Asian shares slip after Wall St. losses

HONG KONG—Asian markets slipped Thursday following a sell-off on Wall Street fueled by US housing data that raised concerns about the Federal Reserve’s stimulus program.

The dollar lost some of the gains it made against the yen in New York, while the euro was also slightly lower after enjoying some support on Wednesday thanks to some rare good news for the eurozone economy.

Tokyo fell 1.14 percent owing to a pick-up in the yen against the dollar. The Nikkei lost 168.35 points to end at 14,562.93, while Seoul closed 0.13 percent lower, shedding 2.47 points to 1,909.61. Sydney was flat, edging up 0.5 points to 5,035.6.

Hong Kong shed 0.31 percent, or 67.97 points, to 21,900.96 and Shanghai lost 0.60 percent, or 12.16 points, to end at 2,021.17.

On Wall Street the Dow fell after hitting a record high Tuesday, with US dealers also moving out on a government report showing an unexpected 8.3 percent surge in sales of new homes in June, their fastest pace in five years.

The Dow fell 0.16 percent after hitting another record on Tuesday, while the S&P 500 slipped 0.38 percent and the Nasdaq was flat.

While pointing to a pick-up in the US economy, the figures struck investors with fear that the Fed will start to wind down its $85 billion-a-month bond-buying scheme soon.

Such a move by the Fed would leave fewer dollars in the financial system, lifting demand and in turn sending the currency higher.

By the end of US trade Wednesday the greenback rose to 100.26 yen, from 99.48 yen the previous day. In European trade on Thursday it was at 99.90 yen.

In other forex trade the euro bought $1.3173 and 131.60 yen, from $1.3199 and 132.34 yen.

The single currency was given support by news that private business across the eurozone returned to growth in July for the first time in 18 months, possibly signaling an end to recession, analysts said.

The Markit Eurozone Composite Purchasing Managers Index logged 50.4 points, above the 50-mark signaling growth, and a bigger-than-expected rise, after posting 48.7 points in June.

On oil markers New York’s main contract, West Texas Intermediate (WTI) for delivery in September, was down 32 cents at $105.07 a barrel, while Brent North Sea crude for September shed 31 cents to $106.88.

Gold cost $1,313.40 per ounce at 1050 GMT, compared with $1,343.70 late Wednesday.

In other markets:

— Taipei dropped 0.40 percent, or 32.61 points, to 8,163.58. Taiwan Semiconductor Manufacturing Co. rose 0.49 percent to Tw$102.5 while China Airlines fell 0.44 percent to Tw$11.3.

— Manila ended flat, dipping 4.05 points to 6,800.11.

Philippine Long Distance Telephone lost 0.32 percent to 3,068 pesos and Ayala Land fell 0.48 percent to 31.25 pesos, while parent Ayala Corp. dropped 4.22 percent to 613 pesos.

— Wellington fell 0.49 percent, or 22.41 points, to 4,576.79.

Telecom eased 0.42 percent to NZ$2.345 while Fletcher Building was down 2.82 percent at NZ$8.27.

— Bangkok lost 2.98 percent, or 44.68 points, to 1,456.68.

Telecoms company True Corp. fell 5.85 percent to 8.85 baht, while power giant Electricity Generating Public Co. dropped 4.96 percent to 134 baht.

— Jakarta ended down 0.93 percent, or 43.99 points, at 4,674.12.

Retailer Ramayana Lestari Sentosa gained 1.50 percent to 1,350 rupiah, while palm oil firm Astra Agro Lestari dropped 4.48 percent to 16,000 rupiah.

— Kuala Lumpur was flat, slipping 1.58 points to 1,808.42.

AirAsia shed 0.1 percent to 1.24 ringgit, while UEM Sunrise fell 2.6 percent to 2.98. Electric utility Tenaga Nasional gained 0.2 percent to 9.16 ringgit.

— Singapore closed down 1.19 percent, or 39.08 points, at 3,235.68.

DBS Bank declined 0.24 percent to Sg$16.74 and oil rig maker Keppel Corp dropped 1.77 percent at Sg$10.55.

— Mumbai slid 1.42 percent, or 289.52 points, to 19,804.76 points.

Swiss giant Holcim’s Indian unit Ambuja Cements fell 10.52 percent to 171.0 rupees while diversified ITC group fell 4.57 percent to 358.80 rupees.

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