Asian markets trade lower on weak US leads
City Index April 10, 2012 12:08 PM
<p>Asian stocks fell for a fifth straight day after negative leads from offshore markets following weak US jobs data out late last week. The regional […]</p>
Asian stocks fell for a fifth straight day after negative leads from offshore markets following weak US jobs data out late last week. The regional MSCI Asia Pacific index was 0.4% lower in early afternoon Tokyo trading.
The Australian dollar rallied above 1.03 against the US dollar after some slightly better than expected economic data. Job advertisements were up, as measured by ANZ, while business confidence also confirmed above expectations from previously depressed levels.
All eyes are now on the country’s unemployment numbers which are due out on Thursday. The Euro meanwhile was relatively flat from morning levels against the dollar.
The Japanese Yen was also little changed, with the US dollar last buying around 81.35. The Bank of Japan kept its key interest rate unchanged and no policymaker proposed additional stimulus.
China reported a trade surplus last month which was better than expected. The news provided some relief for equities which pared back earlier losses. Still, Chinese export numbers remain below expectations with trade data only surprising on the upside due to a difference in composition, mainly on imports.
In regional corporate news, regional construction and engineering group Leighton Holdings announced it has secured an attractive $420m mining contract in Indonesia. The contract will see Leighton Asia deliver seven years on contract mining services to PT Marunda Grahamineral in Central Kalimantan, located on the island of Borneo.
Indonesia’s coal industry is likely to see further expansion in capacity as demand forecasts were recently increased. Leighton is one of a very small handful of Australian companies which have a presence in Indonesia – an economy which is likely to exceed the size of Australia over the next ten years.
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.