Wednesday, April 29, 2009

Asia-Pacific Markets on Tuesday: The Impact of The Swine Flu


Major Asia-Pacific Indices this Wednesday morning.



How about Jakarta Composite (Indeks bursa saham Indonesia) today? Let's see....

Stock markets across the Asia-Pacific region closed sharply lower on Tuesday on renewed worries about the impact of the swine flu outbreak on global trade and consumer confidence after the World Health Organization raised its pandemic alert level to the highest level since the warning system was adopted in 2005. While hotel, airline and tourism-related stocks came under selling pressure for a second day, financials took a fresh hit on concerns U.S. banks may have to raise more capital.


The Japanese market plunged to close near the day's lows, weighed down by disappointing fiscal 2009 corporate earnings, renewed concerns over the U.S. financial system and the yen's advance against the U.S. dollar. Stocks fell almost across the board, but land transport and electricity and gas stocks bucked the declining trend. The benchmark Nikkei 225 index fell 233 points or 2.67% to 8,494, the lowest level since April 1, while the Topix index of all First Section issues on the Tokyo Stock Exchange closed at 812, down 21 points or 2.53%.

Shipping stocks extended their downtrend on dismal earnings and a bleak outlook. Mitsui O.S.K Lines plunged 7.48%, Nippon Yusen plummeted 8.27% and Kawasaki Kisen slumped 6.74%.

Automakers and other exporters also came under significant selling pressure as the Japanese yen hit the 95-yen level against the U.S. dollar. Steel stock JFE Holdings plummeted 6.77% and Nippon Steel tumbled 5.23% on analyst downgrades. Meanwhile, Chugai Pharmaceutical extended gains on expectations of strong sales of the Tamifu flu drug. East Japan Railway surged up 7.63% on announcing a share buyback.

The Australian market closed lower, weighed down by weakness in the banking sector. The benchmark S&P/ASX200 closed at 3,708, down 23 points or 0.62% and the broader All Ordinaries index fell 18 points or 0.5% to 3,672.

Big miners closed mixed amid decreases in metal prices overnight. While Rio Tinto rose 2.79%, its rival BHP Billiton fell 1.02% and Iluka Resources declined 0.90%. Gold miner Newcrest Mining fell 1.87% and Lihir Gold moved down nearly 3% due to falling gold price.

National Australia Bank tumbled 3.45% after the bank's first-half net profit fell slightly toA $2.66 billion on higher funding costs and rising provisions for bad loans. Commonwealth Bank closed down 0.76%, Westpac Banking moved down 1.50%, Macquarie Group slipped 0.69% and ANZ declined 1.31% ahead of its earnings announcement on Wednesday.

In the oil and gas sector, Woodside Petroleum and Oil Search slipped around 0.20% each and Santos moved down 1.86%. Retailers Woolworths and Harvey Norman Holdings also ended in the red.

The South Korean market tumbled on heavy institutional selling. The benchmark KOSPI fell 40 points or 2.95% to 1,300, the lowest closing level in about three weeks. Volume was significant at 746.19 million shares worth 7.52 trillion won (US$5.54 billion) and decliners outnumbered gainers by 737 to 142.

Shipbuilder Hyundai Heavy Industries tumbled 5.02% after its new orders plunged 83% in the first three months of this year due to decreased demand for new vessels. Samsung Heavy Industries fell 4.48% and Daewoo Shipbuilding slumped 6.93%

Asiana Airlines fell 3.25% and Korean Airlines moved down 2.38% on concerns that the industry would be hit hard by the swine flu outbreak. Tech stock Hynix Semiconductor plunged 8.79%, market heavyweight Samsung Electronics moved down 1.71%, LG Display LCD tumbled 4.32% and LG Electronics ended down 1.96%.

Hong Kong’s Hang Seng Index, which saw some strength in early trading, fell below the unchanged line in early afternoon trading. The index traded below the unchanged line for the remainder of the session to close down 285.31 points or 1.92% at 14,555.

Thirty-five of the forty-two index components ended the session lower, while three stocks ended unchanged. Shopping Property, Bank of East Asia, Sino Land, China Mercantile Holding, Citic Pacific, China Resources, FIH, Ping An and Chalco were among the notable decliners.

The Indian market tumbled as funds and retail investors squared their long positions ahead of the expiry of April series derivative contracts on Wednesday. The benchmark for the Indian market, the Sensex ended at 11,002, down nearly 370 points or 3.25% from the previous close.

Among the other markets in the region, China's Shanghai Composite index slipped 0.16%, Hong Kong's Hang Seng index fell 1.92%, Singapore's STI Straits Times index shed 0.56% and Taiwan's TWII Weighed index closed down nearly 2%.





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