Mixed day for Asian stocks; Australian Gloucester Coal now a takeover target
City Index December 20, 2011 3:51 PM
<p>Asian stocks were mixed as the Kospi rebounded from yesterday’s declines following news of Kim Jong Il’s death. The MSCI Asia Pacific index was up […]</p>
Asian stocks were mixed as the Kospi rebounded from yesterday’s declines following news of Kim Jong Il’s death.
The MSCI Asia Pacific index was up 0.3% in early afternoon Tokyo trading as the S&P500 index futures pointed to a 0.5% rise when markets resume trading tonight Asian time. Around seven stocks firmed for each that declined on the regional index which was 1.8% lower yesterday.
Gold continued to languish under US$1600/oz, while silver also continued to slip below US$29/oz. The Australian dollar firmed slightly following the release of this month’s Reserve Bank of Australia’s (RBA) meeting minutes. The comments suggest an ongoing debate of how much and when to cut rates, which might not necessarily see another cut in February as markets are expecting should European issues resolve.
In other regional economic news, South Korea’s exports, which are a large component of total economic growth, are expected to rise by 7.4% next year which is substantially lower than a prior estimate of 19.2%. The numbers were released by the finance ministry.
In corporate news, Australian listed Gloucester Coal was in a trading halt ahead of an expected merger with China’s Yanzhou Coal, in a deal thought to be worth around $2bn for Gloucester shareholders.
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.