Asian equity markets made gains early Friday, as a positive lead from Wall Street overnight offset concerns about a further decline in oil prices. U.S. stocks advanced on Thursday, cutting weekly losses, but euphoria over increased retail sales in November faded after crude dropped below $60 a barrel. The pullback escalated amid efforts to block a spending bill in the House, sparking worries of a government shutdown. Halting a three-session losing streak, the Dow Jones Industrial Average ended up 0.4 percent, while the S&P 500 added 0.5 percent. The tech-heavy Nasdaq Composite gained 0.5 percent. Oil prices remain in focus after U.S. crude fell below $60 a barrel on Thursday, the first time in five years that it breached the psychologically-important support level, as oil markets extended this weeks losses on oversupply concerns. In Asia, focus falls on China, which is due to hand in a raft of monthly economic reports. Industrial output, retail sales figures and fixed asset investment for November are due. Analysts expect the data deluge to show a persistent cooling in the worlds second-largest economy, adding pressure on authorities to ramp up stimulus measures after unexpectedly cutting interest rates last month. Fixed-asset investment, an important driver of growth, likely grew at its slowest pace in nearly 13 years between January and November, rising 15.7 percent in that period from a year ago. Industrial output is also expected to have decelerated last month, with Moodys Analytics predicting an annual rise of 7.6 percent, slightly lower than Octobers 7.7 percent gain. Beijing factories were temporarily closed in November to ease pollution before the Asia-Pacific Economic Cooperation (APEC) summit, which likely stalled production, the group said. Retail sales could see an 11.6 percent annual rise, following Octobers 11.5 percent gain, according to Citi. NIKKEI: 17381.23 (+0.72%) HSI: 23340.88 (+0.12%) ASX 200: 5212.40 (-0.35%) SHANGHAI : 2938.86 (+0.45%) KOSPI: 1923.29 (+0.35%) CNBC 100: 6913.78 (-0.25%) SGXNIFTY: 8336.50 (+0.08%) Domestic markets may open little positive after recent days sell off. All the global markets seem to take breath after recent corrective phase. Though Nifty seen recovery in previous session but it wipedout by end of the session. Once again levels will be key as 8250-8270 is crucial support whether 8350 is good resistance. Once Nifty cross and sustain above 8350, traders may get hope of reversal. Though it look like domestic markets may have reversal and expiry of the series may come around higher levels. For Intraday traders need to be cautious about levels as either side violation may change the direction and Nifty may move further 20-40 points in particular direction.
Posted on: Fri, 12 Dec 2014 02:00:22 +0000