Asian Market Cheers As Obama Pass Stimulus Test
29 Jan 2009 | 16:27 Asian Market Cheers As Obama Pass Stimulus Test
Stock markets in Asian region advanced further on Thursday, 29 January 2009, after theU.S. House of Representatives passed a much-awaited $825 billion economic stimulus bill.President Barack Obama scored his first major legislative victory on Wednesday withpassage of an $825 billion economic stimulus package by a sharply divided U.S. House ofRepresentatives on a 244-188 vote. But the rally in the regional market was limited aftersubstantial gains seen in the previous session.
Asian market also took a positive clue from Wall Street, where stocks managed a strong endwith good gains on yesterday. Financials led the way today as Wells Fargo decided that itwill keep its dividend intact and will not ask for additional TRP funds. Stocks also rosetoday after Federal Reserve's latest policy statement keeping interest rate unchanged.
The Dow Jones Industrial Average ended higher by 200 points at 8,375, the Nasdaq closedhigher by 53 points at 1,558 and the S&P 500 closed higher by 28 points at 874.
On the economic front, Federal Open Market Committee kept its interest rate target in arange of zero to 0.25%, as expected. It said it would continue to flood the financialsystem with money. Regarding the economy, the Fed admitted that the economy was in worseshape than in its prior meeting in December. But a gradual recovery will begin later thisyear. The central bank stressed that deflation was the biggest concern
In the commodity market, crude oil fell in New York after U.S. crude inventories gainedmore than expected last week and refiners reduced output as demand declined. Crude oilstockpiles for the week ended 23 January 2009 climbed by 6.2 million barrels to 338.8million barrels, the highest since August 2007, the Energy Department said yesterday.
Crude oil for March delivery fell as much as 86 cents, or 1%, to $41.30 a barrel on theNew York Mercantile Exchange. It was at $41.74 a barrel at 10:10 a.m. London time.Yesterday, oil rose 58 cents, or 1.4%, to settle at $42.16.
Brent crude oil for March settlement fell as much as 90 cents, or 2 percent%, to $44 abarrel on London's ICE Futures Europe exchange. It was at $44.72 a barrel at 10.10a.m. London time. The contract yesterday increased $1.17, or 2.7 percent%, to settle at$44.90 a barrel.
Gold prices retreated $5 an ounce, or 0.56%, to $883.20 in Asian electronic trading onThursday after the most active February Comex gold contract lost $11.30 an ounce, or 1.3%,to $888.2 by the close of New York trading on Wednesday on firmer greenback.
In the currency market, the U.S. dollar strengthened against the Australian dollar, NewZealand dollar, South Korean won, Philippines peso Indian Rupee and the Singapore dollar,while it weakened against the Japanese yen, Hong Kong Dollar, Indonesian Rupaih, ChineseYuan.
In late Tokyo trades, the Japanese yen strengthened against the dollar. The Japanese yenwas quoted at 89.8590 against the US dollar, down from Wednesday's quote of 90.313yen.
The Hong Kong dollar was trading at HK$ 7.7570 against the dollar. Actually The Hong Kongdollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85to the U.S. dollar.
In late Sydney trades, the Australian dollar was trading at US$0.6559 down fromWednesday's close of US$0.6660.
In late Wellington trades, The New Zealand dollar ended the day at US51.95c from US53.72cduring the early trading hours after RBNZ announced a 150 basis point cut in the OCR to ahistoric low of 3.5%.
In late Seoul trades, the South Korean won was trading at 1,374 won to the U.S. dollar, upby 13.95 won from Wednesday's close of 1,362.05 won.
The Singapore dollar finished at 1.50558against the previous close of 1.5010 while theMalaysian Ringgit closed Thursday's deals at 3.5975.
Coming back in equities, the markets in China and Taiwan still shut for the extendedChinese New Year break.
