Wednesday woes continues to whack Asian Markets

Nikkei, NZX 50, Sensex, Hang Seng finish lower while Sydney, Seoul, Shanghai ended higher
Stock markets in Asian region witnessed a mixed trend on Wednesday, 18 November 2009, as investors took some profits at higher levels amid some doubts about the pace of economic recovery. Investors awaited a raft of U.S economic data such as CPI and housing starts for more clues about the health of the world's largest economy.
On Wall Street, stocks closed higher Tuesday, again touching year highs, after having the flat line most of the day. The market digested a mix of builder confidence figures, wholesale price data, factory numbers and retail earnings. The Dow Jones Industrial Average gained 30 points, or 0.3%, to 10,437. The S&P 500 advanced 1 point, or 0.1%, to 1110, as the Nasdaq added 6 points to 2204.
In the commodity market, crude oil advanced for a third day in New York after an industry report showed a decline in crude stockpiles in the U.S., the largest energy consumer.
Crude oil for December delivery rose as much as 71 cents, or 0.9 percent, to $79.85 a barrel in electronic trading on the New York Mercantile Exchange. It was at $79.71 at 4:24 p.m. in Singapore. Yesterday, the contract rose 24 cents to settle at $79.14.
Brent crude oil for January settlement rose as much as 73 cents, or 0.9%, to $79.70 a barrel on the London-based ICE Futures Europe exchange. It was at $79.53 a barrel at 4:25 p.m. Singapore time. The contract climbed 21 cents, or 0.3%, to $78.97 a barrel yesterday.
Gold climbed to a record in London and New York as investors bought the precious metal as an alternative to a weaker dollar. Silver and platinum rose to the highest prices in at least 14 months. Immediate-delivery bullion gained as much as $6.42, or 0.6 percent, to $1,147.72 an ounce in London and was at $1,146.72 by 9:41 a.m. local time. December gold futures climbed as much as 0.8 percent to $1,148.10 an ounce on the New York Mercantile Exchange’s Comex division and were last at $1,146.80.
In the currency market, the U.S. dollar edged lower against other major currencies on Wednesday, as European shares posted gains for the fifth time in six sessions.
The Japanese yen was quoted at 89.18 per US dollar on Wednesday.
The Hong Kong dollar was trading at HK$ 7.7500 against the dollar. Actually the Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar. The Hong Kong Monetary Authority (HKMA), on Wednesday afternoon injected HK$5.425 billion ($700 million) into the money market to stem an appreciating Hong Kong dollar and keep it within its fixed trading band.
In Sydney trade, the Australian dollar fell further from 15-month highs on Wednesday as investors seized on recent weakness to take profits, but few doubted it was still poised to head higher aided by rising local interest rates. At the local close, the dollar was trading at $US0.9292, down from $US0.9336 seen here yesterday. It had hit a 15-month high of $US0.9470 on 16 November 2009.
In Wellington trade, the New Zealand dollar settled into a fairly narrow range in quiet trading today. By 5pm it was at US74.34c from US74.49c at 8am and US74.69c at 5pm yesterday. It has retreated from US75.20c, a three week high, yesterday due to strength in the US dollar.
The South Korean won closed at 1,153 won to the greenback, up 1.1 won from Tuesday's close and the highest finish since 23 September 2008, as global equity rallies stoked investor appetite for risky assets.
The Taiwan dollar was little changed against the greenback. The Taiwan dollar was trading slightly higher against the US dollar at NT$ 32.1190, 0.0010 up from Tuesday’s close of NT$32.1200.
In the Asian equity markets, most of the regional markets finish lower as capital and share-sale concerns dragged banks and property companies’ lower, overshadowing advances among telecommunications companies.
In Japan, shares market dragged down on rekindled worries about nation’s deflation, corporate equity finance plans, and growing uncertainty about government economic policy. Investors remained circumspect as domestic issues such as the rise in corporate share issuance, a stronger yen and growing concern about deflation, kept market activity apprehensive. Investors opted to lock in early gains made as profit taking became pervasive.
At closing bell, the Nikkei 225 Stock Average index was at 9,676.8, lost 53.13 points or 0.55% from its previous close, while the broader Topix of all First Section issues on the Tokyo Stock Exchange fell 6.94 points, or 0.81%, to 850.06.
In Mainland China, share market endured gains for fourth day in row, boosted by a positive lead from overseas markets and continued strength in resource and energy shares, although most of morning gains trimmed on worries recent rally turned stocks overvalued as compared earning.
The Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, surged 20.34 points, or 0.62%, to 3,303.23, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, earned 0.05%, to 3,630.23. The Shenzhen Component Index on the smaller Shenzhen Stock Exchange edged down 0.21% or 28.73 points and stood at 13,642.35 points.
In Hong Kong, the stock market reversed early morning gains sparked by positive Wall Street overnight on profit taking in major heavyweights on concerns that the recent rally not be sustainable. Most of market participant banked profit after the benchmark hitting the 23,000 level for a second day.
