Lack of resolution on the Euro zone debt leaves Asian markets mixed
City Index September 30, 2011 10:08 PM
<p>Asian markets were mixed, ending a volatile week where no real resolution around the European debt issue. Markets will continue to range trade and lack […]</p>
Asian markets were mixed, ending a volatile week where no real resolution around the European debt issue. Markets will continue to range trade and lack any real conviction until a firm commitment becomes clearer.
Meanwhile, there have been some encouraging signs of growth improvement in the U.S. during the past week, but again more momentum is needed before markets start to ease their concerns, particularly in equities. The main focus next week will be the impact of European and U.S. slowing economies on the Asian region.
Today’s HSBC’s China Purchasing Managers’ Index showed the manufacturing sector contracted slightly for a third consecutive month in September due to weaker global demand, while factory inflation quickened to a four-month high.
New Zealand’s bond yields meanwhile rose sharply today after S&P and Fitch downgraded the country’s credit rating. New Zealand’s dollar slid for a third day, declining to 76.72 U.S in late Wellington trading.
Australian corporate news remained slow today with companies getting ready to host annual general meetings in October. Troubled bread and butter manufacturer Goodman Fielder closed significantly lower following its capital raising. There is some speculation the group could become subject to a private equity takeover offer as it evaluates its problematic future. Another option is separating businesses into individual units and selling them off.
Elsewhere, iron ore miner Fortescue metals hosed down market speculation of shipment deferrals, talking up its position and saying all deliveries were on time and budget. Fortescue also reiterated a strong iron ore price for its cargo.
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