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Asian Market recoups yesterday's losses

2009-03-01T03:26:00.001+05:30

14 Jan 2009 | 16:13 Asian Market recoups yesterday's losses
Stock markets in the Asian region closed higher on Wednesday 14 January 2009, despite the mixed cues overnight from Wall Street. On Wall Street, the Dow fell for the fifth straight day as investors fretted over what many expect will be a gloomy earnings season, overshadowing a boost in financials on bets US authorities will take toxic assets off banks' balance sheets.

The Dow Jones industrial average was down 25.41 points, or 0.30 percent, at 8,448.56. The Standard & Poor's 500 Index rose 1.53 points, or 0.18 percent, to 871.79. The Nasdaq Composite Index was up 7.67 points, or 0.50 percent, at 1,546.46.

However, investors remained cautious as the corporate earnings season gets underway this week.

The Japanese market broke its three-day losing streak by ending the session higher, while the Taiwan market pared early gains and closed lower. The markets in Hong Kong, Singapore and Australia recouped yesterday losses, while the markets in Philippines and Indonesia closed lower.

In the commodity market, crude oil rose for a second day in New York after OPEC leaders said they might deepen output cuts to bolster prices. Oil ministers from the Organization of Petroleum Exporting Countries agreed in Oran, Algeria, to cut supply by 9% to 24.845 million barrels a day starting 1 January 2009. Crude oil for February delivery rose as much as $1.41, or 3.73%, to $39.19 at 8:55 a.m. London time. Yesterday, futures rose 0.5%, recovering from a five-day 23% decline.

Brent crude oil for February settlement gained as much as 34 cents, or 0.76%, to $45.17 a barrel on London's ICE Futures Europe exchange. It rose 4.5% to settle at $44.83 a barrel yesterday. The contract expires tomorrow. The more active March future was at $47.50 a barrel, up 6 cents, at 12:15 p.m. Singapore time.

In the currency market, the Japanese yen was quoted at 88.26 against the US dollar today, up from Tuesday's close of 89.37-38 yen in Tokyo.

The Hong Kong dollar was trading at HK$ 7.7559 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.

The Australian dollar edged down against its US counterpart. The Aussie reached 0.6734 against the US dollar, compared to 0.6644 hit in the early morning trade.

The New Zealand dollar was trading at US55.95c down from US55.30c as registered yesterday.

The South Korean won was trading at 1,347.40 won to the U.S. dollar on Wednesday, down by 5.60 won from Tuesday's close of 1,353 won.

The Taiwan dollar strengthened against the US dollar as it was trading at NT$ 33.229 in the afternoon trade against the Tuesday closing of NT$ 33.161

The Singapore dollar finished at 1.4872 against the previous close of 1.4880 while the Malaysian Ringgit closed Wednesday's deals at 3.5725.

The Philippines peso strengthened against the dollar touching two day high. Currently, the dollar-peso pair is worth 47.47, compared to 47.11 hit in the early trade.

Coming back in equities, the Japanese market snapped three days of losing streak to finish the session higher, with gains in banks and financials, exporters and technology after a sharp sell-off the previous day and the yen leveled off after recent steep gains against the dollar. The Nikkei 225 Stock Average index gained 24.54 points, or 0.29%, to 8,438.45 while the broader Topix index of all First Section issues was up 5.27 points, or 0.7%, to 819.

On economic front, the Finance Ministry said in a report that the nonresident investors turned into net sellers of Japanese equities by unloading a net 7.38 trillion yen in 2008.

In Mainland China, the stock markets clawed back from yesterday's fall to finish the session sharply higher, with gain in banks and financials, properties, and metal and resources after a sharp sell-off the previous day and rebound in commodity prices. The benchmark Shanghai Composite Index surged 65.50 points, or 3.5%, to 1,928.69.

On the economic front, China revised its gross-domestic- product-growth rate upward for 2007 to 13%, indicating it may have overtaken Germany as the world's third-largest economy.

In Hong Kong, the benchmark index registered its first close in positive territory in seven sessions. The Hang Seng index closed up 36.56 points or 0.27% at 13,704.61. The Hang Seng China Enterprises index jumped 138.51 points or 1.96% at 7,219.04.

The Australian stock market snapped two days of losing streak to finish the session higher in choppy trade following mixed signals from Wall Street overnight, with the information technology and energy sectors led the market. The benchmark S&P/ASX200 added 32.4 points, or 0.89%, to 3,687, while the broader All Ordinaries rose by 30.4 points, or 0.85%, to 3,624.3.

On the economic front, the Australian Bureau of Statistics reported Wednesday that the number of housing loans approved in November increased a seasonally adjusted 1.3 % compared to October.

In New Zealand, the share market rose marginally ahead of corporate reporting season. The benchmark NZX-50 index closed up 12.14 points, or 0.44 at 2786.784.

Stock markets in South Korea gained for the second consecutive day, as some banks and exporters advanced while a stronger South Korean Won profited airline and tourism stocks. The Korea Composite Stock Price Index ended up by 14.97 points or 1.28% at 1,182.68 points, down from the session high of 1,184.52.

In Philippines, the stock market bucking the regional indices as investors were cashed in on recent gains. The benchmark index PSEi tumbled 0.55% or 11.12 points to 1,984.92, while the All-share index lost 0.54% or 6.84 points to 1,255.59. The mining & oil index tumbled 3.43%.

Stock markets in Taiwan ended lower, as financial and semiconductor sector led the sectoral losses accompanied by consecutive fall in industry heavyweights like Taiwan Semiconductor Manufacturing Company and United Microelectronics weighted the benchmark index down. The main TAIEX share index ended down 10.89 points or 0.24% at 4,521.47.

On the economic front, the Legislative Yuan ratified the Special Statute for Stimulating Economy via Expanding Infrastructural Investment, aiming to bolster the slumping economy with the infusion of NT$500 billion for investment in infrastructural projects in a four-year period starting this year. The CEPD forecasts that the infusion of NT$500 billion for public investments will create 168,000 job vacancies during the four-year period of 2009-2012.

In Thailand, the Thai Stock exchange gained 5.70 points or 1.31% to 439.31 as its central bank slashed the key interest rates taking it to the lowest level since 2004. The Monetary Policy Committee of Bank of Thailand has announced today to lower the policy interest rate by 0.75% i.e., from 2.75 p% to 2.00 %, effective immediately.

In the accompanying statement the central bank discussed impact of current slowdown on the domestic economy, which had a marked impact on exports of regional economies and led to a contraction in Thai exports. In addition, domestic demand continued to soften, both in consumption and investment, partly as a result of fragile sentiment.

In Singapore, share market snapped five days of losing streak to finish the session marginal higher, as investors chased bargains in recently battered stocks after the market plunged for five consecutive days. The benchmark Straits Times Index jumped 2.9 points, or 0.16%, to 1,764.72.

In India, frenzied buying in index heavyweight Reliance Industries propelled key benchmark indices to day's high in fag end of the day's trade. The BSE 30-share Sensex jumped points, or 1.89% as per provisional closing.

The BSE 30-share Sensex surged 331.97 points, or 3.66%, to 9,403.33, as per provisional closing. The Sensex opened 151.80 points higher at 9,223.16. The S&P CNX Nifty gained 107.70 points, or 3.92%, to 2,852.65

Elsewhere, Malaysia's Kula Lumpur Composite index was down 0.03% or 0.24 points to 913.46, while Indonesia's Jakarta composite decreased by 12.83 points or 0.92% to 1386.91.

In the other regional markets, European shares edged lower, putting it on course for a sixth drop in a row, with worries about the health of the banking sector weighing for a second day after Morgan Stanley said banking giant HSBC Holdings needs to raise capital and slash its dividend. On a national level, the U.K. FTSE 100 index fell 0.9% to 4,357.65. The German DAX 30 index traded flat at 4,639.21, while the French CAC-40 index advanced 0.1% to 3,199.69.

Triple digit losses for Dow at Wall Street

2009-03-01T03:25:00.003+05:30

15 Jan 2009 | 09:23 Triple digit losses for Dow at Wall Street

US stocks ended with triple digit losses once again on Wednesday, 14 January, 2008. Disappointing economic data and also earning warnings weighed on investor sentiment for the entire day. News about a joint venture between Morgan Stanley and Citigroup's division did very little to rescue market sentiment. The weakness was broad based in the overall market. Energy and financial shares led the declines today.

After opening 160 points lower earlier in the day, The Dow Jones Industrial Average ended lower by 248 points at 8,200, the Nasdaq closed lower by 27 points at 1,489 and the S&P 500 closed lower by 29 points at 842. It was the lowest closing level for all three indices in a month.

All the thirty Dow components ended in the red today led by Citigroup which fell by 23%.

The Commerce Department reported today that stung by weak demand and falling prices, U.S. retail sales plunged a seasonally adjusted 2.7% in December from November, 2008. Excluding a 0.7% decline in auto sales, retail sales recorded their biggest drop since record-keeping began in the early 1990s, falling 3.1%. And with both gasoline and autos excluded, sales fell 1.5%, the largest drop since September 2001.

The nation's retail sales have fallen for six months in a row now, the longest decline on record. Sales data were revised lower for both October and November, to declines of 3.4% and 2.1%, respectively.

In a separate report, the Labor Department reported on Wednesday, 14 January, 2009 that import prices fell 4.2% in December, on the heels of a 7% drop in November.

Citigroup was a primary laggard in the financial sector today. The stock traded at its lowest level since November after the company announced it has agreed to establish a joint venture with Morgan Stanley in which the two will pair their brokerage businesses. Morgan Stanley will pay Citi some $2.7 billion for a 51% stake in the venture.

On Wednesday, crude-oil futures for light sweet crude for February delivery closed at $37.28/barrel (lower by $0.50 or 1.3%) on the New York Mercantile Exchange. Earlier during the day, prices fell to a low of $35.52. Last week, crude prices shed 12%.

The Energy Information Administration today reported that at 326.6 million barrels, U.S. crude inventories reached their highest level since August 2007. Total products supplied in the U.S., including gasoline and heating oil, averaged 19.7 million barrels a day over the past four weeks, down 4% compared with the same period last year. U.S. refineries operated at 85.2% of their operable capacity last week, up from the previous week's 84.6%.

Tomorrow, investors will anxiously await the latest results from JPMorgan Chase. Other than that, economic data has market moving potential tomorrow, with PPI, weekly initial jobless claims, and the NY Empire Manufacturing Index all set for release before market opens. The Philadelphia Fed Index is scheduled for release just after opening bell.

Asian Markets Step In Wall Street Shoes

2009-03-01T03:25:00.001+05:30

15 Jan 2009 | 16:17 Asian Markets Step In Wall Street Shoes
The stock markets in Asian region closed sharply lower on Thursday 15 January 2009, after the steep losses overnight on Wall Street with technology stocks declining on concerns about the demand outlook and resource stocks hit by lower metal prices. Japanese machinery orders added to the economic gloom. Banking stocks slid on concerns about bigger-than-expected losses at global banks, while resource stocks declined on lower commodity and oil prices.

On Wall Street, U.S. stocks posted another sharp loss, triggered by worse than expected December retail sales figures released early in the day and on continued worries about the financial sector. The major averages all ended the session sharply lower, although off their worst levels of the day. . The Dow closed down 248 points, or 2.94%, at 8,200, the Nasdaq lost 57 points, or 3.67%, to close at 1,490, and the S&P 500 fell 29 points, or 3.35%, to finish at 843.

In the commodity market, crude oil fell for a second day in New York after a government report yesterday showed slowing demand sent U.S. stockpiles soaring to a 16-month high. Inventories of crude increased 1.14 million barrels to 326.6 million last week, the highest since 31 August 2007, the U.S. Energy Department said. Gasoline and distillate fuel supplies also rose. Fuel demand fell 6%, the largest one- week decline in almost five years, as the Federal Reserve reported the U.S. economy weakened further in the past month.

Crude oil for February delivery fell as much as $1.15, or 3.1 percent, to $36.13 a barrel in electronic trading on the New York Mercantile Exchange. It was at $36.36 a barrel at 2:29 p.m. Singapore time. Yesterday, futures dropped 1.3 percent to $37.28 a barrel in New York, the lowest settlement since Dec. 24. Brent crude oil for February settlement fell as much as 75 cents, or 1.7 percent, to $44.33 a barrel on London's ICE Futures Europe exchange. The contract expires today.

Base metal prices fell sharply after worse than expected economic data. Nickel fell by 3.8% with lead losing 4.1%.

Gold prices recovered $2.90 an ounce, or 0.36%, to $811.7 in Asian electronic trading on Thursday after the most active February Comex gold contract stumbled $11.9 an ounce to $808.8 by the close of New York trading on Wednesday.

In the currency market, the U.S. dollar weakened against the Japanese yen, while it strengthened against the South Korean won, the Australian and New Zealand currencies.

In early Tokyo trades, the dollar was quoted in a range of 89.27-89.24 yen, down 0.56 yen from Wednesday's close of 89.77-89.79 yen in Tokyo.

In Sydney, the Australian dollar opened trading at US$0.6603-0.6606, down from Wednesday's close of US$0.6799-0.6803.

In Wellington, the New Zealand dollar was buying US$0.5402 in early trades Thursday, down compared to US$0.5560 at close on Wednesday.

In Seoul, the U.S. dollar opened Thursday's trading at 1,360.0 won, up 12.5 won from Wednesday's close of 1347.5 won.

Coming back in equities, the Japanese markets registered heavy losses with the benchmark Nikkei index briefly falling below the 8,000 line for the first time in more than a month following a steep fall on Wall Street overnight on concerns over the deepening recession and after the Japanese government's machinery orders for November showed the largest decline on record.

The Nikkei 225 Stock Average index plummeted 415.14 points, or 4.9%, to 8,023.31.The broader Topix index of all First Section issues plunged 23.4 points, or 2.9%, to 796.

On economic front, the Cabinet Office said that the core private-sector machinery orders in Japan plummeted a record seasonally adjusted 16.2 percent in November compared to the previous month, coming in at 754.2 billion yen. Marking the biggest monthly decline since the index started in April 1987, it followed a 4.4 percent monthly decline in October. On an annual basis, core machinery orders in Japan fell 27.7 percent in November following the 15.5 percent contraction on year in October.

The Bank of Japan said Japan's domestic corporate goods price index was up 1.1% in December. On a monthly basis, CGPI was down 1.2% after a 1.9% fall in the previous month.

In Mainland China, stock markets erased some of yesterday's gains to finish the session lower with losses in nonferrous, resources and energy shares after commodity prices retreated overnight, while banks and financials plunged on news a multinational bank had sold shares of Bank of China. The benchmark Shanghai Composite Index plunged 8.66 points, or 0.45%, to 1,920.21.

On the economic front, the China State Council, or cabinet, issued a stimulus package for its auto sector, including a tax cut in sales tax to 5% from 10% for cars with engines smaller than 1.6 litres, from January 20 until the end of the year. The package promises a 10-billion-yuan (S$2.24 billion) subsidy over the next three years for automakers that upgrade their technology and develop alternative-energy vehicles. The government is also planning to release supportive policies for eight other industries including shipbuilding, petrochemicals and textiles.

China Commerce Ministry spokesman Yao Jian told a news conference on Thursday that China drew a record $92.4 billion in foreign direct investment (FDI) in 2008, up nearly a quarter on the previous year.

In Hong Kong, finished the session lower, with losses across the board amid dismal economic and corporate news from Wall Street and weak Japan machinery orders, prompting investor to become risk averse to the equity market as the global credit crisis returned to the spotlight. The Hang Seng Index plummeted 461.65 points, or 3.4%, to 13,242.96. The Hang Seng China Enterprises index jumped 176.68 points or 2.45% at 7,045.36.

