Asian Markets Trading Mixed Amid Cautious Mood
(RTTNews) - Despite strong cues from Wall Street, where stocks had rallied sharply overnight on encouraging housing data, Asian markets are mostly seen struggling on Tuesday with investors not showing any keen interest in holding stocks at higher levels. Though some of the markets in the region got off to a bright start, the rally was quite short-lived with stocks attracting profit taking after recent gains.
After a bright start and a subsequent good spell in positive territory, the Australian market drifted lower in late morning trades and is still down in the red with materials, healthcare, consumer staples and telecom stocks struggling for support. Select energy, bank and information technology stocks are trading higher.
The benchmark S&P/ASX 200 index, which rose to 4,764 in early trades, is currently down 17 points or 0.4% at 4,700. The broader All Ordinaries index is trading at 4,724, down 15.2 points or 0.3% from its previous close.
Top miners BHP Billiton and Rio Tinto have drifted lower after trading firm early on. While BHP Billiton is down with a loss of 0.6%, Rio Tinto is trading 0.9% down from its previous closing price. Orica, Incitec Pivot, Lihir Gold, Bluescope Steel are also exhibiting weakness. Newcrest Mining, however, is up nearly 1%.
In the energy space, Woodside Petroleum is trading stronger by nearly 3%. The company says its output for calendar 2009 will be within its guidance range, before declining in 2010 due to sale of a stake on a project. Among others in the industry, Oil Search and Santos are trading weak, while Origin Energy is trading flat.
Among bank stocks, ANZ Bank is up 0.75% and Westpac Banking Corporation is trading flat. Commonwealth Bank of Australia and National Australia Bank are exhibiting weakness. Diversified financials stock Macquarie Group is up with a modest gain.
Shares of insurance company Suncorp-Metway Ltd are trading nearly 2% up after the company's chief executive Patrick Snowball said the group's underlying banking business is sound and that bad and doubtful debt charges are declining. Retail arrears at the end of the September quarter were around the same level as in June 2009 and showing an improving trend, while commercial arrears were lower. In the September quarter, Suncorp's core bank impairment loss was A$9 million, compared to A$18 million in the June quarter.
Shares of transport and logistics group Toll Holdings Ltd are up 2.2% following the company winning a five-year contract worth A$1 billion to supply re-location services to the Australian Department of Defence. After the initial five years, the contract could run for another four years with one-year extensions.
Ruralco Holdings Ltd expects overall trading conditions in the rural sector to improve in fiscal 2010 and says the company is well placed to take advantage of the uplift. The rural merchandise, livestock and real estate group booked an annual net profit for fiscal 2009 of A$8.45 million, down 47% on the prior year, following a general downturn in the rural services sector. Ruralco had flagged a fall in net profit of 45%-55% for the year ended September 30. Underlying net profit, which excludes significant items, was down 32% at A$11.2 million.
In the currency market, the Australian dollar opened more than half a cent higher with investors seeking riskier assets. In early trades, the Aussie was quoting at US$0.9250-US$0.9252, up from Monday's close of US$0.9191-US$0.9198. The Australian dollar is currently trading at 0.9217 against the U.S. dollar.
After opening higher on strong cues from Wall Street, the Japanese stock market declined with a stronger yen triggering some heavy selling. Non-ferrous metal stocks are trading notably higher on firm gold prices even as stocks from various other sectors are struggling due to lack of support.
The benchmark Nikkei 225 index, which edged up to 9,511 in early trades, is currently down 76.7 points or 0.8% at 9,421.
Shares of Japan Airlines declined sharply on selling pressure and are currently trading more than 8% down from its previous closing price.
Sumitomo Metal Mining is extending its winning streak to a third successive session on record gold prices. The stock is currently up more than 1.5% over its previous closing price.
Shares of Sumitomo Electric Industries Ltd. are up over 3% following Nomura Securities Co.'s move to raise its investment rating on the firm by one notch to the highest grade on the brokerage's three-point scale.
DOWA Holdings, Mitsubishi Materials, Sumco Corp., Toho Zinc and Mitsui Mining are among the other prominent gainers in the non-ferrous metals space.
Fujitsu moved higher amid hopes the national project to develop next-generation supercomputers will not be affected by the government's on-going effort to cut wasteful projects. The stock is trading nearly a percent up over its previous close.
Food, chemicals and pharmaceuticals are trading mixed. Steel, machinery and electric machinery stocks are mostly trading higher. Automobile and bank stocks are exhibiting some weakness.
Insurance and real estate stocks are trading lower. Shares of trading companies and securities firms are exhibiting a mixed trend.
Hitachi moved higher on reports the firm will likely sign a major deal to build a high-speed railway project in the U.K. However, the stock has pared its gains subsequently due to lack of support at higher levels. The company's share of the project is expected to account for more than half of the 1 trillion yen outlay. Hitachi will supply all 1,400 rail cars, provide maintenance and develop operational systems.
In the currency market, the U.S. dollar traded in the upper 88-yen range early Tuesday in Tokyo, down slightly from its levels overnight in New York. In early trades, the dollar fetched 88.92-88.93 yen, down from Monday's close of 88.93-89.03 yen in New York. The yen is currently trading at 88.91 to the U.S. dollar.
