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Apr-23-2011Dollar Little Changed in Light Holiday Trading(topic overview)
CONTENTS:
- Markets in Hong Kong, Sydney, Jakarta, Singapore, Manila and Mumbai are closed for public holidays. (More...)
- Apple rose in extended trading after the maker of iPhones and iPads reported per-share profit of $6.40 a share, beating the average analyst estimate of $5.39 a share in a Bloomberg survey. (More...)
- On the bullion market, gold hit a fresh record high of $1,508.88 an ounce in London on Thursday, a day after topping $1,500 for the first time. (More...)
- "We assume the dollar's downside adjustments over the past several days are mostly completed and quiet trading can be expected in Tokyo because (most) other major financial markets in Asia are closed for the holiday," the trader said. (More...)
- Hiroyuki Fukunaga, CEO at Investrust, told Dow Jones Newswires: "US earnings look good, so the next big focus will be on the monetary policy." (More...)
- Inflation data from Australia is suggestive of future rate hikes (propelling the Aussie to new highs) and Gold is making a similar rally on the argument that increases in energy prices will create widespread inflation in global economies. (More...)
- Samsung Electronics, an Apple rival, gained 1.3%, advancing for a third day in Seoul and leading technology shares higher. (More...)
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Markets in Hong Kong, Sydney, Jakarta, Singapore, Manila and Mumbai are closed for public holidays. Dealers were taking a breather on Friday after the previous two-day rally that came on the back of strong earnings reports in the United States from corporate giants such as General Electric, Apple, IBM and Intel. The Dow closed up 0.42 percent on Thursday, ending the week at its highest level since June 2008. Those gains followed a big sell-off on Tuesday after Standard & Poor's downgraded its outlook for U.S. sovereign debt, the first such threat to Washington's gold-standard AAA rating. In Tokyo investors were low key ahead of a slew of earnings reports next week, while exporters were hurt by the stronger yen, which harms their competitiveness overseas. [1] Sydney added 1.13 percent, or 54.8 points, to 4,913.8, Seoul rose 1.32 percent, or 28.63 points, to 2,198.54 and Shanghai finished 0.65 percent stronger, adding 19.63 points to 3,026.67. On Wall Street the Dow jumped 1.52 percent, its highest level since June 2008, on the back of the earnings. Global stocks have rebounded strongly since Tuesday when sentiment was hurt after Standard & Poor's downgraded its outlook for U.S. sovereign debt. [2]
Asian stocks rose yesterday, pushing the regional index to its highest level in more than six weeks, after U.S. companies including Apple reported increased profits, signaling the global economic recovery is accelerating, and commodity shares gained. The MSCI Asia Pacific Index advanced 1.3% to 138.7 at 8:43 p.m. in Tokyo, headed for its highest close since March 4. [3] April 21 (Bloomberg) -- Stocks rallied, with the MSCI World Index set for the highest close in two months, after Apple Inc. posted better-than-expected profits and as energy shares gained. [4]
The Standard & Poor's 500 Index is showing a rise of 0.4 percent. Global stock markets are currently in the midst of the biggest global rally seen this year and the consistency of strong earnings reports have done nothing to reverse that momentum. This continued yesterday as Apple reported that its quarterly profit nearly doubled. [5] Equities are extending the biggest global rally of the year after Apple said second-quarter profit almost doubled. OCI Co. jumped to a record after South Korea's biggest polysilicon maker posted a profit surge and Chinese banks gained after Citigroup Inc. said their earnings will rise. Central banks from Thailand to Brazil have lifted interest rates this week, while the Federal Reserve is forecast to maintain stimulus amid prospects for a weak recovery in the world's largest economy. [4]
Japan's Nikkei 225 index was up 0.57 percent, Australia's S&P;/ASX 200 was up 0.8 percent, South Korea's Kospi Composite gained 0.87 percent and New Zealand's NZX-50 rose 0.4 percent. Apple reported that its fiscal second-quarter profit jumped 95 percent on-year on record iPhone sales, strong sales of its iPad tablet computers and Macintosh computers. [6] Canon Inc. sank 2.2 percent after the Nikkei newspaper reported the camera maker's profit declined. Kia Motors Corp. rose in Seoul after saying it aims to boost sales in the U.S. to a record this year. Hanjin Shipping Co., South Korea's largest shipping company, rose 0.7 percent after its vessel that was attacked by pirates was rescued. "The dollar weakened on speculation the U.S. will maintain its easy monetary policy," said Juichi Wako, a senior strategist at Nomura Holdings Inc. in Tokyo. "That's a negative factor for Japanese stocks, especially exporters." [7]