In Australia, stock market finished the session steeply lower following the Wall Street losses overnight. The increase in unemployment figures hit the sentiments of investors, prompted the broad based slumps across the sector. The benchmark S&P/ASX200 plummeted 157.50 points, or 4.27%, to 3,529.5, while the broader All Ordinaries plunged by 147.5 points, or 4.07%, to 3,476.8.

On the economic front, the Australian Bureau of Statistics reported Thursday that the jobless rate hit 4.5% compared to November's reading of 4.4%. In December, 44,000 full time employees lost jobs, bringing the total number to 7,640,200. Part-time employment swelled by 42,800 to 3,102,200.

In New Zealand, the share market gave up four-day winning steak to end down as the global financial story turned sour again. The NZX50 slumped down 1.58% or 43.95 points to close at 2742.835.

In South Korea the benchmark Korea Composite Stock Price Index knock down by 71.34 points or 6.03% closing the day at 1,111.34, posting its lowest close in a month and biggest one-day percentage fall since 20 November 2008. The trading was suspended for 5 minutes for the first time in 2009 due to volatile future prices.

On the economic front, South Korea's second vice finance minister said that domestic economic growth for 2009 could fall below the central bank's forecast of 2%.

In another release, South Korean import price growth in December hit a ten-month low on a sharp decline in oil prices, suggesting that inflation pressures have been easing rapidly. Import price growth in won terms reached 22.4% in December from a year earlier, the slowest since a 22.2% gain in February 2008, the Bank of Korea said in a statement. Import prices soared more than 40% from May till October before easing to 32.0% in November. For the whole of 2008, import prices jumped 36.2% from a year ago.

Stock market in Taiwan followed the regional trend closed the day sharply lower taking the benchmark index to a more than one month low. The main TAIEX share index dribbles 200.70 points or 4.44% at 4,320.77 closing at the lowest closing since 5 December 2008 when it closed the session at 4225.07.

In other news, a report released by the top government watchdog, the Control Yuan, Taiwan's former foreign minister and national security chief have been impeached in a diplomatic scandal involving the alleged embezzlement of $30 million. They were held responsible after two businessmen entrusted with a fund to help Taiwan forge ties with Papua New Guinea in 2006 were suspected of stealing the money.

In Philippines markets ended lower for the third consecutive day as the benchmark index PSEi plummeted 1.51% or 29.95 points to 1,954.97, while the All-share index lost 1.22% or 15.36 points to 1,240.23.

On the economic frontage, the Bangko Sentral Ng Pilipinas governor has cut its reserves forecast for this year as the global financial turmoil continues to take its toll on foreign exchange inflows. The gross international reserves would likely be capped at $37-37.5 billion, down from an earlier estimate of $39-40 billion and flat compared to last year's $37.059 billion, the central bank governor said.

In Singapore the benchmark Straits Times Index plunged 60.66 points, or 3.44%, to 1,704.06. On the economic front, the Singapore department of statistics reported that the Singapore's retail sales declined by 3.4% in November 2008 over October 2008 due to lower sales in major sectors such as department stores, furniture & household equipment and watches & Jewellery. Year-on-year, retail sales decreased 3.4% in November.

In India, key benchmark indices cut sharp early losses aided by late recovery in index heavyweight Reliance Industries and IT pivotals. The BSE 30-share Sensex lost 305.46 points, or 3.26%, recovering 118.42 points from the day's low

The BSE 30-share Sensex lost 305.46 points, or 3.26%, to 9,065.03, as per provisional closing. The Sensex opened 369.87 points lower at 9,000.62. The S&P CNX Nifty lost 91.55 points, or 3.23%, to 2,743.75 as per provisional closing

Elsewhere, Malaysia's Kula Lumpur Composite index was down 1.75% or 16.01 points to 897.45, while Indonesia's Jakarta composite decreased by 43.41 points or 3.13% to 1,343.49. In Thailand, Thai Stock exchange fell by 13.25 points or 3.01% to 426.26.

In other regional market, European shares were battered again on Thursday, with ongoing worries about the health of the banking sector pressuring lenders again ahead of an interest-rate decision from the European Central Bank.

On a national level, the German DAX 30 index fell 1.6% to 4,353.29, the French CAC-40 index declined 1.6% to 3,002.73 and the U.K. FTSE 100 index declined 1.8% to 4,107.44.

Asian Markets Says Sayonara To Turbulent 2008 With Higher Closing

2009-03-01T03:24:00.001+05:30

31 Dec 2008 | 15:27 Asian Markets Says Sayonara To Turbulent 2008 With Higher Closing
Stock markets in the Asian region closed mostly higher on Wednesday 31 December 2008, amid thin volumes in the last trading session of 2008. Concurrently, looking at he yearly performance the regional indices ended the abysmal 2008 with a record fall over the trauma caused by the global financial crisis. Chinese indices lead with a yearly fall of 65% followed by Indian and Hong Kong with about 52% and 48% fall respectively.

The stock markets in Japan, South Korea, Thailand and the Philippines are closed on Wednesday for public holidays.

On Wall Street, the indices closed substantially higher despite of low trading volume due to the ongoing holiday mood in the market. General Motors pumped in positive momentum in the market today. Strength in the financial sector was also noteworthy today. The Dow Jones industrial average ended higher by 185 points at 8,668, the Nasdaq closed higher by 40 points at 1,550.9 and the S&P 500 closed higher by 21 points at 890.

In the commodity market, crude oil fell for a second day, heading for a record annual drop, on speculation that U.S. fuel stockpiles are increasing as the recession cuts demand. Crude oil for February delivery declined as much as 53 cents, or 1.4%, to $38.50 a barrel on the New York Mercantile Exchange and traded at $38.12 at 9.55 GMT. Prices are down 60% this year, the first annual drop since 2001 when oil fell 26%, and the biggest decline since trading began in 1983. Brent crude for February settlement declined as much as $ 1.20, or 2.99%, to $38.95 a barrel on London's ICE Futures Europe exchange.

In currency trading, the U.S. dollar was quoted at 90.24 yen, up 0.08 yen from Tuesday's close of 90.32 yen in Tokyo.

The Chinese Yuan strengthened to 6.82 a U.S. dollar from Tuesday's close of 6.8305.

The Hong Kong dollar was trading at HK$ 7.7497 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.

The Australian dollar was quoted at US$0.6927, up from US$0.6912 late Tuesday in domestic trade.

The New Zealand dollar strengthened against the green back, trading at US$0.5796 compared to Tuesday's close of US$0.5780.

The South Korean won finished the domestic session at W 1,254.30 a U.S. dollar; up from Tuesday's close of W 1,257.30 a U.S. dollar.

The Taiwan dollar weakened against the US dollar as it was trading at NT$ 32.774 in the afternoon trade against the Tuesday closing of NT$ 32.75.

Coming back in Asian equities, the stock markets in Mainland China ended 2008 with an annual loss of 65%, the biggest drop in its 18-year history, after the global economic slump burst a speculative bubble in share prices. The Shanghai Composite Index closed down 12.10 points or 0.66% at 1,820.80 while the Shenzhen Composite Index fell 7.12 points or 1.27% to 553.30.

The slide made China the worlds worst performing major stock market for the year, erasing nearly $3 trillion of market value i.e. about 65% of its value and almost an amount as large as the country's entire economic output of $3.4 trillion in 2007.

In Hong Kong, the share prices closed a shortened session higher on the final day of 2008, helped by last-minute portfolio adjustments, but ended the year with their worst annual drop since 1974. The Hang Seng index lost 48.3 pct this year amid a global equities rout as the US housing market collapse and credit crunch triggered recessions in major economies.

The Hang Seng index closed up 151.98 points or 1.07% at 14,387.48. The index has dropped close to 48.27% so far this year, its biggest yearly drop since 1983. The Hang Seng China Enterprises index advanced 105.61 points or 1.36% at 7,891.80.

The Australian stock markets held up gains for the fourth day in row to finish the last shortened trading session of the year. The benchmark S&P/ASX200 gained 68.10 points, or 1.86%, to 3,722.3. The broader All Ordinaries added 67.9 points, or 1.89%, to 3,659.3.

For the year the Australian shares delivered their worst year on record in 2008, posting a loss of 41.8% as slowing economies, volatile global markets, and a credit crunch. The S&P/ASX 200 index has fallen by 2,671.5 points, or 41.8% to end at 3,722.3 in 2008, while the All Ordinaries plummeted 43%.

In New Zealand, the index finished an abysmal 2008 with a record 33% fall over the year after trauma caused by the global financial crisis, with blue chip stocks bearing the brunt of the damage. The benchmark New Zealand index finished the year with a modest 37.49 points rally, up 1.4% to 2715.711 today, but was down almost 1326 points, or 33% from a year ago when the NZX 50 index was at 4041.

In Taiwan, the stock markets closed flat ahead of long New Year weekend, led by DRAM and LCD shares following government plans to help the two industries. The market will be closed on Thursday and Friday for the New Year break and will reopen on Monday, 5 January 2009.

Taiex, the benchmark index swung in and out of positive territory on New Year's Eve closing the day with a gain of 2.79 points or 0.05% at 4,591.22. For the week, the index was up 166.14 points, or 3.75%. The index sealed the month with a gain of 2.93%.

All the same the index posted its biggest annual decline since 1990. Taiex has fallen about 46.02% over the year, its biggest drop since 1990 when it tumbled 52.9%. The Taipei bourse has suffered its worst year since 1990, dragged by the global financial turmoil and economic downturn and problems in major export markets such as the US. The 1990 crash was triggered by a government plan to reintroduce capital gains tax on securities transactions, which was eventually called off due to the market's violent reaction.

In India, key benchmark indices tumbled to the day's low in mid-afternoon trade on selling pressure in index heavyweight Reliance Industries. Bank shares dropped as hopes for hefty rate cuts by the central bank were dented after a television channel quoted finance ministry officials, as saying rate reductions may not be steep. Towards its final closing, at 15:20 IST, the BSE 30-share Sensex was down 61.24 points, or 0.66%, to 9,652.36.

In Singapore the stock market finished last trading session of year lower in a truncated session, as investors locked in profit in banks, transportation, and multi industry sectors. The benchmark Straits Times Index erased 9.92 points, or 0.56%, to 1,770.65.

Elsewhere, Malaysia's KLCI was trading lower by 0.55% at 876.75.

In other regional market, European shares rose in early trade on Wednesday, boosted by a rally on Wall Street overnight, and with banks gaining on a shortened session on the last day of 2008, a miserable year for the markets.

On national level, the U.K.'s FTSE 100 gained 0.8% at 4,429.42. The French CAC 40 rose 0.5% at 3,232.74. For the year, the main U.K. market has fallen 31.4% while French CAC 40 has fallen 42.4% since the start of the year.

Several continental markets, including the German and Swiss exchanges, were closed Wednesday.

US stocks rally on final day of 2008

2009-03-01T03:23:00.001+05:30

01 Jan 2009 | 08:58 US stocks rally on final day of 2008

US market managed to end substantially higher for second consecutive day on Wednesday, 31 December, 2008 and thus end a disaster year with a smile. Trading volume remained relatively light due to the ongoing holiday mood in the market. There was no major economic news in the market today. Crude prices traded lower for the entire day but just shot up late in the session and closed higher by more than $5.

On Wall Street, the Dow Jones industrial average ended higher by 108 points at 8,776, the Nasdaq closed higher by 26 points at 1,577.9 and the S&P 500 closed higher by 12 points at 903.

Twenty-five of thirty Dow stocks ended in the green today led by Boeing and Alcoa. All ten sectors ended in the green led by financials and industrials.

2008 was the worst year for US market since 1937. For the year, the Dow industrials slumped nearly 34%, the S&P 500 has lost 38%, and the Nasdaq Composite was off almost 41%. The financial crisis that began with the subprime mortgage collapse in 2007 evolved escalated in 2008. The collapse of the subprime market spread to the rest of the mortgage market and the vicious cycle led to a great impact in Wall Street. The financial sector just plunged this year.

GM continued to provide good boost to the Dow today after the partly-owned financing arm of Dow component General Motors, GMAC, said yesterday that it is receiving $5 billion worth of senior preferred equity from the U.S. Treasury. Meanwhile, General Motors is receiving a loan of up to $1 billion to participate in GMAC's rights offering. As per GM, it will restart auto financing for more U.S. customers because it has better access to funding after converting GMAC to a bank-holding company. GM shares have plunged 87% this year.

Among major economic reports for the day, better-than-expected weekly jobless claims report cheered investors a bit. Claims for the week ending 27 December, 2008 totaled 492,000, down 94,000 from the prior week.

Trading volume picked up in the final hours of trade, with 1.3 billion shares changing hands on the New York Stock Exchange and 606 million shares trading on the Nasdaq. Advancing issues topped decliners by more than 5 to 1 on the NYSE and by more than 3 to 1 on Nasdaq.

On Wednesday, crude-oil futures surged 14% after Russia threatened to cut natural gas supplies to Ukraine, a move that could impact much of Europe. Despite the late rally, crude futures ended the year with their biggest loss ever. Crude for February delivery rose $5.57 to end at $44.60 a barrel on the New York Mercantile Exchange. The contract dropped as low as $36.94 earlier in the session. On a yearly basis, crude prices dropped more than 60% this year.

US Market will be closed tomorrow, 1 January, 2009, due to New Year's Day.

Asian Markets rise in first session of 2009

2009-03-01T03:22:00.003+05:30

02 Jan 2009 | 15:43 Asian Markets rise in first session of 2009
Stock markets in Asian closed their first day of 2009 with optimism as most of the indices registered gains. The stock market in Hong Kong, Korea, India posted good results while Australian indices broke their four days winning streak on the back of losses in retailers, financials, telecom and industrials

On Wall Street, the markets managed to end a disaster year with a smile. The Dow Jones industrial average ended higher by 108 points at 8,776, the Nasdaq closed higher by 26 points at 1,577.9 and the S&P 500 closed higher by 12 points at 903. 2008 was the worst year for US market since 1937. For the year, the Dow industrials slumped nearly 34%, the S&P 500 has lost 38%, and the Nasdaq Composite was off almost 41%.

In the commodity market, crude oil fell in New York, extending its worst yearly drop, on concern that a global economic contraction will limit fuel demand. The concern raise after report released by US Department of energy saying the fuel consumption in the U.S., the world's biggest economy, was down 3.7% during the four weeks ended Dec. 26 from a year earlier.

Crude oil for February delivery dropped as much as $2.32, or 5.2%, to $42.28 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It was at $41.84 a barrel at 8:40 a.m. London time. The February contract raised $5.57 to $44.60 a barrel on 31 December 2008 - the highest settlement since 12 December 2008. Oil fell 54% in 2008, the first annual decline since 2001 and the biggest drop since futures trading started in 1983.

Brent crude oil for February settlement fell as much as $2.24, or 4.9%, to $43.35 a barrel on London's ICE Futures Europe exchange. It was at $42.96 a barrel at 8:40 a.m. London time. The contract on 31 December 2008 rose $5.44, or 14%, to settle at $45.59 a barrel.

In currency trading, the U.S. dollar was quoted at 91.19 yen, up 0.47 yen from Wednesday's close of 90.72 yen in Tokyo.

The Hong Kong dollar was trading at HK$ 7.7505 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.

The Australian dollar The Australian dollar edged down against its US counterpart on Friday's early Asian trading. At about 5:08 am ET, the Aussie reached 0.6953 against the US dollar, compared to 0.7027 hit late Tuesday in New York.

The New Zealand dollar weakened against the greenback during early Asian deals on Friday. At about 5:08 am ET, the kiwi touched 0.5803 against the greenback down from Wednesday's close of 0.5790.

The South Korean won finished the U.S. dollar opened Friday's trading at 1,319 won, up by 57.7 won or 4.57% from Tuesday's close of 1,259.5 won.

