Asian shares mixed after MH17 losses

HONG KONG–Asian markets were mixed on Monday, as bargain-hunting was offset by lingering geopolitical concerns after last week’s downing of a Malaysian airliner in Ukraine.

With traders still on edge after Thursday’s tragedy, which the United States has said was caused by pro-Russian rebels, the dollar retreated against the safe-haven yen.

Sydney added 0.15 percent, or 8.2 points, to close at 5,539.9 and Seoul was marginally lower, dipping 0.92 points to 2,018.50. Shanghai lost 0.22 percent, or 4.59 points, to end at 2,054.48 while Hong Kong shed 0.29 percent, or 67.65 points, to 23,387.14.

Tokyo was closed for a public holiday.

With few catalysts to drive business, investors took the opportunity in early trade to pick up cheap shares after a broad sell-off Friday in response to the Malaysia Airlines plane crash, which fanned already high tensions about Ukraine.

However, the early advances were pared by worries the months-long crisis has moved into another and possibly more dangerous phase.

With the United States blaming Moscow over the downing of MH17, Russian President Vladimir Putin has promised to cooperate in an investigation into the tragedy, which took 298 lives.

Shares in Malaysia Airlines ended unchanged at 0.20 ringgit after the loss of its flight MH17 in the Ukraine last Thursday.

The firm slumped 11 percent on Friday as investors were spooked by the second air tragedy to hit it since March, when an airliner went missing over a remote part of the Indian Ocean. The latest crisis has raised fears the airline, which has lost almost 40 percent of its value this year, will collapse.

Also depressing sentiment was news of Israel’s ground offensive in Gaza, fueling concerns about the tinderbox region.

In New York on Friday the three main indexes bounced back from the previous day’s falls, with bargain-buying backed up by strong earnings from Google.

The Dow rose 0.73 percent, the S&P 500 jumped 1.03 percent and the Nasdaq rallied 1.57 percent.

However, despite the equity advances investors were still buying into the lower-risk yen as a hedge against political uncertainty.

The dollar bought 101.24 yen against 101.36 yen on Friday in New York, while the euro fetched 136.90 yen compared with 137.12 yen.

The single currency was at $1.3523 compared with $1.3525.

On oil markets, US benchmark West Texas Intermediate for August delivery was down 41 cents at $102.72 in afternoon trade, a day before the contract expires. Brent crude for September fell 32 cents to $106.92.

Gold price edged up to $1,314.80 by 1845 GMT compared with $1,312.33 late Friday.

In other markets:

— Taipei added 0.43 percent, or 40.00 points, to 9,440.97.

Hon Hai rose 2.79 percent to Tw$110.5 while smartphone maker HTC fell 1.43 percent to Tw$138.0.

— Wellington rose 0.35 percent, or 17.97 points, to 5,126.90.

Fletcher Building was up 0.11 percent at NZ$8.90 and Trade Me gained 0.85 percent to close at NZ$3.57.

— Manila climbed 0.32 percent, or 21.81 points, to 6,874.88.

Philippine Long Distance Telephone Co. rose 0.40 percent to 3,040 pesos while Alliance Global Group slipped 1.61 percent to 27.55 pesos.

— Singapore rose 0.11 percent, or 3.74 points, to close at 3,314.27.

Property developer CapitaLand advanced 0.92 percent to Sg$3.29, while Singapore Telecom was flat at Sg$3.94.

— Jakarta climbed 0.79 percent, or 40.11 points, to 5,127.12.

Hero Supermarket gained 2.41 percent to 2,975 rupiah, while Indah Kiat Pulp & Paper lost 1.48 percent to 1,335 rupiah.

— Kuala Lumpur fell 0.23 percent, or 4.33 points, to 1,868.64.

Axiata Group lost 0.4 percent to 6.87 ringgit, while budget carrier AirAsia gained 2.6 percent to 2.40.

— Mumbai rose 0.16 percent, or 41.51 points, to 25,683.07 points.

Century Textiles & Industries climbed 10.89 percent to 641.65 rupees, while commodity exchange operator MCX rose 7.90 percent to 848.35 rupees.

Originally posted: 10:48 am | Monday, July 21st, 2014

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TAGS: Asia, Business, economy, markets, MH17, plane crash, shares, Wall Street