Feb 11
16
Nikkei 225 index is trading 0.6% higher, at 10,807.7
Asian and Australian Market Report 16th February 2011
Asian markets are trading mostly higher this morning, after Nomura Holdings raised its growth forecasts for Japan. In Japan, financial stocks, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and MS&AD Insurance Group Holdings paced gains, after Nomura stated that Japan would recover strongly in the first half of 2011. In Hong Kong, Angang Steel climbed, leading steelmakers higher, after the Apple Daily reported that peer Wuhan Iron & Steel raised its prices. In South Korea, Korea Line lost values, on news that the company would enter court receivership upon a decision by the Seoul Central District Court, while Meritz Fire & Marine Insurance traded in negative territory, amid speculation that Moody’s Investors Service might downgrade the company’s financial strength rating. Nikkei 225 index is trading 0.6% higher, at 10,807.7. Hang Seng index is up 0.6% at 23,041.1, while the Kospi index is trading 0.2% lower at 2,007.5.
International Market Report 16th February 2011
US markets ended lower yesterday, with the S&P 500 index retreating from its 32-month high level, after a report showed that US retail sales increased less-than-expected in January, raising concerns over the economic recovery. Oil producers, Exxon Mobil, Marathon Oil and Chevron, dropped between 0.6% and 2.3%, in line with a fall in crude oil price. Resource stocks, Freeport-McMoRan Copper & Gold, Alcoa and Cliffs Natural Resources, declined between 0.4% and 2.7%, tracking lower base metal prices. Among other stocks, JDS Uniphase and Netflix lost 10.2% and 2.7% respectively, as various brokers downgraded these stocks, while Monsanto was down 4.8%, as billionaire investor George Soros’s hedge fund cut its stake in the company. DJIA dropped 0.3% to 12,226.6. NASDAQ was down 0.5%, at 2,804.4. S&P 500 index closed 0.3% lower, at 1,328.0.
Other European markets finished higher yesterday, led by gains in banking stocks, amid prospects of strong corporate earnings report, and after European governments agreed to double the lending capacity of the rescue fund for debt-laden countries. Investors however exercised caution, ahead of a slew of economic data releases. Among banking stocks, Credit Agricole, Societe Generale and Deutsche Bank, rose between 1.6% and 2.5%, after their UK peer, Barclays reported strong results. Danone jumped 3.3%, after reporting better-than-expected profit for the full year. However, German car makers, Daimler, BMW and Volkswagen fell between 1.0% and 3.5%, amid concerns that further increase in Chinese interest rates in the near future would dampen demand for automobiles. FTSEurofirst 300 index rose 0.2% to 1,180.1. German DAX Xetra 30 gained 0.1% to 7,400.0. French CAC-40 added 0.3% to settle at 4,110.3.