The Singapore dollar slumped to an 11-day low against the US dollar as the Singapore government lowered its GDP forecast for 2009, citing the worsening global recession and foreshadowing a deepening slump throughout the region. The Singapore dollar finished at 1.4522 against the previous close of 1.4344.

The Malaysian Ringgit dropped against its US counterpart during Friday's early deals. The Ringgit that closed Wednesday's deals at 3.4550 against the dollar touched 3.4775 by about 5:08 am ET. Thereafter, the Ringgit has gained slightly and is now worth 3.4675.

Coming back in equities, the stock markets in Japan, China, Taiwan, New Zealand, Thailand, Indonesia and Philippines were closed on the account of New Year Celebration.

In Hong Kong, the stock markets Share prices closed sharply higher, with the key index surging 4.55%, on the first trading of 2009, with China telecom-related firms, oil producers and banking giant HSBC leading the rally.

The Hang Seng index closed up 655.33 points at the day's high of 15,042.81,after moving to a low of 14,412.12. For the week, the index is up about 858 points or 6%. The Hang Seng China Enterprises index closed up 422.31 points or 5.35% at 8,314.11.

In Australia, the stock markets closed lower snapping its four days winning streak on the back of losses in retailers, financials, telecom and industrials. The benchmark S&P/ASX200 retreated 8.5 points, or 0.23%, to 3,713.8. The index has gained 131.60 points, or 3.67%, in the week. The broader All Ordinaries tumbled 3.6 points, or 0.1%, to 3,655.7. It has gained 140.7 points, or 4%, in the week.

On the economic front, the contraction of activity in Australia's manufacturing sector continued in December, but at a lesser pace than the month before. The Performance of Manufacturing Index for December, published Friday by the Australian Industry Group and PricewaterhouseCoopers showed a reading of 33.7 points, compared to the November reading of 32.7.

In Singapore, the stock market finished the session higher on the first the day of trade, driven by gains in banks, property trusts, manufacturing, and multi industry sectors on expectation that the government will unveil a stimulus package stimulus package in its budget proposal on 22 January 2009 shrugged of news that the city-state's economy contracted for a third consecutive quarter in the fourth quarter amid slowing demand for exports.

The benchmark Straits Times Index surged 38.16 points, or 2.17%, to 1,799.72. The index has gained 74.11 points, or 4.29%, in the week.

On the economic front, the Ministry of Trade and Industry said today that the Singapore economy is expected to grow between minus 2% and 1% in 2009, lower than the minus 1% to 2% ranges it had forecast in November 2008. In the fourth quarter of 2008, on an annualized quarter-on-quarter basis, real GDP fell by a seasonally adjusted 12.5% compared to a decline of 5.4% in the third quarter of 2008. According to MTI, the manufacturing sector declined 9% due to the sharp drop in the output of electronics and precision engineering. The economy expanded 1.5% in 2008, compared with 7.7% in 2007. The latest estimate is lower than MTI's forecast of around 2.5% in November 2008.

In his New Year message, Singapore's Prime Minister Lee Hsien Loong said 2008 has been an eventful and challenging year and the world is entering the most serious economic crisis in sixty years.

Lee noted that the economy will probably contract in 2009 and urged the nation to prepare for a difficult year, especially the first half of 2009. More companies will be forced to downsize.

In South Korea, the market ended higher on their first trading day of 2009 on Friday, with carmakers rising after reporting monthly sales for December while shipbuilders gained on hopes of large ship orders.

The Korea Composite Stock Price Index gained 32.93 points or 2.93% to close at 1,157.40 points. Kopsi closed the week with the gain of 39.54 points or 3.54%. On the economic front, South Korea recorded a trade deficit in 2008 for the first since 1997, as global economic slowdown reduced Korean exports. The government now expects overseas shipments to grow just 1% this year.

The Ministry of Knowledge Economy said the trade deficit stood at US$12.9 billion in 2008, after recording a surplus of around US$14.6 billion in 2007. The trade balance showed shortfall for the first time since 1997, when the deficit was US$8.4 billion. In 2008, exports grew 13.7%, while imports jumped 22% from the previous year.

In Malaysia, the Kula Lumpur Composite Index increased by 17.61 points or 2.01% to closed the day at 894.36. In economic news, a report by the Department of Statistics said the Malaysia's leading index declined 1.8% in October to 155.7. The six-month smoothed growth rate of the leading index declined to minus 2.9% in October from 0.9% in September. In October, the coincident index rose 0.3% to 123 points. The six-month smoothed growth rate of the index improved to minus 0.5% from -1.2% in September.

In India, the media reports that the government is likely to announce a second stimulus package at about 18:00 IST today, 2 January 2009, to help shore up an economy, took the barometer index BSE Sensex past the psychological 10,000 market. In the afternoon session the Sensex was up 140.83 points, or 1.42%, to 10,044.29. However as the market moved towards its closing it gave some of its gains coming back to below 10,000 level. At 15.48 IST the BSE Sensex was at 9958.22 i.e. up by 54.76 points or 0.55%.

In the other regional market, European shares moved higher in the first trading session of 2009, helped by gains for the mining sector and a solid start to the year from most banking stock

The U.K. FTSE 100 rose 0.7% to 4,466.93 and the French CAC 40 gained 1.2% at 3,256.18. The German DAX 30 jumped 1.7% to 4,893.39 after the Frankfurt market remained closed on Wednesday.

Market starts year with a bang

2009-03-01T03:22:00.001+05:30

05 Jan 2009 | 08:53 US Market starts year with a bang

Christmas perhaps came a week late for US Market this year. Investors were more than happy to end the dismal 2008 and start 2009 on a fresh note on Friday, 02 January, 2009, the first trading session in 2009. The week that ended on that day brought huge gains on Wall Street, quite after a long time. Trading volumes during the week remained quite low due to the ongoing holiday mood in the market.

There wasn't a lot of corporate news of note this week. The market ignored bad economic news, of which there was plenty in this shortened week.

The Dow Jones Industrial Average gained a whopping 519 points (6.1%) for the week to end at 9,034.69. Tech - heavy Nasdaq gained 101.97 points (6.7%) to end at 1,632.21. S&P 500 gained 59 points (6.8%) to end at 931.8.

Among the bad news in the market this week, Kuwaiti petrochemical company pulled out of a proposed $17 billion joint venture with Dow Chemical. In doing so, it raised concerns that Dow will be unable to complete its proposed acquisition of Rohm & Haas.

Among good news in the market this week that the financial arm of GM, (GMAC) got word that the U.S. Treasury would make a $5 billion investment in the troubled financing company and would loan General Motors another $1 billion to participate in a GMAC rights offering that supports GMAC's reorganization as a bank holding company.

Bolstering the Dow on the last day of the week, Friday was Citigroup after Chief Executive Vikram Pandit said that he and Chairman Win Bischoff would not take bonuses for 2008 and will trim pay and severance packages for executives.

Among major earning reports for the week, The S&P/CaseShiller Home Price Index declined 18% in October, which was the largest year-over-year decline on record. The report also conveyed the message that the housing market is still searching for a bottom. Separately, consumer confidence hit a record low in December. The ISM Index, which is computed from a survey of national manufacturing conditions, hit its weakest point since June 1980. The ISM added that new orders were at their lowest level since January 1948.

Among other reports for the week, weekly initial claims surprised in a good way, as they fell by 94,000 positions to 492,000. But there were continued job cut announcements and the claims for continuing benefits jumped to 4.506 million from 4.336 million.

In the US stock market on Friday, 02 January, 2008 stocks ended substantially higher. Stocks rallied despite lack of news and data.

On Wall Street, the Dow Jones industrial average ended higher by 258 points at 9,034, the Nasdaq closed higher by 55 points at 1,632 and the S&P 500 closed higher by 28 points at 931.

Energy sector provided to good leadership to the market on Friday as crude prices erased earlier losses and rallied to end higher.

Among major economic reports for the day, The Institute for Supply Management reported on Friday, 02 January, 2008 that U.S. manufacturing contracted for the fifth straight month in December. The overall ISM index fell to 32.4% in December, the weakest reading since 1980. It's down from 36.2% in November. Market was expecting the December ISM index to rise slightly from November's reading, to 36.3%.

ISM readings above 50% indicate an expansion of the manufacturing economy, while readings below indicate a contraction. The report detailed that that new orders now have contracted for 13 consecutive months, and are at the lowest level on record going back to January 1948. Manufacturing payrolls also shrank as the employment index fell to 29.9% from November's 34.2%. The institute's price index dropped to 18.0% from 25.5%.

On Friday, crude-oil futures for light sweet crude for February delivery closed at $46.34/barrel (higher by $1.74 or 3.9%) on the New York Mercantile Exchange. During intra day trading, prices touched a low of $41.05. Prices reached a high of $147 on 11 July but have dropped almost 68% since then.

Executive Summary

For the week, indices registered very good gains at Wall Street. It was a holiday shortened week. Market ignored the bad news and economic reports that checked in were mixed in nature.

In percentage terms, Dow gained 6.1%, Nasdaq gained 6.7% and S&P 500 gained 6.8%. The market has surged 8% since the close of trading on 23 December, 2008.

For the year 2009, Dow, Nasdaq and S&P 500 are up by 2.9%, 3.5% and 3.2% respectively.

Stocks snap winning streak at Wall Street

2009-03-01T03:21:00.005+05:30

06 Jan 2009 | 09:18 Stocks snap winning streak at Wall Street

US market ended lower on Monday, 05 January, 2008. Market started the day on a weak note and lingered in the red since morning ahead of the car sales data. Though the energy sector tried to support the market with rising crude price, weakness in telecom and financial sectors acted as hindrance. With today's loss, stocks at Wall Street broke their three days of winning streak.

On Wall Street, the Dow Jones industrial average ended lower by 81.8 points at 8,952.59, the Nasdaq closed lower by 4.2 points at 1,628.03 and the S&P 500 closed lower by 4.3 points at 927.35.

Twenty two out of thirty Dow ended in the red led by Verizon, AT&T and JP Morgan Chase. Six of the ten sectors ended in the red led by the telecom sector.

Ford and General Motors reported December sales dropped 32.4% year-over-year and 31.4% year-over-year, respectively. The results were in-line with the consensus forecast. Toyota Motor posted a 36.7% year-over-year drop in December sales.

While a couple of financial companies had their estimates cut at Deustche Bank, couple of retailers had their outlooks reduced by Barclays. Citigroup and JP Morgan were the financial firms while Target and Macy's were the retailers.

Among major economic reports for the day, the Commerce Department in US reported today that outlays for construction projects in the United States fell by a seasonally adjusted annual rate of 0.6% in November, cut by a drop in outlays on home construction.

Spending on residential projects fell 4.1%, while spending on private-sector nonresidential construction rose 0.7%. Total outlays are down 3.3% in the past year. Spending for private residential construction, which fell 4.2% in November, reached the lowest level since August 1999. This spending segment's down 23.4% in the past year.

The report also detailed that overall spending by the private sector fell 1.5% in November, while public spending rose 1.4%.

Volume on the New York Stock Exchange topped 1.3 billion, and advancing issues overtook those declining nearly 2 to 1. On the Nasdaq, more than 673 million shares traded, and advancers overtook decliners 7 to 6.

On Monday, crude-oil futures for light sweet crude for February delivery closed at $48.81/barrel (higher by $2.47 or 5.3%) on the New York Mercantile Exchange. During intra day trading, prices touched a high of $49.28. Prices reached a high of $147 on 11 July but have dropped almost 65% since then. Year to date, in 2009, crude prices have shot up by 9.2%.

Economic data will be in focus tomorrow with the release of the ISM services, factor orders and pending home sales reports all at 10:00 AM ET. Meanwhile, the Fed will release the 16 December FOMC meeting minutes at 2:00 PM ET.

Asian Markets spurs on upbeat sentiments

2009-03-01T03:21:00.003+05:30

06 Jan 2009 | 17:20 Asian Markets spurs on upbeat sentiments
Most of the Asian stock market surged on Tuesday, 6 January 2009, on anticipation that the fiscal stimulus released by the governments throughout the globe will help Asian equities outperforms this year.

Key benchmark indices in China, Japan, Australia, India, and Taiwan were up by between 0.42% to 3%. But key benchmark indices in Hong Kong and South Korea fell by between 0.4% to 0.75%.

The market opened on a strong note as investors turned upbeat on President-elect Barack Obama's proposed economic stimulus package, shrugging off Wall Street overnight weakness on shrinking corporate earnings and US car sales data

On Wall Street, the Dow Jones Industrial Average closed down 81.80 points, or 0.9%, tot 8,952.89, the Nasdaq index by 4.18 points, or 0.3%, to 1,628.03, and the S&P 500 index by 4.35 points, or 0.5%, to 927.45 on Monday.

In the commodity market, light, sweet crude for February delivery at $48.03 a barrel, lost 78c in Asian electronic trading on Tuesday after the February contract rose by $2.47, or 5.3%, to $48.81 a barrel at the close of New York trade on Monday, as Middle East tensions continued to escalate. Investors fear that the conflict between Israel and Palestinian Islamists could end up disrupting oil shipments in the region. Meanwhile Russia's stand-off with Ukraine over natural gas prices remains in places halting supplies to Europe's energy market.

Gold prices lost by $8.20 an ounce, or 0.96%, to $849.60 in Asian electronic trading on Tuesday after the most active February Comex gold contract slipped by $21.70, or 2.5%, to $857.8 an ounce by the close of New York trading on Monday as the firmer greenback and on tracking base metal declines.

Coming back in equities, the Australian stock market clawed back yesterday's losses, buoyed by strong gains across the board, except for healthcare. High dividend shares such as Telstra Corp and banks leads the rally as investors looking for safety in volatile equity markets.

The benchmark S&P/ASX200 spurted 55.7 points, or 1.51%, to 3,742.7 and the broader All Ordinaries by 50.30 points, or 1.38%, to 3,689.20.

On the economic front, the Australian Industry Group and Commonwealth Bank survey repot signifying that activity in Australia's services sector contracted for the ninth consecutive month in December. The group's Performance of Services Index, or PSI, increased 1.5 points from November to a reading of 39.3. Index readings below 50.0 indicate a contraction of activity in the measured sector.

The New Zealand share market continues its forward journey to the second trading session of the New Year. The NZX50 moved forward 1.40%, or 38.490 points, to close at 2783.38.

Japanese stock index Nikkei endured gains for sixth day in row driven by exporters, automakers on weakening yen against greenback and on optimism about the impact of economic stimulus measure in 2009. Meanwhile, electronics manufacturers rebounded on improving earnings outlook.

The Nikkei 225 Stock Average index gained 37.72 points, or 0.4%, to 9,080.84 and the broader Topix index by 0.29 point, or 0.05%, to 876.

On the economic front, the Bank of Japan said in a report that Japan's monetary base jumped 1.8% to 92.435 trillion yen on year in December. For the fourth quarter of 2008, the monetary base gained 1.7% on year. For 2008, the monetary base was up seasonally adjusted 0.1% to 90.45 trillion yen.

The Thailand share market gave up yesterday's robust gains to end the session lower, dragged down by selloff across the board, except for healthcare.

The benchmark SET index dipped 1.16%, or 5.54 points, to 473.15, the SET 100 index by 1.31%, or 9.42 points, to 711.19, and the SET 50 index by 1.29%, or 4.40 points, to 335.73.

The South Korean stock market ended higher as technology shares advanced on hopes of firmer product pricing while auto major Ssangyong Motor jumped after news of further cash support.

The Korea Composite Stock Price Index gained 20.71 points or 1.76% to close at 1,194.28 points.

Taiwan Stock markets continued with its advancing spirit, with strong led by LCD makers such as Chi Mei on a report the flat panel maker received an order for about 10 million panels from China.

