Tokyo — Asian shares consolidated on Thursday as
better-than-expected US earnings lifted sentiment, but concerns over the
global economic outlook and US fiscal problem capped markets.
The MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2 percent after falling the past two sessions.
"Fourth-quarter earnings results for US companies have been better than
expected, lifting investor outlook. However, concerns over the fiscal
slope continue to weigh, and the main board is expected to see choppy
trading above the 1,950-mark," Kim Soon-young, an analyst at IBK
Securities, referring to South Korean shares, which opened up 0.3
percent at 1,983.67.
Australian shares added 0.3
percent, led by the financials sector, but the market was capped by
losses for miners after a big drop in iron ore prices on uncertainty
over demand from China ahead of the Chinese New Year holiday.
World stock markets ended flat on Wednesday with the banking sector
rising as earnings from Goldman Sachs nearly tripled and JPMorgan
Chase's fourth-quarter net income jumped 53 percent and earnings for
2012 set a record.
But data showing demand for
new cars in recession-bound Europe fell to a 17-year low in 2012 raised
concerns about the global growth rate and weighed on sentiment. Worries
were also apparent in global markets after the World Bank sharply cut
its outlook for world growth this year to 2.4 percent from 3 percent,
citing a slow recovery in developed nations.
The
dollar and the euro regained ground against the yen early on Thursday,
snapping two days of selling when investors took profits from these
currencies' sharp and rapid rises against the Japanese currency since
November.
Traders expect the yen to remain on a
weakening trend amid expectations for bolder monetary easing measures
from the Bank of Japan as part of the new government's push to drive
Japan out of years of deflation and economic slump.
Japan's benchmark Nikkei average opened up 0.6 percent, after tumbling
2.6 percent for its largest daily decline in eight months on Wednesday.
The Nikkei hit a 32-month high on Tuesday as the yen's slump to
multi-year lows against the dollar and the euro bolstered exporters on
improving earnings outlook.
The dollar rose 0.4
percent to ¥88.70, off its peak since June 2010 of 89.67 touched on
Monday, while the euro also climbed 0.3 percent to ¥117.81, after
surging to its highest since May 2011 of ¥120.13 on Monday.
Australian employment numbers due at 0030 GMT were expected to show no
jobs growth and a higher unemployment rate of 5.4 percent. Any
unexpected weakness in the report could see markets price in a bigger
chance of an interest rate cut next month.
The
data precedes a slew of economic reports from China which are due on
Friday, including fourth-quarter GDP, December industrial output, retail
sales and house price, offering investors clues on the health of Asia's
biggest economy and global growth prospects.
In
the United States, the Federal Reserve's latest Beige Book, a
collection of anecdotes on regional economic conditions, showed mild
growth across the US in recent weeks but no signs that economic
expansion will accelerate, while US consumer prices barely grew in
December.
In the credit default swap market, the
five-year cost to insure against a US default rose to 44 basis points
on Wednesday, the highest since August 2011 during the first debt
ceiling battle between US President Barack Obama and Republican
lawmakers.
The euro steadied around $1.3287
against the dollar, after reaching an 11-month high of $1.3404 on
Monday, and was also barely moved against the Swiss franc at 1.2375,
after touching a 13-month high of 1.2413 francs on Tuesday.
US crude eased 0.1 percent to $94.15 a barrel.
0 comments:
Post a Comment