The South Korean stock market is trading weak with participants treading cautiously and pressing sales in technology, bank and shipping stocks.
The benchmark KOSPI index, which advanced to 1,627.1 in early trades, is currently down in negative territory at 1,603 with a loss of around 16 points or 0.98%.
Among tech stocks, heavyweight Samsung Electronics is trading lower by nearly 2%. LG Electronics and Hynix Semiconductor are down by 2.3% and 2.5% respectively, while LG Display LCD is trading flat.
In the banking space, Woori Finance and Shinhan Financial are losing over 1.5% each, while Korea Exchange Bank and KB Financial are trading lower by almost 1%.
Among shipping stocks, Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding are down with notable losses, while STX Pan Ocean is trading flat.
Automobile stocks Kia Motor, Hyundai Motor and Ssangyong Motor are trading notably higher. Steel and oil stocks are trading weak, while airlines and telecom stocks are exhibiting a mixed trend.
Shares of Daewoo Engineering & Construction Co. Ltd. are down sharply on reports that an Abu Dhabi fund-led consortium and a group including a U.S. builder were picked as preferred buyers of Daewoo in a deal estimated to fetch about US$2.6 billion.
Meanwhile, the Samsung Engineering stock is up over 2% on news of a 1.4 trillion won order from the United Arab Emirates.
Among other markets in the Asia-Pacific region, Shanghai, Taiwan and New Zealand are up with modest gains, while Hong Kong, Indonesia and Singapore are trading weak. Markets across the region had closed mostly higher on Monday.
On Wall Street, stocks rallied on Monday on the back of encouraging home sales data and closed with strong gains despite some profit taking during the day. The Dow closed up 132.8 points or 1.3% at 10,451, the Nasdaq advanced by nearly 30 points or 1.4% to 2,176 and the S&P 500 moved up 14.9 points or 1.4% to 1,106.3.
Major European markets saw notable gains on Monday. While U.K.'s FTSE 100 index rose 1.7%, the French CAC 40 index and the German DAX index ended stronger by 2.3% and 2.4% respectively.
Crude oil finished modestly higher on Monday on a weaker dollar and concerns over political tensions in the Middle East. Light sweet crude for December delivery finished at US$77.56 per barrel, up 9 cents on the session.
For comments and feedback: contact editorial@rttnews.com
Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved
After a bright start and a subsequent good spell in positive territory, the Australian market drifted lower in late morning trades and is still down in the red with materials, healthcare, consumer staples and telecom stocks struggling for support. Select energy, bank and information technology stocks are trading higher.
The benchmark S&P/ASX 200 index, which rose to 4,764 in early trades, is currently down 17 points or 0.4% at 4,700. The broader All Ordinaries index is trading at 4,724, down 15.2 points or 0.3% from its previous close.
Top miners BHP Billiton and Rio Tinto have drifted lower after trading firm early on. While BHP Billiton is down with a loss of 0.6%, Rio Tinto is trading 0.9% down from its previous closing price. Orica, Incitec Pivot, Lihir Gold, Bluescope Steel are also exhibiting weakness. Newcrest Mining, however, is up nearly 1%.
In the energy space, Woodside Petroleum is trading stronger by nearly 3%. The company says its output for calendar 2009 will be within its guidance range, before declining in 2010 due to sale of a stake on a project. Among others in the industry, Oil Search and Santos are trading weak, while Origin Energy is trading flat.
Among bank stocks, ANZ Bank is up 0.75% and Westpac Banking Corporation is trading flat. Commonwealth Bank of Australia and National Australia Bank are exhibiting weakness. Diversified financials stock Macquarie Group is up with a modest gain.
Shares of insurance company Suncorp-Metway Ltd are trading nearly 2% up after the company's chief executive Patrick Snowball said the group's underlying banking business is sound and that bad and doubtful debt charges are declining. Retail arrears at the end of the September quarter were around the same level as in June 2009 and showing an improving trend, while commercial arrears were lower. In the September quarter, Suncorp's core bank impairment loss was A$9 million, compared to A$18 million in the June quarter.
Shares of transport and logistics group Toll Holdings Ltd are up 2.2% following the company winning a five-year contract worth A$1 billion to supply re-location services to the Australian Department of Defence. After the initial five years, the contract could run for another four years with one-year extensions.
Ruralco Holdings Ltd expects overall trading conditions in the rural sector to improve in fiscal 2010 and says the company is well placed to take advantage of the uplift. The rural merchandise, livestock and real estate group booked an annual net profit for fiscal 2009 of A$8.45 million, down 47% on the prior year, following a general downturn in the rural services sector. Ruralco had flagged a fall in net profit of 45%-55% for the year ended September 30. Underlying net profit, which excludes significant items, was down 32% at A$11.2 million.
In the currency market, the Australian dollar opened more than half a cent higher with investors seeking riskier assets. In early trades, the Aussie was quoting at US$0.9250-US$0.9252, up from Monday's close of US$0.9191-US$0.9198. The Australian dollar is currently trading at 0.9217 against the U.S. dollar.