The dollar was sent sliding against Asian units as it was weighed by rising stocks prices, increasing risk appetite and lingering fears over the U.S. debt mountain. Regional tech plays were boosted after U.S. computer giant Apple said net profit soared 95 percent in its fiscal second quarter thanks to surging sales of iPhones and iPads. [2]
The well-above forecast earnings helped Apple's shares moving up 3.1 percent in after-hours trade. The encouraging results came a day after technology giants Yahoo, IBM and Intel warmed the Street with forecast-beating results, offsetting this week's S&P; rating jitters and fresh eurozone debt concerns. Extending its previous session's slide, the U.S. dollar reached a fresh record low of 0.8854 against the Swiss franc on Thursday morning in Asia. [6] Investor sentiment remained positive after solid overnight gains on Wall Street. "Great earnings numbers from both Apple and Intel this week are giving investors confidence that the U.S. economy is trending up, and for now it's offsetting concerns over debt issues in Europe and nuclear worries," said Hiroichi Nishi, general manager of the equity division at Nikko Cordial Securities. [8] Previously chipmaker Intel beat expectations by reporting net profit jumped 29 percent in the first quarter over a year ago and revenue rose 25 percent. "Great earnings numbers from both Apple and Intel this week are giving investors confidence that the U.S. economy is trending up," Hiroichi Nishi, general manager of the equity division at Nikko Cordial Securities, told Dow Jones Newswires. [2]
Morgan Stanley and General Electric Co. are among companies scheduled to release quarterly results today. Earnings-per-share exceeded predictions for about 75 percent of the 76 companies in the S&P; 500 that reported results since April 11, helping revive investor confidence after S&P; cut its rating outlook for U.S. debt on April 18. The S&P; 500 rose 1.4 percent yesterday, the biggest advance in a month, while the Dow Jones Industrial Average surged to its highest level since June 2008. [4]
U.S. debt worries pressured the currency, while support for the greenback came as some investors sold the euro to lock in profits in early trade ahead of the Easter holiday. Transactions lacked vigor as Western dealers kept their hands off the market ahead of the long weekend, with a series of public holidays in many countries but not in Japan. [9]
The U.S. dollar has been heavily sold in the past few days as dealers have developed more risk appetite amid longer-term hopes for the global economy - thanks to surging equities and strong corporate data - while also being affected by lingering concerns over U.S. debt. [10]
SINGAPORE (Dow Jones)--Asian stock markets were mostly higher Thursday, cheered by Wall Street's gains Wednesday and Apple's results, with the upbeat sentiment reflected in the foreign exchange market as riskier currencies pushed higher against the U.S. dollar. [11] The U.S. stocks zoomed up yesterday as technology firms were boosted after strong results from Apple, Intel and IBM, pushing the DOW to a near three-year high. This provided enough zeal to Asian stocks and Japanese stocks garnered sharply gains. [12] HONG KONG — Asian stocks rallied for a second straight day on Thursday, with dealers buoyed by another batch of strong earnings in the United States and a jump on Wall Street to a near three-year high. Technology firms were boosted after Apple said its profits almost doubled in the three months to the end of March, which followed solid results from Intel, Yahoo! and IBM. [2] HONG KONG (Dow Jones)--Most Asian markets ended higher on Thursday, with the South Korean stock benchmark racing to a record as technology stocks were cheered by Apple Inc.' s results and as commodity producers rose on a rally in crude oil and gold prices. [13]
Asian Stock HONG KONG: Asian stocks were mixed in holiday-hit trading on Friday, with Tokyo lower after a two-day rally and as the yen continued to strengthen against the dollar. [1] HONG KONG, April 21(Reuters) - The U.S. dollar slid to a 2-1/2-year low against a basket of major currencies and Asian stocks were poised to hit a 3-year high on Thursday, as investors scrambled to get in front of upward momentum in higher-yielding assets, particularly in emerging markets. [14]
Asian stock markets are trading higher today with investors picking up stocks, tracking overnight cues from Wall Street where the mood was upbeat on the back of some encouraging earnings reports. [6] U.S. and European stocks soared Wednesday, with the Dow in New York closing near three-year highs, on strong earnings reports that beat Wall Street expectations, particularly in the technology sector. [15]
