Asian markets mixed after Cyprus vote
A woman chats with her fellow investor at a private securities company on March 12, 2013, in Shanghai, China. Asian stock markets were mixed on Wednesday, March 20, 2013, after Cypriot lawmakers comprehensively rejected a plan to tax savings as part of a crucial bailout deal. AP PHOTO
HONG KONG—Asian markets were mixed on Wednesday after Cypriot lawmakers comprehensively rejected a plan to tax savings as part of a crucial bailout deal.
The euro rebounded from morning losses to climb against the yen and dollar as European leaders sought to soothe investor concerns, saying they were willing to work with Nicosia to help it avoid bankruptcy.
Sydney fell 0.40 percent, or 20.1 points, to 4,967.3 while Seoul lost 0.97 percent, or 19.15 points, to 1,959.41.
Bargain hunters moved in to send Hong Kong up 0.97 percent, or 214.58 points, to 22,256.44, while Shanghai surged 2.66 percent, or 59.94 points, to 2,317.37.
Tokyo was closed for a public holiday.
Cypriot MPs on Tuesday rejected a proposal to impose a levy on savings as part of a deal agreed with international creditors for a 10-billion-euro ($13 billion) rescue.
The plan had been to charge 6.75 percent for deposits of 20,000-100,000 euros and a 9.9 percent tax on anything above that, with savings of up to 20,000 euros exempt.
The 5.8 billion euros the proposal would have raised was crucial to Nicosia getting the full rescue, and with that now in doubt Cyprus must find other ways to raise cash to repay its debts.
However, while Tuesday’s events raised fears the country could exit the eurozone, analysts said they soothed fears such levies could be introduced in other troubled eurozone countries, which could have hammered confidence in the region.
Stephen Wood, chief market strategist at Russell Investments, told Dow Jones Newswires: “We’re watching very closely, but at present we don’t think Cyprus is a game-changer in Europe.
“We’re looking at financial-system indicators in Italy, Spain, Portugal, Greece and also bank data to see if there’s a run or even a jog on banks in those countries. We don’t see that just yet.”
The European Central Bank also said it would continue to provide financial support for troubled Cypriot banks, a key step to allow all sides a little more time to try to find a way out of the impasse.
But Stan Shamu, market strategist at IG Markets in Melbourne, offered a word of warning, saying: “The Cyprus issue is far from over.
“I don’t think it will be a situation where the ECB has stepped in and we don’t have to worry about it.”
On currency markets the euro climbed on hopes that the crisis can be overcome.
In afternoon trade the single currency bought $1.2898, down from $1.2881 in New York late Tuesday, while it sat at 122.93 yen from 122.59 yen.
The dollar fetched 95.29 yen from 95.23 yen.
On Wall Street markets were mixed, with the Dow nudging up 0.03 percent, the S&P 500 falling 0.24 percent and the Nasdaq off 0.26 percent.
US traders took heart from expectations the Federal Reserve could on Wednesday deliver an improved view of the world’s biggest economy.
The Fed’s policy committee “may sound more upbeat this time around amid the more broad-based recovery,” said David Song of DailyFX in the United States.
Oil prices rose, with New York’s main contract, light sweet crude for delivery in April, gained 73 cents to $92.89 a barrel in the afternoon and Brent North Sea crude for May was up 62 cents at $108.07.
Gold was at $1,610.87 an ounce at 1050 GMT compared with $1,602.20 late Tuesday.
In other markets:
— Taipei fell 0.52 percent, or 40.44 points, to 7,798.03.
Taiwan Semiconductor Manufacturing Co. fell 1.2 percent to Tw$98.8 while smartphone maker HTC was 1.0 percent lower at Tw$246.5.
— Manila closed 0.10 percent lower, shedding 6.63 points to 6,419.62.
Metropolitan Bank eased 1.40 percent to 113 pesos and Alliance Global fell 3.73 percent to 19.88 pesos, while SM Investments added 1.19 percent.
— Wellington closed 0.10 percent higher, adding 4.39 points to 4,349.43.
Air New Zealand was up 2.75 percent at NZ$1.50, Sky Television rose 1.48 percent to N$5.49 and Telecom was down 1.1 percent at NZ$2.26.
— Singapore shed 0.63 percent, or 20.73 points, to close at 3,248.40.
Singtel was down 2.25 percent to Sg$3.48 while real estate developer Capitaland gained 0.57 percent to Sg$3.53.
— Kuala Lumpur shares gained 6.08 points, or 0.37 percent, to close at 1,632.54.
UEM Land Holdings surged 6 percent to 2.64 ringgit while Tenaga Nasional was up 2 percent to end at 7.14. IOI Corp lost 1.7 to close at 4.62.
Jakarta closed higher 8.87 points, or 0.18 percent, at 4,831.50.
— Cement producer Indocement Tunggal Prakarsa rose 3.35 percent to 23,150.00 rupiah, telecoms firm Telekomunikasi Indonesia gained 1.42 percent to 10,700 rupiah, while Timah lost two percent to 1,470 rupiah.
Bangkok fell 1.57 percent, or 24.58 points, to 1,543.67.
— Bangchak Petroleum dropped 6.99 percent to 33.25 baht, while power giant Electricity Generating Public Co. added 1.61 percent to 158 baht.
— Mumbai fell 0.65 percent, or 123.91 points, to at 18,884.19.
Bharti Airtel fell 4.18 percent to 281.15 rupees, while State Bank of India fell 3.87 percent to 2,117.35 rupees.—Danny McCord
