A man is reflected on the electronic stock board of a securities firm in Tokyo on Sept. 18, 2013. Asian stock markets were mixed on Thursday, Sept. 26, 2013, as attention turned to another stand-off in Washington over the US budget that could see parts of the government shut down if a deal is not agreed within days. AP PHOTO/SHIZUO KAMBAYASHI
HONG KONG—Asian markets were mixed on Thursday as attention turned to another stand-off in Washington over the US budget that could see parts of the government shut down if a deal is not agreed within days.
Earlier losses in Tokyo were reversed as traders were cheered by a report that Japan’s government was planning to cut corporation taxes to negate the blow of an expected sales tax hike.
The Nikkei rose 1.22 percent, or 178.59 points, to 14,799.12—having sunk more than one percent at one point in the morning—as the dollar surged against the yen.
Sydney added 0.35 percent, or 18.6 points, to 5,294.5 and Seoul rose 0.46 percent, or 9.26 points, to end at 2,007.32.
However, Shanghai fell 1.94 percent, or 42.71 points, to 2,155.81 and Hong Kong lost 0.36 percent, or 84.60 points, to 23,125.03.
Republicans and Democrats have until midnight on Monday to agree a budget package to fund the government. If a deal is not reached some federal agencies will shut down from Tuesday, and hundreds of thousands of workers will be sent home.
Adding to investors’ fears is Republicans’ refusal to agree to lift the US debt ceiling from $16.7 trillion—which must be achieved by mid-October—unless there are cuts to President Barack Obama’s healthcare law in the budget.
“It’s very difficult for the market to go up from here with all the shenanigans in Washington,” said Mace Blicksilver, director at Marblehead Asset Management.
On Wall Street, the Dow fell 0.40 percent, the S&P 500 dipped 0.27 percent and the Nasdaq declined 0.19 percent.
Traders fear a repeat of the 2011 gridlock in Washington that saw lawmakers take debt ceiling negotiations to the wire, but not before global markets were sent tumbling. The face-off led to the historic downgrade of the country’s AAA debt rating by Standard & Poor’s.
The dollar sank in New York on the budget uncertainty and following some underwhelming economic data that suggest the economy is not yet strong enough for the Federal Reserve to start winding down its stimulus programme.
In New York the greenback late Wednesday sat at 98.46 yen.
However, on Thursday afternoon it jumped to 99.02 yen after Japan’s Kyodo news agency said Tokyo was considering the business levy cut. The move is intended to allay fears that the flagged rise in the sales levy—to 8.0 percent from 5.0 percent—would hurt the country’s recent economic revival.
A dealer at a major Japanese bank told AFP that while the latest news is not new, the key point is the fact the government is going to confirm it is a consideration.
The euro fetched $1.3515 and 133.67 yen Thursday against $1.3522 and 133.18 yen in New York.
On oil markets, New York’s main contract, West Texas Intermediate for delivery in November, was up two cents at $102.68, while Brent North Sea crude for November eased 12 cents to $108.20.
Gold cost $1,335.92 at 1043 GMT compared with $1,320.56 on Wednesday.
In other markets:
– Taipei fell 1.20 percent, or 99.22 points, to 8,184.68.
Hon Hai fell 1.3 percent to Tw$75.8 while smartphone maker HTC was 0.74 percent lower at Tw$134.0.
– Wellington was flat, edging up 0.75 points to 4,765.47.
Telecom added 0.86 percent to NZ$2.34 and Contact Energy gained 1.89 percent to NZ$5.40.
– Manila eased 0.20 percent, or 12.96 points, to 6,407.46.
Alliance Global fell 0.97 percent to 25.55 pesos and Metropolitan Bank and Trust shed 0.61 percent to 89.10 pesos but Philippine Long Distance Telephone rose 0.41 percent to 2,968 pesos.
– Kuala Lumpur lost 0.55 percent, or 9.90 points, to 1,774.16.
RHB Capital ended 3.1 percent lower at 7.60 ringgit while Astro Malaysia Holdings gained 1.4 percent to 2.95 ringgit.
– Jakarta ended flat, edging down 0.02 percent, or 0.87 points, at 4,405.89.
Lender Bank Negara Indonesia fell 2.87 percent to 4,225 rupiah, while auto maker Astra International rose 1.59 percent to 6,400 rupiah.
– Bangkok fell 0.84 percent, or 12.14 points, to 1,424.76.
Coal producer Banpu shed 0.83 percent to 29.75 baht and PTT Plc lost 0.91 percent to 327 baht.
– Singapore closed down 0.44 percent, or 14.27 points, to 3,194.31.
Vehicle distributor Jardine Cycle and Carriage eased 0.14 percent to Sg$36.95 and DBS Bank was down 0.84 percent at Sg$16.50.
– Mumbai rose 0.19 percent, or 37.61 points, to 19,893.85.
India’s engineering giant Bharat Heavy Electricals gained 6.63 percent to 150.4 rupees while drug firm Sun Pharmaceuticals added 2.62 percent to 583.50 rupees on hopes of improved sales of a key cancer drug.—Danny McCord
seo tools
No comments:
Post a Comment