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Asia Market Update

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Asian stocks track Wall Street's rebound

Wed, Jul 30 2008, 07:24 GMT
by Eben Esterhuizen

TradeTheNews.com

- The U.S. Securities and Exchange Commission announced plans to extend its emergency order against naked short selling. The extension, which was widely expected, will last until but not beyond August 12, the SEC said.

- The NZD plummeted after RBNZ governor Bollard said that he sees plenty of room for easing as the economy and inflation weakens. Bollard added that, in his opinion, the NZD remains overvalued.

- Higher interest rates and rising building costs lead to sharp pullback in Australia's building approvals: (AU JUNE BUILDING APPROVALS MOM: -0.7% V 1.0% expected, -7.2% prior; YOY: -7.8% V -4. 1% expected, -0.4% prior) "The drop in the number of home building approvals has been especially pronounced during the first half of 2008 and points to a weak second half for home building," said Stephen Roberts, a research director at Lehman Brothers. "Such weak housing activity will contribute materially to the downward trend in growth in domestic spending, " he added.

- Japan's industrial production falls more than expected in June: (JP JUNE PRELIMINARY INDUSTRIAL PRODUCTION MOM: -2.0% V - 1.7% expected, 2.85 prior; YOY: 0.2% V 0.6% expected, 1.1% prior) "As industrial output fell (in April-June) for the second straight quarter, there will be a growing view that the economy has probably entered into a recessionary phase," said Yoshimasa Maruyama at BNP Paribas. Analysts also said that soft output of information and communication electronics equipment and electronic devices suggested that Olympic-led demand was probably not as good as expected.

- Equities: At 0:06 EDT Japan's Nikkei is +1.44%, the S&P/ASX200 is +2.03%, South Korea's KOSPI is +0.97%, Hong Kong's Hang Seng index is +2.03% and the Shanghai composite index is +0.65%. The S&P500 futures contract lost -0.05% since the U.S. close, last trading at 1,261.40. The Nikkei tracked Wall Street's rally, driven by an overnight decline in oil prices and better than expected U.S. consumer confidence data. The S&P/ASX200 also managed to hold on to most of its early session gains, led by advances in shares of financials and resource stocks. Tech companies and financials lifted the Kospi index, while Chinese stocks also recovered from yesterday's sell-off.

- Commodities: Nymex crude oil prices slipped further in Asia, losing -0.06% between 18:00 EDT and 0/:06 EDT to trade at $122.12/bbl. Spot gold is little changed, last trading at $926.30/oz.

Published on  Wed, Jul 30 2008, 07:25 GMT