Asian markets close mixed
The stock markets in the Asian region remained mixed on Friday 9 January 2009, following the mixed cues from Wall Street overnight. The markets also followed the dismal closing on Wall Street where market ended mixed after depressing economic data. The Dow Jones industrial average ended lower by 27 points at 8,742.7, the Nasdaq closed higher by 18 points at 1,617 and the S&P 500 closed higher by 3 points at 909.65. However, investors across the Asian markets remained cautious ahead of the much-anticipated U.S jobs report for December to be released today.
In the commodity market, crude oil rose for the first time in four days on speculation prices had fallen too far, too fast in response to the global recession. Crude oil for February delivery gained as much as 94 cents, or 2.3%, to $42.64 a barrel on the New York Mercantile Exchange, and was trading at $42.17 a barrel at 9:10 a.m. London time. Yesterday, futures fell 93 cents, or 2.2%, to settle at $41.70 a barrel in New York, the lowest since 30 December 2008. Crude has dropped 8.4% this week.
Brent crude oil for February settlement rose as much as 92 cents, or 2.06%, to $45.59 a barrel on London's ICE Futures Europe exchange at 9:10 a.m. London time. The contract yesterday fell 2.6% to settle at $44.67 a barrel.
In the currency market, the Japanese yen was quoted at 90.98 against the US dollar today, up from Thursday's close of 91.18-91.19 yen in Tokyo.
The Hong Kong dollar was trading at HK$ 7.7575 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.
The Australian dollar edged down against its US counterpart. The Aussie reached 0.7029 against the US dollar, compared to 0.7119 hit late Wednesday in New York.
The New Zealand dollar reached its highest level against the greenback in nearly three weeks but failed to push through the US60c level. It was trading at US59c.
The South Korean won was trading at 1,342.30 won to the U.S. dollar on Friday, up 14.20 won from Thursday's close of 1,328.10 won.
The Taiwan dollar strengthened against the US dollar as it was trading at NT$ 32.151 in the afternoon trade against the Wednesday closing of NT$ 33.049.
The Singapore dollar finished at 1.4783 against the previous close of 1.4776 while the Malaysian Ringgit closed Wednesday's deals at 3.5415
The Philippines peso slipped against the dollar. Currently, the dollar-peso pair is worth 47.15, compared to 46.15 hit late New York Thursday.
Coming back in equities, Japanese stock markets pared back early gains to finish lower, as anxiety over the economy returned ahead of key US job data, while rekindled concerns over corporate earnings outlook, the health of the broader U.S. economy, and firmer yen weighed down banks and financials, property developers, and export related shares.
The Nikkei 225 Stock Average index lost 39.62 points, or 0.5%, to 8,836.8 while the broader Topix index tumbled 5.87 points, or 0.7%, to 855. For the week, the Topix index has lost 4 points, or 0.47%, in the week while the Nikkei has lost 22.76 points, or 0.26%, in the week.
In Mainland China, the stock markets snapped two days of loosing streak to finish session higher with strong gains in power producer on anticipation of Beijing stimulus package to support the industry, while financials and properties recovered on bottom fishing after falling steeply earlier in the week. The benchmark Shanghai Composite Index surged 26.68 points, or 1.4%, to 1,904.86. The index has gained 84.06 points, or 4.62%, in the week.
On the economic front, the National Bureau of Statistics announced today China's business confidence index plunged 29.2 points in the fourth quarter of 2008 to a record low of 94.6. China's Ministry of Finance said the State Council approved 3-year exemptions for the operational tax on fuel surcharges paid by airlines, retroactive to Jan 1, 2008.
In Hong Kong, the stock markets closed weaker in cautious trade ahead of key US jobs data, with PC maker Lenovo shedding another 9.4% as its earnings warning and job cuts prompted target-price cuts by brokers. The Hang Seng index closed down 38.47 points or 0.27% at 14,377.44. Over the week, the index lost 665 points or 4.42%. The Hang Seng China Enterprises ended down 36.21 points or 0.47% at 7,723.81.
