Asian shares slip, Tokyo hit by strong yen
Women employees of Tokyo Stock Exchange and its member securities companies wearing kimono pose for photographers with a bell and a poster of the newly launched stock index named JPX-Nikkei 400, jointly established by Japan Exchange Group and the Tokyo Stock Exchange, at the opening ceremony of the new year’s first trading at the Tokyo Stock Exchange in Tokyo Monday, Jan. 6, 2014. Asia’s markets fell on Monday in the first full day of trade in the new year, with Tokyo tumbling as the dollar and euro retreated from five-year highs against the yen. AP PHOTO/SHIZUO KAMBAYASHI
HONG KONG—Asia’s markets fell on Monday in the first full day of trade in the new year, with Tokyo tumbling as the dollar and euro retreated from five-year highs against the yen.
Investors were given a mixed lead from Wall Street after Federal Reserve chief Ben Bernanke called for continued efforts to reinforce the recovery in the US economy.
Tokyo fell 2.35 percent, or 382.43 points, to 15,908.88, Sydney lost 0.47 percent, or 25.2 points, to 5,324.9, Shanghai gave up 1.80 percent, or 37.43 points, to finish at 2,045.71, while Hong Kong lost 0.58 percent, or 133.13 points, to close at 22,684.15.
However, Seoul rose 0.37 percent, or 7.14 points, to close at 1,953.28.
Japan’s Nikkei started the year with heavy losses after surging 57 percent in 2013, with profit-taking adding to downward pressure, while the yen rebounded from recent lows.
The dollar and euro early last week hit highs against the yen not seen since October 2008, but they fell back on Friday in thin trade as many dealers stayed away after the holiday season.
“Tokyo stocks are overbought, and a break in the yen’s fall, plus weaker futures are sure to result in some long-needed profit-taking after the December runup,” said Hiroichi Nishi, general manager of equities at SMBC Nikko Securities.
“Hopes for a continued US economic recovery and longer-term dollar appreciation should keep sharp selloffs well contained, however,” he added.
The US currency stood at 104.43 yen Monday in Tokyo against 104.85 yen in New York Friday, and well off the mid-105 yen mark seen at the start of last week.
The euro bought 141.85 yen compared with 142.44 yen, well down from the 145.69 reached last Monday. The single currency was also at $1.3582, from $1.3586.
In the United States Bernanke, in a speech to economists Friday as he prepares to leave office, called for continued efforts to make sure the world’s No. 1 economy keeps growing and unemployment carries on falling.
Highlighting that the US jobless rate fell from 10 percent in 2009 to 7 percent recently, Bernanke nevertheless insisted: “Much progress has been made, but more remains to be done.”
He added that the Fed’s decision last month to cut its monthly bond-buying by $10 billion to $75 billion did not indicate any lesser commitment to maintain an easy-money policy “for as long as needed.”
The Dow Friday added 0.17 percent, the S&P 500 dipped 0.03 percent and the Nasdaq fell 0.27 percent.
Chinese shares extended their losses from last week on fears that the restart of initial public offerings after a yearlong hiatus will cause a glut at a time with there is already concern about liquidity.
But Capital Securities analyst Amy Lin told Dow Jones Newswires they thought it was a “short-term reaction to the restart of the IPOs, given the number of the IPOs does come in higher and faster than many had expected.”
She added that “in the medium term the market should rebound because IPOs are what investors want for the market (to stay active and viable).”
On oil markets New York’s main contract West Texas Intermediate for February delivery was up 32 cents at $94.28 in afternoon trade, while Brent North Sea crude, also for February, rose 42 cents to $107.31.
Gold fetched $1,237.60 at 1035 GMT compared with $1,233.55 late Friday.
In other markets:
— Bangkok edged up 0.51 percent, or 6.22 points, to 1,230.84.
Coal producer Banpu fell 4.72 percent to 25.25 baht while Bangkok Bank rose 2.97 percent to 173.50 baht.
— Jakarta dropped 1.29 percent, or 54.85 points, to 4,202.81.
State miner Aneka Tambang fell 3.37 percent to 1,005 rupiah, while car maker Astra International rose 1.48 percent to 6,850 rupiah.
— Kuala Lumpur lost 0.30 percent, or 5.56 points, to 1,829.18.
Plantation conglomerate IOI slipped 2.6 percent to 4.46 ringgit, while Berjaya Corp. fell 2.7 percent to 0.55 and budget airline AirAsia gained 0.8 percent to 2.39 ringgit.
— Mumbai fell 0.31 percent, or 64.03 points, to 20,787.30.
Pharma firm Wockhardt fell 2.69 percent to 431.05 rupees while private bank ICICI Bank fell 2.46 percent to 1,040.70 rupees.
— Taipei fell 0.54 percent, or 46.53 points, to 8,500.01.
Hon Hai Precision eased 0.50 percent to Tw$79.0 while Taiwan Semiconductor Manufacturing Co. was unchanged at Tw$102.5.
— Wellington was flat, edging down 3.7 points to 4,765.32.
Contact Energy lost 1.35 percent to NZ$5.10, Fletcher Building was up 0.81 percent at NZ$8.69 and Air New Zealand was steady on NZ$1.645.
— Manila closed 0.64 percent higher, adding 37.88 points to 5,985.81.
Ayala Corp. added 0.96 percent to 525.50 pesos and its real estate arm Ayala Land put on 0.99 percent to 25.50 pesos.
— Singapore fell 0.24 percent, or 7.65 points, to 3,123,82.
Agribusiness company Wilmar International rose 0.30 percent to Sg$3.36 while real estate developer Capitaland eased 0.67 percent to Sg$2.96.
