Asian markets mostly retreated on Wednesday (Jul 22) following a negative lead from Wall Street while Japanese shares were dragged by a stronger yen, but Shanghai extended its latest rally to a fifth straight day.
Currency traders watch monitors at the foreign exchange
dealing room of the Korea Exchange Bank headquarters in Seoul, South
Korea. (Photo: AP/Ahn Young-joon)
HONG KONG: Asian markets mostly retreated on
Wednesday (Jul 22) following a negative lead from Wall Street while
Japanese shares were dragged by a stronger yen, but Shanghai extended
its latest rally to a fifth straight day.
The euro held on to most of its gains after a recent sell-off, with Greek lawmakers due to vote later in the day on another round of reforms aimed at getting access to much-needed bailout cash.
Tech firms linked to Apple retreated after the latest earnings report from the world's biggest company left investors disappointed. Apple shares tumbled after it said net profit leapt almost 40 per cent in April-June but iPhone sales were weaker than expected and sales forecasts also fell short.
Tokyo lost 1.19 per cent after coming within a whisker Tuesday of a fresh 18-year high. It dropped 248.30 points to finish at 20,593.67.
Seoul fell 0.91 per cent, or 18.89 points, to close at 2,064.73 and Hong Kong gave up 0.99 per cent, or 253.81 points, to 25,282.62.
However, Shanghai reversed morning losses to end 0.21 per cent higher, adding 8.37 points to 4,026.05 as Chinese government measures this month aimed at ending a market rout continue to support buying.
In Tokyo, Apple supplier Murata Manufacturing dropped 4.59 per cent to ¥945 while Japan Display tumbled 3.57 per cent to ¥405.
A drop in Apple suppliers "is contributing to the worsening market sentiment", Tomoichiro Kubota, senior market analyst at Matsui Securities, told Bloomberg News.
Other Asian suppliers to Apple were similarly afflicted. Hon Hai Precision slipped 1.56 per cent to NT$94.80 in Taipei, while Pegatron fell 2.96 per cent to NT$91.70.
DOLLAR RETREATS
Sydney's stock market ended a run of gains to drop 1.61 per cent, closing down 92.1 points at 5,614.6.
Australia's central bank chief said further interest rates cuts remain "on the table" as official data showed that consumer prices rose 0.7 per cent in the three months to June, keeping annual inflation subdued.
After a broadly healthy set of gains in recent sessions, Asian investors took a step back after losses in New York that come in response to weak quarterly reports from tech giants Microsoft and United Technologies. The figures raised concerns about the upcoming US earnings season.
The Dow sank 1.00 per cent, the S&P 500 dropped 0.43 per cent and the Nasdaq lost 0.21 per cent, snapping a streak of three straight record highs.
The dollar slipped on profit-taking after a recent rally, although the weakness is not expected to last as the Federal Reserve holds its next policy meeting on Jul 29, with traders looking for clues about its timetable for lifting interest rates.
Analysts have forecast a rise in either September or December after Fed chief Janet Yellen said this month she saw a move by the end of the year.
The dollar was at ¥123.76 in Tokyo on Wednesday, down from ¥123.86 in New York, and much lower than ¥124.35 in Tokyo earlier Tuesday.
The euro fetched US$1.0940 and ¥135.45, down from US$1.0942 and ¥135.53 in US trade but well up from US$1.0825 and ¥134.61 on Tuesday in Asia.
The single currency was given some buoyancy by the progress in Greece on securing a fresh bailout.
"The euro is higher as progress continues to be made toward a third financial assistance programme for Greece," said Nick Bennenbroek, head of currency strategy at Wells Fargo Securities.
On oil markets US benchmark West Texas Intermediate for September delivery fell 68 cents to US$50.18 a barrel and Brent crude for September tumbled 52 cents to US$56.52 in afternoon Asian trade.
And gold remains under pressure around five-year lows as the Fed edges closer to its rate rise, which has seen investors pile into the dollar and out of the precious metal looking for better returns.
Bullion fetched US$1,095.49 an ounce compared with US$1,108.55 late on Tuesday.
In other markets:
-- Taipei fell 0.97 per cent, or 87.26 points, to 8,918.7.
Taiwan Semiconductor Manufacturing Co closed 1.07 per cent lower at NT$139.0 while Fubon Financial Holding was off 0.98 per cent at NT$60.5.
-- Wellington rose 0.87 per cent, or 50.84 points, to 5,927.75.
Contact Energy led the gainers, up 2.80 per cent at NZ$5.14, while market heavyweight Fletcher Building rose 0.62 per cent to NZ$8.16.
-- Manila closed 0.10 per cent higher, adding 7.66 points to 7,635.62.
