Stock Market, Business, and Financial News

Foreign Net Sell Orders For 8.5M Japan Stocks

2011-10-17T08:22:00.000+08:00

JGBs Set To Open Down, Likely To Find Support Later

JGBs are likely to open lower, following weakness in U.S. Treasurys over the weekend. But, once the U.S. markets stabilize, JGBs will likely find support in the fact that details of additional JGB issuance for the third extra budget are becoming available, says Tokai Tokyo Securities chief strategist Kazuhiko Sano. The MOF will likely issue around Y10 trillion more JGBs in relatively short maturities, according to recent meetings with the ministry, and JGB investors and primary dealers. Lead December JGB futures are tipped in a 142.05-142.24 range vs Friday's 142.19, while the benchmark 10-year cash JGB yield is eyed in a 1.015%-1.025% vs 1.015%

Foreign Net Sell Orders For 8.5M Japan Stocks

Offshore accounts at nine foreign brokerages placed net sell orders for 8.5 million Japan shares before the market open. The third consecutive day of pre-market selling may be negative for the market, although the yen value of the figures is unknown. Sell orders amounted to 18.7 million shares, while buy orders totaled 10.2 million shares.

10-Year US Yield Likely In 2.0%-2.4% This Week

The 10-year U.S. Treasury yield is eyed in a 2.0%-2.4% range this week, says Mitsubishi UFJ Morgan Stanley Securities senior strategist Akihiro Nishida. "If sovereign debt and banking sector problems in Europe improve and if that pushes up stock prices higher, the 10-year U.S. yield will likely jump further above (2.2%). But since the market is already discounting such expectations, any positive surprise is unlikely," he adds. 10-year U.S. Treasurys fell to 99 1/32 yielding 2.242% at Friday's NY close, while 2-year notes stood at 99 23/32 to yield 0.265%.

FOREX UPDATE USD/KRW May Fall, USD/JPY Unlikely To Breach 78 Short Term

2011-10-13T08:22:00.002+08:00

FOREX UPDATE: USD/KRW May Fall, USD/JPY Unlikely To Breach 78 Short Term

The USD/KRW may fall from 1,166.70 late Wednesday in Seoul amid increasing optimism for Europe's efforts to reduce sovereign debt contagion risks, which boosted the EUR and stocks on Wall Street Wednesday.

The European Commission Wednesday set out its plan to recapitalize the region's banks, while Slovakia's parliament is expected to approve the expansion of the EFSF in a second vote later this week after it rejecting the expansion Tuesday.

"The plans may not provide fundamental solutions for Europe's debt problem, but risk appetite is improving as fears over contagion risks ease," says Samsung Futures currency analyst Jeon Seung-ji. She says the USD/KRW "will likely heads downwards for the session, with its intraday moves tipped by the Kospi and the euro," She tips a 1,150-1,165 band for the session.

Sell-on-rally demand by Japanese margin traders and exporters is likely to keep the USD/JPY and EUR/JPY from rising towards 78 and 108 respectively, says Citibank Japan chief currency strategist Osamu Takashima.

Takashima notes that technically the USD/JPY signals it has hit bottom. But on the short-term horizon, sell-on-rally should be considered on the assumption that the pair will remain rangebound. Risk-on trade accelerated Wednesday on the back of rallies in European and U.S. stocks despite the absence of definite factors, Takashima adds.

He tips the USD/JPY in a 76.70-77.50 range for the session; the pair is at 77.11. The EUR/JPY is at 106.33

Korea Sept Unemployment Up, Jobs Growth At 1- Year Low

2011-10-12T08:48:00.001+08:00

Korea Sept Unemployment Up, Jobs Growth At 1- Year Low

South Korea's unemployment rate rose slightly in September as the economy added the least amount of jobs since September 2010, which could be another sign of slowing economic momentum for Asia's fourth-largest economy. Statistics Korea says September's seasonally-adjusted unemployment rate is 3.2% compared with 3.1% in August, while the number of people with jobs rises by 264,000 in September compared with a 490,000 rise in August--the lowest jobs growth since a 249,000 rise in September 2010.

Government officials say the country's economic recovery remains intact, but increasing external uncertainties may weigh on growth; Korea's economic outlook remains murky because of ongoing troubles in Europe and the U.S. lead to worries about a prolonged economic slowdown.

