Market Opening Wrap In Asian Equity Markets benchmark stock gauge fluctuated as investors weighed company earnings and awaited the Federal Reserves policy statement. Kingsoft Corp. jumped 7.6 percent to head for a record close inHong Kong after the computer-software maker posted earnings that beat estimates, while instant noodle-maker Uni-President China Holdings Ltd. (220) slumped 8 percent after its 2013 profit missed projections. Country Garden Holdings Co. (2007) slid 3.4 percent in Hong Kong after the Chinese developers chief financial officer resigned. Fanuc Corp. rose 3.2 percent in Tokyoafter Credit Suisse Group AG said its a good time to buy the industrial-robot manufacturers shares. Japans Topix index fell 0.1 percent, having swung between a loss of 0.8 percent and a gain of 1.3 percent.Chinas Shanghai Composite Index lost 0.4 percent. South Koreas Kospi index slipped 0.1 percent. Singapores Straits Times Index dropped 0.6 percent, while Taiwans Taiex index slid 0.5 percent. In Currency Markets the dollar was near a four-month low against its peers amid bets the Federal Reserve will drop its jobless-rate threshold today and adopt qualitative guidance for signaling when it will raise interest rates. Traders expectations of future currency swings remained near the lowest since 2012 after President Vladimir Putin said Russia isnt seeking to split Ukraine further following the secession of its Crimea region. The yuan starts to trade directly against New Zealands dollar today. Chinas currency completed the biggest three-day loss yesterday since at least 2007 amid concern financial risk is increasing. The greenback traded at 101.54 yen after depreciating 0.3 percent to 101.44 yesterday. It was at $1.3926 per euro following a 0.1 percent decline to $1.3934. Europes common currency was little changed at 141.40 yen. The yuan weakened 0.2 percent to 6.1920 per dollar yesterday. The Chinese currency declined 0.9 percent since March 13. In Commodities Markets Gold traded near a one-week low as investors awaited the end of the U.S. Federal Reserves two-day policy meeting and assessed the situation in Ukraine. Platinum advanced for the first time in four days. Bullion for immediate delivery traded at $1,356.62 an ounce at 2:30 p.m. in Singapore from $1,355.73 yesterday, when prices fell to $1,350.88, the lowest since March 12. The metal slid 2 percent in the past two days as signs of easing tension between Russia and Ukraine boosted equities and sapped haven demand. Gold advanced 13 percent this year as turmoil in Ukraine and signs of slowing economic growth increased demand for haven assets. Silver for immediate delivery was little changed at $20.8394 an ounce. Platinum increased 0.4 percent to $1,464.63 an ounce, halting a three-day drop, while palladium was at $768.33 an ounce from $768.04 yesterday. In US Equity Markets stocks climbed, extending the best two-day gain for the S&P 500 Index in five weeks, as housing data bolstered confidence in the economy and Vladimir Putin said Russia isnt seeking to split Ukraine. Microsoft Corp. (MSFT) rallied to the highest since 2000 as the company plans to debut a version of Office for Apple Inc.s iPad. Hewlett-Packard Co. (HPQ) added 3.7 percent after Barclays Plc lifted its rating on the computer maker. Nasdaq OMX Group Inc. fell 3.1 percent as New Yorks attorney general started an investigation into whether stock exchanges provide high-frequency traders with improper advantages. GameStop Corp. dropped 3.4 percent after Wal-Mart Stores Inc. said it will start selling pre-owned video games later this year. An S&P index of homebuilders rose 1.5 percent, with all 11 members advancing. D.R. Horton Inc. added 1.8 percent to $22.45 and Lennar Corp. gained 1.4 percent to $40.60. Finally, the DJIA finished up 0.54% at 16,334.97, the S&P 500 up 0.72% at 1,872.22, and the NASDAQ 100 up 1.20% at 3,706.62. In Bond Markets Treasuries held a gain from yesterday, after yields moved in the tightest range in a week, as traders weighed prospects for Federal Reserve bond tapering against concern over rising tension between the U.S. and Russia. Benchmark 10-year yields yesterday moved in a range of four basis points, the least since March 11, and averaged 5.8 basis points this year compared with 8.3 points over the past five years. At the end of its first meeting with Janet Yellen as chair today, the Fed will probably cut bond purchases to $55 billion a month and drop its jobless-rate 6.5 percent threshold for when it will raise its main interest rate, Bloomberg News surveys show. Western leaders vowed further sanctions on Russia after President Vladimir Putin set in motion Crimeas accession. Benchmark 10-year yields were little changed at 2.67 percent at 7:00 a.m. in London after yesterday falling two basis points, or 0.02 percentage point. Japans 10-year bond yield was little changed at 0.61 percent. Similar-maturity yields forAustralia declined two basis points to 4.07 percent.
Posted on: Wed, 19 Mar 2014 08:09:29 +0000
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