Sentiment improved as some Indian firms showed strong earnings growth, led by software outsourcer TCS, whose fourth-quarter net profit rose 24 percent to 24 billion rupees ($539 million). TCS stocks however fell on profit booking, closing down 2.23 percent to 1,191.65 after its earnings were announced. [2]
The MSCI Asia ex-Japan rose 0.5 percent 504.2, within striking distance of a three-year high at 504.4. Technology stocks got a lift after iPod maker Apple crushed forecasts on roaring global demand for its products. [14] Today the Japanese currency traded at 81.83, and the euro traded near a 16-month high before reports that may show French business confidence was at a three-year high and Italian retail sales rebounded, adding to signs the region's recovery is picking up. The MSCI Asia Pacific Index gained 0.8 percent this year through yesterday, compared with gains of 6.3 percent by the S&P; 500 and of 1.7 percent by the Stoxx Europe 600 Index. [7] Rio Tinto Group, the world's second- biggest mining company by sales, advanced 1.2% to A$84.10 in Sydney. The MSCI Asia Pacific Index lost 0.6% this year through Wednesday, compared with gains of 5.8% by the S&P; 500 and 1.2% by the Stoxx Europe 600 Index. [3]
The MSCI Asia Pacific Index slipped 0.3 percent at 9:28 a.m. in Tokyo. More than three shares fell for each that advanced on the measure, which was set for a 1.9 percent gain this week. [7] The MSCI World Index rose 0.5 percent as of 4:08 p.m. in Tokyo, the MSCI Asia Pacific Index jumped 1.3 percent and the Stoxx Europe 600 Index added 0.2 percent. [4]
OCI advanced 12% to 613,000 won, the most on the MSCI Asia Pacific Index. Among those that fell, Tokyo Electric Power Co (Tepco), owner of a crippled nuclear facility in Japan fell, as did South Korean companies Hanjin Shipping and Hana Financial Group declined. [3]
Tepco slid 4.9% to €423, the biggest decline on the MSCI Asia Pacific Index. [3]
More than two shares climbed for each that fell on MSCI's Asia Pacific Index, which rose to a seven-week high. [4]
Energy shares posted the biggest gains in Asia, led by a 3.5 percent jump in Inpex Corp. Crude oil rose 0.6 percent to $112.12 a barrel on the New York Mercantile Exchange, extending a 2.9 percent jump yesterday that was the biggest increase since March 17. [4] On oil markets New York's main contract, light sweet crude for delivery in June, rose 71 cents to $112.16 a barrel, while Brent North Sea crude for June gained 90 cents to $124.75 in the afternoon. [2]
Brent oil LCOc1 rose above $124 a barrel while spot gold held near a record high above $1,500 an ounce in early Asian trade as a sharply weakening dollar supported a broad rally in commodities. [14] At the time of writing, Oil is up 0.6 percent, gold is stable with a 0.2 percent gain and silver is trading at a 31-year high. The Australian and Singapore Dollar have risen to record highs against the U.S. Dollar and the Euro is trading at its highest level in 15 months. [5] Commodity-related currencies rose with the Australian dollar hitting a post-float high against the U.S. dollar at $1.0740, as the hunt for yield intensified on prospects that U.S. interest rates would remain at a record low for a long time. [14] The euro rose to $1.4550 late Friday from $1.4544 late Thursday. It had risen to a 16-month high of $1.4648 during Thursday's trading. Investors have turned away from the dollar this year because they expect the Federal Reserve to keep U.S. interest rates near zero even as other central banks around the world raise interest rates to counteract rising food and energy prices. [16]
The benchmark Shanghai Composite Index closed with a gain of 20.18 points or 0.67% to 3,027.21. In Mumbai, the key benchmark indices edged higher for the third straight day buoyed by firm global stocks, data showing resumption of buying by foreign funds, strong response from foreign institutional investors to the initial public offer of gold financing firm Muthoot Finance and Indian Meteorological Department's (IMD) recent forecast of normal monsoon this year. [12] The rally over the previous two days has added $1.1 trillion to global stock market values, according to data compiled by Bloomberg. [4]
April 22 (Bloomberg) -- Asian stocks fell for the first time in three days as Japanese shares declined after the yen hit a three-week high, cutting the outlook for earnings for the nation's exporters. [7] Stocks in the Asian benchmark are valued at 13.2 times estimated earnings on average as of the last close, compared with 13.6 times for the S&P; 500 and 11.2 times for the Stoxx 600. [3]