Taiex, the benchmark index ended up 28.95 points, or 0.62%, to 4,698.31, its highest finish since 10 November 2008.

On the economic front, Taiwan's consumer prices in December rose 1.21% from a year earlier, logging the weakest showing in 1-½ years as food and clothing prices eased.

The Shanghai stock index endured gains for second consecutive day, buoyed by strong gains in industrial metal shares, banks on upbeat earning estimate from Shanghai Pudong Development Bank, and property developers. Coal producers outperformed on rebounded crude oil prices, while anticipation of stimulus measures spurted steelmakers and automakers.

The benchmark Shanghai Composite Index surged 56.42 points, or 3%, to 1,937.14.

On the economic front, the research bureau of the People's Bank of China (PBOC) said that China would witness growth of about 8% this year. The research bureau also estimated that consumer prices would rise by less than 3% in 2009.

The Hong Kong stock market snapped three days of winning streak on tracking weak cue from Wall Street overnight and due to profit booking in recently overbought shares such as telecom and banks offset gains in property developers on improved home sales.

The Hang Seng Index retreated 153.8 points, or 0.3%, to 15,509.51

Indian stock market ended volatile session on a positive note, with sharp rebound in metals, banks, and auto sector offset losses in property and power sector

Bombay Stock Exchange's Sensex closed higher 109.67 points, or 1.07%, to 10385.27 and the National Stock Exchange's Nifty by 6.15 points, or 0.2%, to 3,127.60.

The Singapore stock market broke two days of winning streak as investors encouraged to book profit following 9% gains in previous two days, with losses in banks, property trusts, manufacturing sector, transportation and communication.

The benchmark Straits Times Index fell 11.21 points, or 0.58%, to 1,913.66.

The Malaysian stock markets extended their upward rally on mild buying interest in selected heavyweights and in financials. The benchmark index KLCI rose 0.17% or 1.57 points to 922.23.

The Philippines stock market ended marginally lower, as a mixed outing in the other Asian markets triggered some sell off even as the benign inflation data on the local inflation front seemingly augured well from the point of view of the domestic markets.

The benchmark index PSEi lost 0.25%, or 5.11 points, to 1,969.58, while the all share index rose 0.06% or 0.77 points to 1,242.16.

On the economic front, the Inflation in December decreased to 8%, a steep decline from the previous month's 9.9%.

US stocks manage to fight bleak economic data

2009-03-01T03:21:00.001+05:30

07 Jan 2009 | 09:19 US stocks manage to fight bleak economic data

US market ended higher on Tuesday, 06 January, 2008. Stocks managed to end higher at US today even though there was a spate of weak economic data. Other than that, the minutes from the 16 December, 2008 Federal Open Market Committee (FOMC) meeting indicated there was significant contraction in economic activity during the fourth quarter, and downside risk to growth remains. Unemployment is expected to rise significantly into 2010.

On Wall Street, the Dow Jones industrial average was higher by more than 100 points soon after start but then slipped in the red for a brief period. But then, it agagin resumed its journey in the green and ended higher by 62 points at 9,015, the Nasdaq closed higher by 24 points at 1,652 and the S&P 500 closed higher by 7.2 points at 934.

Nineteen out of thirty Dow ended in the green today. Six of the ten sectors ended in the green - led by technology and financials.

In the second half of trading, minutes from the 16 December, 2008 Federal Open Market Committee (FOMC) meeting indicated there was significant contraction in economic activity during the fourth quarter, and downside risk to growth remains. Unemployment is expected to rise significantly into 2010.

Among the major economic reports for the day, the Commerce Department reported on Tuesday, 06 January, 2008 that shipments from U.S. factories plunged a record 5.3% in November, 2008. Lower demand and falling prices were the reasons for this.

Orders for U.S. factory-made goods fell 4.6% in the month, twice as much as the expected 2.3% decline. Among shipments, orders and shipments of nondurable goods dropped a record 7.4% in November, led by a 22% drop in shipments from petroleum refineries. Oil and gasoline prices fell more than 20% during the month. Orders and shipments for most categories of nondurable goods fell sharply in November, in line with falling commodity prices. Orders for durable goods fell 1.5%, revised from the 1% drop reported two weeks ago.

In line with the above report, in another separate report, The Institute for Supply Management reported today that nonmanufacturing sectors in the U.S. economy contracted in December. As per the report, the ISM nonmanufacturing index rose to 40.6% in December from a record low of 37.3% in November. Readings below 50% indicate that more firms are contracting than expanding. In December, only one industry reported growth - retail trade.

The report detailed that the ISM's business activity index rose to 39.6% from 33%. New orders increased to 39.9% from 35.4%, and the employment index rose to 34.7% from 31.3%. The prices index fell to 36% - the lowest level since the data were first reported in 1997, from 36.6%, indicating a decrease in prices.

Reports pointing towards a bleak US economy continued to pour in. The National Association of Realtors reported that its index of sales contracts on previously-owned homes fell 4% in November from the prior month.

After rallying for four previous sessions, crude oil prices ended lower today. Though prices had climbed up earlier in the session and had crossed the $50 mark after a long time, prices dropped at the end. Prices ended lower today due to dour economic data.

On Tuesday, crude-oil futures for light sweet crude for February delivery closed at $48.58/barrel (lower by $0.23 or 0.5%) on the New York Mercantile Exchange. During intra day trading, prices touched a high of $50.47. Prices reached a high of $147 on 11 July but have dropped almost 63% since then. Year to date, in 2009, crude prices have shot up by 8.7%.

In the third trading session of 2009, trading remained light, topping 1.3 billion on the New York Stock Exchange, and 787 million shares on the Nasdaq. Advancers overtook declines nearly 4 to 1 on the NYSE and by almost 3 to 1 on the Nasdaq.

Tomorrow, the December ADP private employment report will be released at 8:15 AM ET. Its expected to show another month with steep job losses.

Asian Markets extends New Year rally

2009-03-01T03:20:00.005+05:30

07 Jan 2009 | 16:09 Asian Markets extends New Year rally
The stock markets in the Asia opened the day on a positive note, tracking Wall Street overnight gains on expectations that a stimulus package planned by U.S. President-elect Barack Obama will help the world's largest economy to emerge from recession soonerthan other industrialised nations. US President-elect Barack Obama's proposed package of spending and tax-cut measures is estimated at nearly $775 billion over the next two years.

On Wall Street, the Dow Jones industrial average was higher by more than 100 points soonafter start but then slipped in the red for a brief period. But then, it again resumed itsjourney in the green and ended higher by 62 points at 9,015, the Nasdaq closed higher by24 points at 1,652 and the S&P 500 closed higher by 7.2 points at 934

In the commodity market, crude oil fell for a second day on signs the economy in the U.S.,the world's biggest energy consumer, contracted further in November and December,pushing oil inventories higher.

Crude oil for February delivery fell as much as 82 cents, or 1.7%, to $47.76 a barrel inelectronic trading on the New York Mercantile Exchange. It was at $47.92 a barrel at 9:54a.m. in London. Yesterday, futures dropped 0.5% to $48.58 a barrel in the first decline ina week. Brent crude oil for February settlement fell as much as 63 cents, or 1.3%, to$49.90 a barrel on London's ICE Futures Europe exchange.

Gold prices lost by $1 an ounce, or 0.12%, to $865 in Asian electronic trading on Wednesday after the most active February Comex gold contract rose by $8.20, or 1%, to $866 an ounce by the close of New York trading on Tuesday on tracking base metal advances.

In the currency market, the Japanese yen was quoted at 93.21 against the US dollar today,up from Tuesday's close of 93.63-93.64 yen in Tokyo.

The Hong Kong dollar was trading at HK$ 7.7532 against the dollar. Actually The Hong Kongdollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85to the U.S. dollar.

The Australian dollar The Australian dollar edged down against its US counterpart onFriday's early Asian trading. The Aussie reached 0.7204 against the US dollar, compared to0.7230 hit late Tuesday in New York.

The New Zealand dollar reached its highest level against the greenback in nearly threeweeks but failed to push through the US60c level. It ended the day at US59.69c.

The South Korean won was trading at 1,294.40 won to the U.S. dollar on Wednesday, up 14.70won from Tuesday's close of 1,312.5 won.

The Taiwan dollar strengthened against the US dollar as it closed the day at NT$ 32.969 inagainst the Tuesday closing of NT$ 33.022.

The Singapore dollar finished at 1.4736 against the previous close of 1.4698 while theMalaysian Ringgit closed Wednesday's deals at 3.5005

Coming back in equities, the Japanese benchmark touched a two month high, on bottomfishing across the board as investors' sentiment uplifted about possible upcomingU.S. economic rescue plans, driven by exporters, automakers on weakening yen againstgreenback. The Nikkei 225 Stock Average index gained 158.4 points, or 1.74%, to 9,239.24.The broader Topix index surged 12.05 point, or 1.38%, to 882.25.

In Mainland China, the indices snapped two days of winning streak, as profit bookingemerged after benchmark indices gains nearly 6% in previous two sessions, with losses intelecom, banks and financials. The benchmark Shanghai Composite Index, slipped 13.13points, or 0.68%, to 1,924.01

In Hong Kong, the share prices closed sharply lower on further profit taking in Chinatelecom firms, as Beijing issued long-awaited 3G in China Construction Bank. The Hang Sengindex closed down 522.05 points or 3.37% at 14,987.46,while the Hang Seng ChinaEnterprises index ended down 399.83 points or 4.63% at 8,244.68.

In Australia, the regional indices took a boost from a firmer Wall Street overnight,rebound in base metal prices, and optimism that the fiscal stimulus package by thegovernments throughout the globe will speed up economic recovery. Miners, materials andresources, energy, property trusts, and financials lead the rally. The benchmarkS&P/ASX200 spurted 37 points, or 0.99%, to 3,779.7 and the broader All Ordinaries by39 points, or 1.06%, to 3,728.20.

On the economic front, the Australian Bureau of Statistics said in a report that Retailsales in Australia were up a seasonally adjusted 0.4% to A$18.423 in November compared tothe previous month. In another report the Housing Industry Association (HIA) said onsurvey report that sales of new houses in Australia declined a seasonally adjusted 1.1% inNovember.

In New Zealand, the market snapped its six days gaining streak closing in the negative forthe first time in 2009. The NZX50 stepped down 0.69% or 19.138 points to close at2764.242.

On the economic front, New Zealand s November exports rose 9.4% in November 2008 to reach$3.7 billion. The trend for merchandise exports continues to rise steadily following aperiod of strong growth in the second half of 2007. This growth is associated with highdairy prices and the commencement of Tui oil exports.

In South Korea, the markets attained a three-month closing high led by technology issuessuch as Samsung Electronics, up on hopes of firmer memory chip pricing, while Posco roseon a potential output cut.

The Korea Composite Stock Price Index gained 33.89 points or 2.84% to close at 1,228.17points, off a session low of 1,179.97, its highest close since 15 October 2008, andadvancing for a fifth consecutive session, the longest gaining streak since March, 2008.

On the economic front, the Korea Automobile Manufacturers' Association said that SouthKorea's production of cars, trucks and buses declined 6.4% in 2008 from a year ago due tothe global economic downturn. Production fell to 3.83 million units in 2008, the firstannual decline in seven years.

In Taiwan, the benchmark index continued to gain higher for the fifth consecutive session,as it achieved another two month closing high as smart phone maker HTC led the gain onstronger-than-expected 2008 net profit. The market followed the regional sentiments aswell as a positive lead from the Wall Street.

Taiex, the benchmark index ended up 62.58 points or 1.32% closing the day at 4,789.84, itshighest finish since 5 November 2008. The market has now risen more than 7% since 29December 2008, putting together a five-session winning streak.

On the economic front, Taiwan exported US$3.23 billion worth of machine tools in the first10 months of 2008, a moderate 14.2% year-on-year growth, said the non-profit TaiwanMachine Tool Foundation (TMTF). Of the two major categories of the products, metal-cuttingmachine tools saw exports grew 15.8% year-on-year to reach US$2.574 billion; exports formetal-forming machine tools amounted to US$656.94 million, up 8.2%.

Meanwhile after the market closure, Taiwan's central bank cut its benchmark interest rateby 0.50 %, saying a record plunge in the island's exports in December was having a severeimpact on the economy. Exports sank 42% as the global economic crisis shattered demand inkey markets such as the United States and China. Demand in Taiwan is also crumbling.Imports fell 44.6%, allowing the island to post a trade surplus in December.

In Singapore, share market wiped out morning gains to finish the session 1.7% down on theback losses in banks, multi industries, manufacturing sector, transportation andcommunication. The benchmark Straits Times Index erased 33.08 points, or 1.73%, to1,880.58.

In Malaysia, the Kula Lumpur Composite Index increased by 5.39 points or 0.58% to closedthe day at 927.62. On the economic front, Malaysia's exports continued to decline for thesecond straight month in November as the global economic slowdown reduced demand fromoverseas. A report from the department of statistics showed that exports fell 4.9%year-on-year to 51.79 billion Ringgit. In October, exports fell 2.6%. On a month-on-monthbasis, exports declined 3.1% in November.

In India, the key benchmark indices recovered from lower level on recovery in other ITpivotal. The BSE 30-share Sensex was down 749.05 points, or 7.25% closing the day at9568.88. The S&P CNX Nifty closed down by 6.18% closing the day at 2920.40. SatyamComputer's shocking revelation that its accounts were inflated artificially spooked themarket. The barometer index BSE Sensex fell below the psychological 10,000 mark andS&P CNX Nifty slipped below the psychological 3,000 mark.

Elsewhere, the Philippines PSEi ascended 1.74% or 34.31 points to 2,003.89 the highestlevel since 5 November 2008, while the all share index rose 2.08% or 25.93 points to1,268.09. In Indonesia, the Jakarta Composite index fell by 0.98% or 14.07 points closingthe day at 1421.47.

In other regional market, European shares were seen breaking their winning streak for thefirst time in 2009. On a national level, the U.K. FTSE 100 index fell 1.1% to 4,588.08,the German DAX 30 index declined 0.7% to 4,989.08 and the French CAC-40 index lost 0.6% to3,376.44.

On the economic front, the industrial producer prices fell by 1.9% across thethen-15-nation euro zone in November. Compared to November 2007, producer prices were up3.3%.

Huge losses at Wall Street

2009-03-01T03:20:00.003+05:30

08 Jan 2009 | 08:58 Huge losses at Wall Street

Stocks at Wall Street ended substantially lower on Wednesday, 07 January, 2009. Amid low volumes, stocks lingered in the red throughout the entire day after a number of negative news gripped Wall Street today. From economic reports to earning cautions - all were grim. December witnessed a large number of layoffs in US, much higher than expected.

On Wall Street, the Dow Jones industrial average ended lower by 245 points at 8,769.7, the Nasdaq closed lower by 53.3 points at 1,599.06 and the S&P 500 closed lower by 28 points at 906.65.

All ten sectors ended in the red led by energy and financials.

Stocks were battered today after Intel cut its fourth quarter revenue estimate for the second time due to continued weakness in its end markets. On the other hand, Alcoa announced today that it will reduce output, capital expenditures, and its global workforce as it contends with a softer economic environment.

Among the major economic reports for the day, the ADP reported on Wednesday, 07 January, 2009 that U.S. private-sector firms shed 693,000 jobs in December, far worse than expected.

As per the report, private employment in the services sector fell by 473,000 last month, while employment in the goods-producing sectors fell by 220,000. Large firms cut 91,000 jobs, medium-sized firms shed 321,000 jobs and small firms reduced their payrolls by 281,000 jobs.

