Asia stocks close mixed on US economy jitters
Wednesday, August 29, 2007
ASIAN stocks closed mixed yesterday with investors rattled by falls on Wall Street overnight, after the weakest United States existing home sales data in five years was released.
While the data was within expectations, they were considered a letdown after last week's surprisingly strong new home sales data came out.
This disappointment again raised the prospect that the shake-out resulting from the US subprime mortgage crisis, loans made to risky borrowers, is still far from complete.
Benchmarks that did close higher found support from local issues, offsetting fears the subprime issue in the US could result in a credit squeeze and impact on growth in the broader international economy.
Such was the case in Seoul, up 1.5 per cent on expectations of higher local industrial output. Manila rose 1.4 per cent with investors playing catch-up after its market reopened from Monday's holiday.
Shanghai continued marching to its own tune with a 0.87 per cent advance into record territory, Mumbai was up 0.52 per cent on bargain hunting and Wellington gained 0.41 per cent on solid profit results.
Tokyo, Taipei and Kuala Lumpur closed flat.
But elsewhere, Sydney was off 0.20 per cent, Jakarta fell 0.70 per cent, Bangkok was down 0.37 per cent, Hong Kong fell 0.91 per cent and Singapore was the worst on the day with a 1.34 per cent slide.
In Tokyo, Japanese share prices ended marginally down as the market took a breather to look at problems in the US housing market and a higher yen, which hurts exporters.
But dealers said the Tokyo market was able to contain wider losses despite an overnight fall on Wall Street as investors bought on the dips.
The Nikkei-225 index closed down 13.90 points at 16,287.49. Volume traded was 1.33 billion shares, down from 1.47 billion shares on Monday.
The market is in a "typical wait-and-see mood," said Hideyuki Suzuki, a strategist at SBI Securities.
"Fears arising from the credit market and uncertainties about its impact on the US economy have not cleared yet," Suzuki said. "Investors are waiting for more clues to find out the impact of the mortgage market problem."
In Singapore, share prices closed 1.34 per cent lower after concerns over the US economy and its troubled housing market sparked falls on Wall Street overnight.
The Straits Times Index fell 45.44 points to 3,343.00 on volume of 2.28 billion shares worth S$1.77 billion ($1.75 billion).
Wall Street down
In New York, US stocks fell on Monday after data showed the number of unsold homes reached its highest level in more than 15 years in July, adding to concerns about the housing market and consumer spending.
The Dow Jones industrial average was down 56.74 points, or 0.42 per cent, at 13,322.13. The Standard & Poor's 500 Index was down 12.58 points, or 0.85 per cent, at 1,466.79. The Nasdaq Composite Index was down 15.44 points, or 0.60 per cent, at 2,561.25.
Oil steadies above US$72, refinery woes support
In London, oil prices held around US$72 yesterday, with US refinery shutdowns reviving supply concerns just as peak summer driving demand draws to a close. US crude gained 18 cents to US$72.14 a barrel by 1126 GMT, rising for the fourth trading session. London Brent rose 3 US cents to US$70.98 a barrel.Agencies
While the data was within expectations, they were considered a letdown after last week's surprisingly strong new home sales data came out.
This disappointment again raised the prospect that the shake-out resulting from the US subprime mortgage crisis, loans made to risky borrowers, is still far from complete.
Benchmarks that did close higher found support from local issues, offsetting fears the subprime issue in the US could result in a credit squeeze and impact on growth in the broader international economy.
Such was the case in Seoul, up 1.5 per cent on expectations of higher local industrial output. Manila rose 1.4 per cent with investors playing catch-up after its market reopened from Monday's holiday.
Shanghai continued marching to its own tune with a 0.87 per cent advance into record territory, Mumbai was up 0.52 per cent on bargain hunting and Wellington gained 0.41 per cent on solid profit results.
Tokyo, Taipei and Kuala Lumpur closed flat.
But elsewhere, Sydney was off 0.20 per cent, Jakarta fell 0.70 per cent, Bangkok was down 0.37 per cent, Hong Kong fell 0.91 per cent and Singapore was the worst on the day with a 1.34 per cent slide.
In Tokyo, Japanese share prices ended marginally down as the market took a breather to look at problems in the US housing market and a higher yen, which hurts exporters.
But dealers said the Tokyo market was able to contain wider losses despite an overnight fall on Wall Street as investors bought on the dips.
The Nikkei-225 index closed down 13.90 points at 16,287.49. Volume traded was 1.33 billion shares, down from 1.47 billion shares on Monday.
The market is in a "typical wait-and-see mood," said Hideyuki Suzuki, a strategist at SBI Securities.
"Fears arising from the credit market and uncertainties about its impact on the US economy have not cleared yet," Suzuki said. "Investors are waiting for more clues to find out the impact of the mortgage market problem."
In Singapore, share prices closed 1.34 per cent lower after concerns over the US economy and its troubled housing market sparked falls on Wall Street overnight.
The Straits Times Index fell 45.44 points to 3,343.00 on volume of 2.28 billion shares worth S$1.77 billion ($1.75 billion).
Wall Street down
In New York, US stocks fell on Monday after data showed the number of unsold homes reached its highest level in more than 15 years in July, adding to concerns about the housing market and consumer spending.
The Dow Jones industrial average was down 56.74 points, or 0.42 per cent, at 13,322.13. The Standard & Poor's 500 Index was down 12.58 points, or 0.85 per cent, at 1,466.79. The Nasdaq Composite Index was down 15.44 points, or 0.60 per cent, at 2,561.25.
Oil steadies above US$72, refinery woes support
In London, oil prices held around US$72 yesterday, with US refinery shutdowns reviving supply concerns just as peak summer driving demand draws to a close. US crude gained 18 cents to US$72.14 a barrel by 1126 GMT, rising for the fourth trading session. London Brent rose 3 US cents to US$70.98 a barrel.Agencies
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