Indonesian Rupiah Bonds Give Up Gains After Rate Cut

2011-10-11T17:18:00.002+08:00

Indonesian Rupiah Bonds Give Up Gains After Rate Cut

The Indonesian government's rupiah bonds give up nearly all of their earlier gains after Bank Indonesia cuts its benchmark rate by 25 basis points. "The yields were down by between 5 bps and 6 bps before the rate cut, but now are mostly back at yesterday's levels after Bank Indonesia cut the policy rate" a dealer says.

But he doesn't see massive outflows from IDR bonds as yet; "the key to preventing outflows from bonds now is maintaining the rupiah's stability, and I think Bank Indonesia has done good job recently to keep the dollar below IDR9,000," the dealer adds

Bank Indonesia's unexpected 25-bp rate cut looks premature, says Credit Suisse; the house says its main concern is that core inflation could creep up in coming months. "In addition to today's policy rate cut and the lowering of the interest rate corridor at the last monetary policy meeting, the recent depreciation of the rupiah is also a de-factor easing that is likely to put upward pressure on inflation in coming months," it says.

The house estimates that core inflation averaged 0.5% on-month over July-September, an annualized rate of about 5.7% on-year. Recent growth indicators also suggest that domestic demand remains strong, it adds; "With growth likely to remain strong and headline inflation was lower mainly due to fluctuation in volatile food prices, we think Bank Indonesia's monetary policy easing is a bit pre-mature.

Source : http://marketcall.net/

Europe's Rescue Vehicle Hanging In The Balance

2011-10-11T00:33:00.002+08:00

Europe's Rescue Vehicle Hanging In The Balance

BRATISLAVA -- After months of painstaking negotiations and political jockeying, the euro-zone agreement to expand the currency bloc's bailout vehicle, crucial to its strategy for containing the debt crisis, was on the verge of collapse Monday, a victim of Slovakia's domestic politics.

To take effect, the July 21 agreement must be ratified by all 17 countries that use the euro, and all have done so except Slovakia and Malta. Malta was expected to approve the plan later Monday.

But Slovakia's approval, set for Tuesday, appeared doomed after one of the four parties that make up the coalition government said it would vote against the new and improved European Financial Stability Facility, or EFSF.

"Our position is well known and as the situation seems to me now, we won't vote for the EFSF tomorrow," Richard Sulik, leader of the Freedom and Solidarity, or SaS, party, told a news conference ahead of make-or-break talks with the three other parties.

Without support from the 22 SaS lawmakers, the coalition would not have enough votes in the 150-member parliament to secure approval of the EFSF.

The agreement, reached at a July summit of euro-zone leaders, expands the lending capacity of the EUR440 billion EFSF and gives it new powers, including the right to buy sovereign debt on secondary markets and function as the lender of last of resort for euro-zone banks.

At a time when European leaders are calling for immediate recapitalization of the region's banks, a vote against the fund could send markets into a tailspin.

In return for its support, the SaS wants its coalition allies to vote against Europe's permanent bailout fund, the European Stability Mechanism, set to replace the EFSF in mid-2013 if not earlier.

The other three parties have are rejected that demand.

The coalition government commands 79 votes in the 150-member parliament. SaS lawmakers account for 22 coalition votes.

Smer-Social Democracy, the largest opposition party, has 62 votes, and favors euro-zone bailout programs. However, Smer demands government reshuffles in exchange for its support for the EFSF.

Smer has pledged to vote against the EFSF Tuesday to test the government cohesion. Smer may only vote in the EFSF favor in a possible repeat vote.

Mikulas Dzurinda, the chairman of the Slovak Democratic Christian Union, SDKU-DS, the largest coalition and pro-EFSF party, held out hope that Sulik's SaS would change its position.

"I hope that Mr. Sulik and SaS will realize what is good for Slovakia and the euro zone, and change their views," Dzurinda told reporters ahead of the meeting.

"For the protection of euro zone, for the protection of bank deposits of our citizens, this mechanism is absolutely necessary," Dzrinda said.

Dow Moves Higher, But Banks Limit Gains

2011-10-10T08:05:00.000+08:00

Dow Moves Higher, But Banks Limit Gains

U.S. stocks came off their lows Friday, but gains were limited following Fitch's downgrade on Spain and Italy's debt ratings ahead of the European summit over the weekend that is aimed to support the region's sickly financial sector.

