Asia mar­kets hit by US rate talk, Sam­sung losses con­tinue

The Myanmar Times - - International Business -

ASIAN mar­kets re­treated yes­ter­day on fears about an ex­pected US in­ter­est rate rise this year, while the pound re­cov­ered after suf­fer­ing a se­ries of losses fu­elled by wor­ries over Bri­tain’s EU exit.

Sam­sung Elec­tron­ics suf­fered an­other bout of sell­ing after an­nounc­ing it would scrap the trou­bled flag­ship Galaxy Note 7 over an ex­plod­ing bat­tery cri­sis.

Shares staged a par­tial re­cov­ery to end around 10 per­cent down so far this week.

The re­gional re­treat fol­lows sharp falls on Wall Street, where in­vestors were spooked by be­low-fore­cast earn­ings from alu­minium-maker Alcoa.

Mar­kets are keenly await­ing the re­lease of min­utes from the Fed­eral Re­serve Septem­ber pol­icy meet­ing, hop­ing for a clue about the bank’s plans for rais­ing bor­row­ing costs.

A string of re­cent up­beat data on the world’s top econ­omy, and in­creas­ingly pos­i­tive com­ments from Fed boss Janet Yellen, have fu­elled spec­u­la­tion rates will rise be­fore the end of the year.

Tokyo ended 1.1pc lower, while Hong Kong – where mone­tary pol­icy is tied to that of the United States – was off 0.6pc. Shang­hai slipped 0.2pc, Sydney was off 0.1pc and Sin­ga­pore shed 1.1pc.

Bangkok dived as much as 6.8pc yes­ter­day. The in­dex has lost al­most 7pc this week on wor­ries about the health of King Bhu­mi­bol Adulyadej with many fear­ing eco­nomic in­sta­bil­ity after his death.

In Seoul, the KOSPI edged up 0.1pc as mar­ket heavy­weight Sam­sung re­cov­ered from a 2pc early loss to end just 0.7pc lower.

Sam­sung yes­ter­day slashed its third-quar­ter profit es­ti­mate by 33.3pc, cit­ing fall­out from the re­call night­mare sur­round­ing its scrapped Galaxy Note 7 smart­phone.

Sam­sung filed a re­vised op­er­at­ing profit es­ti­mate of 5.2 tril­lion won (US$4.6 bil­lion), com­pared to the 7.8 tril­lion won it an­nounced just last week. The com­pany also slashed its third-quar­ter sales es­ti­mate by 4pc to 47 tril­lion won from 49 tril­lion won ear­lier. –

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