Sun, Sep 06, 2009 page10

• Asian stocks decline on global growth concerns

  • BLOOMBERG AND AFP
  • • 
    • 
    • 

  Asian stocks fell for the third time in five weeks as the US unemployment rate reached a 26-year high, sparking concern a global recovery may falter, while a stronger yen dragged down Japanese exporters of autos and electronics.

  Toyota Motor Corp, a carmaker that gets about 37 percent of revenue in North America, and Canon Inc, a camera maker that does 28 percent of its business in the Americas, dropped more than 4 percent in Tokyo after the US employment report. BHP Billiton Ltd, the world’s largest mining company, declined 3.3 percent in Sydney after copper fell. Seven & I Holdings Co, the world’s largest operator of convenience stores, slumped 6.6 percent in Tokyo after cutting its full-year profit forecast.

  “The economic data has caught up to where the market was,” said Stephen Halmarick, Sydney-based head of investment-markets research at Colonial First State, which holds about US$115 billion. “For the equity market to really move on again, you need the next stage to take place, which is a more sustained recovery and better profitability.”

  

  The MSCI Asia-Pacific Index fell 1.0 percent to 112.81 in the past five days, its sixth week of alternating between gains and losses. The gauge has surged 60 percent from a more than five-year low on March 9 on speculation the global economy was recovering. That’s swollen the average price of stocks in the index to 1.5 times book value, close to a 12-month high.

  TOKYO

  The Nikkei 225 Stock Average declined 3.3 percent this week in Tokyo to its lowest since July on concern a stronger yen will hurt the value of overseas sales at Japanese companies when repatriated into their home currency. The yen rose to a seven-week high against the dollar and the euro this week.

  “People are cautious against being too optimistic about the economic recovery,” said Charles Lee, a trader with Eugene Investment & Futures Co in Seoul.

  SHANGHAI

  China’s Shanghai Composite Index closed little changed this week after recovering most of a 6.7 percent drop on Aug. 31 amid concern the government will tighten monetary policy to avert asset bubbles.

  TAIPEI

  Taiwanese share prices are expected to gain in the week ahead on hopes that high-tech firms will report improving sales data for last month on a recovery in global demand, dealers said on Friday.

  Investors here are also upbeat about the performance of Wall Street, which appears to be stabilizing after recent corrections, they said.

  The TAIEX is expected to challenge 7,300 points next week on institutional buying, while it may see support at around 6,900 points, dealers said.

  For the week to Friday, the weighted index rose 343.27 points, or 5.04 percent, to 7,153.13 after a 2.33 percent increase a week earlier. Average turnover stood at NT$125.83 billion (US$3.82 billion), compared with NT$89.32 billion a week ago.

  “Judging from the expanded turnover, I think many investors are willing to trade. It is positive,” Concord Securities Co (康和證券) analyst Allen Lin said.

  “Optimism towards electronic firms’ sales may add momentum to the market,” Lin said.

  Lin said foreign institutional investors may continue to buy as they have just begun to rebuild their portfolios after recent adjustments.

  Taiwan International Securities (金鼎證券) analyst Arch Shih (施博元) said he expected financials to continue a rebound following recent selling amid fears the signing of a memorandum of understanding to boost cross strait banking would be delayed.
• Most Popular

  • 1

    Actress Barbie Hsu dies of pneumonia at 48

  • 2

    CDC advises people to get vaccinated against flu

  • 3

    Late derby drama keeps Inter in title race

  • 4

    Marines to protect Songshan airport

  • 5

    US lawmakers introduce resolution to annul ‘one China’