Quantcast
Latest Stories

Asian shares hit by US Fed fear



People walk past an electronic stock indicator in Tokyo, Monday, July 8, 2013. Asian markets fell on Monday after a better-than-expected rise in US job creation fueled concerns the Federal Reserve will soon start to reel in its huge stimulus program. AP PHOTO/SHIZUO KAMBAYASHI

HONG KONG—Asian markets fell on Monday after a better-than-expected rise in US job creation fueled concerns the Federal Reserve will soon start to reel in its huge stimulus program.

The dollar edged down a tad after posting strong gains against the yen in New York on Friday following the non-farm payrolls figures, which add to a slew of data indicating the world’s top economy is strengthening.

Tokyo fell 1.40 percent, or 200.63 points, to 14,109.34 despite the weakening yen, while Seoul slipped 0.90 percent, or 16.46 points, to 1,816.85 and Sydney gave up 0.67 percent, or 32.3 points, to 4,809.5.

Hong Kong fell 1.31 percent, or 272.48 points, to 20,582.19 while Shanghai lost 2.44 percent, or 48.93 points, to end at 1,958.27.

The Labor Department said Friday the US economy added 195,000 jobs in June, well above the consensus estimate of 166,000 jobs.

While the announcement shows the US recovery is gaining traction, investors fear the Fed will now start cutting back its $85 billion-a-month bond-buying that has been credited with fueling a rally in global markets.

When the central bank unveiled the scheme in September to keep interest rates down it said it would keep it in place until the economy was able to support itself and when unemployment had fallen.

The news hit indexes in emerging markets such as the Philippines and Indonesia amid fears of an outflow of foreign cash as the US supply of money is turned off.

However, Wall Street welcomed the news. The Dow climbed 0.98 percent, the S&P 500 rose 1.02 percent and the Nasdaq added 1.04 percent.

The chance that there will be fewer dollars pumped into the financial system and the likelihood of interest rates rising sent the greenback higher in New York, climbing to 101.14 yen on Friday, from 100.21 yen earlier in the day in Asian trade.

The dollar was at 101.15 yen in European trade on Monday.

The euro, which came under pressure last week after the European Central Bank said it would keep rates at record lows for “as long as necessary,” bought $1.2852 in European trade, compared with $1.2832 late Friday. It was also at 130.00 yen from 129.78 yen.

In Seoul Asiana Airlines fell 5.76 percent after one of its planes crashed while landing in San Francisco at the weekend, killing two passengers and injuring 182 more.

Oil prices slipped. New York’s main contract, light sweet crude for delivery in August, fell 12 cents to $103.10 a barrel and Brent North Sea crude for August lost 39 cents to $107.33.

Gold was at $1,231.80 per ounce at 1055 GMT, compared with $1,239.70 late Friday.

In other markets:

– Taipei fell 1.44 percent, or 115.48 points, to 7,886.34.

Taiwan Semiconductor Manufacturing Co. shed 3.67 percent to Tw$105.0 while smartphone maker HTC tumbled 7.0 percent to Tw$189.0.

– Manila slumped 2.79 percent, or 181.57 points, to 6,318.91.

Ayala Land fell 3.17 percent to 29 pesos while SM Investments dropped 4.38 percent to 851 pesos.

– Wellington was flat, edging up 3.43 points to 4,493.30.

Chorus added 0.76 percent to NZ$2.65 and Contact Energy rose 2.47 percent to NZ$5.40 but Fletcher Building was off 2.2 percent at NZ$8.43.

– Singapore slipped 0.45 percent, or 14.26 points, to close at 3,155.47.

Agribusiness company Wilmar International was down 0.96 percent at Sg$3.11 while real estate developer Capitaland shed 0.33 percent to Sg$3.05.

– Jakarta closed down 3.68 percent, or 169.18 points, at 4,433.63 points.

Asia Pacific Fibers fell 11.01 percent to 97 rupiah, while Bank Permata rose 1.27 percent to 1,600 rupiah.

– Bangkok fell 2.55 percent, or 36.69 points, to 1,404.64.

Coal producer Banpu plunged 5.56 percent to 221 baht, while Bangkok Bank lost 4.30 percent to 189 baht.

– Kuala Lumpur fell 0.53 percent, or 9.40 points, to close at 1,762.87.

AMMB Holdings slid 1.7 percent to 7.52 ringgit and RHB Capital shed 1.2 percent to 8.40 ringgit.

– Mumbai slid 0.88 percent, or 171.05 points, to 19,324.77 points.

State-run oil explorer ONGC fell 3.49 percent to 304.45 rupees while vehicle maker Tata Motors fell 2.70 percent to 288.20 rupees.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Asia , Finance , Forex , gold price , oil prices , stocks

  • spitfire

    Naah, experts assert that China’s economy will crash within this year and there will be a domino effect in other asian countries including the Philippines.

    Yang nangyayari sa stock markets wala pa yan, ripples pa lang yan. We will see the worse of it before the year ends.

    • Jhon

      bakit daw ho mag kacrash ang economy ng china? Sang article nyo ho nabasa? please pakibigay pakibigay sa akin ng link, thanks!!!



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Gigi Reyes back to face charges
  • Like Passover, Easter festival of deliverance
  • How other faiths in PH observe Holy Week
  • Collector Danny Garcia says Inquirer worth more than news
  • Cardinal Tagle: Start new life with true peace
  • Sports

  • Pacquiao top Mayweather contender
  • Rain or Shine, Ginebra clash for No. 6 spot
  • Ateneo eyes quarterfinal spot vs Benilde
  • Style contrast marks OneFC ‘Rise of Heroes’
  • ‘Pacquiao a great ambassador for basketball’
  • Lifestyle

  • How Zsa Zsa Padilla found Conrad Onglao; Sharon Cuneta played Cupid
  • Palawan favorite getaway of show biz celebrities
  • Levine designs womenswear with help from fiancee
  • Gabriel Garcia Marquez, Nobel laureate, dies at 87
  • Ford Mustang turns 50 atop Empire State Building
  • Entertainment

  • Why ‘Noah’ can’t dock his ark at Philippine theaters
  • Acclaimed artist goes wild while on holiday
  • Believing in this mermaid
  • Missing Xian
  • Awarded TV couple brings Jesus’ life to the big screen
  • Business

  • Top-selling insurance agent opens her dream café
  • Connecting and transacting with one another
  • Building wealth for health
  • Why Mandaue Foam buys, rather than rents, space
  • A workplace of new possibilities
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Epiphany
  • Unpaid creditor vs distressed debtor
  • Moving on
  • From culinary desert to paradise
  • Response to China: ‘Usjaphil’
  • Global Nation

  • Cesar Chavez movie sparks memories of Fil-Am labor leaders
  • Filipinos in US poised for success
  • Visas for priests and other faith leaders
  • DOH to continue tracking co-passengers of OFW infected with MERS virus
  • 5 Filipinos with MERS in UAE reported in stable condition
  • Marketplace