Markets kept in check by poor data in China, Japan aP 11 Match 2014

BUSINESS

Markets kept in check by poor data in China, Japan

AP and AFP
March 11, 2014, 12:09 am TWN

LONDON/HONG KONG--The mood in financial markets steadied Monday despite earlier big losses in Asia following disappointing Chinese and Japanese economic data.

In Europe, the FTSE 100 index of leading British shares was flat at 6,710 while Germany's DAX fell 0.5 percent at 9,307. The CAC-40 in France bucked the prevailing trend to trade 0.3 percent higher at 4,381.

Wall Street was poised for a subdued opening too with both Dow futures and the broader S&P 500 futures down 0.1 percent.

Asian markets tumbled on Monday following a surprisingly poor batch of economic data out of China, while revised Japanese figures showed 2013 growth was slower than expected.

The losses came after healthy gains on most bourses last week and despite jobs growth in the United States, while investors are keeping an eye on events in Ukraine as leaders try to find a peaceful resolution to the crisis.

Tokyo slipped 1.01 percent, or 153.93 points, to 15,120.14, Sydney fell 0.93 percent, or 50.8 points, to 5,411.5 and Seoul was 1.03 percent lower, giving up 20.26 points, to end at 1,954.42.

Shanghai dived 2.86 percent, or 58.84 points, to 1,999.07 while Hong Kong sank 1.75 percent, or 395.56 points, to 22,264.93.

Beijing said Saturday it had seen an unexpected trade deficit of US$22.98 billion in February.

The figure compared with a surplus of US$14.8 billion in the same month last year, and a median forecast of an US$11.9 billion surplus. Exports fell 18.1 percent and imports jumped 10.1 percent.

“It's hard to ignore a number that looks like that,” said Sean Callow, senior currency strategist at Westpac Institutional Bank in Sydney.

Those figures were followed the next day by news that inflation eased to 2.0 percent in February, down from 2.5 percent in January, leading to talk of possible deflation, which could delay much-needed investment and consumer spending.

While authorities blame the country's holiday season for the weak results, they add to growing worries about the Chinese economy, with the latest surveys on its key manufacturing sector showing weakness.

The sell-off on Monday is “symptomatic of the mood of the market to be spooked by any poor China numbers and to only take moderate comfort from strong numbers,” he told Dow Jones Newswires.

On Wall Street the S&P 500 edged up 0.05 percent to its third record in four days and the Dow gained 0.19 percent but the Nasdaq fell 0.37 percent.

In Kuala Lumpur flag-carrier Malaysia Airlines lost 20 percent at one point after one of its 777 airliners went missing at the weekend with 239 people aboard, en route from Kuala Lumpur to Beijing. However, it clawed back a substantial part of that to sit four percent lower in late trade.

The broader market was down 0.50 percent.

Gold fetched US$1,339.80 an ounce at 1200 GMT compared with US$1,348.20 late Friday.

In other markets:

— Singapore closed down 0.31 percent, or 9.63 points, at 3,126.63.

Oversea-Chinese Banking Corporation eased 0.63 percent to SG$9.44 while Singapore Telecommunications also lost 0.28 percent to SG$3.61.

— Bangkok edged down 0.44 percent or 6.03 points to close at 1,349.05.

Coal producer Banpu fell 1.89 percent or 26.00 points to close at 26.00 baht while telephone operator DTAC rose 1.40 percent or 1.50 baht to close at 108.50 baht.

— Jakarta ended down 0.18 percent, or 8.64 points, at 4,677.25.

Palm oil firm Wilmar Cahaya Indonesia fell 6.43 percent to 1,600 rupiah, while conglomerate Astra International gained 3.93 percent to 7,275 rupiah.

— Kuala Lumpur dipped 0.56 percent, or 10.20 points, to 1,822.06.

Malaysia Airlines' stock lost 4.0 percent to 0.24 ringgit after one of its planes disappeared off Malaysia. Genting Malaysia shed 1.9 percent to 4.21.

— Mumbai rose 0.07 percent or 15.04 points to end at 21,934.83 points.

Oberoi Realty rose 10.54 percent to 211.30 rupees per share and Ramco Cements rose 7.13 percent to 199.05 rupees per share.

— Wellington eased 0.15 percent, or 7.82 points, to 5,117.84.

Telecom was down 0.20 percent at NZ$2.455 and Fletcher Building slipped 0.40 percent to NZ$9.86.

— Manila ended flat, edging up 5.40 points to 6,487.23.

Philippine Long Distance Telephone gained 0.07 percent to 2,802.00 pesos and International Container Terminal Services rose 0.70 percent to 100.30 pesos, while Metro Pacific Investments advanced 2.25 percent to 4.54 pesos.