In Japan, stock indices endured gains for the third day in row to finish the sessionhigher, on strong gains in the shares of exporters and financials after Wall Street postedthe longest gain overnight since November and softer yen would boost Japanese exportersearning. The Nikkei 225 Stock Average index gained 144.95 points, or 1.8%, to 8,251.24,while the broader Topix rose 14.14 points, or 1.8%, to 818.
On the economic front, the Japanese Ministry of Finance said in a report that Japanesewere purchasers of a net 90.7 billion yen in foreign stocks and 54.2 billion yen inforeign-based bonds and notes for the week ended 24 January 2009. For the same week,foreign residents sold a net 376.3 billion yen in Japanese stocks and net 92.5 billion yenin Japan bonds and notes.
The Ministry of Economy, Trade and Industry also said that retail sales in Japan were down2.7% to 13.034 trillion yen on year in December. For the fourth quarter, retail sales weredown 1.5%. For 2008, retail numbers were up an annual 0.3%.
In Hong Kong, stock market finished the session sharply higher, after resuming tradingfollowing three days of market break to celebrate the Lunar New Year. Market catch up theregional trend on the back of strong gains in banks and financials after Wall Streetposted the longest gain overnight since November amid optimism about the U.S.government's rescue plan for banks would help avert a deeper recession. The Hang SengIndex spurted 575.83 points, or 4.6%, to 13,154.43,
On the economic front, the Hong Kong statistical office reported that the visible tradedeficit stood at HK$11.8 billion in December, widening from HK$8.15 billion recorded inNovember, hit by declines in imports and exports amid deepening global economic downturn.For December 2008, exports dropped by 11.4% and imports by 16.2% as compared correspondingmonth year earlier. For the year 2008, the visible trade deficit stood at HK$201.1billion, larger than the HK$180.5 billion recorded a year ago. Exports rose 5.1% andimports grew 5.5%
In Australia, stock market continued their upward run by finishing the session higher,extending gains for the third consecutive day on strong show in the miners, materials andresources, property trusts, and financials. The benchmark S&P/ASX200 spurted 30.70points, or 0.88%, to 3,526.20, while the broader All Ordinaries surged 26.20 points, or0.76%, to 3,461.30.
In New Zealand, stocks rose again following the large interest rate cut by the apex bank.The Reserve Bank of New Zealand reduced the Official Cash Rate (OCR) by 1.5 percentagepoints from 5% to 3.5%. Interest rates have now more than halved since July last year,when they stood at 8.25%. The OCR is now at its lowest level since it was introduced asthe key official interest rate in 1999.
The benchmark NZX50 moved forward for the fourth time in a row to climb up 0.81% or 22.217points to close at 2770.118. The NZX 15 rose 0.65% or 32.766 points to 5092.127.
In South Korea, stock markets advanced further, after the U.S. House of Representativespassed a much-awaited $825 billion economic stimulus bill. The Korea Composite Stock PriceIndex gained 8.58 points or 0.74% closing the day at 1,166.56 - the highest close in sixweeks.
On the economic front, the number of unsold new homes in South Korea jumped to a recordhigh in November as the impact of an economic downturn spread. According to the datareleased by the Ministry of Land, Transport and Maritime Affairs the number of unsold newhomes, including those still under construction, rose to 162,570 units at the end ofNovember from 155,720 at the end of October. It represents a moderate 4.4 % rise fromOctober but a sharp 44.8% gain from a year earlier. The ministry said the November figurewas the highest since the government started compiling related data in 1993.
In Singapore, stock market finished the session marginally higher, as investors bookedprofit following nearly 5% gains yesterdays and higher opening, inspired by Wall Streetovernight gains and rebound in commodity prices. The benchmark Straits Times Index spurted0.64 point, or 0.04%, to 1,766.72.