Financials were a major drag on the market today. Banks were the main laggard today. Bank of America announced today that it will raise some $2.8 billion by selling part of its stake in China Construction Bank. The funds will help Bank of America contend with a weak economy, and help bolster its balance sheet. It was also reported today that market expects banks will have to raise more capital in 2009.

On Wednesday, crude-oil futures for light sweet crude for February delivery closed at $42.63/barrel (lower by $5.95 or 12.2%) on the New York Mercantile Exchange. Prices reached a high of $147 on 11 July but have dropped almost 63% since then. Year to date, in 2009, crude prices are lower by 4%.

Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.

The EIA reported today that U.S. crude stockpiles gained 6.7 million barrels to 325.4 million in the week ended 02 January, 2009. Market had expected a buildup of 1.5 million barrels.

Tomorrow, market will focus on same store results, weekly initial unemployment claims and consumer credit report. Other than that, The Bank of England is expected to announce its interest rate decision early morning.

New Year Joy ends for Asian Markets

2009-03-01T03:20:00.001+05:30

08 Jan 2009 | 15:52 New Year Joy ends for Asian Markets
Stock markets in Asian region closed mostly lower on Thursday 8 January 2009, following the sharp losses overnight on Wall Street as concerns resurfaced about the health of the U.S. economy. On Wall Street, the Dow Jones industrial average ended lower by 245 points at 8,769.7, the Nasdaq closed lower by 53.3 points at 1,599.06 and the S&P 500 closed lower by 28 points at 906.65. Technology stocks closed lower after chip maker Intel warned of lower revenues, while resource stocks were dragged down by the fall in commodity prices.

In the commodity market, crude oil was little changed in New York after dropping the most in seven years yesterday as falling consumption led to bigger-than-expected gains in supplies of crude, gasoline and distillate fuel.

U.S. inventories of crude oil rose 6.68 million barrels to 325.4 million barrels last week, the highest since May, the Energy Department said yesterday in a weekly report.

Crude oil for February delivery was at $43.20 a barrel, up 57cents, in electronic trading on the New York Mercantile Exchange at 9:39 a.m. London time. The contract earlier fell as much as 39 cents, or 0.9 percent, to $42.24 a barrel.

Brent crude oil for February settlement was at $46.57 a barrel, up 71 cents, on London's ICE Futures Europe exchange at 9:39 a.m. London time.

Gold prices recovered $6.80 an ounce, or 0.81%, to $848.50 in Asian electronic trading on Thursday after the most active February Comex gold contract tumbled $24.30, or 2.8%, to $841.7 an ounce by the close of New York trading on Wednesday on tracking weaker crude oil price and the weak economic data.

In the currency market, the Japanese yen was quoted at 93.94 against the US dollar today, up from Wednesday's close of 93.63-93.64 yen in Tokyo.

The Hong Kong dollar was trading at HK$ 7.7535 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.

The Australian dollar edged down against its US counterpart. The Aussie reached 0.7024 against the US dollar, compared to 0.7123 hit late Wednesday in New York.

The New Zealand dollar reached its highest level against the greenback in nearly three weeks but failed to push through the US59c level. It was trading at US58.82c.

The South Korean won was trading at 1,332.40 won to the U.S. dollar, up 14.70 won from Wednesday 's close of 1,292.10 won.

The Taiwan dollar strengthened against the US dollar as it was trading at NT$ 32.11 in the afternoon trade against the Wednesday closing of NT$ 33.025.

The Singapore dollar finished at 1.4819 against the previous close of 1.472 while the Malaysian Ringgit closed Wednesday's deals at 3.5405

The Philippines peso slipped against the dollar. Currently, the dollar-peso pair is worth 46.9000, compared to 46.34 hit late New York Wednesday.

Coming back in equities, Japanese shares snapped seven days of winning streak to finish the session 3.9% lower, on rekindled concerns over corporate earnings outlook, the health of the broader U.S. economy, and firmer yen weighed down banks and financials, property developers, and export related shares, while pullback in crude oil and base metal prices weighed down commodity related shares.

The Nikkei 225 Stock Average index lost 362.82 points, or 3.93%, to 8,876.42. The broader Topix index tumbled 27.36 points, or 3.08%, to 860.89.

On the economic front, Japan's Ministry of Finance reported that foreigners remained net sellers of Japan-based stocks, bonds and notes last week, while Japan residents remained net buyers of foreign stocks, bonds and notes. According to report, foreign residents sold a net 18.7 billion yen worth of Japan stocks and a net 24.2 billion yen worth of Japan-based bonds and notes for the week ending January 3. Japan residents were purchasers of a net 61.5 billion yen of foreign stocks and a net 442.9 billion yen in foreign bonds and notes for the week ending January 3.

In Mainland China, the indices extended losses for second consecutive day to finish the session 2.4% lower on Thursday, 8 January 2009, dragged down by steep losses in banks and financials, property developers, and commodity related shares. Meanwhile telecom weighed down after authority awarded 3G licenses. The benchmark Shanghai Composite Index, which covers both A shares and B shares on the Shanghai Stock Exchange, slipped 45.83 points, or 2.38%, to 1,878.18.

On the economic front, the Ministry of Finance suspended the collection of tax on airlines' fuel surcharges, effective Jan 1, with the measure expiring at the end of 2010. The Ministry of Land and Resources said in a report published on its website that China will have to rely on imports for about 60% of its oil demand by 2020, up from 50% now.

In Hong Kong, the markets closed sharply lower as China banks fell for a second day on concerns over share sales by strategic investors and commodity stocks tumbled after a big drop in crude oil prices overnight. The Hang Seng index closed down 571.55 points or 3.81% at 14,415.91. The index has shed 7% since yesterday. The Hang Seng China Enterprises index ended down 484.66 points or 5.88% at 7,760.02.

In Australia, the benchmark index snapped two days of winning streak to finish the session 2.3% lower on Thursday, 8 January 2008, on the back of pullback in commodity prices and negative cues from Wall Street overnight, with steep losses in miners, materials, energy, and retailers. The benchmark S&P/ASX200 plummeted 85.40 points, or 2.26%, to 3,694.30 and the broader All Ordinaries by 84.60 points, or 2.27%, to 3,643.6.

In New Zealand, stock market fell for the second time in a row, trailing behind the overnight US market. The benchmark index was down 0.9% or 24.07 points taking it to 2740.17. The NZX50 slipped 0.27% or 7.591 points to close at 2756.651.

Stock markets in South Korea fell for the first time in 2009, ending a run of five consecutive gains as technology issues retreated on earnings worries, but shipbuilders including STX Shipbuilding rose on expectations for large overseas orders. The Korea Composite Stock Price Index declined by 22.47 points or 1.83% to close at 1,205.07 points, off a session low of 1,195.15, snapping its longest 5 days gaining streak since March, 2008.

On the economic front, bank lending to South Korean households grew by 1.6 trillion won ($1.24 billion) in December from the previous month to 388.4 trillion won, central bank data showed. In November, the outstanding loans owed by households to banks rose by 1.8 trillion won. Bank lending to small and medium-sized enterprises (SMEs) fell by 3.8 trillion won in December to 400.3 trillion won, after rising 2.6 trillion won in November, the Bank of Korea said in a statement.

In Taiwan, the benchmark index slided to two month low, posting its biggest single-day drop in two months, after exports sank at a record pace in December, while chipmaker Taiwan Semiconductor Manufacturing Company fell on a revenue warning from Intel Corporation.

The main TAIEX share index ended down 254.05 points or 5.30% at 4,535.79, posting its largest one-day percentage decline since 6 November 2008. The market also hit its lowest finish since 29 December 2008.

On the economic front, Taiwan's central bank cut its benchmark interest rate by 0.50% to 1.50%, as a record plunge in the island's exports in December was having a severe impact on the economy. The slump in exports as well as import is likely to reduce investments, and force companies to cut their workforce. To avoid this the central bank has decided to lower interest rates to the lowest level since 2003.

Total exports amounted to US$13.64 billion in December 2008, down by 41.9% over the same month of last year. The slump in exports is pioneered by the global economic crisis, which shattered demand in the key markets such as the United States and China.

Demand in Taiwan is also crumbling. Total imports amounted to US$11.78 billion, down by 44.6% over the same month of last year, allowing the island to post a trade surplus in December. The trade balance of this month was favorable, amounting to US$1.86 billion.

In Philippines, the stock markets reversed the yesterday's gain, ending 1.65% lower tracking the overnight losses on Wall Street. The benchmark index PSEi dived 1.65% or 33.17 points to 1970.72, while the all share index lost 1.36% or 17.32 points to 1250.77.

Elsewhere, Malaysia's main index was down 1.84% or 17.10 points to 910.52, while Singapore's market fell by 52.97 points or 2.82% to 1827.61.Indonesia's Jakarta composite declined by 18.81 points or 1.32% to 1402.66. Stock markets in India were closed on the account of holiday.

Coming to other regional markets, a strong start to the year for European equities faltered again, as investors sold mineral extractors and banking shares. Meanwhile, deteriorating economic conditions mean that the Bank of England will likely announce another half-point cut to its key rate on Thursday to an all-time low, economists believe.

Ahead of the announcement, the U.K. FTSE 100 index dropped 1% to 4,461.80. The German DAX 30 index fell 1.2% to 4,879.65 and the French CAC-40 index declined 1.3% to 3,301.41.

Asian Markets ends lower on economic worries

2009-03-01T03:18:00.004+05:30

23 Dec 2008 | 15:24 Asian Markets ends lower on economic worries
Stock markets in the Asian region closed mostly lower on Tuesday 23 December 2008, following the overnight lower finish on Wall Street finished. On Wall Street, the Dow Jones Industrial Average slipped 0.7% to 8,519.77, the S&P 500 Index lost 1.8% to 871.63 and the Nasdaq Composite lost 2% to 1,532.35

Investor sentiment was crumpled as economic outlook for the region deteriorated after Japan reported the biggest ever drop in exports in November and Toyota slashed its fiscal 2009 guidance on Monday. Yesterday's announcement of the People's bank of China to cut its interest rates for the fifth time since September. The Japanese market is closed today in honor of the emperor's birthday.

In the commodity market, the crude oil was trading below $40 a barrel on signs of weakening demand following the global slowdown. At 9:40 a.m. GMT, oil was quoted at $39.42 a barrel, down 49 cents. Light, sweet crude for February delivery fell $2.45, or nearly 6%, to settle at $39.91 a barrel on the New York Mercantile Exchange on Monday

In the currency market, the Chinese Yuan weakened to 6.8538 a U.S. dollar from Monday's close of 6.8499.

The Hong Kong dollar was trading at HK$ 7.7498 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.

The Australian dollar hovered around $0.6832 in late domestic trade. On Monday, the local unit finished the session at US$0.6816-0.6822.

The New Zealand dollar fell against the greenback after data confirmed that New Zealand's recession has worsened marginally in the third quarter of 2008. The New Zealand dollar finished the domestic session at US$0.5747 compared to Monday's close of US$0.5760.

The South Korean won finished the domestic session at W 1,336 a U.S. dollar; down from Friday's close of W 1,308.10 a U.S. dollar.

The Taiwan dollar weakened against the US dollar as it was trading at NT$ 32.949 in the afternoon trade against the previous day closing of NT$ 32.935.

Coming back to the equities, the Chinese stock market closed sharply lower, extending its losses for the second straight trading session, as a lower-than-expected interest rate cut disappointed investors. The benchmark Shanghai Composite Index tumbled 4.55% or 90.53 points to close at 1,897.2. The Shenzhen Composite Index of China's smaller second market fell 34.60 points or 5.56% to 587.21.

China's central bank cut interest rates yesterday evening for the fifth time in four months in an effort to revive economic growth amid spreading job losses and worker protests. The People's Bank of China cut the benchmark one-year lending rate by 0.27% to its lowest level since February 2004.

In Hong Kong trading, the Hang Seng Index fell 401.60 points or 2.75% to 14,220.79, while the Hang Seng China Enterprises Index gave up 418.40 points or 5.14% to 7,720.02.

The Australian stock market closed lower for the second consecutive trading session after trading higher in opening minutes, despite a weak lead from Wall Street. The benchmark S&P/ASX 200 index closed down 26.0 points or 0.73% at 3,531.40 points and the broader All Ordinaries index shed 24.10 points or 0.69% to 3,468.20.

On the economic front, the private sector research firm, the Conference Board, reported that its Leading Index for Australia declined 0.5% in October, while the coincident index, which measures current activity, increased 0.2%. October marked the second straight month of leading index declines after a 0.4% rise in August.

The New Zealand stock market closed lower, reversing a major portion of Monday's gains, as Wall Street's decline overnight dented investor sentiment. The market opened weak and extended its losses after the GDP report showed contraction in economic activity for the third quarter in a row. The benchmark NZX 50 index closed down 18.01 points or 0.67% at 2,661.74, after gaining 0.9% on yesterday. The broader NZX All Capital index shed 15.4 points or 0.6% to finish at 2,693.4.

Statistics New Zealand reported that the nation's economic activity, as measured by gross domestic product, contracted by 0.4% for the three months to September, marking the third straight quarter of decline. GDP had decreased 0.2% in the June quarter and 0.3% in the March quarter. The last time the economy shrank for three consecutive quarters was during the Asian crisis in 1998.

The South Korean stock market registered heavy losses, led by auto companies and chipmaker Hynix as investors locked in recent gains on grim earnings outlooks, but SK Telecom and insurers shined on dividend expectations. Concerns about carmakers intensified after the world's biggest automaker Toyota forecast its first ever group-operating loss. The Korea Composite Stock Price Index shed 35.30 points or 2.99% to close at 1,144.31 points, marking a 1-week low.

In Taiwan, markets fell to their lowest closing level in more than two weeks, pressed down by struggling DRAM firms, as poor November jobless data renewed investor concerns about the health of the global economy. Taiex, the benchmark index slumped further by 129.68 points or 2.86% at 4,405.86 - its lowest closing since 5 December 2008, extending its slide to about 6.3 percent in two sessions.

On the economic front, the Taiwan seasonally adjusted jobless rate rose to a near five-year high of 4.62% in November, as companies laid off workers in response to a slowing global economy. The November jobless rate was the highest since February 2004, when it hit 4.65%, and comes as some of Taiwan's top tech firms, including chipmaker UMC, electronics giant Hon Hai and No. 2 LCD maker Chi Mei have all announced cuts among staff or temporary workers in recent weeks. The jobless rate was 4.29% in October.

In Philippines, stock market ended 1.15% higher, reversing the yesterday's losses due to yearend window-dressing involving blue chip issues. The benchmark composite index PSEi ascended 1.15% or 21.25 points to 1862.19.

In India, the bourses followed the regional trend as the BSE Sensex continued to trade in the negative territory. At 15.15 IST the BSE Sensex was down by 219.33 points or 2.21% trading at 9709.02. Banking, auto, realty and capital goods led the decline. Caution ahead of the expiry of the near month derivatives contracts also weighed on the market.

Elsewhere, Singapore, the Strait Times was down by 1.21% or 21.09 closing at 1724.54; Malaysia's KLCI closed down 0.26% at 871.16 and Indonesia's Jakarta composite closed the day down by 1.59 points or 0.12% lower at 1,343.72.

In the other regional markets, shares climbed in European markets in a holiday-shortened week, with banks among the strongest performers. On a national level, the U.K. FTSE 100 index rose 0.7% to 4,277.00; the French CAC-40 index advanced 0.6% to 3,169.77 and the German DAX 30 index edged up 0.1% at 4,643.25.

On the economic front, French consumer spending unexpectedly rebounded in November, up 0.3% compared to a 0.5% decline in October, the French national statistics office Insee said today suggesting stimulus measures and the continued decline in oil prices are helping cushion the economic downturn.

Looking ahead the day is scheduled to release the growth rate of the US and UK in the third quarter which will be accompanied by exiting and pending home sales for the US housing market helping us to project the right state of the beleaguered housing market.

