SINGAPORE -Asian stock markets were mostly lower Friday, as many investors took to the sidelines after robust China trade data heightened concerns of an imminent rate hike from Beijing.
Japan’s Nikkei Stock Average was off 0.2%, Australia’s S&P/ASX 200 was flat, South Korea’s Kospi Composite slid 0.3%, Hong Kong’s Hang Seng Index shed 0.7% and China’s Shanghai Composite rose 0.1%. Dow Jones Industrial Average futures were up 23 points in screen trade.
Markets in Asia, which were already on the back foot following a tepid finish on Wall Street on Thursday, remained wary after fresh Chinese data bolstered the case for further tightening.
“The market’s a little nervous about the Chinese economic data due out (Saturday). In particular, the market’s on edge about the (consumer price index) number,“ said David Taylor, markets analyst at CMC Markets in Sydney.
“The trade data out this afternoon certainly didn’t do anything to ease concerns…it sends a message to the market that we are on the edge of another interest rate hike,“ Taylor said.
China’s November trade data on Friday showed imports and exports both hitting records, with the trade surplus narrowing to $22.9 billion from $27.15 billion in October. China is set to release inflation data on Saturday and markets have continued to speculate about the prospect of a rate hike late on Friday or over the weekend.
In Shanghai, financial and consumer-related companies slid over policy tightening worries.
“The market opened lower mainly because many people expect the government may announce policy tightening either in the form of an interest rate hike, a hike of banks’ reserves requirement ratio or both as soon as tonight before the release of November’s (inflation data),“ said Wang Fan, an analyst at Donghai Securities. GF Securities was down 2.0%, Bank of China shed 0.3% and Zijin Mining Group fell 1.1%.
The Hong Kong market also was weighed by the China rate-hike concerns. Chinese property stocks were lower with China Overseas Land & Investment down 1.1% and China Resources Land off 0.7%.
Shangri-La Asia, which resumed trading earlier Friday, fell 4.8% in response to its 1-for-12 rights issue aimed at raising at least HK$4.69 billion for the repayment of bank loans. The hotel operator planned to sell no less than 240.7 million shares at an offer price of HK$19.50 each — a 5.8% discount to its pre-suspension price of HK$20.70 Wednesday.
“The discount is not steep enough for the rights issue to be attractive. I think the shares are likely to have its rights issue price as a good support for now,“ said Mark To, head of research at Wing Fung Financial.
China Metal Recycling, China’s largest metal recycling company, fell 8.4% to HK$8.09 but is still trading above HK$7.85, the level at which it raised HK$691 million via a top-up placement of 90 million shares. It will use part of the proceeds for existing and future acquisitions.
The Australia’s market, which surged to a four-week intraday high on Thursday after a robust employment report, traded in a tight range. Gains in financial plays were offsetting declines in miners; major banks rose between 0.5% and 1.4%, with QBE Insurance 2.4% higher, while miners such as BHP Billiton and Rio Tinto fell 0.4% and 0.5%, respectively.
The Tokyo market was down as “a cautious mood is spreading on speculation that China will carry out a rate hike during the weekend,“ said Yoshinori Nagano, senior strategist at Daiwa Asset Management.
JVC Kenwood Holdings slumped 4.4% after Japan’s Financial Services Agency ordered the firm to pay an approximately Y840 million fine for attempting to raise funds with falsified documents. JVC Kenwood said it is studying the details of the order. Exporters were also off, with Nikon down 3.2%, Sony off 1.0% and Advantest down 1.4%.
The Seoul market was choppy with losses in technology stocks and automakers weighing. Samsung Electronics was off 0.4%, LG Electronics fell 0.4% while Hyundai Motor was off 2.7%.
Among other markets, New Zealand’s NZX-50 shed 0.2%, Singapore’s Straits Times Index fell 0.8%, Malaysia’s KLCI fell 0.2%, Taiwan’s Taiex slid 0.6% and Indonesian shares slumped 1.4%. Philippine shares fell 1.8% and India’s Sensex was off 0.3%. Thailand’s market was closed for a public holiday.
The U.S. dollar traded in tight ranges against its major rivals after it lost some of its recent yield-luster following a fall in U.S. Treasury yields on Thursday. The euro reversed morning losses, but continued to face selling pressure amid lingering concerns over the euro-zone debt crisis.
Debt-stricken Ireland remained in the news, with Fitch Ratings downgrading the country’s credit rating by three notches on Thursday, citing the costs of restructuring the country’s banking system and loss of affordable access to market funding.
The single currency was fetching $1.3249 against the dollar, from $1.3243 late Thursday in New York, and Y110.91 against the yen, from Y110.82. The dollar was buying Y83.71, compared with Y83.69.
March Japanese government bond futures were up 0.34 at 139.46 points, buoyed by Thursday’s strong U.S. Treasurys’ gains. The 10-year cash bond yield was down 2.0 basis points at 1.240%. Spot gold was at $1,389.20 per troy ounce, up $2.20 from its New York close. January Nymex crude oil futures were up 15 cents at $88.52 per barrel on Globex.
source : onlinesumatra.com
source : onlinesumatra.com