Citigroup Inc. also released a statement forecasting an increase in earnings, lifting financial stocks. Read the full post at Spread Betting, where you can also find free guides to technical analysis, financial news, and reviews of spread betting companies such as ig index. This material may not be published in its entirety or redistributed without the approval of Benzinga. [5] Japan's Nikkei 225 Stock Average fell 0.5 percent, while South Korea's Kospi Index advanced 0.2 percent after falling 0.1 percent. [7] Japan's Nikkei 225 Stock Average advanced 0.8%, Australia's S&P;/ASX 200 Index gained 1.1% and South Korea's Kospi index climbed 1.3%. [3]
Japan’s Nikkei 225 Stock Average advanced 0.8%, Australia’s S&P/ASX 200 Index gained 1.1% and South Korea’s Kospi index climbed 1.3%. [3]
The benchmark Nikkei stock index in Tokyo finished the morning session Thursday up 0.58 percent. [15]
U.S. TOKYO: The dollar was sold against other major currencies in Asia on Thursday as upbeat stock markets gave investors a renewed appetite for risk, dealers said. [15] "U.S. companies, especially tech stocks, are doing well, and that's helping to instill confidence," said Mitsushige Akino, who oversees about $600 million in assets in Tokyo at Ichiyoshi Investment Management Co. "Investors are looking to take a little bit more risk." [4]
In Tokyo investors were low key ahead of a slew of earnings reports next week as well as next week's U.S. Federal Reserve policy meeting, which will give a clearer idea on the state of the world's number one economy. [10]
Investor sentiment remained positive after solid overnight gains on Wall Street and was also reflected in the foreign-exchange market as riskier currencies pushed higher against the U.S. dollar. [13] Against the yen, the U.S. dollar fell to a 3-day low of 82.23 on Thursday morning in Asia, compared to 82.57 hit late New York Wednesday. [6] The dollar stood at 81.88 yen in Asian trade, slightly up from 81.85 yen in New York late Thursday while the euro bought $1.4571 and 119.30 yen against $1.4550 and 119.11 yen on Thursday. A senior trader at a major Japanese bank said the greenback may have reached its support level. [10]
The U.S. dollar broke past the key 1.6430 support level against the pound to reach as low as 1.6444 in early Asian trading on Thursday. This set the weakest level for the greenback since January 19, 2010 and more than 30 pips lower than Wednesday's North American session close of 1.6411. [6] Extending its 2-day losing streak, the U.S. dollar touched 1.4582 against the euro in early Asian deals Thursday and this set the lowest level for the dollar since mid-December, 2009. [6]
The U.S. dollar also fell against other major currencies. The dollar index, a gauge of its performance against six other major currencies, has tumbled since Monday to its lowest level since August 2008 at 74.116. [14]
The U.S. dollar stayed pressed and strong cues from the overnight U.S. equities and upbeat corporate earnings boosted the sentiments. Commodities held their ground after terrific advances yesterday and traders largely sidelined the uncertainty on the Libyan front. [12]
"U.S. company earnings are clearly helping," said Lee King Fuei, a Singapore-based money manager at Schroders Plc, which oversaw $307.9 billion as of Dec. 31. [4]
Apple rose in extended trading after the maker of iPhones and iPads reported per-share profit of $6.40 a share, beating the average analyst estimate of $5.39 a share in a Bloomberg survey. [4] Among other shares that rose, OCI jumped to a record after South Korea's biggest polysilicon maker said profit surged. [3]
Keppel Corp. rose 1.6 percent in Singapore after the world's largest oil-rig maker increased profit 7.8 percent last quarter. [4] Singapore Airlines gained 0.84 percent to Sg$14.38 and Keppel Corp rose 1.73 percent to Sg$12.94. Formosa Plastics Corp rose by its 7.0 percent daily limit to Tw$114.0 while Cathay Financial Holding added 3.08 percent to Tw$46.9. [2]
Tokyo's Nikkei was 0.48 percent lower by the break, Seoul was flat, Shanghai gained 0.15 percent and Taipei added 0.26 percent. [1] Tokyo gained 0.82 percent, or 78.95 points, to 9,685.77 and Hong Kong ended 1.01 percent, or 242.21 points, higher at 24,138.31. [2] Industrial & Commercial Bank of China Ltd. added 1.2 percent in Hong Kong, leading Chinese lenders higher after Citigroup said the companies will report an average 29 percent increase in first-quarter profit. [4] Hong Kong's Hang Seng Index rose 0.9%, Taiwan's main index added 1.8%, and the Shanghai Composite index was 0.7% higher. [11]
In other markets, the Straits Times index in Singapore added.91%, the Seoul Composite index in South Korea jumped 1.32% while the Taiwan Weighted index clocked a gain of 1.64%. Euro managed to hold its recent gains, hitting 16-month highs amid strong risk appetite. [12]