Fitch slashed Spain's rating to AA- from AA+,citing risks of slow growth and high regional debt, and Italy's to A+ from AA-, adding the outlook on its long-term ratings is negative. Italy's downgrade follows an earlier cut this week by Moody's. Moody’s also downgraded 12 UK financial institutions, saying it sees a decreased likelihood of government support for smaller institutions in particular but specifying the move does not reflect a deterioration in the financial strength of the banking system. Meanwhile, German Chancellor Angela Merkel and French President Nicolas Sarkozy were split ahead of crucial summit talks over the weekend over the usage of the EFSF.

The latest developments in the euro zone put pressure on U.S. financials such as Goldman Sachs and Morgan Stanley. Citigroup also slumped after Raymond James cut its price target on the firm to $43 from $65. On the economic front, the monthly non-farm payrolls number grew more than expected in September, jumping 103,000 in September, but the unemployment rate remained steady at 9.1 percent, according to the Labor Department. "It's difficult to spin this number as the start of an improving trend and reassure Americans the worse is behind us," said Todd Schoenberger, managing principal of The BlackBay Group.

"The numbers may have beaten consensus but remain horrific and shouldn't be a tremendous surprise to Americans considering the troubling economic environment and a focus by companies to do whatever it takes to turn a profit."

S&P Says Australian Energy Regulator's Changes May Raise Risk

2011-10-07T18:16:00.000+08:00

S&P Says Australian Energy Regulator's Changes May Raise Risk

Standard & Poor's Ratings Services today said that the Australian Energy Regulator's (AER) proposed rule changes could increase regulatory uncertainty and heighten adverse credit transition risks for the country's energy network companies. The rule changes are regarding capital-expenditure determinations for electricity networks and the methodology for determining returns for both electricity and gas networks.

The potentially higher regulatory risks, in our view, could make it more challenging for the network sector to attract capital on favorable terms, making it tougher for companies to maintain their financial profiles. This is especially so because of the sector's current and future large capital-expenditure requirement to replace aging network assets, cater for new customer growth, and improve system robustness as Australia moves toward greater reliance on renewable energy sources.

In our view, while each of the proposed rule changes may be incremental and have a minimal impact, overall, they may weaken the network sector's business risk profile. Historically, the highly-leveraged sector's investment-grade credit profile has been supported by our positive view of the predictive regulatory framework underpinning high cash-flow stability. However, this stability may be undermined if rule changes result in capital-expenditure cost overruns not being incorporated into the company asset bases, particularly when added to changes in the calculation methodology for asset return.

Moreover, a regulatory regime that periodically introduces changes, in our view, is likely to be a feature of a weaker industry and business risk profile. The uncertainty potentially weakens what have historically been very stable credit metrics, by introducing more volatility into our debt-coverage metric forecasts, particularly when companies are faced with their forthcoming five-year regulatory price reset. s a result, we may expect an increased buffer for a given rating to compensate for any weaker business risk profile.

Somewhat mitigating any potential increased regulatory risk to credit profiles is the deleveraging that has occurred across the Australian energy network sector over the past few years. We expect this credit-supportive trend to continue, given the sector's exposure to generally rising debt costs that could be exacerbated by any introduced regulatory uncertainty.

Japan Finance Minister: May Submit 3rd Extra Budget To Parliament By End October

2011-10-07T11:16:00.002+08:00

Japan Finance Minister: May Submit 3rd Extra Budget To Parliament By End October

Japan's finance minister said Friday that the government may submit its third extra budget bill for post-quake reconstruction to parliament by the end of October.

"If we assume that is when we will submit the bill to parliament, we would like (ruling and opposition party lawmakers) to discuss the issue and make efforts to build a consensus," Jun Azumi told reporters after a regular Cabinet meeting.

Azumi said he thinks an ongoing criminal trial involving former ruling Democratic Party of Japan leader Ichiro Ozawa will not affect discusssions with opposition parties over the budget bill.

Nikkei Open +1.3% On ECB Steps, Softbank, KDDI Gain

2011-10-07T08:50:00.002+08:00

Nikkei Open +1.3% On ECB Steps, Softbank, KDDI Gain

The Nikkei is up 1.3% at 8634.26 following solid gains in U.S. and European stocks on fresh steps by the ECB to address the European sovereign debt crisis. "Selling by foreign investors may be coming to a halt on the back of some progress in the European debt issue," says Toshiyuki Kanayama, a senior market analyst at Monex.