Universal Robina rose 0.27 per cent to 183.00 pesos and GT Capital gained 2.46 per cent to 1,414.00 pesos but Semirara Mining and Power plunged 9.31 per cent to 111.10 pesos after its mine was shut down by an accident that killed nine people last week.
The euro held on to most of its gains after a recent sell-off, with Greek lawmakers due to vote later in the day on another round of reforms aimed at getting access to much-needed bailout cash.
Tech firms linked to Apple retreated after the latest earnings report from the world's biggest company left investors disappointed. Apple shares tumbled after it said net profit leapt almost 40 per cent in April-June but iPhone sales were weaker than expected and sales forecasts also fell short.
Tokyo lost 1.19 per cent after coming within a whisker Tuesday of a fresh 18-year high. It dropped 248.30 points to finish at 20,593.67.
Seoul fell 0.91 per cent, or 18.89 points, to close at 2,064.73 and Hong Kong gave up 0.99 per cent, or 253.81 points, to 25,282.62.
However, Shanghai reversed morning losses to end 0.21 per cent higher, adding 8.37 points to 4,026.05 as Chinese government measures this month aimed at ending a market rout continue to support buying.
In Tokyo, Apple supplier Murata Manufacturing dropped 4.59 per cent to ¥945 while Japan Display tumbled 3.57 per cent to ¥405.
A drop in Apple suppliers "is contributing to the worsening market sentiment", Tomoichiro Kubota, senior market analyst at Matsui Securities, told Bloomberg News.
Other Asian suppliers to Apple were similarly afflicted. Hon Hai Precision slipped 1.56 per cent to NT$94.80 in Taipei, while Pegatron fell 2.96 per cent to NT$91.70.
DOLLAR RETREATS
Sydney's stock market ended a run of gains to drop 1.61 per cent, closing down 92.1 points at 5,614.6.
Australia's central bank chief said further interest rates cuts remain "on the table" as official data showed that consumer prices rose 0.7 per cent in the three months to June, keeping annual inflation subdued.
After a broadly healthy set of gains in recent sessions, Asian investors took a step back after losses in New York that come in response to weak quarterly reports from tech giants Microsoft and United Technologies. The figures raised concerns about the upcoming US earnings season.
The Dow sank 1.00 per cent, the S&P 500 dropped 0.43 per cent and the Nasdaq lost 0.21 per cent, snapping a streak of three straight record highs.
The dollar slipped on profit-taking after a recent rally, although the weakness is not expected to last as the Federal Reserve holds its next policy meeting on Jul 29, with traders looking for clues about its timetable for lifting interest rates.
Analysts have forecast a rise in either September or December after Fed chief Janet Yellen said this month she saw a move by the end of the year.
The dollar was at ¥123.76 in Tokyo on Wednesday, down from ¥123.86 in New York, and much lower than ¥124.35 in Tokyo earlier Tuesday.
The euro fetched US$1.0940 and ¥135.45, down from US$1.0942 and ¥135.53 in US trade but well up from US$1.0825 and ¥134.61 on Tuesday in Asia.
The single currency was given some buoyancy by the progress in Greece on securing a fresh bailout.
"The euro is higher as progress continues to be made toward a third financial assistance programme for Greece," said Nick Bennenbroek, head of currency strategy at Wells Fargo Securities.
On oil markets US benchmark West Texas Intermediate for September delivery fell 68 cents to US$50.18 a barrel and Brent crude for September tumbled 52 cents to US$56.52 in afternoon Asian trade.
And gold remains under pressure around five-year lows as the Fed edges closer to its rate rise, which has seen investors pile into the dollar and out of the precious metal looking for better returns.
Bullion fetched US$1,095.49 an ounce compared with US$1,108.55 late on Tuesday.
In other markets:
-- Taipei fell 0.97 per cent, or 87.26 points, to 8,918.7.
Taiwan Semiconductor Manufacturing Co closed 1.07 per cent lower at NT$139.0 while Fubon Financial Holding was off 0.98 per cent at NT$60.5.
-- Wellington rose 0.87 per cent, or 50.84 points, to 5,927.75.
Contact Energy led the gainers, up 2.80 per cent at NZ$5.14, while market heavyweight Fletcher Building rose 0.62 per cent to NZ$8.16.
-- Manila closed 0.10 per cent higher, adding 7.66 points to 7,635.62.
Universal Robina rose 0.27 per cent to 183.00 pesos and GT Capital gained 2.46 per cent to 1,414.00 pesos but Semirara Mining and Power plunged 9.31 per cent to 111.10 pesos after its mine was shut down by an accident that killed nine people last week.
- AFP/ec
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