Quantcast
Latest Stories

Asian shares slip on US fiscal cliff fears

By

An investor smiles in front of the stock price monitor at a private securities company on Nov. 27, 2012, in Shanghai, China. Asian stock markets fell Wednesday, Nov. 28, 2012, following losses on Wall Street, as traders fret US lawmakers will not agree to a deal to avert the fiscal cliff. AP Photo

HONG KONG—Asian markets fell Wednesday, following losses on Wall Street, as traders fret US lawmakers will not agree to a deal to avert the fiscal cliff.

Forex dealers also ran for cover after the Senate Majority Leader Harry Reid said “little progress” had been made in cross-party talks on the looming tax hikes and spending cuts due to come in on January 1 that would tip the US into recession.

Tokyo slumped 1.22 percent, or 114.95 points, to close at 9,308.35, Seoul ended 0.65 percent, or 12.42 points, lower at 1,912.78 while Sydney shed 0.21 percent, or 9.5 points, to finish at 4,447.3.

Hong Kong was down 0.62 percent, or 135.05 points, at 21,708.98 and Shanghai closed down 0.89 percent, or 17.64 points, at 1,973.52.

Reid’s comments raised the specter of another long battle between Republicans and Democrats, similar to last year’s row over raising the country’s borrowing cap, which led to the United States losing its AAA credit rating.

“The difficulties with solving the US ‘fiscal cliff’ are coming to a head again and may present a good selling opportunity for investors,” said Kenichi Hirano, market analyst at Tachibana Securities.

The news hit Wall Street shares. The Dow ended 0.69 percent lower, the S&P 500 lost 0.52 percent and the Nasdaq slid 0.30 percent.

The losses came despite data showing US consumer confidence rose in November to its highest level since February 2008, while a separate report said home prices increased in September, a fresh sign of recovery in the crucial housing market.

Also Tuesday, the Organization for Economic Cooperation and Development (OECD) warned that failure to reach a deal would likely see the world’s No. 1 economy fall back into recession, which would have a global knock-on effect.

And Richard Fisher, president of the Federal Reserve Bank of Dallas, said a temporary fix with no clarity on tax and regulatory policy could have destructive effects.

Currency traders have also been spooked, with euro and dollar falling against the yen after enjoying a recent rally on hopes for a US deal, while the Greek bailout success had also been priced in.

The euro bought $1.2922 and 105.78 yen in Asian trade, compared with $1.2938 and 106.30 yen in New York late Tuesday.

The dollar was at 81.86 yen against 82.16 yen.

The yen has seen selling pressure in recent weeks after the man expected to become prime minister following next month’s election vowed to press for more aggressive monetary easing to lift the economy.

Focus has moved to Washington as Greece debt concerns abate after the country was eventually given long-frozen bailout cash on Tuesday.

After marathon talks in Brussels, the eurozone and the International Monetary Fund agreed to unlock 43.7 billion euros ($56 billion) in loans and on the need to grant significant debt relief for decades to come.

Greece must still meet a series of agreed conditions but “the decision will certainly reduce the uncertainty and strengthen confidence in Europe and in Greece,” said European Central Bank President Mario Draghi.

On oil markets New York’s main contract, West Texas Intermediate (WTI) for January delivery, was down 18 cents to $87.00 a barrel in the afternoon, and Brent North Sea crude for January was down seven cents at $109.80 in volatile trade.

Gold was at $1,740.80 at 1010 GMT compared with $1,746.42 late Tuesday.

In other markets:

– Taipei was almost unchanged, edging up 4.73 points to 7,434.93.

Hon Hai Precision added 0.54 percent to Tw$93.3 while TSMC was 0.42 percent lower at Tw$95.9.

– Manila rose 0.85 percent, or 47.27 points, to 5,633.72.

Dealers welcomed news that the economy grew 7.1 percent year on year in the three months to September, making it the best performer in Southeast Asia.

Top-traded Philippine Long Distance Telephone Co. gained 1.41 percent to 2,586 pesos while SM Investments Corp. rose 0.12 percent to 842.50 pesos.

– Wellington ended flat, edging up 2.55 points to 4,012.16.

Air New Zealand added 2.0 percent to NZ$1.27 and Fisher & Paykel Healthcare climbed 2.4 percent to NZ$2.59.

– Jakarta ended down 0.75 percent, or 32.69 points, at 4,304.823.

Car maker Astra International dropped 5.13 percent to 7,400 rupiah while tin miner Timah fell 2.19 percent to 1,340 rupiah.

– Singapore closed flat, slipping 0.14 points at 3,011.77.

Commodities supplier Olam International tumbled 3.85 percent to Sg$1.50 after issuing a 45-page rebuttal to a report by a US research firm that it was in danger of collapsing.

– Bangkok gained 0.22 percent, or 2.91 points, to 1,299.94.

Electricity firm EGCO lost 0.39 percent to 127.50 baht, while oil company PTT added 0.64 percent to 316 baht.

– Kuala Lumpur shares rose 0.52 percent, or 8.35 points, to end at 1,606.52.

Plantations giant Sime Darby ended 2.7 percent lower at 9.00 ringgit while Malaysian Airlines fell 16.8 percent to 0.84 ringgit.

– Mumbai was closed for a public holiday.


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 , Crude prices , Finance , Forex , oil price , Stock Activity , stocks



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

  • Cardinal Tagle: Start new life with true peace
  • ‘Dry spell’ delayed, thanks to busted valve
  • At 77, Erap has Easter treat for Manila cops but keeps City Hall folk in agony
  • Joy Belmonte defends council, waste-to-energy tech
  • House bill seeks special body to manage, protect Manila Bay
  • 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

  • Levine designs womenswear with help from fiancee
  • Gabriel Garcia Marquez, Nobel laureate, dies at 87
  • Ford Mustang turns 50 atop Empire State Building
  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • 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