But he pegs the index resistance at 8670 (its 25-day moving average), saying investors are likely to be cautious in the afternoon ahead of the release of closely-watched U.S. jobs data later Friday.

25/33 Topix subindexes are higher, with Softbank (9984.TO) up 4.1% at Y2,401 and KDDI (9433.TO) up 2.9% at Y576,000; the pair will begin accepting pre-order reservations for Apple (AAPL)'s iPhone 4S from Friday afternoon. Sony (6758.TO) is down 3.1% at Y1,423 on a Nomura Securities downgrade. Sumitomo Chemical (4005.TO) is up 2.9% at Y283 on a Nikkei report of boost in semiconductor wafer production.

Singaporean Goverment Bond Yields Likely To Rise 2 - 3 BPS

Singapore government bond yields are likely to climb about 2-3 bps, a trader at a local bank says. Rising yields in both Singapore and U.S. follow a continued recovery in risk sentiment globally amid firm U.S. economic data and easing fears about the eurozone.

Investors are likely to hold their fire, however, pending U.S. employment data due later. On Thursday, the 2-year yield ended up 1 bp at 0.16% while the 10-year yield ended up 6 bps at 1.63%

Kospi Open Up 3.3% Led By Techs, Shipbuilders

2011-10-06T08:46:00.002+08:00

Kospi Open Up 3.3% Led By Techs, Shipbuilders

The Kospi is last up 3.3% at 1722.03, snapping a two-day losing streak, led by techs, refinery names and shipbuilders.

Amid easing concerns over Europe's debt crisis and the risk of a U.S. double-dip recession, analysts expect most exporters, especially techs and auto stocks, to benefit most from recent KRW weakness against the USD. "The (USD/KRW) will gradually weaken, but it will still stay above the 1,100 level towards the year end, so the exporters will see improved earnings through the fourth quarter," says Meritz Securities' June Park. The Kospi is tipped in a 1650-1780 range this week.

Among leading gainers, Samsung Electronics (005930.SE) is up 4.0% at KRW875,000, LG Electronics (066570.SE) is up 7.5% at KRW74,700 and LG Display (034220.SE) is up 5.8% at KRW19,200. Shipbuilders and refinery stocks also up after recent sharp falls, with Samsung Heavy (010140.SE) up 7.8% at KRW27,000, Daewoo Shipbuilding & Marine Engineering (042660.SE) up 7.1% at KRW21,950 and SK Innovation (096770.SE) up 4.9% at KRW128,500

Emerging Market Debt Bounces Back

EM debt bounces back as markets appear a bit more optimistic, with US and European equities in positive territory.

The risk premium on the JP Morgan Emerging Markets Bond Index Global, or Embig, pulls in 14 basis points to 476 basis points over Treasurys.

In price terms, its index is nearly flat. European credits outperform, with the spread on the Europe regional sub-index shedding 26 basis points to 466 basis points over Treasurys.

Its index rises 0.6%. Russia leads the region, as its spread tightens 29 basis points to 426 basis points over Treasurys, while its index jumps 0.8%

UK Food, Drink Exports +13% In 1H 2011

2011-10-05T23:42:00.000+08:00

UK Food, Drink Exports +13% In 1H 2011

U.K. food and non-alcoholic drink exports increased by over 13% during the first half 2011, to a value of GBP5.8 billion, in comparison with the same period a year earlier, the Food and Drink Federation, or FDF, said Wednesday.

Total exports to the European Union increased by 12.6% to GBP4.4 billion. In a list of top 20 fastest-growing markets, exports to Poland, Belgium and Sweden soared by 83.2%, 48.5% and 38.2% respectively.

Dairy was the best-performing sector in the period, with exports growing 30.5% on-year to GBP607.2 million.

"It's extremely encouraging to see such strong growth in food and drink exports despite the challenging economic climate affecting several of our key markets, particularly in the EU," Melanie Leech, FDF's director general, said.