Economic reports weigh on US Market

2009-03-01T03:18:00.003+05:30

24 Dec 2008 | 09:11 Economic reports weigh on US Market

US market did not manage to creep out of the red even after opening in the green on Tuesday, 23 December, 2008. Trading volume remains relatively light due to the ongoing holiday mood in the market. The financial sector was relatively weak today and weakness in Citigroup, JP Morgan and Bank of America kept the Dow in the red. However, financial sector opened relatively strong earlier in the day. Oil prices ended lower. The latest batch of housing data that checked in were as usual weaker than expected.

On Wall Street, after opening 58 points higher earlier in the day, the Dow Jones industrial average ended down by 100 points at 8,419.11, the Nasdaq closed lower by 11 points at 1,521.35 and the S&P 500 closed lower by 8.5 points at 863.

The healthcare sector tried to support Dow as much as possible today. Merck and P&G were other two stocks which tried to support the Dow.

Among major economic reports hitting the wires today, November new home sales declined 2.9% to an annualized rate of 407,000 units, which is the lowest level in 17 years. New home sales fell short of expected 415,000.

The report also said that existing home sales for November declined 8.6% to an annualized rate of 4.49 million units, which is below recent averages. The consensus called for 4.93 million sales.

Final third quarter GDP data came in line with expectations. The economy contracted at an annualized rate of 0.5%, which is unchanged from the prior reading. The personal consumption component was down 3.8%, while the core personal consumption component was up 2.4%. Market expected the consumption levels to remain unchanged from the prior reading at -3.7% and +2.6%, respectively.

In a separate report, the final December consumer sentiment survey came in at 60.1, which is above the 58.8 reading that was widely expected. The final reading is up modestly from the preliminary December reading of 59.1. The final reading for November was 55.3.

Crude prices continued to drop even on Tuesday, 23 December, 2008. Prices fell due to a strong dollar, ongoing global economic crisis and lower energy demand. On Tuesday, crude-oil futures for light sweet crude for February delivery closed at $38.98/barrel (lower by $0.93 or 2.3%) on the New York Mercantile Exchange. Prices reached a high of $147 on 11 July but have dropped almost 75% since then. For this year in 2008, crude prices have dropped 63%.

At the currency market on Tuesday, the dollar was up against most major counterparts. The dollar index gained 0.2% today erasing earlier losses.

For tomorrow, the stock market closes early at 1:00 PM ET. Economic data will be the main driver tomorrow. The number of jobless claims for last week, personal income data and durable good orders are all expected ahead of opening bell.

Asian Market closes mixed

2009-03-01T03:18:00.001+05:30

24 Dec 2008 | 15:22 Asian Market closes mixed
Stock markets in the Asian domain closed mixed following lower Wall Street closing for the fifth straight session overnight on the back of worse-than-expected housing data and confirmation that the U.S. economy shrank in the third quarter. The Dow closed down 100.3 points or 1.2% at 8,419.5, the Nasdaq shed 10.8 points or 0.7% to 1,521.5 and the S&P 500 dropped 8.5 points or 1.0% to 863.16.

In the commodity market, crude oil hovered around $39 a barrel in New York after falling yesterday as a deepening global economic downturn hurt energy demand. Oil for February delivery was at $39.07 a barrel, up 9 cents, on the New York Mercantile Exchange at 6:23 a.m.GMT. Earlier, prices rose as much as 1.8% to $39.69 a barrel. Yesterday, futures dropped 93 cents, or 2.3%, to close at $38.98 a barrel. Brent crude oil for February settlement was at $40.25 a barrel, down 11 cents, on London's ICE Futures Europe exchange at 6:23 a.m.GMT. Yesterday, the contract declined $1.09, or 2.6%, to $40.36 a barrel.

In the currency market, the U.S. dollar slipped to the lower 90-yen range in late afternoon deals in Tokyo. The dollar was quoted at 90.33-90.36 yen compared to 90.85-90.88 yen in early trade and Monday's close of 89.83-89.86 yen in Tokyo.

The Chinese Yuan weakened to 6.8394 a U.S. dollar from Tuesday's close of 6.849.

The Hong Kong dollar was trading at HK$ 7.75 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.

The Australian dollar was quoted at US$0.6816 by late afternoon, down from US$0.6837 late Tuesday in domestic trade.

The New Zealand dollar weakened against the green back, trading around US$0.5675-0.5685 in late domestic deals compared to Tuesday's close of US$0.5747.

The South Korean won finished the domestic session at W 1,305.4 a U.S. dollar; up from Tuesday's close of W 1,331.05 a U.S. dollar.

The Taiwan dollar strengthened marginally against the US dollar as it was trading at NT$ 32.993 in the afternoon trade against the previous day closing of NT$ 33. The Taiwan dollar had fallen about 2% so far this week as the central bank bought the U.S. dollar to boost Taiwan's sagging exports.

Coming back in equities, Japanese stock market close lower as investors sold auto related stocks after Toyota world's biggest automaker forecasts its first ever annual operating loss. The benchmark Nikkei index dropped 206.68 points or 2.37% to 8,517.10, after rising 1.6% on Monday to book its highest finish since 11 Nov 2008. Japanese markets were closed on Tuesday for a national holiday. The broader Topix declined 2.56% or 21.73 points to 826.99.

On the economic front, Japan announced BSI large manufacturing and all industry numbers for the fourth quarter. According to data released by the Cabinet Office, the index measuring sentiment among large companies fell sharply in the fourth quarter of 2008, touching its lowest score since the index started in 2004. The reading for the fourth quarter came in at a record low -35.7 for the period of October through December, after posting a score of -10.2 in the previous three months.

Meanwhile, the outlook index measuring expectations for large companies also saw a sharp fall in score, forecasting a score of -22.2 in the first quarter of 2009 and -10.3 in the second quarter.

In Mainland China, the stock markets closed at six-week low with lower volume amid concerns about expiries of lock-up periods for shares as markets head for long holiday. The Shanghai Composite Index closed down 33.43 points or 1.76% at 1,863.80 while the Shenzhen Composite Index of China's smaller second market fell 12.14 points or 2.07% to 575.07. The Chinese stock market will remain closed for four days from January 1st for the New Year holiday. The market will reopen on January 5th.

In Hong Kong, the stock markets endured losses for the fourth day to finish the half day session 0.3% lower. The Hang Seng Index retracted 36.65 points, or 0.3%, to 14,184.14, while the Hang Seng China Enterprises Index gave up 34.85 points or .45% to 7,685.17.

The Australian stock market closed higher, ending a two-day losing streak, as investors shrugged off a weak overnight lead from Wall Street and a fall in commodity prices. The benchmark S&P/ASX 200 index closed up 50.80 points or 1.44% at 3,582.20, in the shortened session ahead of Christmas holidays. The broader All Ordinaries index advanced 46.80 points or 1.35% to finish at 3,515.0.

Stock market in New Zealand closed mixed, the last trading day before Christmas holidays, following a weak lead form Wall Street. The benchmark NZX 50 index closed up 6.31 points or 0.24% at 2,668.1, but the broader NZX All Capital index closed down 1.5 points or 0.1% at 2,691.9.

Stock markets in South Korea closed lower, extending its losses for the third consecutive day as signs of a prolonged slump in major economies prompted investors to sell down heavily. The Korea Composite Stock Price Index fell 15.80 points or 1.38% to close at 1,128.51 points, marking a third straight decline.

On the economic front, housing construction in South Korea dropped in October as cash-strapped builders scaled back on construction projects amid a deepening economic slump, the construction ministry said. A total of 21,746 homes were built across the nation in October, a 79% drop from a year earlier, according to the ministry.

In Taiwan, markets rose slightly breaking its two days losing streak as financial stocks led the gain after a newspaper reported China would ease rules to allow Taiwan banks to do business in the Yuan early next year. Taiex, the benchmark index closing up by 17.23 points or 0.39% at 4,423.09, recovering from a 6.3% fall registered in two sessions.

On the economic front, Taiwan's November exports posted a record, 28.5% fall due to the financial crisis, which has hurt global demand for Taiwan's exports. According to the data released by the Economics Ministry in November, Taiwan received orders worth 22.8 billion US dollars, down 28.5% year-on-year. Among Taiwan's export markets, orders from China and Hong Kong - Taiwan's top export destination - fell 45.3%, the biggest fall since 1990 and the second biggest decline in history.

In Philippines, the stock market ended marginally higher as traders hunted for attractively priced stocks into the last day of trading for the year. The benchmark composite index PSEi mounted 0.57% or 10.66 points to 1,872.85.

On the economic front, the Philippines' trade deficit for the period was at $7.025 billion, more than double the $3.41 billion recorded in the same period last year, according to the data released by the statistical office. The Philippines bought significantly less imports in October, reflecting weaker trade brought about by a recession in the world's largest economies and a slowdown in emerging markets. Meanwhile the balance of payment (BOP) posted a deficit of US$394 million in Q3 2008.

However gross international reserves (GIR) rose to US$36.7 billion as of end-September 2008, higher by 8.7% compared to the end-December 2007 level, and equivalent to 5.8 months' worth of imports of goods and payment of services and income (import cover).

In India, the markets were trading lower following the other regional market closing as well as weak opening from European markets. At 15:30 IST, the BSE 30-share Sensex was down 87.90 points, or 0.91%, to 9,598.85.

Elsewhere, Singapore, the Strait Times was up by 0.72% or 12.45 closing at 1736.99; Malaysia's KLCI closed down 0.18% at 869.62 and Indonesia's Jakarta composite closed the day down by 7.10 points or 0.53% lower at 1,336.61.

In the other regional market, European stock markets were little changed in early trade on Wednesday as volumes expected to remain thin in shortened session ahead of the Christmas break. The U.K. FTSE 100 index fell 1.1% to 4,205.56, while the French CAC-40 index edged down 0.1% to 3,125.65. Share trading in Germany has already stopped for the holiday.

Modest gains at US Market

2009-03-01T03:17:00.003+05:30

25 Dec 2008 | 00:01 Modest gains at US Market

US market managed to end modestly higher on Wednesday, 24 23 December, 2008 as Wall Street closed at 1.00 P.M E.T ahead of the Christmas Holiday. Trading volume remained relatively light due to the ongoing holiday mood in the market. The financial sector was relatively strong today. The economic reports that checked in were weak as expected and lived up to expectation. The job market remained immensely weak with unemployment remaining at 26 year high. Oil prices ended lower.

On Wall Street, after opening 32 points higher earlier in the day, the Dow Jones industrial average ended higher by 49 points at 8,468.48, the Nasdaq closed higher by 3.4 points at 1,524.9 and the S&P 500 closed higher by 5 points at 868.

Twenty two of thirty Dow stocks ended in the green today led by GM, Bank of America, JP Morgan and Wal-Mart.

Among major economic reports hitting the wires today, The Labor Department reported today that first-time applications for state unemployment benefits jumped by 30,000 to a seasonally adjusted 586,000 in the week ended 20 December, 2008. The four-week average of new claims, which smooth out distortions caused by bad weather, strikes or the timing of holidays rose by 13,750 to 558,000, the highest since December 1982. The claims data continue to reflect weak labor market conditions and portend another decline in December nonfarm payrolls.

In other economic data, November durables goods new orders fell a less-than-forecast 1.0%. However, recent data trends reflect weak demand.

A separate report showed that consumer spending remains weak amid stiff macro headwinds and challenging labor conditions. Personal consumption expenditures dropped 0.6% in November. Meanwhile, personal income declined 0.2%, as wages and salaries dropped 0.1%.

Trading volumes were very light, with 403 million shares changing hands on the New York Stock Exchange, and 189 million trading on the Nasdaq stock market.

Crude prices continued to drop even on Wednesday, 24 December, 2008. Prices fell as energy department reported a bigger than expected build up in crude inventories. On Wednesday, crude-oil futures for light sweet crude for February delivery closed at $37.4/barrel (lower by $1.6 or 4.1%) on the New York Mercantile Exchange. For this year in 2008, crude prices have dropped 67%.

At the currency market on Wednesday, the dollar was down against the euro but up against most major counterparts. The dollar index gained 0.2% today erasing earlier losses.

US stock market will be closed tomorrow due to Christmas Holiday. It will trade in regular normal hours on Friday, 26 December, 2008.

Asian Markets packs a mixed punch on Boxing Day

2009-03-01T03:17:00.001+05:30

26 Dec 2008 | 16:01 Asian Markets packs a mixed punch on Boxing Day
Stock markets in Asian region closed mostly higher in thin holiday trading, with Japanese shares rising for a second session, while Shanghai edging down slipping for the fifth trading session.

In the commodity market, crude oil rose for the first time in three days in New York after the U.A.E. said it would cut output to comply with OPEC's supply curbs and as traders bought contracts on concern this month's 33% decline was excessive. Crude oil for February delivery gained as much as $1.45, or 4.1%, to $36.80 a barrel on the New York Mercantile Exchange. Brent crude oil for February settlement gained as much as $1.14, or 3.1 percent, to $37.75 a barrel.

In the currency market, the U.S. dollar continued to hover around the 90-yen range in late afternoon deals in Tokyo. The dollar was quoted at 90.48 yen compared to 90.33 yen in early morning trade.

The Chinese Yuan weakened to 6.8419 a U.S. dollar from Tuesday's close of 6.8318.

The Hong Kong dollar was trading at HK$ 7.7496 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.

The Australian dollar was quoted at US$0.6836 by late afternoon, up from US$0.6828 late Thursday in domestic trade.

The New Zealand dollar weakened against the green back, trading around US$0.5753- compared to Thursday's close of US$0.5745.

The South Korean won finished the domestic session at W 1,299 a U.S. dollar; up from Thursday's close of W 1,304.40 a U.S. dollar.

The Taiwan dollar weakened marginally against the US dollar as it was trading at NT$ 32.022 in the afternoon trade against the previous day closing of NT$ 32.982.

Coming back in equities, stock markets in Australia, New Zealand and Hong Kong were closed for the Boxing Day holiday in Asia. U.S. markets were closed Thursday for Christmas.

In Japan, the Nikkei 225 rose 1.6% to its highest close in six weeks on Friday as investors picked up battered stocks such as Toyota Motor Corporation on one of the last trading days of the year. The Nikkei advanced 1.8 percent on the week in its first three-week winning streak since a three-week stretch in late April to early May, but the outlook was clouded by a spate of gloomy economic data.

The benchmark Nikkei added 140.02 points or to 8,739.52, its highest closing level since 8,809.30 on 11 November 2008. The broader Topix gained 1.3% to 846.58.

The shares rose despite a series of bleak economic indicators, including data showing industrial production plunged a record 8.1% in November from the previous month, while the ratio of jobs available to those looking for work fell to a nearly five-year low. Japan's seasonally adjusted unemployment rate rose to 3.9% in November from 3.7% in October.

Japanese retail sales fell an annual 0.9% in November, above expectations for a 1.3% contraction and further than the 0.7% decline reported in October. In addition to this the (CPI) consumer price index for Japan in November 2008 was down 0.9% from the previous month, and up 1.0% over the previous year. Japanese core annual inflation which excludes fresh food, slowed to 1.0% in November from 1.9% in October

In Mainland China, the stock markets edged down 0.05% on Friday in thin trade, slipping for a fifth day in a row and setting the biggest weekly drop since mid-October, hurt by more evidence the slowdown in the economy was worsening. The Shanghai Composite Index ended a narrowly range-bound session at 1,851.518 points, extending a drop on Thursday to its lowest close in six weeks. The index has lost 8.3% this week, posting its biggest weekly drop since 12 October 2008, hit by looming expiries of lock-up periods for shares and a smaller-than-expected interest rate cut. The Shenzhen Composite Index of China's smaller second market fell 12.14 points or 2.07% to 575.07.

