Dismal Trading Day for Asian Stocks

0
133
Dismal Trading Day for Asian Stocks
Dismal Trading Day for Asian Stocks

Dismal Trading Day for Asian Stocks

After yesterday’s gains, Asian stocks fell today and the regional benchmark index reversed earlier gains as financial and consumer-staple shares led the decline. Earlier yesterday, stock market rallied and gave hope to investors; however, today, there were no sentiments that can show that the market is up. Most of the indexes closed with little to no change.

Whereas Japan’s Topix (TPX) index closed little changed after rising as much as 1.1 percent, The MSCI Asia Pacific Index fell 0.1 percent to 139.19 as of 5:36 p.m. in Tokyo. Major loser in today’s trade was China Overseas Grand Oceans Group Ltd which declined in the MSCI Asia Pacific Financials Index.

The major gainer in today’s trade China South City which soared 61 percent to HK$3.49 gave some respite to investors. A similar pattern was seen in Tencent which gained 0.8 percent to HK512.50. According to sources Tencent may use China South City’s logistics and trade center network to compete against Alibaba Group Holding Ltd.

Major Gainers and Losers in Asian Trade Today

China saw some better trading for mining companies; however, the overall trade fell short to yesterday’s trading. On the one hand, Newcrest Mining (NCM) jumped 7 percent to A$9.13 as the company’s investment rating was raised to overweight at JPMorgan Chase & Co, the Asia-Pacific gauge traded at 13.1 times estimated earnings as of yesterday.

**relatedarticle**

However, there were some gainers today that included China South City Holdings Ltd. The company gained 61 percent in Hong Kong after a decision came from Tencent Holdings Ltd that it will buy a stake in the logistics-center operator. Another major gainer in today’s trade was Newcrest Mining Ltd.

Newcrest Mining Ltd is Australia’s biggest gold producer and according to the company the gold production will be the top priority for it. Today its stocks jumped 7 percent amidst the speculation that the decision on the part of the company to give priority to gold production will help the financial health of the company.

The U.S. Trade Yesterday

In yesterday’s trade a lot of positive trading was seen in the U.S. stock market when they were rallying to a six-year high. The major gainer was Rio Tinto Group which rose 1.4 percent after exceeding its 2013 cost-cutting targets. However, the growth was not seen in indexes as the Stoxx Europe 600 Index slipped less than 0.1 percent to 334.45 at 8:10 a.m. in London.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com