Posted on May - 29 - 2011
Asian Stocks Mostly Lower On Growth Worries
- Asian stocks swung between gains and losses before closing mostly lower Monday, after data showing weak housing sales and lower than estimated consumer spending in the U.S. sparked concerns about slowing growth in the world’s largest economy.
Persistent worries about Greece’s debt woes, a decline in oil and copper prices amid a slightly stronger dollar and a slew of economic data scheduled to be released this week, including a closely-watch jobs report on Friday, also prompted investors to stay on the sidelines. Oil prices slipped below $100 a barrel in late Singapore trading ahead of the U.S. Memorial Day holiday.
Tokyo shares fell, dragged down by exporters as investors continued to fret over the impact of a stronger yen on the economy and corporate profits. Sentiment was also hit by politics after opposition parties threatened a no-confidence motion against Prime Minister Naota Kan following his handling of the response to the March 11 earthquake, tsunami and nuclear disaster. The benchmark Nikkei average fell 0.2 percent while the broader Topix index eased 0.1 percent.
Sony fell 2.1 percent, extending Friday’s 3.2 percent retreat on uncertainty over its earnings outlook. Advantest lost 1.1 percent. Honda Motors shed 1.3 percent on a Nikkei report that it has decided not to carry out additional share buybacks due to uncertainty over its earnings outlook.
China’s Shanghai Composite index eased 0.1 percent, dragged down by property stocks, as reports that the government may raise interest rates next month and speculation about a property tax trial getting expanded hurt sentiment.
Agricultural producers such as Sichuan New Hope Agribusiness and Heilongjiang Agriculture Co rose by 1-2 percent after the People’s Daily said a drought in China’s rice growing central areas has affected 7 million hectares of farmland. Hong Kong’s Hang Seng closed 0.3 percent higher, as signs of easing liquidity in China lifted mainland banks.
THE Australian market declined modestly as offshore concerns over the impact of crumbling eurozone credit markets and reports that the government is reducing the size of guaranteed bank deposits weighed on financial shares. Commonwealth Bank fell and Westpac lost about 1.3 percent each, NAB shed 0.8 percent and Macquarie Group lost 0.9 percent.
Australia’s biggest general insurer Suncorp closed down 0.4 percent even as the general insurer said it is aiming to increase insurance margins and market share next financial year. Big miner BHP Billiton finished down half a percent, while rival Rio Tinto slipped 0.1 percent. Sundance closed up 11 percent after the iron ore developer said it was not in talks with Hanlong Mining about a full takeover.
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