Polish Bonds Firm On Foreign Buying

Polish bonds are more expensive on demand from outside the country, tracing higher stocks and a stronger zloty, a trader says. Uncertainties over the parliamentary election result may prevent a further rally this week. The average yield on 2-year bonds is at 4.43% from 4.46%, the 5-year at 5.21% from 5.30%, and the 10-year at 5.87% from 5.95%

Kospi Likely To Rebound; Cap Tipped At 1800

2011-10-05T08:09:00.000+08:00

Kospi Likely To Rebound; Cap Tipped At 1800

The Kospi is likely to rebound after its sharp 3.6% fall to 1,706.19 Tuesday, and also partly helped by gains on Wall Street. Analysts say that market volatility has increased amid heightened risks over the health of the global economy. The Kospi is tipped in a lower 1644-1800 range after trading at 1750-1900 in recent weeks. IBK says the USD/KRW level has dropped to around the low 1,190s offshore (after trading at 1,194 late Asia Tuesday) on hopes that the eurozone crisis is easing and amid rising expectations for U.S.-led economic stimulus measures, "so the Kospi may get a boost and may somewhat recover yesterday's drop." Analysts say leading gainers could include tech, financial and auto stocks, citing the recently weakening of the KRW against the USD, and low valuations after recent stock falls.

USD/KRW May Fall 1,183 - 1,195 Range Tipped

The USD/KRW may fall from 1,194.00 late Tuesday in Seoul as a rebound in the DJIA Tuesday shows a modest recovery in risk appetite, providing the USD/KRW with a downward bias, traders say. Greek debt woes continue to weigh on risk sentiment and investors may react sensitively to headlines from Europe, but "exporters have been actively selling dollars" at levels around 1,200, says a local bank trader. He adds, caution over possible USD-selling intervention from the BOK, after its suspected action Tuesday, will also likely limit the upside for the pair, as data earlier showed that the country retained ample foreign reserves. South Korea's Foreign Reserves totaled $303.38 billion at end-September vs $312.19 billion at end-August. The trader tips a 1,183-1,195 range.

LME Base Metals Likely Mixed; Strong USD May Weight

2011-10-03T08:16:00.003+08:00

LME Base Metals Likely Mixed; Strong USD May Weight

LME base metals are likely to open mixed as a rise in China's official September PMI helps sentiment, while a strong USD could offset gains. China's official PMI rose to 51.2 in September from 50.9 in August, marking its second consecutive rise.

Weak industrial growth in China, the world's biggest consumer of industrial metals, has pushed prices lower in the past few months. The data follows the September HSBC PMI, which was flat at 49.9. LME three-month copper ended Friday 2.9% lower at $7,018/ton and nickel closed down 5.7% at $17,600/ton.

Traders say metals are stuck in a "pessimistic environment." Analysts at Barclays Capital lowered base metal forecasts across the board last week to reflect a weak demand outlook as investors continue to worry over the health of the global economy.

A strong USD could also weigh as dollar-denominated commodities appear costlier to holders of other currencies when the greenback strengthens. The EUR/USD is at 1.3360 versus 1.3390 late Friday in New York

U.S Treasurys Likely In Narrow Range In Tokyo

2011-10-03T08:16:00.000+08:00

U.S Treasurys Likely In Narrow Range In Tokyo

Treasurys are expected to remain in a narrow range in Tokyo near New York's closing levels, as a raft of events scheduled for this week is likely to keep investors in wait-and-see mode. "The primary concern for the market is the situation over the Greek debt crisis.

How major European countries will evaluate Greece's budget plan is expected to set the tone for the market this week," says Yoshio Takahashi, chief foreign bond strategist at Barclays Capital in Tokyo.

"The market is also looking ahead to the U.S. employment report, which is expected to come in weak and provide support to the market, and to the effects of U.S. Federal Reserve's 'Operation Twist,' which is set to start this week," he adds. The 10-year U.S. Treasury rose to 101 31/32 to yield 1.905% at the NY close Friday, while 2-year note stood at 99 24/32 yielding 0.251%.

Foreign Net Sell Orders For 12.2M Japan Stocks

Offshore accounts at nine foreign brokerages placed net sell orders for 12.2 million Japan shares before the market open. The fifth straight day of pre-market selling may be negative for the market, although the yen value of the figures is unknown. Sell orders amounted to 25.3 million shares, while buy orders totaled 13.1 million shares

IMM Reportss Shows JPY Longs Remain Elevated

2011-10-03T08:15:00.000+08:00

IMM Reportss Shows JPY Longs Remain Elevated

The IMM commitment of traders report shows net JPY long non-commercial positions declined to 42,322 contracts in the week to Sept. 27 vs 45,617 contracts in the week earlier, showing the holding of JPY long positions by speculators "remain elevated" as the JPY is seen to offer safety amid market turmoil, which caused selling of various higher-yielding currencies, says Takako Masai, general manager of markets sub-group at Shinsei Bank.

