Quantcast
Latest Stories

Asian markets mixed, yen up despite BoJ easing



A TV journalist reports in front the electronic stock board of a securities firm showing Japan’s Nikkei 225 index that rose 119.00 points to 10,042.01 in Tokyo Wednesday morning, Dec. 19, 2012. Asian stock markets rose Wednesday after U.S. political leaders appeared to be closing in on a budget deal to avert the “fiscal cliff” by the year-end deadline. Economists have been warning the U.S. economy could be thrown back into recession without a deal. (AP Photo/Itsuo Inouye)

HONG KONG—Asian markets mostly rose on Thursday following big gains in the previous session but investors are growing nervous that US leaders have still not agreed a deal to avert the fiscal cliff.

The yen slipped a tad against the euro and dollar after Japan’s central bank unveiled more huge monetary easing but it held on to earlier gains as traders had mostly expected the new measures.

Tokyo fell 1.19 percent on profit-taking after surging to an eight-month high on Wednesday. The index lost 121.07 points to 10,039.33 – a day after breaking the 10,000 barrier for the first time since early April.

Seoul closed 0.32 percent higher, adding 6.41 points to 1999.50, with the election of conservative Park Geun-hye seeming to have little effect, although dealers were broadly happy as she favors stability over big change.

Sydney was up 0.35 percent, or 16.3 points, at 4,634.1 and Hong Kong staged a late rally to end 0.16 percent higher, adding 36.41 points to 22,659.78 while Shanghai gained 0.28 percent, or 6.11 points, to 2,168.35.

With less than two weeks to go before the fiscal cliff of huge tax hikes and deep spending cuts is due to take effect, US lawmakers have still not reached a compromise budget deal to cut the nation’s deficit with less painful measures.

President Barack Obama said Wednesday he and the Republicans had narrowed differences to “a few hundred billion dollars.” But a deal remains elusive.

Republicans are loath to raise taxes, while Democrats do not want to cut spending on programs such as Medicare.

House Speaker John Boehner, the Republican negotiating with the president, has said he is willing to extend tax breaks for everyone earning less than $1 million per year. Obama has said, however, he is willing to go no higher than $400,000.

Boehner announced Wednesday that he will move to pass his measure, which he describes as his “Plan B,” through the House Thursday but Obama warned he would veto the legislation.

“At some point there’s got to be… a recognition on the part of my Republican friends that, you know, take the deal,” Obama told reporters, as the two sides struggled to reach agreement.

While both sides have rejected the other’s offers for a deal they said that talks are ongoing.

However, US traders were not impressed. On Wall Street the Dow finished 0.74 percent lower, the S&P 500 dropped 0.76 percent and the Nasdaq lost 0.33 percent.

The Bank of Japan said Thursday it would expand an asset-buying program by 10 trillion yen ($119 billion) to 101 trillion yen, days after the country’s conservatives won an election promising to boost spending and pressure the bank for aggressive action.

It made no mention of a two-percent inflation target demanded by incoming prime minister Shinzo Abe but said it would look at reviewing its policy.

The last scheduled policy meeting of the year had been widely seen as a test of whether it would stand pat, shrugging off the outside pressure.

However, it said the new measures were tied to fears about the slowing global economy, which was hurting growth at home.

The yen, which has tumbled against the dollar and euro in recent weeks on the expected victory for the opposition, picked up slightly in early trade Thursday and managed to hold on to the gains after the BoJ move.

In early European trade the greenback bought 83.93 yen, compared with 84.39 yen in New York late Wednesday, while the euro was at 111.02 yen, from 111.59 yen.

The single currency also fetched $1.3228, against $1.3226.

Oil prices were lower, with New York’s main contract, light sweet crude for delivery in February, dropping 37 cents to $89.61 a barrel in the afternoon and Brent North Sea crude for February dipping 43 cents to $109.93.

Gold was at $1,668.30 at 10.30 GMT compared with $1,674.39 late Wednesday.

In other markets:

– Singapore closed up 0.54 percent, or 16.95 points, at 3,175.52.

Singapore Telecom rose 0.60 percent to Sg$3.37 and DBS Group gained 0.54 percent to Sg$14.99.

– Taipei fell 1.07 percent, or 82.01 points, to 7,596.46.

Taiwan Semiconductor Manufacturing Co. was 1.34 percent lower at Tw$96.0 while leading smartphone maker HTC rose 0.36 percent to Tw$275.5.

– Manila added 0.79 percent, or 45.35 points, to 5,797.74.

– Wellington ended 1.30 percent higher, adding 52.45 points to 4,075.45.

Chorus surged 4.4 percent to NZ$2.84, Fletcher Building rose 2.2 percent to NZ$8.45 and Telecom gained 0.74 percent to NZ$2.32 but Xero shed 1.3 percent to NZ$7.60.

– Bangkok shed 0.07 percent, or 1 point, to close at 1,377.40.

Coal producer Banpu fell 1.42 percent, or 6 baht, to 418 baht while PTT Plc was unchanged at 333 baht.

– Jakarta ended down 21.04 points, or 0.49 percent, at 4,254.82.

Carmaker Astra International fell 2.60 percent to 7,500 rupiah, cigarette maker Gudang Garam lost 2.73 percent to 57,000 rupiah, while palm oil producer Astra Agro Lestari decreased 1.62 percent to 18,250 rupiah.

– Kuala Lumpur shares gained 4.96 points, or 0.30 percent, to close at 1,670.60.

British American Tobacco added 1.7 percent to 60.50 ringgit, DiGi.com rose 1.5 percent to 5.36 and Axiata climbed 1.2 percent to 6.68.

India’s Sensex index slid 0.11 percent, or 22.08 points, at 19,453.92 points, snapping two straight days of gains, on profit-taking in index heavyweights.

India’s auto and tractor giant Mahindra and Mahindra fell 1.68 percent to 951.7 rupees while IT outsourcer Wipro fell 1.32 percent to 380.5.—With Dow Jones Newswires


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

  • Enrile chief aide back in PH ‘to face charges’–report
  • Pakistan library named ‘bin Laden,’ as memory fades
  • US teacher fired over comment on black president
  • Magnitude-7.5 earthquake shakes Mexican capital
  • Title of new Hillary Clinton book: ‘Hard Choices’
  • Sports

  • Motivated LeBron James preps for postseason
  • Nadal ousted by Ferrer in Monte Carlo quarters
  • Pacquiao shorts in Bradley fight sold for P1.7M in LA auction
  • Ryu pitches Dodgers past Giants
  • Alonso sets the pace in Chinese GP practice
  • 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

  • Myx TV premieres Asian American ‘docu-series’
  • A nutty finale for ‘Scandal,’ TV’s craziest show
  • EXO postpones release of mini album ‘Overdose’
  • ‘X-men’ filmmaker slams ‘fabricated’ sex attack claims
  • Singer Chris Brown’s bodyguard on trial in DC
  • Business

  • US commerce secretary spells out economic facet of ‘pivot to Asia’
  • Italy sells luxury state cars on eBay
  • Asian shares mostly up in quiet trade
  • Dollar up in Asia on US jobs data, Ukraine deal
  • Barbie doll has a problem
  • 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

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • Multicultural flock marks Good Friday in San Francisco
  • Las Vegas ‘Pinoy Pride’ fest hails Filipino heritage
  • Marking Jesus’ journey on Good Friday
  • Filipina accomplice arrested for fake bills in Malaysia
  • DoH denies Filipino nurse no longer positive for MERS virus
  • Marketplace