Asian markets mixed, dealers await stimulus steps

Dealers awaited fresh stimulus by US, Europe and China, while Japan showed growth slowing.

Afp August 13, 2012

HONG KONG: Asian markets were mixed on Monday as dealers awaited fresh stimulus drives by the central banks of the United States, Europe and China, while Japanese data showed growth slowing.

Tokyo was flat, Hong Kong fell 0.42 percent, Shanghai eased 0.40 percent, Seoul shed 0.39 percent but Sydney gained 0.59 percent.

Global shares enjoyed broad gains last week on expectations the European Central Bank will restart its bond-buying scheme to support under-pressure economies such as Spain and Italy.

There are also hopes the US Federal Reserve will unveil its own drive to pump cash into the economy, while another batch of poor trade figures from China on Friday increased the likelihood Beijing will also intervene to kickstart growth.

On Monday morning Japan released data showing its economy grew just 0.3 percent in April-June from the previous quarter, the fourth consecutive rise but a slower pace than before.

The figures were significantly weaker than market expectations for a 0.7 percent increase, as exports slowed due to falling global demand, especially from the debt-wracked eurozone.

It also marked a sharp contrast from a brisk 1.3 percent increase in the January-March period.

The yen eased against the euro after the weak growth figures. In early trade the euro stood at $1.2288 and 96.21 yen, mixed from $1.2291 and 96.16 yen on Friday in New York.

The dollar bought 78.27 yen, from 78.25.

"There are increased hopes of further easing in response to the China data on Friday," said Stan Shamu, market strategist at IG Markets in Melbourne.

"This ramped up toward the close of the US (on Friday) and has filtered through to Asian trade," he told Dow Jones Newswires.

On Wall Street the Dow ended 0.32 percent higher, the S&P 500 added 0.22 percent and the Nasdaq edged up 0.07 percent.

Oil was up in early trade, with New York's main contract, light sweet crude for delivery in September gaining 39 cents to $93.26 a barrel and Brent North Sea crude for September delivery advancing 56 cents to $113.51.

Gold was at $1,620.90 at 0210 GMT, from $1,609.15 on Friday.



Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