Sentiment was also hurt by official data on industrial profits, which highlighted the economy's slowing growth. China's national industrial enterprises realized a total profit of 2.4066 trillion Yuan, an increase of 4.9%.

In South Korea, the stock markets fell for fourth consecutive losing session as Daewoo Shipbuilding drop on fears the acquisition of the firm could collapse, but Hyundai Corporation soared on news it would be put up for sale. The Korea Composite Stock Price Index fell 10.65 points or 0.94% to close at 1,117.86 points, off a session low of 1,108.86 marking a fourth straight decline.

In Taiwan, stock markets closed higher, limiting its weekly losses to 5.7%. The gains made by LCD makers after a government announcement to support the industry helped the industry stocks to put up gains. Taiex, the benchmark index closing up by 11.63 points or 0.26% at 4,425.08, taking the weekly fall to 269.44 points or 5.74%.

In India, reports of a fall in advance tax payment by corporates in the December 2008 quarter triggered a sharp fall in the key benchmark indices. The BSE 30-share Sensex closed down 239.80 points, or 2.51% closing the day at 9328.92. A statement by a finance ministry official that there is no scope for relaxing overseas borrowing rules, also weighed on the market.

Elsewhere, Singapore, the Strait Times was down by 0.66% or 11.38 closing at 1725.61; Malaysia's KLCI closed down 0.26% at 867.35 while Indonesia's Jakarta composite closed up by 4.28 points or 0.32% lower at 1,340.89.

The European markets were closed on the account of Boxing day.

No Christmas Cheer at US Market

2009-03-01T03:16:00.005+05:30

29 Dec 2008 | 09:27 No Christmas Cheer at US Market

The US Market ended modestly lower for the week that ended on Friday, 26 December, 2008. The indices practically finished in the territory where it was since the start of the month. There was once again a spate of bad news but market digested them comfortably. But the fact that Amazon.com for its part said 2008 was its best holiday season ever, surprised investors without limits.

Low crude price and negative earning reports dominated the week. The last day of the week, however managed to register gains. On Christmas Eve the Fed accepted GMAC's (the 49% held financing arm of General Motors) application to become a bank holding company.

The Dow Jones Industrial Average lost 63.57 points (0.7%) for the week to end at 8,515.55. Tech - heavy Nasdaq lost 34.08 points (2.2%) to end at 1,530.24. S&P 500 lost 15.08 points (1.7%) to end at 872.8.

Among major earning reports for the week, it was reported that November existing home sales declined 8.6% from October and that new home sales of 407,000 units on an annualized basis hit their lowest level in 17 years.

The final Q3 GDP report released this week indicated that real personal consumption expenditures declined 3.8% in the third quarter and knocked 2.8% off real GDP growth, which was negative 0.5% for the quarter.

Initial jobless claims surged to a 26-year high of 586,000, durable orders declined 1.0% in November, and personal income and personal spending fell 0.2% and 0.6%, respectively, in November.

In the US stock market on Friday, 26 December, stocks ended modestly higher. It was a slow news day with no earnings or economic reports.

On Wall Street, the Dow Jones industrial average ended higher by 47.7 points at 8,515.55, the Nasdaq closed higher by 5.3 points at 1,530.9 and the S&P 500 closed higher by 5 points at 872.6.

Reuters reported on Friday that sales at U.S. retailers fell as much as 4% during the holiday season. According to data released by Spending Pulse, a report on consumer spending in multiple industries based on aggregate sales activity in the MasterCard payments network, showed that the 2008 holiday shopping season was the weakest in decades.

After weeks of speculation, Wal-Mart said it will start selling certain models of the iPhone. Wal-Mart plans to sell the 8 gigabyte iPhone 3G for $197 and the 16 gigabyte black or white model for $297 starting Sunday 28,December, 2008.

Crude prices rose for the first time last week on Friday, 26 December, 2008. Prices rose as traders thought that the previous sessions' 10% drop due to a strong dollar was just overdone.

Crude prices rose for the first time last week on Friday, 26 December, 2008. Prices rose as traders thought that the previous sessions' 10% drop due to a strong dollar was just overdone. On Friday, crude-oil futures for light sweet crude for February delivery closed at $37.71/barrel (higher by $2.36 or 6.7%) on the New York Mercantile Exchange. Prices reached a high of $147 on 11 July but have dropped almost 74% since then. For the week, prices ended lower by 11%. For this year in 2008, crude prices have dropped 60%.

For the year, Dow, Nasdaq and S&P 500 are down by 35.8%, 42.3% and 40.6% respectively.

Asian Markets manage a mixed closing

2009-03-01T03:16:00.003+05:30

29 Dec 2008 | 16:01 Asian Markets manage a mixed closing
The stock markets across the Asian region closed mixed on Monday 29 December 2008. The stock markets in Japan, Hong Kong, Australia, New Zealand and Singapore closed higher, while the Chinese and South Korean markets closed in negative terrain.

On Wall Street, U.S. stocks gained ground on Friday, as hope of further government intervention drove a rally in the automakers. An advance in commodities also contributed to the stock gains while investors shook off worries about the retailing sector. The Dow Jones industrial average ended higher by 47.7 points at 8,515.55, the Nasdaq closed higher by 5.3 points at 1,530.9 and the S&P 500 closed higher by 5 points at 872.6.

In the commodity market, crude oil rose for a second day in New York after Israeli air strikes in the Gaza strip raised concerns that supply may be disrupted from the Middle East, the world's largest producing region. Crude oil for February delivery rose as much as $2.11, or 5.6%, to $39.82 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It was at $38.68 at 2:45 p.m. in Singapore. Brent crude oil for February settlement climbed 93 cents, or 2.4%, to $39.30 a barrel on London's ICE Futures Europe exchange. The contract gained 4.8% to $38.37 on 26 December 2008.

In the currency market, the U.S. dollar continued to hover around the 90-yen range in late afternoon deals in Tokyo. The dollar was quoted at 90.42 yen compared to 90.71 yen in early morning trade.

The Chinese Yuan weakened to 6.8482 a U.S. dollar from Friday's close of 6.8419.

The Hong Kong dollar was trading at HK$ 7.7496 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.

The Australian dollar was quoted at US$0.6928 by late afternoon, up from US$0.6858 late Friday in domestic trade.

The New Zealand dollar strengthened against the green back, trading at US$0.5815 compared to Friday's close of US$0.5795.

The South Korean won finished the domestic session at W 1,262 a U.S. dollar; up from Friday's close of W 1,299 a U.S. dollar.

The Taiwan dollar weakened marginally against the US dollar as it was trading at NT$ 32.992 in the afternoon trade against the Friday closing of NT$ 32.991.

Coming back to equities, the Japanese stock market closed slightly lower in the last full trading day of 2008 as gains from insurance stocks on news about a possible merger in the sector. Trading for the year will conclude tomorrow with a half-day session and the markets will reopen on 5 January 2009. The Nikkei 225 Stock Average index gained 7.65 points, or 0.08%, to 8,747.17. The broader Topix index surged 8.19 points, or 0.97%, to 854.77.

In Mainland China, the stock markets endured losses for the sixth straight session as sentiments hurt by more evidence of the slowdown in the economy, which has been worsening. The market came back to losses after China raised tax rebates for some exporters of high-tech and machinery products on Monday, in its latest move to cushion the economy from the global financial crisis.

The Shanghai Composite Index closed down 1.04 points or 0.06% at 1,850.48 while the Shenzhen Composite Index fell 4.21 points or 0.74% to 565.17.

In Hong Kong the stock markets snapped four days losing streak as rising crude oil price lifted the commodity related stocks. The Hang Seng Index ended 144.34 points higher at 14,328.48 after dropping to 13,924.32 earlier. The Hang Seng China Enterprises Index rose 112.61 points or 1.47% to 7,797.78.

The Australian stock markets closed higher on the first day of trade following Christmas, with strong gains in miner, materials, energy, and retailers shares on rebound in crude oil, gold, and copper prices. The benchmark S&P/ASX200 gained 38.90 points, or 1.09%, to 3,621.1 while the broader All Ordinaries added 39.20 points, or 1.12%, to 3,554.2.

In New Zealand closed the day higher as the NZX50 inched forward 0.36% or 9.583 points to close at 2677.64 while the broader NZX All Capital index closed down 1.5 points or 0.1% at 2,691.9.

In South Korea, ended flat, extending its losing streak for the fifth consecutive session. The Korea Composite Stock Price Index fell 0.27 points or 0.02% to close at 1,117.59 points, marking a fifth straight decline.

In Taiwan, markets closed slightly lower in thin trade volume with Mediatek leading technology shares lower on a report the chip designer could be hurt by delays in China's home grown 3G-telecom standard. Taiex, the benchmark index closed lower by 8.92 points or 0.20% at 4,416.16.

In India, the firm starts of European markets, and higher US index futures propelled key Indian benchmark indices to close on higher note in what has been a volatile trading session. The BSE 30-share Sensex closed up 204.60 points, or 2.19% at 9533.52.

In Singapore, stock markets recouped Friday's losses to finish the session sharply higher, with gains in banks, property trusts, and multi industry shares, while commodity related stocks climbed on rebound in crude oil prices and precious metal. The benchmark Straits Times Index added 54.96 points, or 3.18%, to 1,780.57.

Bourses in Malaysia, Indonesia and Philippines are closed for public holidays on Monday. In Thailand, the Thai Set index gained marginally by 0.08 points or 0.02% to 446.70.

In other regional markets, European shares climbed in early trading on Monday, with an advance from oil producers underpinning gains at the start of the last week of 2008. Overall, the U.K. FTSE 100 index climbed 2.1% to 4,303.38 while the French CAC-40 index advanced 1.1% to 3,149.98. The German DAX 30 index, which closed for an extra day last week, moved up 1.2% to 4,686.91.

30 Dec 2008 | 07:39 Modest losses at US Market

2009-03-01T03:16:00.001+05:30

30 Dec 2008 | 07:39 Modest losses at US Market

US market managed to end modestly higher on Monday, 29 December, 2008. Trading volume remained relatively light due to the ongoing holiday mood in the market. Even after being down by almost 170 points earlier during the day, stocks pared most of their losses and ended modestly lower at Wall Street. Higher crude price and a deal-blowout have acted as negative catalysts in the market. Weakness in the financial sector was noteworthy today.

On Wall Street, the Dow Jones industrial average ended lower by 31 points at 8,483, the Nasdaq closed lower by 20 points at 1,510.9 and the S&P 500 closed lower by 3.4 points at 869.

The indices dropped sharply amid speculation that the merger agreement between Rohm and Haas and Dow Chemical may be renegotiated now because a Kuwaiti petrochemical outfit has put an end to a proposed multibillion dollar joint venture with Dow.

Twenty two of thirty Dow stocks ended in the red today led by GM, Citigroup and JP Morgan. Nine of the ten sectors ended in the red today. Energy was the sole gainer.

Weakness in Cisco Systems, Oracle and Microsoft took the technology sector down today.

In terms of trading volume, 877 million shares changed hands on the New York today at New York Exchange and 446 million trading on the Nasdaq. Declining issues topped advancers by nearly 2 to 1 on the NYSE and by nearly 3 to 1 on Nasdaq.

Crude prices rose for the second consecutive day on Monday, 29 December, 2008. Prices rose as tensions in the Middle East escalated. The relatively weak dollar was also the reason for the higher crude price today. On Monday, crude-oil futures for light sweet crude for February delivery closed at $40.02/barrel (higher by $2.31 or 6%) on the New York Mercantile Exchange. During intra day trading, prices touched a high of $142.05. For this year in 2008, crude prices have dropped 60%.

The strikes by Israel have heightened tensions in the Mid East region, increasing the geopolitical risk premium in the price on fears that there could be some disruption to crude supplies. As per reports, in the Gaza Strip, Israeli air strikes aimed at targets linked to militant group Hamas and it continued for a third day. Hamas said 300 Palestinians have died since Saturday.

At the currency market on Monday, the dollar was down against most major counterparts. The dollar index lost 0.24% today.

Tomorrow, economic data highlights include the October S&P/CaseShiller home price composite will be released followed by the December Chicago Purchasing Manager Index. December consumer confidence is due for release at 10:00 AM ET.

30 Dec 2008 | 15:45 Asian Markets Advance Higher

2009-03-01T03:15:00.001+05:30

30 Dec 2008 | 15:45 Asian Markets Advance Higher
Stock markets across the Asian region advanced higher for a second consecutive day on Tuesday 30 December 2008, despite the overnight negative Wall Street lead, as resource firms that could benefit from a sharp rebound in oil prices as Israel continued its attacks on Islamic group Hamas led the gains.

On Wall Street, the indices closed lower on Monday in response to news that Kuwait's government has scrapped a petrochemical joint venture with Dow Chemical Co. due to the global financial crisis. Higher oil prices due to increasing tensions in the Middle East also negatively impacted investor sentiment. The Dow Jones industrial average ended lower by 31 points at 8,483, the Nasdaq closed lower by 20 points at 1,510.9 and the S&P 500 closed lower by 3.4 points at 869.

In the commodity market, crude oil fell, poised for the first annual decline in seven years, as slumping fuel demand because of a deepening recession overtook concern that Middle East supplies will be disrupted by Israel's attacks on Gaza. Crude oil for February delivery fell as much as 50 cents, or 1.3%, to $39.52 in after-hours electronic trading on the New York Mercantile Exchange. It was at $39.30 at 10:10 a.m.GMT. Brent crude oil for February settlement dropped as much as 35 cents, or 0.9%, to $40.20 a barrel on London's ICE Futures Europe exchange.

In currency trading, the U.S. dollar was quoted in a range of 90.18 yen, up 0.47 yen from Monday's close of 90.65 yen in Tokyo.

The Chinese Yuan strengthened to 6.8305 a U.S. dollar from Monday's close of 6.8457.

The Hong Kong dollar was trading at HK$ 7.7499 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.

The Australian dollar was quoted at US$0.6919, up from US$0.6847 late Monday in domestic trade.

The New Zealand dollar strengthened against the green back, trading at US$0.5790 compared to Monday's close of US$0.5751.

The South Korean won finished the domestic session at W 1,257.50 a U.S. dollar; up from Monday's close of W 1,260.90 a U.S. dollar.

The Taiwan dollar strengthened against the US dollar as it was trading at NT$ 32.842 in the afternoon trade against the Monday closing of NT$ 32.992.

Coming back in Asian equities, the stock markets in Japan wrapped up 2008 as its worst year on record after the financial crisis and surging yen drove the world's second-largest economy into recession. The benchmark Nikkei jumped 112.39 points or 1.28% to 8,859.56, its highest closing level since 8,809.30 on 11 November 2008. The broader Topix gained 0.52% to 859.24.

In Mainland China, the stocks markets remained subdued for the seventh consecutive day as holiday season sets in with broad based slumps in banks, property developers, and non ferrous shares on worries over slowdown in the economy and corporate earning. The Shanghai Composite Index closed down 17.57 points or 0.95% at 1,832.91 while the Shenzhen Composite Index fell 4.74 points or 0.84% to 560.43.

On the economic front, the Ministry of Industry and Information Technology said in a report that China produced 246.51 tons of gold in the first 11 months of 2008, up 2.14 pct from a year earlier.

In Hong Kong, the stock markets closed lower on their last full trading day of 2008 heading for their worst yearly performance ever. The Hang Seng index closed down 92.98 points or 0.65% at 14,235.50. The index has dropped close to 49% so far this year, its biggest yearly drop since 1983. The Hang Seng China Enterprises index closed down 11.59 points or 0.15% at 7,786.19.