The Hang Seng Index stumbled 73.82 points, or 0.32%, to 22,840.33, meanwhile the Hang Seng China Enterprise, which tracks the overall performance of 43 mainland Chinese state-owned enterprises on the Hong Kong Stock Exchange, retracted 44.04 points, or 0.32%, to 13,688.01.
In Australia, the share market trimmed most of morning gains before finishing up on the back of support from properties and banks and financials stocks. Materials and resources lost a lot of steam in afternoon, while gold miners benefited as precious metal increased its value to record high. At closing bell, the benchmark S&P/ASX200 index swelled 9.60 points, or 0.2%, to 4,739 after touching a high of 4780.4, meanwhile the broader All Ordinaries jumped 9.40 points or 0.2%, to 4,759.60.
On the economic front, the Australian Bureau of Statistics said that merchandise imports value increased in original terms in October, rising A$329 million or 2% to A$17.96 billion compared to a revised A$17.63 billion in the previous month. On a balance of payments basis, preliminary data showed goods imports dropped by a seasonally adjusted 2% to A$16.89 billion in October from A$17.17 billion in September.
The Australian Bureau of Statistics wage price index increased by 0.7% in the quarter ended September 2009. The annual wage growth rate ease to 3.6 % in the year to September from 3.8 %, the slowest pace in at least two years.
The Leading Economic Index, which measure published by Westpac Bank and the Melbourne Institute, economic activity in the coming three to nine months, rose 0.9% in September to 255.1, On an annualized basis, leading index grew 5.8% in September, compared to 3.8% in August. The Coincident Index, which measures current activity, rose 0.2% in September to reach 239.2 points. On an annualized basis, it expanded at rate of 0.4% compared to an August reading of minus 0.1%.
In New Zealand, stock market ended up by a slim margin. The share market slipped just a little today as buyers were happy to wait for new listings, further news of which is seen as imminent. The NZX50 dipped down 0.10% or 3.11 points to 3128.40. The NZX 15 inched forward 0.06% or 3.21 points to close at 5687.53.
In South Korea, shares closed higher as foreign investors snapped up tech and memory chipmakers on a brisk sales outlook. The benchmark Korea Composite Stock Price Index (KOSPI) advanced 17.99 points to 1,603.97, the highest close since 29 October 2009.
In Singapore, stocks market dragged down by profit booking in banks, properties and major blue chips stocks on tracking weak Asian and European bourses. Banks and financials finished in diverse terrain on profit booking following recent strong rally. Manufacturing and multi industries dropped on concern recent rally were overdone and as metal and oil prices fell in today. The blue chip Straits Times Index was ended session at 2,745.04, slid 19.91 points or 0.72%.
On the economic front, the International Enterprise Singapore said Singapore's non-oil domestic exports or NODX dropped 6.1% year-on-year in October, slower than the downwardly revised 7.3% decrease in the previous month. On a monthly basis, NODX plummeted a seasonally adjusted 13%, in contrast to the 2.9% increase in the previous month.
In Taiwan, stock market flip-flop yesterday’s losses with gains as Chinatrust Financial gained following its decision to buy a stake of AIG’s Taiwan unit from China Strategic. The benchmark Taiex share index once again witness a flip-flop on Wednesday by inching higher towards its near 17-month high, finishing higher by 33.48 points or 0.43% in a day, closing at 7766.69.
In Philippines, the stock market closed marginally higher on strong leads from Wall Street, with mining & oil index coming back into play, recording awesome gains driven by Philex Mining Corporation, which jumped almost 9%. At the concluding bell, the benchmark index PSEi ascended 0.67% or 20.52 points to 3,052.61, while the All Shares index mounted 0.37% or 7.21 points to 1,906.28.
In India, the key benchmark indices hit fresh day's low in late trade despite higher European stocks. Investors took home cash after recent spurt in indices. The market recovered soon after an initial slide. The Sensex and the 50-unit S&P CNX Nifty pared gains after hitting one-month highs in mid-morning trade.
The market once again slipped into the red later. The market cut losses in early afternoon trade after Finance Minster Pranab Mukherjee said the current higher capital inflows are not a matter of concern. The market moved between positive and negative zone later. Market hit fresh day's low in late trade.
The BSE 30-share Sensex was down 51.87 points or 0.30% to 16998.78. At the day's high of 17,098.79, the Sensex rose 48.14 points in mid-morning trade, its highest since 21 October 2009. The Sensex fell 92.24 points at the day's low of 16958.41 in late trade. The S&P CNX Nifty was down 7.55 points or 0.15% to 5054.70. It hit a high of 5079.30; it’s highest since 21 October 2009.
Elsewhere, Malaysia's Kula Lumpur Composite index finished lower at 1275.10 while stock markets in Indonesia’s Jakarta Composite index added 5.11 points ending the day higher at 2484.23.
In the other hand, European shares gained on Wednesday, rising for the fifth time in six sessions, with companies leveraged to an improving economy performing well. On a regional level, the U.K. FTSE 100 index up 0.2% at 5,357, the German DAX 30 index rose 0.5% to 5,808 and the French CAC-40 index advanced 0.5% to 3,848.95.