Asian markets mostly off after weak Wall St. lead
HONG KONG—Asian markets mostly edged lower Wednesday following a slip on Wall Street and on profit-taking after the previous day’s strong showing.
While there were few incentives to buy, the lingering concerns over China’s slowing economy continued to play on confidence.
Tokyo fell 0.71 percent, or 72.58 points, to 10,182.57 and Seoul slipped 0.39 percent, or 8.02 points, to 2,031.74, but Sydney rose 0.98 percent, or 42.2 points, to 4,343.5.
Hong Kong finished 0.77 percent lower, shedding 161.49 points to 20,885.42, while Shanghai tumbled 2.65 percent, or 62.30 points, to 2,284.88.
Investors consolidated their gains after a rally on Tuesday that was fueled by comments from US Fed chief Ben Bernanke indicating the central bank would continue with its loose monetary policy.
However, while his speech on Monday was market-friendly, his warning that the economy still had a long way to go and that the recent jobless falls might not continue acted as a counterweight.
“Bernanke’s comments about possible quantitative easing have created ambiguous feelings among traders,” Justin Harper, strategist at IG Markets in Singapore, said in a note, according to Dow Jones Newswires.
“First there was early euphoria that cheap dollars would once again flood the market and prop up risk assets. But now (that) the dust has settled it highlights that all may not be as rosy in the garden of US economic recovery as first thought.”
And on Tuesday, Wall Street edged lower after a slip in the Conference Board’s US consumer confidence index as well as a report from S&P-Case Shiller that home prices continued to fall in January.
The Dow index ended down 0.33 percent, the S&P 500 dropped 0.28 percent and tech-rich Nasdaq edged 0.07 percent lower.
Markets had surged in the first two months of 2012 thanks to improving confidence in the US economy and easing tensions over Europe’s debt crisis, but a string of bad data out of China and profit-taking have weighed on equities in March.
In Tokyo Wednesday the standout performer was electronics giant Sharp.
The firm ended up by its daily trading limit of 15.15 percent after it announced Tuesday an $808 million tie-up with Taiwan’s Hon Hai Precision, the parent company of manufacturing giant Foxconn, which builds gadgets for Apple.
In Taipei Hon Hai rose 4.63 percent.
On currency markets in late Asian trade the dollar bought 82.90 yen against 83.15 yen in New York late Tuesday.
The euro bought $1.3340 and 110.62 yen, compared with $1.3315 and 110.71 yen in New York.
Concerns that a spike in US inventories signaled falling demand in the world’s biggest economy sent oil prices lower.
New York’s main contract, West Texas Intermediate crude for delivery in May, shed 66 cents to $106.67 per barrel in the afternoon while Brent North Sea crude for May settlement was down 77 cents at $124.77.
Gold was at $1,676.26 an ounce at 1025 GMT, compared with $1,693.45 late Tuesday.
In other markets:
— Singapore closed up 0.10 percent, or 2.93 points, at 3,015.98.
Real estate developer Capitaland gained 0.32 percent to Sg$3.15 while industrial group ST Engineering was up 0.63 percent at Sg$3.22.
— Taipei gained 0.11 percent, 8.61 points, to 8,038.07.
Taiwan Semiconductor Manufacturing Co. was 0.35 percent lower at Tw$85.5.
— Manila closed 0.20 percent, or 10.44 points, lower at 5,067.66.
Alliance Global Group slipped 1.69 percent to 12.78 pesos while Ayala Corp. dropped 2.97 percent to 399 pesos. But Philippine Long Distance Telephone Co. gained 0.82 percent to 2,692 pesos.
— Wellington closed flat, edging 2.55 points higher at 3,486.51.
Contact Energy rose 1.08 percent to NZ$4.66, Fletcher Building dived 4.58 percent to NZ$6.67 and Telecom shed 0.40 percent to NZ$2.46.
— Kuala Lumpur fell 0.27 percent, giving up 4.35 points, to 1,583.75.
Budget carrier AirAsia lost 2.31 percent to 3.38 ringgit, while utility Tenaga Nasional fell 1.23 percent to 6.42 ringgit. Telecoms company Axiata Group added 0.39 percent to 5.14 ringgit.
— Bangkok edged down 0.27 percent, or 3.28 points, to 1,204.01.
Siam Cement dropped 0.28 percent to 359 baht, while PTT gained 0.84 percent to 359 baht.
— Jakarta gained 0.27 percent, or 11.19 points, to 4,090.57.
— Mumbai fell 0.79 percent, or 135.74 points, to 17,121.62.
