k

Asian Markets Down With Notable Losses

 Tracking cues from Wall Street, where stocks declined on Friday following the U.S Securities and Exchange Commission slapping fraud charges on Goldman Sachs, Asian stock markets are trading notably lower on Monday. With reports of Goldman Sachs facing a potential backlash in Europe and other parts of the globe following the U.S. regulator's charges against the company, the mood has turned quite bearish in the Asian region.

The Australian market is down sharply with stocks cutting across several sectors reeling under selling pressure.

Energy, materials, financial and industrial stocks are among the prominent losers. Property trusts, utilities and consumer staples stocks are also mostly down in negative territory.

The benchmark S&P/ASX 200 index, which tumbled to around 4,914, is currently trading at 4,918, down 66.7 points or 1.3% from its previous close. The broader All Ordinaries index is down 65.3 points or 1.3% at 4,942.

Among bank stocks, ANZ Bank, Commonwealth Bank of Australia, National Australia Bank and Westpac Banking Corporation are trading lower by 0.9%-1.3%. Macquarie Group shares are trading lower by about 2.6%.

ANZ Banking Group Ltd has announced that it has completed the acquisition of The Royal Bank of Scotland's Taiwan businesses, and would operate them from Monday under a new Chinese name - Au Sheng Yin Hang. ANZ said the acquisition included the ABN AMRO Private Banking business in Taiwan.

Top miners BHP Billiton, Rio Tinto and Newcrest Mining are down 1.5%-1.8% from their previous closing prices. Among other stocks in the materials space, Bluescope Steel, Fortescue Metals and Orica are down with notable losses. Lihir Gold and Incitec Pivot are also trading weak.

Among energy stocks, Woodside Petroleum is down 0.8% and Santos is trading lower by 1.6%, while Oil Search and Origin Energy are down with marginal losses.

Leighton Holdings, Wesfarmers, WorleyParsons and Woolworths are down with notable losses.

Shares of UGL Limited are down 1.6% despite an announcement from the company that its rail division has secured new freight rolling stock and wagon orders with Queensland-based rail operator QR Ltd, valued at A$100 million. The orders include four C44ACi locomotives and 160 QHBH freight wagons for operation in the Hunter Valley, in NSW, and 200 VCB freight wagons for operation in Queensland's Bowen Basin.

In the currency market, the Australian dollar opened more than a cent lower as investors chose to tread cautiously after news of charges being laid against US bank Goldman Sachs. In early trades, the Aussie was quoting at US$0.9212-US$0.9216, down almost a percent from Friday's close of US$0.9303-US$0.9308. The Australian dollar is currently trading at 0.9209 to the U.S. dollar.

The Japanese market is down sharply with investors indulging in some heavy selling across the board. A stronger yen is also contributing to the decline in Tokyo.

The benchmark Nikkei 225 index plunged below the 11,000 mark for the first time since March 29, and was down 200.85 points or 1.81% at 10,901.33 at the end of the morning session.

Banking, automobile and construction stocks are mostly down in the red with notable losses. Electric power, gas, retail and pulp & paper stocks are trading mixed.

Sumitomo Trust & Banking is down as much as 4%. Sumitomo Mitsui Financial, Mizuho Trust & Banking, Mizuho Financial, Mitsubishi UFJ Financial, Shinsei Bank, Resona Holdings, Chiba Bank and Shizuoka Bank are also down with notable losses.

Shares of Toyota Motor Corp. declined following an announcement from the company on Friday that it will recall 740,000 Sienna minivans sold in the U.S. and Canada. Hino Motors, Nissan Motor, Isuzu Motors, Honda Motor, Suzuki Motor and Mitsubishi Motor are also trading lower.

Japan Tobacco, Nomura Holdings, Inpex Corp., Daiwa Securities, Mitsui, Dowa Holdings, Konica Minolta, Sumitomo Metal, Nippon Light Metals, Fujitsu, Heiwa Real Estate, Advantest and Aeon are all trading in negative territory with notable losses.

Shares of KDDI Corp. tumbled to a year-to-date low after the company said its group net profit likely sank 5% on the year to 212.5 billion yen for the year through March.

All Nippon Airways shares drifted lower as many of Europe's busiest airports remained closed and many flights have been canceled due to clouds of ash from a volcanic eruption in Iceland.

In the currency market, the U.S. dollar traded in the upper 91 yen zone in early deals in Tokyo, slightly down from Friday's closing levels. The yen is currently trading at 92.08 to the U.S. dollar.

The South Korean market is trading in the red with investors tracking cues from Wall Street and pressing sales in banking, technology and oil stocks.

The benchmark KOSPI index, which edged up to around 1,720 after tumbling to 1,708 at the start, is currently down 23.4 points or 1.36% at 1,711.

Korea Exchange Bank, Woori Finance, Shinhan Financial and KB Financial are trading lower by 2.4%-2.8% from their previous closing prices.

Among technology stocks, heavyweight Samsung Electronics is down 1.6%, Hynix Semiconductor is trading lower by about 1.5% and LG Electronics is down with a loss of 1.2%, while LG Display LCD is trading lower by 2.5%.

In the shipping space, STX Pan Ocean and Daewoo Shipbuilding are down with modest losses, while Hyundai Heavy Industries and Samsung Heavy Industries are up in positive territory with marginal gains.

Among automobile stocks, Kia Motor and Hyundai Motor are up with modest gains, while Ssangyong Motor is down by about 1%.

Oil stocks SK Holdings and S-Oil are down 1.7% and 1% respectively. KEPCO is down with a loss of about 1.6%. Steel, airlines and telecommunications stocks are also trading weak.

Among other markets in the Asia-Pacific region, Shanghai, Hong Kong, Indonesia, Singapore, New Zealand and Taiwan are down with their key indices losing between 1.2%-1.8%. The Malaysian market's KLSE Composite index is down 0.5% from its previous close. Markets across the region closed firmly lower on Friday.

On Wall Street, stocks declined sharply on Friday as the Securities and Exchange Commission brought fraud charges against Goldman Sachs, whipping up a storm of uncertainty in the markets. The major averages all closed sharply lower on the day, snapping a six-session winning streak.

The SEC charged Goldman Sachs and one of its vice presidents with fraud, sending markets into a tailspin. Goldman stands accused of creating a collateralized debt obligation designed to fail while also shorting the instrument, resulting in a substantial gain for the firm.

The Dow ended lower by 126 points or 1.1% at 11,018.6, the Nasdaq declined 34.4 points or 1.4% to 2,481.3 and the S&P 500 tumbled by 19.5 points or 1.6% to 1,192.1.

Major European markets closed markedly lower on Friday. The U.K.'s FTSE 100 index lost 1.4%, while the German DAX index and the French CAC 40 index declined by 1.8% and 1.9% respectively.

Oil prices fell sharply on Friday with an unexpected decline in U.S. consumer sentiment and the fraud charges slapped on Goldman Sachs dampening the mood. Light sweet crude for May delivery settled at US$83.24 a barrel, down US$2.27 on the session.

No comments:

Post a Comment