Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Money / Asia stocks up on tech, but recovery doubts dog
BackBack

Asia stocks up on tech, but recovery doubts dog

Asia stocks up on tech, but recovery doubts dog

Premium

Hong Kong: Asian stocks edged up slightly on Tuesday but struggled after a slide the previous day, while the yen held gains against higher-yielding currencies as investors doubt the speed of the global economy’s recovery.

A bleak US jobs report last week has prompted portfolio managers to reassess how quickly economies around the world can return to growth after the deep recession, spurring a pull-back in shares and currencies such as the Australian dollar.

“Last week’s US employment numbers were a hint that perhaps the market had become over-optimistic," said Takahiko Murai, general manager of equities at Nozomi Securities in Tokyo.

But regional markets have held up as some early news on quarterly earnings showed technology companies faring well.

Taiwan’s benchmark TAIEX index gained 1%, thanks to a 3.3% jump in shares of smartphone maker HTC after the company reported a better-than-expected second-quarter profit.

South Korea’s KOSPI edged up 0.4% after Samsung Electronics, the world’s top maker of memory chips and flat screen TVs, forecast second-quarter earnings well above forecasts, giving the broader market a boost. Samsung’s shares were up more than 8% in the past two days.

The yen held near a five-week peak against sterling and the New Zealand dollar as market players have cut holdings of currencies that have surged along with stocks. US crude oil prices were up 15 cents a barrel at $64.20 while gold prices hovered below $930 per ounce.

In Japan, investors have poured cash into government bonds on bets that the economy’s recovery from recession will be an extended one that could lead to a long stretch of deflation, pushing benchmark yields to a three-month low.

The MSCI index of Asia-Pacific shares outside Japan edged up 0.4%, with technology shares the biggest gainers.

Japan’s Nikkei share average dipped 0.3% as a stronger yen hit exporter shares, while the Shanghai Composite shed 0.7% after having reached a 13-month high the previous day.

China’s economic resilience and splurge of bank lending to boost growth has fuelled the 70 percent rally in the Shanghai Composite so far this year.

Market reaction was limited so far as hundreds of Uighur protesters clashed with Chinese anti-riot police in the capital of China’s Muslim region of Xinjiang on Tuesday, two days after ethnic unrest left 156 dead and more than 800 injured.

Indian markets steadied after a slide the previous day when the government’s big-spending budget for the coming fiscal year was viewed as disappointing.

The Sensex edged up 0.8% after a 6 percent tumble and the rupee inched higher.

But yields on five-year federal bonds jumped to 6.49%, taking the two-day rise to 25 basis points on worries about how the market will absorb the bigger issuance to pay for the spending that will boost the deficit to 6.8% of GDP.

The dollar was mostly steady and has held its ground in the past few weeks as riskier assets have stumbled, with the US currency favoured as a safe haven when market players strike a cautious footing.

The dollar was little changed at ¥95.36 while the euro drifted sideways at $1.3960.

The New Zealand dollar, which has surged along with its Australian counterpart despite a much weaker economy and record low interest rates, was steady at 60.60 yen after hitting a five-week low of ¥59.30 on Monday.

The Australian dollar, the biggest gainer among major currencies this year as investors crept back into higher-yielding, higher-risk assets, was steady at $0.7960 just before the Reserve Bank of Australia’s monthly policy meeting.

In government bonds, longer-term Japanese government bonds extended their winning streak that has pushed yields sharply lower.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 07 Jul 2009, 12:24 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App