In Philippines, stock market continued to buck the regional trend at it closed lower forthe second day, weighed down by the losses registered in the key heavyweight index. Eventhe decent GDP data failed to support the composite index. The Philippines GDP showed asurprised growth of 4.5% in fourth quarter (Q4) 2008, higher than the 3.6 to 4.4%projection of National Economic and Development Authority (NEDA). At the closing bell, thebenchmark index PSEi dived 0.47% or 8.87 points to 1,860.69, while the All-share indexfell 0.17% or 2.14 points to 1,213.24.
On the economic front, the Bangko Sentral Ng Pilipinas- the central bank- said that theannual inflation in January is likely to come in between 7% and 7.9%, slower than 8% inDecember, on easing food prices.
In India, key benchmark indices overturned in second half of the day's trading session onsubdued European indices and negative Dow futures after logging steady gains in the priorpart of the day. As per the provisional figures, the BSE 30-share Sensex was down 59.05points, or 0.64%, to 9,198.42. The S&P CNX Nifty fell 41.70 points, or 1.46%, to2,807.80.
On the economic front, inflation level in India continues to crawl ahead in the week endedon 17 January 2009. The annual rate of inflation, calculated on point-to-point basis,stood at 5.64% for the week ended 17 January 2009 as compared to 5.60% for the previousweek ended on 10 January 2009 and 4.45% during the corresponding week of the previous yearended 19 January 2008. On the week the wholesale price index surged by 0.2% to 230.5 from230.0 for the previous week.
Elsewhere, Malaysia's Kula Lumpur Composite index was up by 3.53 points or 0.40%closing the day at 883.16 while Indonesia's Jakarta composite increased by 3.20points or 0.24% closing the day at 1,324.65. In Thailand, the Thai Stock exchange fell13.35 points or 2.98% to 435.
In the other regional market, European shares declined Thursday, with banking stockscoming back under pressure and the mining sector falling after Xstrata launched a 4.1billion pound ($5.9 billion) rights issue. Among the main indexes, the U.K. FTSE 100declined 0.7% at 4,263.73, the French CAC 40 fell 0.9% at 3,047.39 and the German DAX 30lost 1% at 4,473.77.
Stock markets in Asian region advanced further on Thursday, 29 January 2009, after theU.S. House of Representatives passed a much-awaited $825 billion economic stimulus bill.President Barack Obama scored his first major legislative victory on Wednesday withpassage of an $825 billion economic stimulus package by a sharply divided U.S. House ofRepresentatives on a 244-188 vote. But the rally in the regional market was limited aftersubstantial gains seen in the previous session.
Asian market also took a positive clue from Wall Street, where stocks managed a strong endwith good gains on yesterday. Financials led the way today as Wells Fargo decided that itwill keep its dividend intact and will not ask for additional TRP funds. Stocks also rosetoday after Federal Reserve's latest policy statement keeping interest rate unchanged.
The Dow Jones Industrial Average ended higher by 200 points at 8,375, the Nasdaq closedhigher by 53 points at 1,558 and the S&P 500 closed higher by 28 points at 874.
On the economic front, Federal Open Market Committee kept its interest rate target in arange of zero to 0.25%, as expected. It said it would continue to flood the financialsystem with money. Regarding the economy, the Fed admitted that the economy was in worseshape than in its prior meeting in December. But a gradual recovery will begin later thisyear. The central bank stressed that deflation was the biggest concern
In the commodity market, crude oil fell in New York after U.S. crude inventories gainedmore than expected last week and refiners reduced output as demand declined. Crude oilstockpiles for the week ended 23 January 2009 climbed by 6.2 million barrels to 338.8million barrels, the highest since August 2007, the Energy Department said yesterday.
Crude oil for March delivery fell as much as 86 cents, or 1%, to $41.30 a barrel on theNew York Mercantile Exchange. It was at $41.74 a barrel at 10:10 a.m. London time.Yesterday, oil rose 58 cents, or 1.4%, to settle at $42.16.
