Asian stocks look set to finish the week in mostly negative territory
City Index February 10, 2012 8:45 PM
<p>Asian stocks look set to finish the week in mostly negative territory with the MSCI Asia Pacific index down around 0.8% at noon in Tokyo […]</p>
Asian stocks look set to finish the week in mostly negative territory with the MSCI Asia Pacific index down around 0.8% at noon in Tokyo trading. S&P500 index futures were last pointing to a fall of around 0.2%. In currencies, the Australian dollar fell against the US dollar, last trading at 1.0740, following a downward revision in growth and inflation assumptions from the Reserve Bank of Australia. The central bank sees 2012 growth at 3.5% down from its prior forecast of 4%. Inflation is also seen to stabilise towards the lower end of the 2-3% target band range.
The euro continues to trade strongly, consolidating recent gains, last at 1.327 against the US dollar on hopes that a Greek deal will soon be announced and formalized. The Australian dollar also fell against the Euro, back below 0.81 to last settle at 0.8088. The US dollar also continues to gain traction against the yen, last buying 77.59. In regional corporate news, Macau casino owner and operator booked a 560% increase in fourth quarter net profits to $107.5m on strong gaming volumes. Australian listed Newcrest Mining booked a higher than expected interim profit on strong gold and copper prices, offsetting production disruptions.
Regional economic news was dominated by China’s trade data. Overseas shipments in January decline 0.5% compared to the same period last year. Imports also fell by a very significant 15.3%. The net result was a trade surplus of $27.3bn but the composition surprised many, particularly the large fall in imports. The mixed picture from China – high inflation but flat consumption – does little help to spur regional confidence in equity markets which are anticipating easing at some point.
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.