Positive lead from US and Europe may lift Asian markets
City Index September 28, 2011 9:25 PM
<p>Asian markets are likely to open mostly higher today after positive leads from U.S. and European markets. There could be some consolidation though, given the […]</p>
Asian markets are likely to open mostly higher today after positive leads from U.S. and European markets. There could be some consolidation though, given the Asian gains were higher than global counterparts yesterday.
Markets are still fragile and sensitive to news flow out of Europe, something we don’t think is solvable quickly. Any European market solution will also come at a high cost – nothing is for free.
That cost will eventually be absorbed by the market, most likely at the cost of lower growth going forward. The Asian region is alright feeling this cost. An index measuring South Korean manufacturing expectations for October was 86, unchanged from a September reading that was the lowest level since December 2009, the Bank of Korea said in a statement in Seoul today.
In Australia, Wesfarmers will divest its Premier Coal business in Western Australia to a Yanzhou Coal subsidiary for $297m, booking a pre- tax profit of around $90m. There could be more coal deals in WA over the next few months.
There are more noise from Optus over competition approvals Telstra and NBN Co. need from ACCC but the issue is unlikely to impact current consideration. Telstra is pushing with its shareholder vote on the 18th of October.
Nufarm is expected to release its result today at around noon. With guidance already announced, all eyes on the composition of the result, outlook going forward and the ability to meet debt commitments.
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