In Australia, the stock markets finished the session higher, with gains in materials and resources, miners, healthcare, and financials despite a flat lead from Wall Street overnight. The benchmark S&P/ASX200 gained 41.4 points, or 1.12%, to 3,735.70 and the broader All Ordinaries by 36.80 points, or 1.01%, to 3,680.40. In a week, the S&P/ASX200 has gained 21.9points, or 0.59% and All Ordinaries by 24.7 points, or 0.68%.
In New Zealand, the benchmark indices recovered slightly on the last trading day of the week. The benchmark index gained today after dipping for two times in a row. The NZX50 edged forward 0.03% or 0.763 points to close at 2757.414. The NZX 15 moved slightly up by 0.35% or 17.623 points to 4997.278.
Stock markets in South Korea ended lower, despite of after the Bank of Korea cut base rates by 50 basis points, a move already factored in by the markets, with technology issues leading falls on profit worries as earnings season approaches. The Korea Composite Stock Price Index ended slumped by 24.74 points or 2.05%at 1,180.96 points, down from the session high of 1,220.59.
On the economic front, the Bank of Korea joined the central bank of Indonesia and Taiwan by slashing interest rates by half a percentage point, bringing its key rate to record low 2.5% in an effort to prop up an economy suffering from a collapse in exports.
The Monetary Policy Committee of the Bank of Korea decided to lower the Base Rate by 50 basis points from 3.00% to 2.50%. The Committee also lowered the interest rates on Aggregate Credit Ceiling Loans by 25 basis points from 1.75% to 1.50%.
In other release, South Korea's annual producer price inflation in December slowed for a fifth consecutive month to its slowest pace in 10 months on lower raw material prices and sluggish domestic demand. According to the data from the Bank of Korea, the index in December rose 5.6% from a year earlier, the slowest pace since 5.1% growth in February. That compared with a 7.8% rise in November and a 10.7% gain in October. The index rose 8.6% in 2008 from the prior year, the fastest pace since a 12.2 percent surge in 1998.
The data came after the Bank of Korea cut its key interest rate by 50 basis points as expected to a new record low of 2.5% in a bid to fend off the country's first recession in over a decade.
Stock markets in Taiwan closed at its lowest level in nearly two weeks, as technology shares slid due to a string of dismal results by market leader Taiwan Semiconductor Manufacturing Company and PC vendor Asustek. The main TAIEX share index ended down 33.05 points or 0.73% at 4,502.74, posting its lowest closing since 29 December 2008.
In Philippines, the regional indices closed the last day of the week in the positive territory buoyed by the gains registered in the mining & oil index. The benchmark index PSEi climbed 0.71% or 14.16 points to 1,984.88, while the all share index increased 0.39% or 4.91 points to 1,255.68.
In India, volatility ruled the roost on the bourses. The market pared gains in mid-afternoon trade after witnessing a strong rebound led by recovery in index heavyweight Reliance Industries, defensive buying in FMCG stocks and recovery in banking stocks on falling inflation.
At 15.30 IST the BSE 30-share Sensex was down 180.41 points, or 1.88% to 9406.47, recovering close to 250 points from the day's low. Extending Wednesday's near 80% fall triggered by a confession of an accounting fraud by erstwhile chairman B Ramalinga Raju, shares of IT major Satyam Computer Services tanked 40.30% on huge volumes.
Elsewhere, Malaysia's Kula Lumpur Composite index was up 0.94% or 8.55 points to 919.07, while Singapore's market fell by 21.59 points or 1.18% to 1806.02. Indonesia's Jakarta composite increased by 14.01 points or 1.00% to 1416.67.
Coming to the other regional markets, European stocks have seen a largely flat open, with few investors prepared to place big bets before the week's key data release, U.S. labor statistics, due 1330 GMT. London's FTSE 100 was down 0.2% to 4498.49 at 0825 GMT, in Frankfurt the DAX 30 was up 0.1% at 4884.72, and in Paris the CAC 40 was flat on the day at 3325.44%.
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