After opening higher on strong cues from Wall Street, the Japanese stock market declined with a stronger yen triggering some heavy selling. Non-ferrous metal stocks are trading notably higher on firm gold prices even as stocks from various other sectors are struggling due to lack of support.
The benchmark Nikkei 225 index, which edged up to 9,511 in early trades, is currently down 76.7 points or 0.8% at 9,421.
Shares of Japan Airlines declined sharply on selling pressure and are currently trading more than 8% down from its previous closing price.
Sumitomo Metal Mining is extending its winning streak to a third successive session on record gold prices. The stock is currently up more than 1.5% over its previous closing price.
Shares of Sumitomo Electric Industries Ltd. are up over 3% following Nomura Securities Co.'s move to raise its investment rating on the firm by one notch to the highest grade on the brokerage's three-point scale.
DOWA Holdings, Mitsubishi Materials, Sumco Corp., Toho Zinc and Mitsui Mining are among the other prominent gainers in the non-ferrous metals space.
Fujitsu moved higher amid hopes the national project to develop next-generation supercomputers will not be affected by the government's on-going effort to cut wasteful projects. The stock is trading nearly a percent up over its previous close.
Food, chemicals and pharmaceuticals are trading mixed. Steel, machinery and electric machinery stocks are mostly trading higher. Automobile and bank stocks are exhibiting some weakness.
Insurance and real estate stocks are trading lower. Shares of trading companies and securities firms are exhibiting a mixed trend.
Hitachi moved higher on reports the firm will likely sign a major deal to build a high-speed railway project in the U.K. However, the stock has pared its gains subsequently due to lack of support at higher levels. The company's share of the project is expected to account for more than half of the 1 trillion yen outlay. Hitachi will supply all 1,400 rail cars, provide maintenance and develop operational systems.
In the currency market, the U.S. dollar traded in the upper 88-yen range early Tuesday in Tokyo, down slightly from its levels overnight in New York. In early trades, the dollar fetched 88.92-88.93 yen, down from Monday's close of 88.93-89.03 yen in New York. The yen is currently trading at 88.91 to the U.S. dollar.
The South Korean stock market is trading weak with participants treading cautiously and pressing sales in technology, bank and shipping stocks.
The benchmark KOSPI index, which advanced to 1,627.1 in early trades, is currently down in negative territory at 1,603 with a loss of around 16 points or 0.98%.
Among tech stocks, heavyweight Samsung Electronics is trading lower by nearly 2%. LG Electronics and Hynix Semiconductor are down by 2.3% and 2.5% respectively, while LG Display LCD is trading flat.
In the banking space, Woori Finance and Shinhan Financial are losing over 1.5% each, while Korea Exchange Bank and KB Financial are trading lower by almost 1%.
Among shipping stocks, Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding are down with notable losses, while STX Pan Ocean is trading flat.
Automobile stocks Kia Motor, Hyundai Motor and Ssangyong Motor are trading notably higher. Steel and oil stocks are trading weak, while airlines and telecom stocks are exhibiting a mixed trend.
Shares of Daewoo Engineering & Construction Co. Ltd. are down sharply on reports that an Abu Dhabi fund-led consortium and a group including a U.S. builder were picked as preferred buyers of Daewoo in a deal estimated to fetch about US$2.6 billion.
Meanwhile, the Samsung Engineering stock is up over 2% on news of a 1.4 trillion won order from the United Arab Emirates.
Among other markets in the Asia-Pacific region, Shanghai, Taiwan and New Zealand are up with modest gains, while Hong Kong, Indonesia and Singapore are trading weak. Markets across the region had closed mostly higher on Monday.
On Wall Street, stocks rallied on Monday on the back of encouraging home sales data and closed with strong gains despite some profit taking during the day. The Dow closed up 132.8 points or 1.3% at 10,451, the Nasdaq advanced by nearly 30 points or 1.4% to 2,176 and the S&P 500 moved up 14.9 points or 1.4% to 1,106.3.
Major European markets saw notable gains on Monday. While U.K.'s FTSE 100 index rose 1.7%, the French CAC 40 index and the German DAX index ended stronger by 2.3% and 2.4% respectively.
Crude oil finished modestly higher on Monday on a weaker dollar and concerns over political tensions in the Middle East. Light sweet crude for December delivery finished at US$77.56 per barrel, up 9 cents on the session.
For comments and feedback: contact editorial@rttnews.com
Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved
Most Popular News
- Apple Provides Guidance Above Estimates
- Citigroup To Report Q4 Results: Earnings Preview
- Ahead Of Intel's Q4 Earnings
- Intel Guides Above Revenue Estimates
- Obama bank proposal slams markets
- More News >>
UPCOMING EVENTS
Learn new strategies, how to trade in this market, and the stocks you should be focusing on each day. Join us for our free 20 minute tele-seminars during the week.
Thursday February 11 04:30 PM
Thursday February 11 12:30 PM
Wednesday February 10 01:00 PM
* Attendance is strictly limited and are filled on a first-come, first-served basis.
