Asian stocks fall on US hiring data
Nikkei 225 declined 0.5%, China’s Shanghai Composite Index slipped 0.3%, while Australia’s ASX All Ordinaries Index was down 1.28%.
up 28.03 to 5450 +0.52%
by Himanshu Singh on Jul 11, 2011 at 04:05
Asia stocks declined on Monday in morning trade as US unemployment unexpectedly rose, signaling a slowdown in the global economic recovery, pulling down exporters’ shares and weighing on the price of commodities.
The Nikkei 225 Stock Average declined 0.5% to 10,084 as of 10:09 a.m. in Tokyo. The broader Topix index declined 0.4% to 871. China’s Shanghai Composite Index slipped nine points, or 0.3%, to 2,789 at 9:39 a.m. local time. Hong Kong’s Hang Seng Index was trading 0.88% lower. Australia’s ASX All Ordinaries Index was down 1.28%, while South Korea’s Kospi Index shed 0.85%.
Stocks also suffered following a report that showed inflation in China accelerated to a three-year high of 6.4% in June. In China, Industrial & Commercial Bank of China and Poly Real Estate Group paced declines among financial companies on speculation the government will intensify monetary tightening measures.
Elsewhere, Toyota Motor dropped 0.4% after US payrolls grew at the slowest pace in nine months. Canon retreated 0.6%, after the yen gained strength. Mitsubishi sank 0.3% after oil and metal prices declined.
In the US and Europe, investors this week will mainly focus on the insight into the Federal Reserve’s thinking on the outlook for monetary policy in the US.
The minutes of the rate-setting Federal Open Markets Committee on Tuesday will shed light on policymakers’ strategy on standardising monetary policy. Fed chairman Ben Bernanke will add detail in his testimony to Congress on Wednesday.
Moreover, economists predict the US trade deficit to grow to $45 billion in May when it is released on Tuesday.
There will be a series of influential data from the US on Friday leaving investors facing a busy end to the week. Consumer price inflation, industrial production and the consumer sentiment survey from the University of Michigan will steer sentiment.
On the other side of the Atlantic, the UK’s trade balance for May, due out on Tuesday, is believed likely to widen marginally. The government will also release consumer and retail price data for June on the same day. Wednesday’s UK employment report is also likely to reveal a further slowdown in hiring in June.
up 28.03 to 5450 +0.52%
by Himanshu Singh on Jul 11, 2011 at 04:05
Asia stocks declined on Monday in morning trade as US unemployment unexpectedly rose, signaling a slowdown in the global economic recovery, pulling down exporters’ shares and weighing on the price of commodities.
The Nikkei 225 Stock Average declined 0.5% to 10,084 as of 10:09 a.m. in Tokyo. The broader Topix index declined 0.4% to 871. China’s Shanghai Composite Index slipped nine points, or 0.3%, to 2,789 at 9:39 a.m. local time. Hong Kong’s Hang Seng Index was trading 0.88% lower. Australia’s ASX All Ordinaries Index was down 1.28%, while South Korea’s Kospi Index shed 0.85%.
Stocks also suffered following a report that showed inflation in China accelerated to a three-year high of 6.4% in June. In China, Industrial & Commercial Bank of China and Poly Real Estate Group paced declines among financial companies on speculation the government will intensify monetary tightening measures.
Elsewhere, Toyota Motor dropped 0.4% after US payrolls grew at the slowest pace in nine months. Canon retreated 0.6%, after the yen gained strength. Mitsubishi sank 0.3% after oil and metal prices declined.
In the US and Europe, investors this week will mainly focus on the insight into the Federal Reserve’s thinking on the outlook for monetary policy in the US.
The minutes of the rate-setting Federal Open Markets Committee on Tuesday will shed light on policymakers’ strategy on standardising monetary policy. Fed chairman Ben Bernanke will add detail in his testimony to Congress on Wednesday.
Moreover, economists predict the US trade deficit to grow to $45 billion in May when it is released on Tuesday.
There will be a series of influential data from the US on Friday leaving investors facing a busy end to the week. Consumer price inflation, industrial production and the consumer sentiment survey from the University of Michigan will steer sentiment.
On the other side of the Atlantic, the UK’s trade balance for May, due out on Tuesday, is believed likely to widen marginally. The government will also release consumer and retail price data for June on the same day. Wednesday’s UK employment report is also likely to reveal a further slowdown in hiring in June.
