Asian markets lower after weak US growth data
HONG KONG—Asia’s first full day of trading following the Lunar New Year holiday saw markets mostly slip on Monday after US growth data came in below expectations and profit-takers cashed in on recent gains.
The US figures overshadowed hopes that Greece will hammer out a debt reduction deal with its creditors, while investors also look ahead to a European Union summit later in the day.
Tokyo finished 0.54 percent, or 48.17 points, lower at 8,793.05, Seoul dropped 1.24 percent, or 24.28 points, to 1,940.55 and Sydney shed 0.37 percent, or 15.7 points, to 4,272.7.
Hong Kong shed 1.66 percent, or 341.26 points, to end at 20,160.41 and Shanghai, which was closed last week for the Lunar New Year holiday, slipped 1.47 percent, or 34.08 points, to 2,285.04.
Washington on Friday released data showing the economy grew 2.8 percent in the fourth quarter of 2011, much better than the 1.8 percent in the previous three months but slower than the 3.2 percent forecast.
Adding to downbeat sentiment was another batch of figures showing investment and personal consumption, which is a key driver of the economy, grew at a much slower pace than earlier in the year, despite the holiday shopping season.
The data weighed on the Dow Jones Industrial Average, which closed 0.58 percent lower.
In Europe, Greece continued to meet its bondholders in a bid to get them to take a loss on their investments in order for the country to shave 100 billion euros ($130 billion) off its 350-billion-euro debt.
Talks have been snagged on the amount of interest to be paid on the remainder.
Agreement on Greece’s debt, which would see private creditors halve the amount they are owed, is a precondition for more bailout funds from the European Commission, the European Central Bank and the International Monetary Fund.
Greek Finance Minister Evangelos Venizelos told reporters Saturday he was hopeful of a deal within days.
However, Venizelos on Sunday rejected a German proposal for the EU to take control over its tax and spending decisions, citing national sovereignty.
The Wall Street Journal reported Berlin’s finance minister issued a blunt warning the eurozone might refuse Greece a fresh bailout, pushing Athens into default, unless it convinces Europe it can overhaul its finances.
“Unless Greece implements the necessary decisions and doesn’t just announce them… there’s no amount of money that can solve the problem,” it quoted Wolfgang Schaeuble as saying.
European leaders meet in Brussels Monday, when they are expected to finalize details on a fiscal pact that aims to rein in budget deficits and endorse a permanent bailout with a lending capacity of 500 billion euros.
European shares fell in early trade with London’s FTSE 100 index off 0.87 percent, Frankfurt’s DAX 30 index shedding 0.71 percent while in Paris the CAC 40 dipped 1.00 percent.
The euro dipped to $1.3124 and 100.59 yen in European trade, compared with $1.3221 and 101.37 yen in New York late Friday.
The dollar was at 76.65 yen against 76.67 yen in New York.
On oil markets, New York’s main contract, West Texas Intermediate crude for delivery in March, added 24 cents to $99.27 per barrel and Brent North Sea crude for March settlement rose 47 cents to $111.62.
Gold was at $1,721.30 an ounce at 1200 GMT, against $1,724.10 late Friday.
In other markets:
— Singapore was 0.96 percent, or 27.97 points, down at 2,888.29.
Beverage distributor Fraser and Neave gained 1.32 percent to Sg$6.89 while United Overseas Bank lost 1.15 percent to end at Sg$17.20.
— Taipei, which had been closed for the previous seven sessions due to the Lunar New Year holiday, ended 2.40 percent higher, adding 173.72 points to 7,407.41.
The index was given a boost by tech companies after strong quarterly earnings from Apple and Intel. Hon Hai Precision was 7.0 percent limit-up at Tw$93.8 while Taiwan Semiconductor Manufacturing Co. rose 2.61 percent at Tw$78.7.
— Manila fell 0.76 percent, or 35.40 points, to 4,644.49.
Energy Development Corp. shed 10.2 percent to close at 5.66 pesos, while Philippine Long Distance Telephone Co. inched up 0.5 percent to 2,754 pesos.
— Indian shares fell 2.25 percent, or 388.43 points, to 16,845.55.
Engineering giant Bharat Heavy Electricals fell 10.41 percent to 245.15 rupees while Sterlite Industries slid 5.99 percent to 112.9 rupees.
— Wellington ended 0.38 percent, or 12.58 points, higher at 3,307.22.
Air New Zealand was unchanged at NZ$0.90, Contact Energy gained 0.42 percent to NZ$4.79 and Telecom was 0.24 percent up at NZ$2.10.
— Jakarta fell 1.79 percent, or 71.25 points, to 3,915.16.
Bank Mandiri, Indonesia’s biggest lender by assets, fell 2.9 percent to 6,650 rupiah and consumer goods producer Unilever lost 4.4 percent to 19.600 rupiah.
— Kuala Lumpur shed 0.48 percent, or 7.35 points, to 1,513.55.
MMC Corp. gained 1.1 percent to 2.75 ringgit and Public Bank rose 0.6 percent to 13.52 ringgit while Genting lost 2.3 percent to 10.90 ringgit and Tenaga Nasional eased 2.1 percent to 5.97 ringgit.
— Bangkok fell 0.15 percent, or 1.58 points, to 1,074.71.
