock index opened higher and swung back and forth into negative territory, but was slightly calmed by reassurances from deputy central bank governor, Wu Xiaoling, that China's economy will not suffer from recent stock market volatility.
Tokyo's Nikkei <.N225> ended down 0.1 percent, dragged lower by exporters such as Canon Inc. on concern over potentially slower U.S. demand.
Concerns that interest rates may rise in Japan kept Japanese government bond futures <2JGBv1> near 10-month lows at 132.47 while the yield on the JGB two-year rose to 1.005 percent for the first time in 10 years.
The yield on the U.S. Treasury benchmark 10-year hovered just below 5 percent.
The dollar slipped for a third day against the euro as traders waited on the post-meeting press conference with ECB President Jean-Claude Trichet for hints on how much rates may rise this year.
European markets were seen opening down, with financial bookmakers in London forecasting the FTSE 100 .FTSE to open around 30 points lower, as several blue chips trade without the right to the latest dividend payout.
The dollar, already weak following Bernanke's comments, fell against the euro ahead of an expected European Central Bank interest rate increase as investors sought clues on how much higher they could go.
The mood remained cautious as Chinese stocks -- which staged a dramatic recovery late on Tuesday after earlier dropping more than 7 percent -- continued to see-saw, leaving investors unsure over how steep and how long the correction may be.
Shanghai's stock index opened higher and swung back and forth into negative territory, but was slightly calmed by reassurances from deputy central bank governor, Wu Xiaoling, that China's economy will not suffer from recent stock market volatility.
Tokyo's Nikkei <.N225> ended down 0.1 percent, dragged lower by exporters such as Canon Inc. on concern over potentially slower U.S. demand.
Concerns that interest rates may rise in Japan kept Japanese government bond futures <2JGBv1> near 10-month lows at 132.47 while the yield on the JGB two-year rose to 1.005 percent for the first time in 10 years.
The yield on the U.S. Treasury benchmark 10-year hovered just below 5 percent.
The dollar slipped for a third day against the euro as traders waited on the post-meeting press conference with ECB President Jean-Claude Trichet for hints on how much rates may rise this year.