Asian stocks fol­low Wall St. higher, but euro beats retreat

The China Post - - MARKETS -

Asian mar­kets on Tues­day fol­lowed a pos­i­tive lead from Wall Street while the euro re­treated as in­vestors kept a cau­tious eye on Europe, where Greece is strug­gling to pay its debts.

Tokyo jumped 1.40 per­cent, or 274.60 points, to fin­ish at 19,909.09 and Shang­hai ral­lied 1.82 per­cent, or 76.55 points, to 4,293.62. Hong Kong surged 2.79 per­cent, or 755.56 points, to 27,850.49.

Syd­ney gained 0.67 per­cent, or 39.2 points, to 5,872.3 but Seoul was marginally lower, edg­ing down 1.92 points to 2,144.79.

The gains reversed some of the losses suf­fered on Mon­day, partly on fears about Greece’s fu­ture in the eu­ro­zone as Athens tries to se­cure bil­lions of eu­ros in bailout cash to pay its enor­mous debts.

With cred­i­tors re­fus­ing to ex­tend a re­pay­ment dead­line while also hag­gling over its bailout re­forms, the Greek gov­ern­ment has or­dered all public agen­cies to hand over their fi­nan­cial re­serves.

“With this act, the gov­ern­ment hopes to cover ur­gent needs of the state amount­ing to three bil­lion eu­ros for the next 15 days,” said a de­cree, which still needs adop­tion by the par­lia­ment.

The euro fell in for­eign ex­change mar­kets Tues­day, buy­ing US$1.0677 and 127.74 yen against US$1.0741 and 128.05 yen on Wall Street.

Hong Kong and Shang­hai re­sumed their up­ward trend fol­low­ing sharp losses Mon­day, af­ter China’s stock mar­ket reg­u­la­tor tight­ened rules on trad­ing with bor­rowed money and in­creased the sup­ply of shares for short-sell­ing.

Hong Kong stocks have yo-yoed as in­vestors con­tinue to eval­u­ate reg­u­la­tory changes for stock in­vestors as well as mon­e­tary loos­en­ing mea­sures, both an­nounced by main­land Chi­nese au­thor­i­ties over the week­end. Main­land in­vestors seek­ing at­trac­tively priced stocks have been pil­ing into the Hong Kong mar­ket, which has un­der­per­formed com­pared with Shang­hai over the past year.

Con­fi­dence was buoyed by Sun­day’s cut by the Peo­ple’s Bank of China in the amount of cash which banks must hold in re­serve. The move was aimed at help­ing kick-start the econ­omy, which grew in Jan­uary-March at its slow­est quar­terly pace for six years.

Separately, the coun­try’s stock reg­u­la­tor said Satur­day that new mea­sures to tighten up on some mar­gin fi­nanc­ing and en­cour­age short sell­ing were in­tended to pre­vent the mar­ket’s devel­op­ment and not meant as a crack­down.

The next in­di­ca­tor on the state of China’s econ­omy comes with HSBC’s pre­lim­i­nary in­dex of man­u­fac­tur­ing ac­tiv­ity on Thurs­day.

Hong Kong’s Hang Seng jumped 2.1 per­cent to 27,666.06 and the Shang­hai Com­pos­ite In­dex in main­land China added 0.9 per­cent to 4,253.55. Ja­pan’s Nikkei 225 gained 1 per­cent to 19,837.80 while South Korea’s Kospi was down 0.2 per­cent at 2,2141.99. Australia’s S&P/ASX 200 climbed 0.6 per­cent to 5,864.90,

Gold fetched US$ 1,198.35 US$1,200.30 late Mon­day.

In other mar­kets:

— Mumbai


fell 0.75 per­cent, or 210.17 points, to end at 27,676.04.

Sun Phar­ma­ceu­ti­cal In­dus­tries fell 8.86 per­cent to 951.60 ru­pees, while miner Sesa Ster­lite rose 1.59 per­cent to 211.30 ru­pees.

— Jakarta closed up 1.11 per­cent, or 59.77 points, at 5,460.57.

Palm oil pro­ducer As­tra Agro Les­tari rose 2.30 per­cent to 23,350 ru­piah, while Hero Su­per­mar­ket 5.50 per­cent to 1,890 ru­piah.

— Bangkok rose 0.58 per­cent, or 9.03 points, to close at 1,569.35.

Siam Com­mer­cial Bank gained 3.81 per­cent to 177.00 baht, while Siam Ce­ment rose 2.29 per­cent to 536.00 baht.

— Kuala Lumpur’s main in­dex rose 0.76 per­cent, or 14.14 points, close the day at 1,862.80.

Gam­ing and re­sorts com­pany Gent­ing gained 5.38 per­cent to 9.2 ring­git, while Petronas Chem­i­cals rose 4.86 per­cent to 6.04 ring­git. IOI Corp slipped 1.56 per­cent lower, closing on 4.42 ring­git.

— Sin­ga­pore rose 0.15 per­cent, or 5.36 points, to close at 3,508.61.

Prop­erty de­vel­oper Cap­i­taland climbed 0.28 per­cent to SG$3.65 and oil rig maker Kep­pel Corp gained 1.19 per­cent to SG$9.36.

— Welling­ton eased 0.12 per­cent, or 6.76 points, to 5,817.52.

Spark was down 1.72 per­cent at NZ$2.85 and Fletcher Build­ing was un­changed at NZ$8.25.

— Manila lost 0.23 per­cent, points, to end at 7,846.94.

BDO Uni­bank slipped 0.51 per­cent to 116.40 pe­sos but Uni­ver­sal Robina rose 0.92 per­cent to 218.60 pe­sos.

or 18.33

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