Asia shares ease back, Tokyo lifted by weaker yen
A man looks at an electronic stock board of a securities firm in Tokyo on May 23, 2014. Asian markets mostly fell Tuesday, May 27, retreating from the previous day’s gains, but Tokyo bucked the trend as the yen dipped against the dollar. AP PHOTO/KOJI SASAHARA
HONG KONG—Asian markets mostly fell Tuesday, retreating from the previous day’s gains, but Tokyo bucked the trend as the yen dipped against the dollar.
The euro edged up after suffering losses in the previous session.
Tokyo rose 0.23 percent, or 34.00 points, to finish at 14,636.52, the Nikkei’s highest close in nearly two months, while Sydney was a tad lower, skidding 1.1 points to 5,511.7.
Seoul dropped 0.63 or 12.72 points to 1,997.63 and Shanghai fell 0.34 percent, or 6.91 points, to 2,034.57. Hong Kong ended almost flat, dipping 18.88 points to 22,944.30.
There were no cues from London and New York, where markets were closed for public holidays.
With few catalysts to fuel buying, dealers took their cash off the table. Attention is on the release this week of key US data, including revised economic growth for the first three months of the year.
Despite the regional sell-off Tokyo enjoyed a pick-up thanks to a weaker yen as a more bullish outlook saw investors move away from the safe-haven currency and into higher-risk assets.
“Technically, (Tuesday’s Nikkei) move was significant, and could signal further bullishness ahead,” Yoshihiro Okumura, general manager at Chibagin Asset Management told Dow Jones Newswires.
In the afternoon the dollar was changing hands at 101.88 yen, against 101.85 yen on Monday in Europe, while the euro rose to $1.3655 and 139.10 yen from $1.3652 and 139.05 yen.
The euro reversed losses seen in Asia on Monday caused by weak German business data that had boosted speculation of further monetary easing measures by the European Central Bank.
Oil prices edged down but were supported by concerns over a dramatic escalation in the Ukraine crisis that could potentially cause a disruption to supplies, analysts said.
A fierce battle erupted in the rebel-held eastern belt of Ukraine Monday, just hours after president-elect Petro Poroshenko vowed he would not let the country become another Somalia.
Ukrainian fighter jets and combat helicopters struck the terminal building at an airport in the eastern city of Donetsk to try to dislodge scores of separatist gunmen who seized the complex, triggering hours of heavy firefights.
US benchmark, West Texas Intermediate for delivery in July, eased eight cents to $104.27 in afternoon trade while Brent North Sea crude for July delivery was down two cents at $110.30 per barrel.
Gold fetched $1,283.05 an ounce at 1102 GMT compared with $1,293.04 late Monday.
In other markets:
— Bangkok added 0.32 percent, or 4.44 points, to 1,392.73.
Telecoms company Advanced Info Service dropped 1.73 percent to 227.00 baht, while Siam Cement fell 0.97 percent to 408.00 baht.
— Jakarta dipped 0.18 percent, or 9.13 points, to 4963.93.
Reinsurance firm Maskapai Reasuransi Indonesia ended 21.43 percent at 3,400 rupiah, while Jakarta International Hotel & Development dropped 5.86 percent to 1,445 rupiah.
— Kuala Lumpur’s main stock index gained 4.77 points or 0.26 percent to 1,867.57.
AMMB Holdings rose 0.28 percent to 7.28 ringgit, Malayan Banking added 0.61 percent to 9.94 while Sime Darby lost 0.63 percent to 9.47 ringgit.
— Manila closed 0.15 percent lower, dipping 10.16 points to 6,780.26.
Philippine Long Distance Telephone Co. fell 0.21 percent to 2,894 pesos but Megaworld rose 0.66 percent to 4.60 pesos.
— Mumbai fell 0.68 percent to 24,591.51.
Jindal Steel gained 5.76 percent to 314.5 rupees, while natural gas distributor Gail India dropped 7.56 percent to 379.05 rupees.
— Singapore’s Straits Times Index eased 0.27 percent, or 8.82 points, to 3,274.06.
Singapore Airlines gained 0.49 percent to Sg$10.35 while DBS bank eased 0.65 percent to Sg$16.87.
— Taipei added 0.21 percent, or 19.17 points, to 9,055.29.
Taiwan Semiconductor Manufacturing Co. was 0.41 percent higher at Tw$123.5, while leading chip design house MediaTek added 2.93 percent to Tw$509.0.
— Wellington fell 0.15 percent, or 7.83 points, to 5,145.85.
Air New Zealand lost 1.82 percent to end at NZ$2.16 and Chorus dipped 0.59 percent to NZ$1.69.
