Asian markets holding well as Australia falls; Aussie dollar flying high

<p>Asian markets were stronger today with the Nikkei and Hang Seng both up around 1.3% and 0.4%. In Hong Kong, the government will sell a […]</p>

Asian markets were stronger today with the Nikkei and Hang Seng both up around 1.3% and 0.4%.

In Hong Kong, the government will sell a residential building site today in its first auction since imposing the toughest measures yet to curb home prices in November.

Sun Hung Kai Properties, the world’s biggest developer, rose 0.2%. Henderson Land Development Co, the builder controlled by billionaire Lee Shaue-kee, dropped 1.5%. China Shipping Development Co, the unit of China’s second biggest sea-cargo group said first-quarter net income fell 17% from a year earlier to 382 million Yuan. The stock declined 0.2%.

In Japan, stocks pared gains after S&P cut the country’s sovereign rating outlook on reconstruction cost following last month’s record earthquake and tsunami.

Canon Inc which has lost 13% this year, jumped after Nomura Holdings Inc, said the camera maker’s growth prospects are positive even after last month’s disaster.

In Australia, the local market struggled and stayed in negative territory for most of the day after the long weekend. Australia’s Consumer Price Index (CPI) came out much higher than expected with food prices and soaring petrol prices cited as the main drivers for the numbers.

In the mean time, the Australian dollar continued to rise, touching 1.0850 at one stage during the Asian trading session. The Aussie seems to be unstoppable at this level and may gain further momentum should the Australian Reserve Bank (RBA) starts talking about a possible rate increase in the coming months.

 

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.