Agence France-Presse
11:08 am | Tuesday, July 2nd, 2013
HONG KONG—Asian markets were mixed Tuesday as a pick-up in US and European manufacturing activity was offset by weakness in China.
The dollar edged closer to the 100 yen level on the back of the US figures, in turn helping push Japanese exporters higher.
Tokyo rose 0.94 percent, Sydney was 1.73 percent higher and Seoul put on 0.23 percent. However, Hong Kong, which was closed Monday for a public holiday, eased 0.17 percent and Shanghai slipped 0.22 percent after Chinese manufacturing showed signs of shrinking.
In the United States the ISM purchasing managers index came in at 50.9 in June, well up from 49.0 in May.
Anything above 50 points to growth, while anything below indicates contraction.
That came after the Markit Eurozone Composite Purchasing Managers Index rose to a 16-month-high 48.8, from 48.3 in May. While European manufacturing is still shrinking, the latest report suggests a pick-up in even the troubled economies of Italy and Spain.
Brent Schutte, a market strategist at BMO Private Bank, said the US reading was “pretty good”.
However, he touched on recent volatility in global markets about the possibility the US Federal Reserve will begin winding down its stimulus programme when the economy shows it is strong enough.
“I don’t know if bad news is good news or good news is good news,” Schutte said. Markets “seem to be in this tug-of-war period”.
However, in Asia the story was quite different, with HSBC’s PMI for China showing activity shrinking in the economic giant, fuelling concerns about the knock-on effects for the rest of the region.
On Wall Street the Dow closed up 0.44 percent and the S&P 500 added 0.54 percent and the Nasdaq climbed 0.92 percent.
The figures from the US and Europe added to news that the Japanese central bank’s Tankan survey of business confidence jumped into positive territory in the April-June quarter for the first time since September 2011.
On forex markets the dollar climbed in New York after the PMI figures, finishing at 99.66 yen on Monday.
However, the unit eased a tad on Tuesday, buying 99.59 yen in early trade.
The euro also eased slightly after enjoying a rally in New York on the back of the eurozone data. It bought $1.3059 and 130.08 yen in Asia Tuesday, compared with $1.3061 and 130.17 yen in New York.
Oil prices rose, with New York’s main contract, light sweet crude for delivery in August, up four cents at $98.03 a barrel while Brent North Sea crude for August gained 17 cents to $103.17.
Gold rose to $1,257.00 per ounce at 0210 GMT, compared with $1,238.80 late Monday.
Follow Us
Recent Stories:
Short URL: http://business.inquirer.net/?p=129935
Tags: Asia , Stock Activity , Stock Market
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
seo tools
No comments:
Post a Comment