Asian markets managed to trade higher today despite lingering global concerns
City Index March 3, 2011 4:35 PM
<p>Asian markets managed to trade higher today despite lingering global concerns on rising oil price and the ongoing crisis in the Middle East. In Hong […]</p>
Asian markets managed to trade higher today despite lingering global concerns on rising oil price and the ongoing crisis in the Middle East.
In Hong Kong, stocks rose for the fourth time in five days as financials gained and BYD Co surged after receiving a business license from the Chinese authorities for a joint venture with Daimler AG.
ICBC, the world’s largest lender by market value rose 0.8%. Evergrande Real Estate Group Ltd, a Chinese developer jumped 3.2% after reporting that full year profit may have increased.
Japanese shares were also trading higher today, led by the telecommunications sector, which rose 2.6 per cent. The Nikkei followed the lead from Wall Street overnight.
In Australia, the stockmarket traded on a tight range for most of the day before gaining some momentum in the afternoon.
It’s really more the global issues and developments that are proving to be a dampener on the local market.
This week, I think there are more downward pressures on the market. The US recovery is still patchy and fragile. Then you have the oil price rising and the Middle East situation. All these are creating uncertainties among investors.
We are seeing some investors selling into the rallies. This means they are cutting their long positions and maybe moving into safe haven assets like gold.
At the moment, it’s the energy and materials sectors propping up the market. But we see some softness in finance and the utilities sector, which is offsetting any gains from other areas.
Gold and oil stocks are definitely benefitting from the rise in the prices of those commodities. We may see gold hit a high of $1,500 if the global uncertain continues.
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.