Brent crude oil for March settlement fell as much as 90 cents, or 2 percent%, to $44 abarrel on London's ICE Futures Europe exchange. It was at $44.72 a barrel at 10.10a.m. London time. The contract yesterday increased $1.17, or 2.7 percent%, to settle at$44.90 a barrel.
Gold prices retreated $5 an ounce, or 0.56%, to $883.20 in Asian electronic trading onThursday after the most active February Comex gold contract lost $11.30 an ounce, or 1.3%,to $888.2 by the close of New York trading on Wednesday on firmer greenback.
In the currency market, the U.S. dollar strengthened against the Australian dollar, NewZealand dollar, South Korean won, Philippines peso Indian Rupee and the Singapore dollar,while it weakened against the Japanese yen, Hong Kong Dollar, Indonesian Rupaih, ChineseYuan.
In late Tokyo trades, the Japanese yen strengthened against the dollar. The Japanese yenwas quoted at 89.8590 against the US dollar, down from Wednesday's quote of 90.313yen.
The Hong Kong dollar was trading at HK$ 7.7570 against the dollar. Actually The Hong Kongdollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85to the U.S. dollar.
In late Sydney trades, the Australian dollar was trading at US$0.6559 down fromWednesday's close of US$0.6660.
In late Wellington trades, The New Zealand dollar ended the day at US51.95c from US53.72cduring the early trading hours after RBNZ announced a 150 basis point cut in the OCR to ahistoric low of 3.5%.
In late Seoul trades, the South Korean won was trading at 1,374 won to the U.S. dollar, upby 13.95 won from Wednesday's close of 1,362.05 won.
The Singapore dollar finished at 1.50558against the previous close of 1.5010 while theMalaysian Ringgit closed Thursday's deals at 3.5975.
Coming back in equities, the markets in China and Taiwan still shut for the extendedChinese New Year break.
In Japan, stock indices endured gains for the third day in row to finish the sessionhigher, on strong gains in the shares of exporters and financials after Wall Street postedthe longest gain overnight since November and softer yen would boost Japanese exportersearning. The Nikkei 225 Stock Average index gained 144.95 points, or 1.8%, to 8,251.24,while the broader Topix rose 14.14 points, or 1.8%, to 818.
On the economic front, the Japanese Ministry of Finance said in a report that Japanesewere purchasers of a net 90.7 billion yen in foreign stocks and 54.2 billion yen inforeign-based bonds and notes for the week ended 24 January 2009. For the same week,foreign residents sold a net 376.3 billion yen in Japanese stocks and net 92.5 billion yenin Japan bonds and notes.
The Ministry of Economy, Trade and Industry also said that retail sales in Japan were down2.7% to 13.034 trillion yen on year in December. For the fourth quarter, retail sales weredown 1.5%. For 2008, retail numbers were up an annual 0.3%.
In Hong Kong, stock market finished the session sharply higher, after resuming tradingfollowing three days of market break to celebrate the Lunar New Year. Market catch up theregional trend on the back of strong gains in banks and financials after Wall Streetposted the longest gain overnight since November amid optimism about the U.S.government's rescue plan for banks would help avert a deeper recession. The Hang SengIndex spurted 575.83 points, or 4.6%, to 13,154.43,
On the economic front, the Hong Kong statistical office reported that the visible tradedeficit stood at HK$11.8 billion in December, widening from HK$8.15 billion recorded inNovember, hit by declines in imports and exports amid deepening global economic downturn.For December 2008, exports dropped by 11.4% and imports by 16.2% as compared correspondingmonth year earlier. For the year 2008, the visible trade deficit stood at HK$201.1billion, larger than the HK$180.5 billion recorded a year ago. Exports rose 5.1% andimports grew 5.5%
In Australia, stock market continued their upward run by finishing the session higher,extending gains for the third consecutive day on strong show in the miners, materials andresources, property trusts, and financials. The benchmark S&P/ASX200 spurted 30.70points, or 0.88%, to 3,526.20, while the broader All Ordinaries surged 26.20 points, or0.76%, to 3,461.30.