Amid continuing European sovereign debt woes, both the USD and the JPY are likely to be in demand, making the USD/JPY's direction unclear, she says. Adding to the uncertainty in Europe, Greece's government acknowledged Sunday that it will miss its deficit targets this year although it moved ahead with a controversial plan to slash thousands of public sector jobs. The USD/JPY is at 77.17

Base Metals Likely To Take Backseat Friday

2011-09-30T08:11:00.000+08:00

Base Metals Likely To Take Backseat Friday

With leads from the LME Thursday "mixed at best" and major mining stocks falling in London equities trade, the LME complex is likely to take a backseat Friday as local traders avoid opening up fresh positions ahead of the week-long Chinese National Day holiday, says IG Markets' Ben Potter. "The other thing that traders will be wary of is the release of Chinese manufacturing data tomorrow," he writes.

"There have been a few reports from major brokers this week suggesting China could be headed for a hard landing. Given this, traders may be cautious in holding long positions over the weekend." Thursday, copper and zinc at the LME fell while other metals rose, but none moved more than 1% either way, suggesting less activity Friday.

Comex December copper is trading at $3.25/lb, or $7,164/ton, against Thursday's $7,230/ton close for LME 3-month, suggesting some downside weakness.

New Zealand NBNZ September Business Confidence +30.3% VS 34.4% in August

New Zealand business confidence eased in September, a leading survey showed Friday.

The National Bank of New Zealand's business outlook survey showed a net 30.3% of respondents expect conditions to improve over the next 12 months, compared with a net 34.4% that had expected an improvement in the previous survey in August.

Net confidence is defined as the percentage of optimists minus the percentage of pessimists.

A net 35.4% of firms expect their own activity to improve, down from the 43.3% that expected an improvement in August. The "own activity" figure is a key gauge of economic growth

Saham ditutup melemah tajam Ditengah Ketidakpastian Memperbaharui Tentang Eropa

2011-09-29T07:32:00.000+08:00

Saham ditutup melemah tajam Ditengah Ketidakpastian Memperbaharui Tentang Eropa

Setelah menunjukkan bergerak ke atas yang kuat selama tiga sesi sebelumnya, saham berada di bawah tekanan jual yang cukup besar selama perdagangan hari Rabu. Mundurnya datang sebagai pedagang diuangkan di pada keuntungan terakhir di tengah ketidakpastian melekat tentang situasi keuangan di Eropa.

Rata-rata melihat lebih Kelemahan utama masuk ke menutup, mengakhiri sesi hanya dari level terburuk hari ini. Indeks Dow turun 179,79 poin atau 1,6 persen menjadi 11,010.90, Nasdaq jatuh 55,25 poin atau 2,2 persen menjadi 2,491.58 dan S & P 500 turun 24,32 poin atau 2,1 persen menjadi 1,151.06.

Sementara optimisme tentang situasi di Eropa berkontribusi pada reli yang terlihat di sesi terakhir, ketidakpastian merayap kembali ke pasar di tengah laporan tentang kemungkinan membagi atas bagaimana untuk menyelesaikan krisis utang Yunani.

Para pejabat dari Komisi Eropa, Bank Sentral Eropa dan Dana Moneter Internasional akan kembali ke Yunani pada hari Kamis untuk meninjau kemajuan bangsa yang dilanda utang telah dibuat dalam mengadopsi langkah-langkah penghematan.

Suara parlemen Yunani Selasa untuk menyetujui suatu pajak properti tidak populer baru sebagai bagian dari upaya untuk menerima bantuan tambahan.

Mengecewakan data ekonomi AS mungkin juga telah menghasilkan beberapa tekanan jual, dengan laporan dari Departemen Perdagangan menunjukkan penurunan tak terduga dalam pesanan barang tahan lama pada bulan Agustus.

Laporan menunjukkan bahwa pesanan barang tahan lama turun tipis 0,1 persen pada Agustus setelah melompat 4,1 persen pada Juli. Penurunan sederhana datang sebagai kejutan bagi ekonom, yang memperkirakan pesanan meningkat sebesar 0,2 persen.

