Asian shares slip on profit-taking
Workers of a foreign exchange dealing company monitor electric screens, under the US dollar rate against the Japanese yen, top, and Nikkei stock index, bottom, in Tokyo on Sept.19, 2014. Asian markets mostly slipped Monday, Sept. 22, on profit-taking after the big gains at the end of last week, while the dollar eased from more than six-year highs against the yen. AP PHOTO/SHIZUO KAMBAYASHI
HONG KONG–Asian markets mostly slipped Monday on profit-taking after the big gains at the end of last week, while the dollar eased from more than six-year highs against the yen.
Investors seemed unimpressed after the Group of 20 said the world’s biggest economies were on track to achieve an extra 1.8 percent growth on top of current projections within five years.
Tokyo, which on Friday ended at an almost seven-year high, slipped 0.71 percent, or 115.27 points, to 16,205.90, while Sydney shed 1.29 percent, or 70.1 points, to 5,363.0. Seoul lost 0.71 percent, or 14.55 points, to 2,039.27.
Shanghai fell 1.70 percent, or 39.59 points, to 2,289.87 and Hong Kong sank 1.44 percent, or 350.67 points, to 23,955.49 as investors await the release Tuesday of preliminary manufacturing data out of China.
Desmond Chua, market analyst at CMC Markets in Singapore, said a series of economic reports had come in below expectations. He added that another weak reading “will underscore weakness in the Chinese economy.”
Wellington was the stand-out performer, jumping 1.06 percent, or 54.95 points, to 5,236.29 after the pro-business National Party won a resounding election victory at the weekend.
Regional markets ended last week on a high, helped by news that Scottish voters had rejected independence from the United Kingdom.
But there are still concerns about the Chinese economy as dealers look ahead to the release of HSBC’s purchasing managers index (PMI) that market watchers expect to indicate further weakness in the economy.
Softbank falls despite Alibaba surge
On Wall Street a surge in new listing Alibaba helped the Dow rise 0.08 percent Friday to hit a new record high. But the S&P 500 finished down 0.96 points and the Nasdaq dipped 0.30 percent.
Alibaba rallied 38.1 percent to $93.89 on its debut after its IPO raised a world record $25 billion.
However, in Tokyo Monday Softbank, which holds about a third of Alibaba’s shares, slipped 6.1 percent on profit-taking despite saying it would probably book a gain of about $4.6 billion from the IPO. The firm rose about 30 percent in the six weeks leading up to the listing.
The dollar bought 108.86 yen, compared with 108.99 yen in New York and sitting close to levels not seen since 2008. While it is well off the 109.21 yen earlier Friday in Asia, analysts are tipping it to break the 110 yen barrier soon.
The euro bought $1.2858 and 139.99 yen, against $1.2832 and 139.84 yen in US trade.
The G20 at the weekend said members could overcome geopolitical tensions and financial problems to boost global growth.
Finance ministers and central bank governors at the two-day meeting said in a communique that reforms agreed so far–including accelerating infrastructure investment, financial reform and encouraging free trade–could add 1.8 percent to GDP and create millions of new jobs.
But more work was needed to meet a desired two percent goal agreed in Sydney earlier this year.
In New Zealand investors cheered a third straight election win for the party of Prime Minister John Key, who has been credited with hauling the economy out of torpor following the financial crisis.
On oil markets US benchmark West Texas Intermediate for October delivery eased 40 cents to $92.01, while Brent crude for November fell 48 cents to $97.91 in afternoon trade.
Gold was at $1,213.14 an ounce at 1140 GMT, against $1,221.56 an ounce late Friday.
In other markets:
— Taipei closed down 1.14 percent, or 105.80 points, at 9,134.65.
Taiwan Semiconductor Manufacturing Co. shed 2.40 percent to Tw$122.0, while Hon Hai Precision was 0.50 percent lower at Tw$100.5.
— Manila was 0.10 percent lower, dipping 7.43 points to 7,279.86.
Philippine Long Distance Telephone Co. fell 0.97 percent to 3,270 pesos, while SM Prime Holdings bucked the trend to rise 1.13 percent to 17.90 pesos.
— Bangkok added 0.29 percent, or 4.60 points, to 1,589.51.
Concert promoters BEC World soared 5.56 percent to 47.50 baht, while Delta Electronics rose 2.81 percent to 64 baht.
– Kuala Lumpur lost 3.4 points, or 0.19 percent, to end at 1,846.05.
Tenaga Nasional shed 1.45 percent to 12.20 ringgit, Petronas Gas fell 0.17 percent to 22.98 and Sime Darby added 0.11 percent to 9.12 ringgit.
— Jakarta ended down 0.15 percent, or 7.78 points, at 5,219.80.
Cigarette maker Gudang Garam gained 1.80 percent to 56,500 rupiah, while telecoms firm Telekomunikasi Indonesia slipped 2.55 percent to 2,870 rupiah.
— Mumbai closed up 116.32, or 0.43 percent, at 27,206.74.
Gitanjali Gems gained 6.55 percent to 73.25 rupees, while Suzlon Energy slid 9.80 percent to 18.40 rupees.
— Singapore closed down 0.26 percent, or 8.48 points, at 3,296.57.
DBS Bank rose 0.22 percent to Sg$18.17 while oil rig maker Keppel Corp eased 0.47 percent to Sg$10.50.
