Asian stocks slip as fears from US woes return
Saturday, August 25, 2007
ASIAN stocks closed mostly lower yesterday as investors locked in recent gains, with concerns re-emerging over the US sub-prime mortgage sector.
Regional trade was mostly subdued as players took a wait-and-see approach to further developments in the United States, in particular the release of US new home sales data.
The Chinese market provided a silver lining, however, as the benchmark Shanghai composite hit another record high on strong corporate earnings growth.
Global markets have taken a beating this month on fears that damage from default US sub-prime mortgages loans to customers with patchy credit histories will drain the cash flow to the broader economy.
Worries resurfaced on Thursday after the head of Countrywide Financial, the biggest mortgage lender in the US, was quoted as saying the sub-prime problems would tip the world's largest economy into recession.
Asia's largest bourse in Tokyo fell 0.41 per cent, although the benchmark Nikkei-225 index was still well above the key 16,000-point level which it regained in Thursday's strong rally.
Hong Kong shares were also soft, with the Hang Seng Index closing down 0.2 per cent.
South Korea's Kospi index ended 0.5 per cent lower, but trimmed earlier losses with buying by retail investors offsetting continued selling by foreigners.
Australia's S&P/ASX 200 fell 1.2 per cent, but the index marked the strongest weekly rally in 32 years in the past week as many investors remained uneasy.
Wellington was down 0.90 per cent, Taipei was off 0.49 per cent, Manila was down 0.70 per cent, Kuala Lumpur slid 0.80 per cent, while Bangkok was off 0.10 per cent.
Singapore was flat while while Shanghai closed 1.49 per cent higher and Jakarta was up 1.2 per cent, on bargain hunting. Mumbai rose 1.84 per cent as fears of early elections eased.
Wall St gets a lift
Wall Street stocks got a lift from an unexpected corner of the economy yesterday, as a government survey revealed a surprise rebound in new home sales last month.
Shares had shown scant movement ahead of the report's release, but picked up momentum as investors digested a surprise 2.8 per cent rise in July new home sales. A separate snapshot on durable goods orders also supported the gains.
The Dow Jones Industrial Average was up 30.65 points (0.23 per cent) at 13,266.53 at 1518 GMT after opening slightly lower.
The Nasdaq composite had risen 3.16 points (0.12 per cent) to 2,544.86, while the Standard & Poor's 500 broad-market index was up 2.77 points (0.19 per cent) at 1,465.27.
Analysts said the stock gains would likely be limited. Investors are also still trying to get a grip on the depth of the credit crisis buffeting the banking sector.
European stocks mixed
Europe's main stock markets were mixed yesterday, with the FTSE 100 index closing up 0.37 per cent at 6,220.10 points.
In Frankfurt the DAX 30 lost 0.06 per cent to 7,507.27 points and the Paris CAC 40 rose 0.83 per cent to 5,569.38 points.AFP
Regional trade was mostly subdued as players took a wait-and-see approach to further developments in the United States, in particular the release of US new home sales data.
The Chinese market provided a silver lining, however, as the benchmark Shanghai composite hit another record high on strong corporate earnings growth.
Global markets have taken a beating this month on fears that damage from default US sub-prime mortgages loans to customers with patchy credit histories will drain the cash flow to the broader economy.
Worries resurfaced on Thursday after the head of Countrywide Financial, the biggest mortgage lender in the US, was quoted as saying the sub-prime problems would tip the world's largest economy into recession.
Asia's largest bourse in Tokyo fell 0.41 per cent, although the benchmark Nikkei-225 index was still well above the key 16,000-point level which it regained in Thursday's strong rally.
Hong Kong shares were also soft, with the Hang Seng Index closing down 0.2 per cent.
South Korea's Kospi index ended 0.5 per cent lower, but trimmed earlier losses with buying by retail investors offsetting continued selling by foreigners.
Australia's S&P/ASX 200 fell 1.2 per cent, but the index marked the strongest weekly rally in 32 years in the past week as many investors remained uneasy.
Wellington was down 0.90 per cent, Taipei was off 0.49 per cent, Manila was down 0.70 per cent, Kuala Lumpur slid 0.80 per cent, while Bangkok was off 0.10 per cent.
Singapore was flat while while Shanghai closed 1.49 per cent higher and Jakarta was up 1.2 per cent, on bargain hunting. Mumbai rose 1.84 per cent as fears of early elections eased.
Wall St gets a lift
Wall Street stocks got a lift from an unexpected corner of the economy yesterday, as a government survey revealed a surprise rebound in new home sales last month.
Shares had shown scant movement ahead of the report's release, but picked up momentum as investors digested a surprise 2.8 per cent rise in July new home sales. A separate snapshot on durable goods orders also supported the gains.
The Dow Jones Industrial Average was up 30.65 points (0.23 per cent) at 13,266.53 at 1518 GMT after opening slightly lower.
The Nasdaq composite had risen 3.16 points (0.12 per cent) to 2,544.86, while the Standard & Poor's 500 broad-market index was up 2.77 points (0.19 per cent) at 1,465.27.
Analysts said the stock gains would likely be limited. Investors are also still trying to get a grip on the depth of the credit crisis buffeting the banking sector.
European stocks mixed
Europe's main stock markets were mixed yesterday, with the FTSE 100 index closing up 0.37 per cent at 6,220.10 points.
In Frankfurt the DAX 30 lost 0.06 per cent to 7,507.27 points and the Paris CAC 40 rose 0.83 per cent to 5,569.38 points.AFP
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