HONG KONG, April 10: Asian stocks closed mixed on Thursday as investors digested a fresh record in oil prices and an IMF forecast of a US-led world economic slowdown following the global financial crisis.
The Tokyo bourse, Asia’s biggest, fell more than one per cent, with Australia, Singapore and India in the red too. But China and Taiwan both rose more than 1.5 per cent as Hong Kong and South Korea also rallied.
Crude oil prices jumped to a new intra-day high above $112 per barrel in New York trading on Wednesday, further stoking concerns about rising inflation.
Investors worry rising commodity prices will raise corporate costs at the same time as a US-led global slowdown crimps demand, squeezing business profits.
The IMF said Wednesday the US economy was on course for a “mild recession”and would stagnate through much of 2009 as house prices slide further and credit conditions stay difficult.
It also cut its global growth forecast to 3.7 per cent but said Asian growth was set to remain resilient despite slowing.
Singapore on Thursday provided some evidence of Asian resilience after posting surprisingly strong 7.2 per cent economic growth for the first quarter.
But a spike in inflation prompted the city-state to tighten monetary policy. Investors are waiting for more clues about the health of the US economy from upcoming corporate earnings reports, with expectations of further American interest rate cuts growing.
TOKYO: Japanese share prices declined for a third straight day as investors fretted over a firmer yen, record high oil prices and overnight losses on Wall Street, dealers said.
They said an expected sharp drop in domestic machinery orders did little to lift investors’ spirits.
The benchmark Nikkei-225 index fell 166.59 points or 1.27 per cent to end at 12,945.30. It was the third consecutive daily decline for the index, following a 900-point gain previously seen since the beginning of April.
The broader Topix index of all first-section shares shed 14.83 points or 1.17 per cent to 1,248.07.
Decliners outnumbered gainers 1,450 to 210, with 53 issues unchanged.
Volume rose to 1.92 billion shares from 1.83 billion on Wednesday.
The Nikkei lost more than 200 points at one stage, but some of the losses were trimmed as investors sought bargains amid expectations of interest rate cuts later this month by the US Federal Reserve.
Stocks may edge lower in the near-term due to caution amid the ongoing US earnings season, Investrust technical analyst Hiroyuki Fukunaga said.
HONG KONG: Hong Kong share prices closed up 0.84 per cent, dealers said.
The Hang Seng index closed up 202.53 points at 24,187.10. Turnover was 74.81 billion Hong Kong dollars (9.61 billion US).
The market extended its early gains as the Shanghai bourse rebounded on ICBC’s positive earnings guidance,” said Peter Lai, sales director at DBS Vickers.
ICBC, China’s largest commercial bank, projected its first-quarter net profit would grow more than 50 per cent.
Matthew Kwok, research head at Tanrich Securities, noted speculation that the Fed may take more steps to support the credit markets.
There was talk in the market that the US Fed is going to take further measures, particularly more liquidity injection actions, to tackle the credit crunch, Kwok said.
HSBC was up 0.76 per cent at 132.0, China Mobile was up 1.43 per cent at 127.5 and Hong Kong Exchange and Clearing gained 1.44 per cent at 147.9.
SYDNEY: Australian shares closed 1.3 per cent lower, dealers said.
The benchmark S&P/ASX 200 closed down 73.8 points at 5,446.4, while the broader All Ordinaries fell 68 points or 1.2 per cent to 5,515.5.
Market volume was 1.4 billion shares worth valued at 4.8 billion dollars (4.5 billion US).
Most of the market has gone back to a more negative stance after last week’s recovery, said Marcus Droga, a private client advisor at Macquarie Private Wealth.
SINGAPORE: Singapore share prices closed 0.81 per cent lower, dealers said.
The blue chip Straits Times Index dropped 25.12 points to 3,064.60 on volume of 1.50 billion shares worth 2.04 billion Singapore dollars (1.49 billion US).
Singapore’s gross domestic product grew 7.2 per cent in the first quarter, according to official data, but economists warned the growth would likely taper off.
With focus still on international events, we expect investors to stay cautious and the market to respond to any surprising news, Goh Mou Lih, research head at Westcomb Securities, said in a note to clients.
United Overseas Bank was up 12 cents at 20.10 Singapore dollars. CapitaLand lost 16 cents to 6.37. Singapore Airlines declined 44 cents to 15.46.
KUALA LUMPUR: Malaysian share prices closed up 1.7 per cent, dealers said.
The Kuala Lumpur Composite Index finished up 20.45 points at 1,248.19.
As we had anticipated, the current focus on commodity stocks, especially plantations, has led the market higher, said Phua Kwee Hock, an analyst at SJ Securities.
JAKARTA: Indonesian shares closed 2.6 per cent higher, dealers said.
The Jakarta composite index closed up 55.85 points at 2,235.93.
I would consider today’s rise as a minor rebound. The bearish trend has not changed yet, Batavia Prosperindo analyst Santikno Suherman said.
Indonesia’s anti-corruption watchdog said Thursdau it had arrested the country’s central bank governor Burhanuddin Abdullah on graft charges.
Bumi Resources gained 1.8 per cent to 5,650 rupiah. conglomerate Astra International rallied 7.1 per cent to 18,900.
WELLINGTON: New Zealand share prices closed 0.99 per cent lower, dealers said.
The NZX-50 gross index fell 35.44 points to 3,540.01.
Market leader Telecom fell six cents to $3.74 after chief executive Paul Reynolds said earnings were expected to fall.
MUMBAI: Indian share prices closed down 0.60 per cent, dealers said.
The benchmark Mumbai Sensex index fell 95.41 points to 15,695.1.—AFP
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