"Investors' risk appetite is increasing on the back of brisk gains in stock markets amid growing expectation for economic recovery," Sasaki said. [15] A continued bout of risk appetite pushed the Asian stocks higher today, marking second day of advances ahead of the extended weekend. [12]
In Japan, Apple-linked stocks were mostly higher, with chip makers Toshiba up 1.92 percent and Elpida Memory up 3.60 percent. Softbank, the exclusive provider of Apple products in Japan, was down 0.43 percent on profit-taking following its recent gains. [2] The Organization for Economic Cooperation and Development Thursday called on Japan to raise consumption tax to cut the nation's debt, which stands at nearly 200 percent of gross domestic product. [9]
Strong corporate results from U.S. bellwethers bolstered also bolstered Japan's Nikkei which was up 0.9 percent. [14]
The benchmark Nikkei 225 index gained 78.95 points or 0.82%, or 78.95 points, to 9,685.77. [12] The business confidence index rose to 11 points in the March quarter from 5 points in the preceding quarter. [12]
Among oil producers, Woodside Petroleum gained 2.7% to A$47.86 in Sydney, while Bow Energy, an oil and gas explorer, surged 6.6% to 96.5 Australian cents, the third-biggest gain on the S&P/ASX 200 Index. [3] Oil added 0.6 percent, gold gained 0.3 percent and silver climbed to a 31-year high. [4] Fletcher Building rose 1.4 percent to NZ$9.21 and NZ Oil & Gas added 1.0 percent to NZ$0.97. [2]
In Taipei Hon Hai, the parent of Foxconn, which assembles Apple products, rose 1.4 percent. [2] Car maker Astra rose 1.2 percent to 55,800 rupiah and coal producer Bumi jumped 1.5 percent to 3,350. [2]
On the bullion market, gold hit a fresh record high of $1,508.88 an ounce in London on Thursday, a day after topping $1,500 for the first time. It closed at $1,504.00 Gold markets in Hong Kong were closed for the Easter break. [10] Gold closed at $1,507.50-$1,508.50 an ounce in Hong Kong, up from Wednesday's close of $1,500.00-$1,501.00 after the precious metal broke the key $1,500 mark for the first time on Wednesday. [2]
"We assume the dollar's downside adjustments over the past several days are mostly completed and quiet trading can be expected in Tokyo because (most) other major financial markets in Asia are closed for the holiday," the trader said. [10] Stock, bond and commodities markets are closed in the U.S. and many markets are also shut in Europe and Asia. [16]
The lingering U.S. debt problem was also weighing on the dollar following Standard & Poor's warning on Monday it may downgrade U.S. debt, dealers said. [15] "The market's focus is on the U.S. debt problem, giving an additional blow to the greenback," Sasaki said. [15]
Hiroyuki Fukunaga, CEO at Investrust, told Dow Jones Newswires: "US earnings look good, so the next big focus will be on the monetary policy." Exporters were hurt by the stronger yen, which harms their competitiveness overseas. [10] "Investors are selling the dollar and the yen to finance investment" in riskier assets with higher returns. [15]
Inflation data from Australia is suggestive of future rate hikes (propelling the Aussie to new highs) and Gold is making a similar rally on the argument that increases in energy prices will create widespread inflation in global economies. [5] From time to time, we will send you e-mail announcements on new features and special offers from The Wall Street Journal Online. [13]
Samsung Electronics, an Apple rival, gained 1.3%, advancing for a third day in Seoul and leading technology shares higher. [3] Qualcomm Inc., the biggest maker of mobile-phone chips, also gained after posting second- quarter profit that topped analyst estimates. [4]
SOURCES
1. Asian stocks mixed in holiday-hit trade
2. AFP: Asian shares rise after more solid US earnings
3. Gulf Times ''' Qatar'''s top-selling English daily newspaper - Finance & Business
4. Stocks Advance on Apple Earnings; Aussie, Gold Climb to Records
5. Apple Beats Analyst Estimates Again and Lifts Risk Sentiment; Aussie Makes another Record High after Strong PPI Numbers Released | Benzinga.com
6. Dollar Slumps To New Record Low Against Franc On Equities Rally
7. Asia Stocks Fall on Japanese Shares; South Korea Little Changed
8. Asian Shares End Mostly Up; Technology, Commodity Stocks Gain - WSJ.com
9. Dollar range-bond in holiday-thinned Asian trade
10. Asian stocks edge down in holiday-hit trade
11. UPDATE: Asian Shares Mostly Higher; Apple Results Buoy Regional Tech Sector - WSJ.com
12. Asian stocks have a very good Thursday
13. UPDATE: Asian Shares End Mostly Up; Technology, Commodity Stocks Gain - WSJ.com
14. GLOBAL MARKETS-US dollar at 2-1/2-yr low, gold near record high | Energy & Oil | Reuters
15. Dollar falls on upbeat stock markets
16. Dollar Little Changed in Light Holiday Trading - ABC News
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