Peter Boockvar, strategi ekuitas pada Miller Tabak, mengatakan, "Intinya, Agustus seperti yang kita semua tahu adalah ketika ekonomi global mulai roll sebagai Eropa berkobar, antara lain, dan hari ini Agustus data lebih baik daripada ditakuti."

"Ini titik data meskipun adalah tunduk pada revisi besar dan September kemungkinan tetap stabil bisnis jadi kita perlu melihat bulan lagi data dalam apa yang sekarang menjadi kenyataan ekonomi baru dibandingkan dengan pra-Agustus nomor untuk menarik kesimpulan percaya diri," tambahnya.

Di antara saham individu, Kemajuan Perangkat Lunak (PRGS) turun tajam setelah memberikan bimbingan mengecewakan untuk kuartal keempat dan tahun penuh. Saham Kemajuan ditutup oleh 8,2 persen.

Di sisi lain, saham Jabil Circuit (JBL) melonjak naik 8,4 persen setelah pembuat komponen elektronik dilaporkan lebih baik dari perkiraan pendapatan kuartal keempat dan memperkirakan hasil kuartal pertama di atas perkiraan.

Dalam perdagangan luar negeri, pasar saham di wilayah Asia-Pasifik berubah dalam kinerja campuran pada hari Rabu meskipun memimpin positif dari Wall Street. Nikkei 225 Jepang Indeks naik tipis sebesar 0,1 persen, sedangkan Hong Kong Hang Seng Index merosot 0,7 persen.

Sementara itu, pasar Eropa utama semua pindah ke downside selama hari perdagangan. Sementara Inggris FTSE 100 Index turun sebesar 1,4 persen, indeks CAC Perancis 40 Index dan Index DAX Jerman keduanya jatuh sebesar 0,9 persen.

Di pasar obligasi, kas melihat volatilitas yang cukup besar sebelum akhirnya mengakhiri hari sederhana yang lebih tinggi. Selanjutnya, hasil pada catatan sepuluh tahun patokan, yang bergerak berlawanan dari harga, sedikit turun sebesar 1,4 basis poin menjadi 2,002 persen.

Saham sumber daya membantu untuk memimpin jalan lebih rendah pada hari, pindah ke sisi negatifnya seiring dengan harga komoditas di tengah kekhawatiran tentang prospek untuk permintaan.

Dalam sektor sumber daya, layanan minyak saham membukukan kerugian terutama curam, mengakibatkan penurunan 4,7 persen dengan Indeks Layanan Minyak Philadelphia. Kelemahan antara saham layanan minyak datang sebagai minyak mentah untuk pengiriman November anjlok $ 3,24 ke $ 81,21 per barel.

Kelemahan yang signifikan juga terlihat di antara saham asuransi kesehatan, seperti tercermin dengan hilangnya 4,3 persen diposting oleh Indeks Morgan Stanley Kesehatan Payor. WellCare (WCG) dan Amerigroup (AGP) berubah dalam dua pertunjukan sektor terburuk.

Jaringan, keuangan, kereta api, dan kesehatan saham penyedia juga membukukan kerugian tajam pada hari, mencerminkan kelemahan berbasis luas di pasar. Sebagian besar sektor utama lainnya juga menunjukkan terkenal bergerak ke arah negatif.

Perkembangan di Eropa cenderung tetap fokus pada Kamis, meskipun perdagangan juga bisa dipengaruhi oleh rilis laporan Departemen Tenaga Kerja pada klaim pengangguran mingguan.

Departemen Perdagangan juga akan merilis laporan akhir pada PDB kuartal kedua, sementara National Association of Realtors akan merilis laporan penjualan rumah yang tertunda di bulan Agustus.

The Hang Seng Was The Worst Performer Today

2011-09-29T01:03:00.000+08:00

The Hang Seng Was The Worst Performer Today

Hong Kong stocks ended lower at close on Wednesday, the worst performers among the rivals in Asia related to many investors off positions in banking and property shares amid the atmosphere of window-dressing the end of the month and quarter end.

Recorded the names of the Hang Seng Bank Ltd., Bank of East Asia Ltd. and Hang Lung Properties Ltd is the owner of the biggest percentage losses in the stock Hang Seng today, due to the widespread anxiety about the decline in their income.

