Stocks cap bad month with gains
City Index August 31, 2011 7:31 PM
<p>Stocks were mostly higher across the Asian region, paring losses earlier in the month. Investors are starting to warm to the prospects of more quantitative […]</p>
Stocks were mostly higher across the Asian region, paring losses earlier in the month. Investors are starting to warm to the prospects of more quantitative easing should the US economy fail to build growth momentum. The MSCI Asia Pacific Index gained 0.6% to 124.12 in afternoon Tokyo trading, having swung between gains and losses at least six times. The gauge is heading for a 9.3% decline this month, the most since May 2010.
In economic news, Philippine growth slowed for a fourth straight quarter after faltering global demand curbed exports and investment eased. Gross domestic product increased 3.4% in the second quarter from a year earlier, compared with a revised 4.6% gain in the three months through March, the National Statistical Coordination Board said today. The figure was below market expectations slightly above 4%.
In Japan, industrial production rose less than expected in July, signaling that the nation’s recovery from the March 11 earthquake and tsunami is losing momentum as the yen gains and overseas demand slows. Factory output increased 0.6% in July from June, the slowest gain since March, the Trade Ministry said in Tokyo today. Market expectations were for a number twice that.
Japan’s Nikkei 225 fell 0.1% in response to the report. Elsewhere in the region, Australia’s S&P/ASX 200 Index gained 0.1%, erasing earlier losses of as much as 0.4%. South Korea’s Kospi Index increased 1.4%, erasing an earlier decline of as much as 0.3%. Hong Kong’s Hang Seng Index advanced 0.4%, while China’s Shanghai Composite Index fell 0.8%.
In corporate news, shares in Telecom of New Zealand fell by the most in more than three weeks in Wellington after the company said the CEO would leave, which raised concerns also over a structural split which may leave earnings more vulnerable. Telecom shares were down by around 3.6%. Olam International – a supplier of agricultural commodities – jumped 6.9% in Singapore after posting higher fourth- quarter profit.
In metals, spot gold spot gold advanced 2.6% yesterday after a statement showed some Fed policy makers favored more aggressive action by the central bank and data showed consumer confidence slumped. Gold has surged 29% this year, heading for an 11th year of gains. It gave away some of its gains to settle at US$1,834.63 an ounce ahead of European markets opening.
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.