Asian shares lower despite G20 growth pledge

A man uses a mobile phone in front of a securities firm’s electronic stock board in Tokyo, Monday, Feb. 24, 2014. Asian stock markets mostly fell Monday after a slower increase in Chinese property prices added to jitters about the strength of the world’s No. 2 economy. AP PHOTO/SHIZUO KAMBAYASHI

HONG KONG—Asian stock markets lost ground on Monday, with investors little moved by the G20s weekend commitment to boost global growth by $2 trillion over five years.

After a weak lead from Wall Street Friday, markets were looking to a string of US data in the week ahead for clues about the health of the world’s largest economy, with figures due out on housing, consumer confidence and GDP growth.

In Tokyo the benchmark Nikkei-225 index fell 0.19 percent, or 27.99 points, to close at 14,837.68. Seoul lost 0.45 percent, or 8.78 points, to end at 1,949.05 and Sydney closed a marginal 0.03 percent, or 1.5 points, higher at 5,440.2.

Hong Kong shares fell 0.80 percent, or 179.68 points, to end at 22,388.56. On the Chinese mainland, shares extended losses on worries about possible tightening of credit to the property sector.

Shanghai dropped 1.75 percent, or 37.00 points, to close at 2,076.69. The Shenzhen Composite Index, which tracks stocks on China’s second exchange, narrowed earlier losses to close down 0.07 percent, or 0.82 points, at 1,134.19.

China’s domestic banks have recently tightened lending to the real estate sector, state media said last week, although the four biggest state banks on Monday denied any such moves.

Official data released Monday also showed fewer cities, 62 out of 70 tracked, recorded month-on-month increases in new home prices in January, down from 65 in December.

Analysts said fears were overblown.

“The (property) market doesn’t have any structural risks and the government wouldn’t clamp down too tightly on an area so important for China’s economy,” United Securities analyst Pei Xiaoyan told Dow Jones Newswires.

G20 targets growth

The world’s biggest economies vowed Sunday to boost global growth by more than $2 trillion over five years, shifting their focus away from austerity as a fragile recovery takes hold.

The G20 members said they aim to lift their collective GDP by more than two percentage points over the next five years.

However, investors appeared to be focusing more on the forthcoming US figures, as analysts suggested the data may disappoint.

US February consumer confidence figures are due to be released on Tuesday, followed by data showing durable goods orders and initial jobless claims on Thursday. On Friday, the final estimate for fourth-quarter US gross domestic product is out.

“It is possible that data to be released this week could come out lower than expected. Caution is needed over continued worries about the possibility of a US slowdown,” Tsuyoshi Nomaguchi, a senior strategist at Daiwa Securities, said in a note to clients.

Nomaguchi said the US market could receive support from investors hopeful that weak data could encourage the US Federal Reserve to continue its zero interest rate policy.

Japan will also publish a string of other data, including key inflation figures, on Friday.

US stocks dip  

US stocks finished last week with modest declines. The Dow Jones Industrial Average fell 0.19 percent, or 29.93 points, to 16,103.30 on Friday.

The broad-based S&P 500 dropped 0.19 percent, or 3.53 points, to 1,836.25, while the tech-rich Nasdaq Composite Index slipped 0.10 percent, or 4.13 points, to 4,263.41.

On currency markets, the dollar stood at 102.35 yen in afternoon trade in Asia, down from 102.49 yen in New York Friday.

The euro was at $1.3765 and 140.89 yen, compared with $1.3734 and 141.00 yen.

Oil prices rebounded in Asia owing to strong US demand driven by prolonged sub-zero temperatures across much of the country and geopolitical worries.

New York’s main contract, West Texas Intermediate for April delivery, gained 22 cents to $102.42 in afternoon Asian trade. Brent North Sea crude for April rose 20 cents to $110.05.

Gold fetched $1,333.44 an ounce at 1050 GMT, after striking $1,332.45 late Friday, driven by strong Asian demand.

In other markets:

— Mumbai rose 0.53 percent, or 110.69 points, to end at 20,811.44 points.

Tata Power was up 3.95 rupees or 5.02 percent at 82.65 rupees while public power producer NPTC was down 15.10 rupees or 11.43 percent at 117.05 rupees.

— Kuala Lumpur ended 0.11 percent, or 2.06 points lower, to close at 1,828.68.

IOI Corp. gained 1.3 percent to close at 4.61 ringgit and UMW Holdings rose 1.0 percent to 11.90 ringgit, while Genting Bhd lost 2.5 percent to end trading at 10.10 ringgit.

— Jakarta ended down 0.49 percent, or 22.58 points, at 4,623.57.

Cement maker Indocement Tunggal Prakarsa lost 2.31 to 22,250 rupiah, while tin miner Aneka Tambang fell 0.47 percent to 1,050 rupiah.

— Singapore rose 0.19 percent, or 5.91 points, to close at 3,105.84.

Singapore Telecommunications gained 1.11 percent to Sg$3.64 while DBS Bank slid 0.24 percent to Sg$16.65.

— Bangkok lost 0.22 percent, or 2.83 points, to 1,301.38.

Telecoms company Advanced Info Service fell 1.90 percent to 206.00 baht, while Bangchak Petroleum dropped 0.86 percent to 28.75 baht.

— Manila fell 0.19 percent, or 12.04 points, to 6,296.32.

Megaworld Corp. bucked the trend to rise by 2.81 percent to 4.02 pesos while Ayala Land Inc. fell by 1.22 percent to 28.40 pesos.

— Wellington closed up 42.01 points, or 0.85 points, to end at 4,969.65 on positive earnings results.

Freightways rose 2.84 percent to NZ$4.70 and Sky Network Television City soared 5.74 percent to NZ$6.08.

— Taipei fell 0.48 percent, or 41.25 points, to 8,560.61.

Taiwan Semiconductor Manufacturing Co. was 0.47 percent lower at Tw$107.0, while Cathay Financial Holdings shed 3.04 percent to Tw$44.7.—Emily Ford

Originally posted: 1:17 pm | Monday, February 24th, 2014