In New Zealand, stocks rose again following the large interest rate cut by the apex bank.The Reserve Bank of New Zealand reduced the Official Cash Rate (OCR) by 1.5 percentagepoints from 5% to 3.5%. Interest rates have now more than halved since July last year,when they stood at 8.25%. The OCR is now at its lowest level since it was introduced asthe key official interest rate in 1999.
The benchmark NZX50 moved forward for the fourth time in a row to climb up 0.81% or 22.217points to close at 2770.118. The NZX 15 rose 0.65% or 32.766 points to 5092.127.
In South Korea, stock markets advanced further, after the U.S. House of Representativespassed a much-awaited $825 billion economic stimulus bill. The Korea Composite Stock PriceIndex gained 8.58 points or 0.74% closing the day at 1,166.56 - the highest close in sixweeks.
On the economic front, the number of unsold new homes in South Korea jumped to a recordhigh in November as the impact of an economic downturn spread. According to the datareleased by the Ministry of Land, Transport and Maritime Affairs the number of unsold newhomes, including those still under construction, rose to 162,570 units at the end ofNovember from 155,720 at the end of October. It represents a moderate 4.4 % rise fromOctober but a sharp 44.8% gain from a year earlier. The ministry said the November figurewas the highest since the government started compiling related data in 1993.
In Singapore, stock market finished the session marginally higher, as investors bookedprofit following nearly 5% gains yesterdays and higher opening, inspired by Wall Streetovernight gains and rebound in commodity prices. The benchmark Straits Times Index spurted0.64 point, or 0.04%, to 1,766.72.
In Philippines, stock market continued to buck the regional trend at it closed lower forthe second day, weighed down by the losses registered in the key heavyweight index. Eventhe decent GDP data failed to support the composite index. The Philippines GDP showed asurprised growth of 4.5% in fourth quarter (Q4) 2008, higher than the 3.6 to 4.4%projection of National Economic and Development Authority (NEDA). At the closing bell, thebenchmark index PSEi dived 0.47% or 8.87 points to 1,860.69, while the All-share indexfell 0.17% or 2.14 points to 1,213.24.
On the economic front, the Bangko Sentral Ng Pilipinas- the central bank- said that theannual inflation in January is likely to come in between 7% and 7.9%, slower than 8% inDecember, on easing food prices.
In India, key benchmark indices overturned in second half of the day's trading session onsubdued European indices and negative Dow futures after logging steady gains in the priorpart of the day. As per the provisional figures, the BSE 30-share Sensex was down 59.05points, or 0.64%, to 9,198.42. The S&P CNX Nifty fell 41.70 points, or 1.46%, to2,807.80.
On the economic front, inflation level in India continues to crawl ahead in the week endedon 17 January 2009. The annual rate of inflation, calculated on point-to-point basis,stood at 5.64% for the week ended 17 January 2009 as compared to 5.60% for the previousweek ended on 10 January 2009 and 4.45% during the corresponding week of the previous yearended 19 January 2008. On the week the wholesale price index surged by 0.2% to 230.5 from230.0 for the previous week.
Elsewhere, Malaysia's Kula Lumpur Composite index was up by 3.53 points or 0.40%closing the day at 883.16 while Indonesia's Jakarta composite increased by 3.20points or 0.24% closing the day at 1,324.65. In Thailand, the Thai Stock exchange fell13.35 points or 2.98% to 435.
In the other regional market, European shares declined Thursday, with banking stockscoming back under pressure and the mining sector falling after Xstrata launched a 4.1billion pound ($5.9 billion) rights issue. Among the main indexes, the U.K. FTSE 100declined 0.7% at 4,263.73, the French CAC 40 fell 0.9% at 3,047.39 and the German DAX 30lost 1% at 4,473.77.
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