Asian markets mixed amid China slowdown fears
HONG KONG—Asian markets were mixed on Monday as lingering concerns about the Chinese economy cancelled out a positive lead from Wall Street and bargain hunting.
Tokyo was flat, edging up 0.07 percent, or 6.77 points, to 10,018.24, Sydney ended 0.18 percent, or 7.6 points, lower at 4,262.8 and Seoul fell 0.38 percent, or 7.64 points, to 2,019.19.
Hong Kong ended virtually unchanged, nudging just 0.06 points up to 20,886.86 while Shanghai was also flat, nudging 1.06 points higher to 2,350.60.
Traders were given few buying incentives save Friday’s positive close on Wall Street, where the Dow Jones index capped a three-session losing streak despite weak US housing data.
End-of-the-quarter “window-dressing” added to selling pressure, while “there are still plenty of factors to dent risk appetite over coming days, not least of which is the gyrations in oil prices,” Credit Agricole said in a note to clients, according to Dow Jones Newswires.
The losses added to last week’s falls caused by a combination of data from China indicating a slowdown in the world’s No. 2 economy, weaker-than-forecast US housing figures and a bout of profit-taking after a strong rally at the start of the year.
Australia’s Qantas ended 2.02 percent higher after it announced plans to launch a joint-venture budget carrier for Asia with China Airlines.
Jetstar Hong Kong will launch next year and fly short-haul routes, including in China, Japan, South Korea and Southeast Asia, the firms said in a statement as they try to tap the huge Chinese market.
The euro bought $1.3217 and 109.35 yen in early European trade, compared with $1.3268 and 109.28 yen in New York late Friday. The dollar firmed to 82.71 yen from 82.33 yen.
Investors are looking to speeches later in the day by US Federal Reserve chief Ben Bernanke and Philadelphia Fed president Charles Plosser.
With two other Fed regional bank presidents voicing opposition to any new rounds of easing, further resistance from Plosser may lead Fed policymakers to take the view that additional measures were unnecessary, said Sumino Kamei, senior analyst at the Bank of Tokyo-Mitsubishi UFJ.
“This could support the dollar against the yen,” she said.
The euro was also buoyed by signs from Germany indicating it was contemplating allowing the eurozone’s new permanent rescue fund to run in tandem for a while with its temporary predecessor.
Though the total lending capacity of the permanent fund, or European Stability Mechanism, would stay at 500 billion euros, the move would increase the combined firewall to 700 billion euros.
While boosting the fund has been regarded in international circles as essential in saving the currency bloc from fresh turmoil, German Chancellor Angela Merkel had previously resisted such a measure.
On oil markets, New York’s main contract, West Texas Intermediate crude for delivery in May, shed 36 cents to $106.51 per barrel while Brent North Sea crude for May was down eight cents at $125.05.
Gold was at $1,661.40 an ounce at 1040 GMT, compared with $1,650.60 late Friday.
In other markets:
— Singapore slipped 0.52 percent, or 15.58 points, to 2,974.50.
DBS Bank fell 0.85 percent to Sg$14.06 while oil rig maker Keppel Corp was down 0.65 percent at Sg$10.76.
— Taipei fell 1.35 percent, or 108.99 points, to 7,967.62.
Taiwan Semiconductor Manufacturing Co. fell 2.11 percent to Tw$83.6 while leading smartphone maker HTC was 0.64 percent higher at Tw$633.00.
— Manila closed 0.25 percent, or 12.81 points, lower at 5,029.63.
Alliance Global Group was down 1.82 percent at 12.90 pesos while Philippine Long Distance Telephone bucked the trend to rise 2.61 percent to 2,668 pesos.
— Wellington gained 0.66 percent, or 22.61 points, to 3,471.92.
Telecom rose 1.1 percent to NZ$2.40 while Fletcher Building added 1.0 percent to NZ$6.87 and Fisher & Paykel Healthcare gained 0.9 percent to NZ$2.27.
— Kuala Lumpur ended down 0.18 percent, or 2.85 points, at 1,582.98.
Utility Tenaga Nasional fell 2.69 percent to 6.50 ringgit, while budget carrier AirAsia inched down 3.62 percent to 3.46 ringgit. Gaming giant Genting gained 0.36 percent to 11.04 ringgit.
— Jakarta fell 0.24 percent, or 9.85 points, to 4,031.71. Car maker Astra fell 0.8 percent to 71,600 rupiah and Bank Mandiri slid 1.5 percent.
— Bangkok closed 0.51 percent, or 6.12 points, lower at 1,188.32.
PTT dropped 0.29 percent to 348 baht, while Banpu gained 0.66 percent to 612 baht.
— Mumbai shares slid 308.96 points, or 1.78 percent, to 17,052.78. India’s Tata Power ended down 3.77 percent at 95.8 rupees while the largest mobile phone firm Bharti Airtel fell 2.32 percent to 327.9.
