Risk aversion weighs on Asian markets; Kiwi dollar under pressure
City Index February 24, 2011 9:54 PM
<p>The growing tension in Libya continued to reverberate and put a dampener in Asian markets today. The Japanese Nikkei was trading about 1 per cent […]</p>
The growing tension in Libya continued to reverberate and put a dampener in Asian markets today.
The Japanese Nikkei was trading about 1 per cent lower and the Hong Kong Hang Seng Index was also flat during midday trading in Asia.
In Japan, all sectors were in the red today with Consumer services and Basic Materials the hardest hit – both down around 1.5%. CSK Corp was up 14% after Nikkei English News reported Sumitomo Corp plans to buy a majority stake in the Japanese provider of computer services. Tobu Railway Co fell the most in more than 23 years after it said it planned to sell as much as 93.2billion Yen ($1.1 billion) of shares.
In Hong Kong, stocks fluctuated on speculation the government won’t introduce new measures to slow housing demand. Sun Hung Kai Properties Ltd jumped 2.2%. CNOOC Ltd rose 0.9% following violence in Libya that pushed oil prices to an almost 30 month high.
In Australia, the local share market continued to be weaker today due to concerns of rising oil price and the prolonged uncertainty in Libya. The impact of the New Zealand earthquake, particularly on insurance stocks, also weighed down on the market.
The Australian dollar was trading on a narrow range today, but remained about the parity level. The Kiwi dollar remained under pressure, particularly after speculation that the New Zealand central bank may cut interest rate soon.
StoneX Financial Ltd (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.