The Australian stock markets endured gains for the third day in row to finish the session with strong gains in miner, materials, energy, and retailers shares after crude oil extended rally for a second day overnight and stronger base and precious metal price as conflict in the Middle East raised concerns about the supply of commodities and weaker greenback offset losses in banks and financials and property trusts. The benchmark S&P/ASX200 gained 33.10 points, or 0.91%, to 3,654.2. The broader All Ordinaries added 37.2 points, or 1.05%, to 3,591.4.

In New Zealand, the stock markets closed flat as investors continue to face negative sentiments on the global front with tensions in the Middle East accompanied by the ongoing financial turmoil. The NZX50 edged forward 0.02% or 0.583 points to close at 2678.22 while the broader NZX All Capital index closed down 1.5 points or 0.1% at 2,691.9.

In South Korea, the markets closed higher, snapping a five-session losing streak, as the main index responded more sensitively to buying amid lackluster year-end trading and refiners gained on a stronger won currency.

The Korea Composite Stock Price Index (Kospi) gained 6.88 points or 0.62% to close at 1,124.47 points, breaking its five session losing streak. The main index is down 40.72% from 2007's close of 1,897.13 points, and the Kospi's annual loss was the largest since 2000's 50.9%.

On the economic front, South Korea's industrial output slumped in November by its biggest margin in more than two decades, underscoring the depth of the slump in the economy and the urgency of official efforts to shore it up. South Korea's statistics agency said industrial output fell by a seasonally adjusted 10.7% in November from October, the biggest fall in 21 years, as the global downturn took its toll. From the same year-earlier month, output was down 14.1 percent.

In another data release, the Financial Services Commission (FSC) reported to President Lee Myung-bak that the state-run financial institutions would provide a combined 10.2 trillion won ($8.10 billion) next year to local banks, up from 5.4 trillion in 2008.

In Taiwan, the stock markets closed precipitously higher posting their biggest gain in 3 weeks with financial stocks leading the rally after a report that authorities expect up to dozen local banks to set up branches in China next year.

Taiex, the benchmark index took a hop with a gain of 172.38 points or 3.91% at 4,589.04 its biggest percentage gain since 10 December 2008 and its highest finish since 19 December 2008.

In India, the key benchmark indices rallied in mid-afternoon trade on hopes for a second government stimulus package for the economy and expectations of further reduction in interest rates. Firm European markets and higher US index futures lifted the sentiment further. Towards its final closing, at 15:44 IST, the BSE 30-share Sensex was up 182.64 points, or 1.92%, to 9,716.16.

Elsewhere, Singapore, the Strait Times was down by 0.56% or 9.92 points closing at 1770.65; Malaysia's KLCI closed up 1.65% at 881.63 while Indonesia's Jakarta composite closed up by 14.52 points or 1.08% lower at 1,355.41. In Thailand, the Thai Set index increased by 2.78 points or 0.89% closing the day at 316.45.

In other regional market, European shares were also set to rise, as most of the region's bourses head into the last full-day session of 2008. On national level, the U.K.'s FTSE 100 index rose 1% at 4,362.16, the French CAC 40 climbed 1.3% at 3,172.84 and the German DAX 30 added 1.5% at 4,774.48.

31 Dec 2008 | 09:29 US Market tries to smile at year end

2009-03-01T03:14:00.001+05:30

31 Dec 2008 | 09:29 US Market tries to smile at year end

US market managed to end substantially higher on Tuesday, 30 December, 2008. Trading volume remained relatively light due to the ongoing holiday mood in the market. General Motors pumped in positive momentum in the market today. Crude prices traded lower today. Strength in the financial sector was noteworthy today. Earning reports that checked in today were a bit dour.

On Wall Street, the Dow Jones industrial average ended higher by 185 points at 8,668, the Nasdaq closed higher by 40 points at 1,550.9 and the S&P 500 closed higher by 21 points at 890.

Twenty-eight of thirty Dow stocks ended in the green today led by GM and Alcoa.

GM provided good boost to the Dow today after the partly-owned financing arm of Dow component General Motors, GMAC, said that it is receiving $5 billion worth of senior preferred equity from the U.S. Treasury. Meanwhile, General Motors is receiving a loan of up to $1 billion to participate in GMAC's rights offering. As per GM, it will restart auto financing for more U.S. customers because it has better access to funding after converting GMAC to a bank-holding company.

Among major economic reports for the day, the Conference Board reported today that worries increased about current labor-market and business conditions took consumer confidence to a record low in December. The December consumer confidence index fell to 38 from a downwardly revised 44.7 in November. Market was expecting a December reading of 45.8.

As per the report, consumers' view of current conditions worsened in December, with those saying business conditions are bad rising to 46% from 40.6%, and those saying jobs are hard to get rising to 42% from 37.1%.

In a separate report, the Case-Shiller price index reported today that home prices are back to their March 2004 levels, having dropped in 20 major U.S. cities by 2.2% in October and by a record 18% from the previous year.

The report detailed that prices have fallen in all 20 cities compared with both the prior month and October 2007, and 14 of the 20 metro areas showed record rates of annual declines. Also, 14 of 20 areas sustained declines of more than 10% on a year-over-year basis.

Trading volume remained very light, with many traders and investors absent in a holiday-shortened week. On the New York Stock Exchange, 953 million shares exchanged hands, and on the Nasdaq stock market, 506 million shares traded. Gaining issues topped decliners by 5 to 1 on the NYSE and by nearly 2 to 1 on Nasdaq.

On Tuesday, crude-oil futures for light sweet crude for February delivery closed at $39.03/barrel (lower by $0.99 or 2.4%) on the New York Mercantile Exchange. During intra day trading, prices touched a high of $40.03. For this year in 2008, crude prices have dropped 54%.

Tomorrow will be the last trading day of this year. Year to date, the Dow industrials have slumped nearly 35%, the S&P 500 has lost 40%, and the Nasdaq Composite is off almost 42%.

23 Dec 2008 | 09:26 US stocks continue to linger in the red

2009-03-01T03:13:00.003+05:30

23 Dec 2008 | 09:26 US stocks continue to linger in the red

Stocks at Wall Street ended with losses on Monday, 22 December. Couple of worse than expected earning reports and news of pay cuts from a major company have pushed stocks in the red today. The overall gloomy picture in the US economy continued to take its toll on Wall Street. Trading volume remains relatively light. All the ten sectors ended in the red today led by the financial sector.

On Wall Street, after opening 18 points lower earlier in the day, the Dow Jones industrial average ended down by 59 points at 8,519.11, the Nasdaq closed lower by 31.9 points at 1,532.35 and the S&P 500 closed lower by 16.2 points at 871.6.

Nineteen out of thirty stocks ended in the red today led by GM.

The telecom sector tried to support Dow as much as possible. Other than that, Mac Donalds and Merck were other two stocks which tried to support the Dow.

Among major earning reports hitting the wires today, Walgreen, the company's largest drugstore chain reported that the first-quarter profit fell 10%. Other than that, automaker Toyota reported that it forecasts an operating loss for the current year, which would be a first for the Japanese auto maker since World War II. Toyota blamed a slump in global demand and a sharp appreciation in the Japanese yen.

Dow component, Caterpillar, today announced that it plans to cut costs, including slashing pay on executives by up to 50% and by up to 15% for support staff in FY 2009. The company said it is making the move due to the deterioration of many markets and the uncertainty in the credit and financial markets.

Persistently weak economic conditions prompted the International Monetary Fund to indicate that it might cut its economic forecast. The IMF also indicated that a lack of fiscal stimulus could worsen 2009. On the other hand, President-elect Obama intends to bolster economic conditions by creating millions of jobs in the U.S.

On Monday, crude-oil futures for light sweet crude for February delivery closed at $39.91/barrel (lower by $2.45 or 5.8%) on the New York Mercantile Exchange. Earlier in the day, prices were trading higher by 2.5%. Prices reached a high of $147 on 11 July but have dropped almost 72.7% since then. Last, prices ended lower by almost $12.41 or 27%. For this year in 2008, crude prices have dropped 60%.

As per reports, crude imports to China, the world second-largest consumer of oil, fell to their lowest level this year. The country imported 13.36 million tons of crude in November, or 3.25 million barrels a day, down 1.9% from a year ago.

At the currency market on Friday, the dollar was up against most major counterparts. The dollar index gained 1% today.

Volume on the New York Stock Exchange exceeded 1.2 billion, and decliners outpaced advancers more than 2 to 1. On the Nasdaq, more than 665 million shares traded, and decliners offset advancers, also by a more than 2-to-1 ratio.

For tomorrow, the economic data will be of focus. The final third quarter GDP report is set for released before the opening bell. Following that, November existing and new home sales, along with revised December University of Michigan consumer sentiment will be released.

Asian Markets close lower on profit booking

2009-03-01T03:13:00.001+05:30

Asian Markets close lower on profit booking
The stock markets across the Asian region closed mostly lower on Monday 22 December 2008, as investors locked in profits following the Wall Street mixed finish on Friday and from recent advances after Japan reported weak exports data.

Wall Street finished mixed on Friday as the strong upward move seen in early trading on the back of a government bailout of the auto industry lost steam over the course of the day following a steep fall in oil prices. The Dow closed down 25.9 points or 0.3% at 8,579.1, while the Nasdaq rose 12.0 points or 0.8% to 1,564.3 and the S&P 500 advanced 2.6 points or 0.3% to 887.9.

In the commodity market, the crude oil prices rose above $43 a barrel on Monday in Asia amid speculation that OPEC's production cuts next month and the economic stimulus measures announced by the U.S. will help stabilize oil prices. Light, sweet crude for February delivery gained 74 cents to $43.10 a barrel in electronic trading on the New York Mercantile Exchange by 02:52 a.m. ET after the contract fell 69 cents to settle at $42.36 a barrel on Friday. The January contract, which expired on Friday, plunged 6.5% to $33.87 a barrel, the lowest settlement since February 10, 2004.

In currency trading, the U.S. dollar held steady in the upper 89-yen levels in Tokyo. The dollar was quoted at 89.84- 89.86 yen in late Tokyo deals, up 0.92 yen from Monday's domestic close of 88.92-88.94 yen. The dollar was quoted at 89.71-89.76 yen in early local trade.

China's Yuan was slightly higher at 6.8520 per U.S. dollar compared to Friday's close of 6.8450.

The Hong Kong dollar was trading at HK$ 7.7498 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.

The Australian dollar closed lower against the greenback. The Aussie finished the domestic session at US$0.6816-0.6822, down from Friday's close of US$0.6858-0.6865

The New Zealand dollar fell against the greenback. The kiwi finished the domestic session at US$0.5760, down from Friday's close of US$0.5825.

The South Korean won finished the domestic session at 1,309.0 a U.S. dollar; down from Friday's close of 1,290.0 a U.S. dollar.

The Taiwan dollar ended the session at NT$32.452 to the US dollar compared with the previous close of NT$32.720, i.e., appreciation of 0.38%.

Coming back in equities, the Japanese stock market closed higher, reversing Friday's 0.9% losses. After starting off on a flat note, the market posted strong gains over the course of the trading session as investor sentiment was buoyed by the U.S. government's announcement Friday that it will provide emergency loans to beleaguered automakers General Motors Corp. and Chrysler LLC. A weaker yen also contributed to the positive investor sentiment.

The benchmark Nikkei 225 Stock Average closed up 135.3 points or 1.6% at 8,723.8 and the broader Topix index of all the Tokyo Stock Exchange First Section issues climbed 14.3 points or 1.7% to 848.7.

On the economic front, the Ministry of Finance said in a report that Japan posted its second consecutive monthly merchandise trade deficit in November, led by the biggest ever decline in exports. The trade deficit totaled 223.42 billion yen compared to a deficit of 67.69 billion yen in October and a surplus of 85.68 billion yen in September. Exports fell 26.7% on year and imports declined 14.4%, the first decline since September 2007.

In other economic news, the Bank of Japan's monthly report of recent economic and financial developments showed that Japanese economic conditions are likely to deteriorate in the immediate future. Exports are expected to drop considerably due to the slowdown in global economies and the appreciation of the yen. Production is also forecast to decrease substantially.

Japan's supermarket sales rose 0.6% in November from a year earlier on a same-store basis, up for the first time in four months. Sales totaled 1.11 trillion yen, according to the Japan Chain Stores Association.

In Mainland China, the stock markets closed lower, led by property developers, as expectation for an interest rate cut over the weekend failed to materialize. The Shanghai Composite Index closed down 30.7 points or 1.5% at 1,987.8 after rising 3.3% last week.

In Hong Kong, the Hang Seng Index finished the day 505.12 points or 3.3% lower at 14,622.39, while the Hang Seng China Enterprises Index lost 296.89 points or 3.5% to 8,138.42.

The Australian stock market closed lower, ending a three-day winning streak. The benchmark SP/ASX 200 index closed down 58.3 points or 1.6% at 3,557.4 and the broader All Ordinaries index shed 54.9 points or 1.5% to 3,492.3.

On the economic front, data released by the Australian Bureau of Statistics showed that new motor vehicle sales fell in November by a seasonally adjusted 5.2% from October. New vehicle sales were also lower by a seasonally adjusted 17.8% from last year.

The New Zealand stock market closed higher, recouping a portion of the nearly 2% losses that it posted on Friday. The benchmark NZX 50 index closed up 24.4 points or 0.9% at 2,679.8 and the broader NZX All Capital index advanced 17.4 points or 0.7% to 2,708.8.

On the economic front, the current account data released today confirmed that New Zealand's deficit with the outside world is of historic proportions. New Zealand's current account deficit stood at NZ$4.08 billion for the third quarter of 2008 compared to a deficit of NZ$4.65 billion for the preceding three-month period. The Statistics New Zealand also said that the country's deficit for the year through September was NZ$15.5 billion compared to a deficit of NZ$15.0 billion for the year through the preceding quarter.

Meanwhile, consumer confidence in New Zealand declined in the December quarter, according to the latest survey from Westpac Bank. The Westpac McDermott Miller Consumer Confidence Index declined 3.5 points to a reading of 101.3, with readings over 100 indicating the number of optimists is greater than the number of pessimists among those surveyed.

The South Korean stock market closed lower, snapping a five-day winning streak, as investors locked in profits from recent advances. The benchmark Korea Composite Stock Price Index or Kospi closed down 1.4 points or 0.1% at 1,179.6 after testing the 1,200 mark in the morning session for the first time in more than one month.

In Taiwan, stock markets plunge to one week low as leading electronics gear maker announced its plans to reduce its global workforce by 3-5% due to a worse-than-expected slowdown, with the group's chairman saying the worst is yet to come. Taiex, the benchmark index fell down by 158.98 points or 3.39% at 4,535.54 - its lowest closing since 12 December 2008.

In Philippines, stock market crashed down more than 3%, as investors were unloading shares to remain liquid during the more than a weeklong break for Philippine markets.

The benchmark composite index PSEi nose-dived 3.28% or 62.59 points to 1840.94 lowest levels since 24 November 2008.

In India, stock markets followed the regional indices as the investors remained cautious ahead of the expiry of the near month derivatives contracts pulled the market down in mid-afternoon trade. The BSE Sensex closed the day at 9928.35 i.e. 171.56 points or 1.70% lower.

Elsewhere, Singapore, the Strait Times was down by 2.78% or 49.84 closing at 1745.63; Malaysia's KLCI closed down 0.34% at 873.43 and Indonesia's Jakarta composite closed the day down by 2.98 points or 0.22% lower at 1,345.31.

In other regional market, European markets extended declines early, putting them on track for their seventh day of losses in eight, as banks, autos and oils led losers and volumes were expected to stay thin in Christmas week. Overall, the U.K. FTSE 100 index fell 0.4% to 4,264.69, the German DAX 30 index lost 0.8% to 4,660.14 and the French CAC-40 index declined 0.8% to 3,199.35.