Hang Seng Index closed at 18011.06 level or dropped 119.49 points (-0.66%), while the Hang Seng index futures (HSIc1) closed at 17,956 or a figure slumped 107 points (-0.59%)

Banorte-Ixe Latest Bank To Cut 2011 MXN Forecast

2011-09-29T00:54:00.002+08:00

Banorte-Ixe Latest Bank To Cut 2011 MXN Forecast

Banorte-Ixe is the latest bank to adjust its year-end forecast for the Mexican peso, to MXN12.20/USD from MXN11.50 previously, to account for the currency's 14% tumble since July and expectations of more modest US and Mexican economic growth.
Bank's target would yield an appreciation of 9% from current level of MXN13.4080. Banorte-Ixe considers the peso undervalued but concedes that global market volatility and risk aversion are likely to limit appetite for the currency in 4Q.

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Banorte-Ixe is the latest bank to adjust its year-end forecast for the Mexican peso, to MXN12.20/USD from MXN11.50 previously, to account for the currency's 14% tumble since July and expectations of more modest US and Mexican economic growth. Bank's target would yield an appreciation of 9% from current level of MXN13.4080. Banorte-Ixe considers the peso undervalued but concedes that global market volatility and risk aversion are likely to limit appetite for the currency in 4Q.

Kospi May Rise; Trade Likely Volatile, Gains Capped

2011-09-28T07:55:00.002+08:00

Kospi May Rise; Trade Likely Volatile, Gains Capped

The Kospi may rise, extending gains after Tuesday's 5.0% rise to 1735.71, on continued bargain hunting following the index's intraday slide to a 15-month low earlier this week and amid Wall Street's modest rise on Tuesday; initial resistance is tipped around the 1750-1760 region, analysts say.
But they don't expect gains to be as steep as Tuesday's due to lingering European sovereign debt concerns particularly after a report highlighted a potential split in the euro zone over terms of Greece's second bailout.
Woori Investment & Securities analyst Lee Kyoung-min believes the index may attempt to rise as high as 1770 or 1780 but that trade will remain volatile. The local currency may also cap stock gains should it continue to reflect Europe-driven global liquidity concerns, he adds. The USD/KRW was at 1,173.10 late Tuesday.

In Hong Kong, Short Sales Remain Heavy Despite Market Rally Yesterday.

Hong Kong's short-selling volume fell 4.2% to HK$7.20 billion Tuesday, but as a percentage of the total market volume was higher at 10.1%, compared to Monday's 9.5%; this indicates bears were not deterred by the HSI's 4.2% rise--which marked the largest one-day percentage gain since May 27, 2009--and reflects a view that it was likely a bear-market rebound rather than the start of a fresh uptrend.
China Mobile (0941.HK) grabbed the lion's share of short selling with HK$680.13 million, followed by China Construction Bank (0939.HK) with HK$383.50 million, and China Overseas Land (0688.HK) with HK$271.84 million. A50 China Tracker (2823.HK) and Agricultural Bank of China (1288.HK) rounded out the top five, with HK$246.04 million and HK$229.63 million respectively.

Goldman Sachs Chain Store Sales Down

2011-08-27T10:20:00.000+08:00

Goldman Sachs Chain Store Sales Down

The International Council of Shopping Centers and Goldman Sachs Retail Chain Store Sales Index edged down 0.2% in the week ended Saturday from the week before on a seasonally adjusted, comparable-store basis, falling for the second straight week.

"September sales have been volatile from week-to-week, but the trend has softened on balance as some renewed and intensified worry about the economy returned," said ICSC Chief Economist Michael Niemira.

ICSC still expects September industry sales will increase 3% to 4%, excluding the impact of fuel, and 4% to 5% with fuel sales included

Polish Bonds Continue Firming

Polish bonds continue the climb that began with the Polish government's intervention last week, benefiting from higher appetite for risk and a stronger euro, a trader says. Yields especially for longer maturities are quite low and some profit taking is likely soon. The average yield on 2-year bonds is at 4.43%, unchanged from late Monday, the 5-year is at 5.15% from 5.25%, and the 10-year at 5.85% from 5.95%

EUR/USD May Rise 1.3400 - 1.3600 Range Tipped - Trader

2011-06-29T10:17:00.001+08:00

EUR/USD May Rise 1.3400 - 1.3600 Range Tipped - Trader

The EUR/USD could consolidate, with an upward bias, in a core 1.3400-1.3600 range during Asian hours, says a senior trader at a Japanese trust bank; "the euro is still in the process of regaining stability after its recent tumble...and it could lack a clear trend for today."
Sentiment on the euro and other risk assets has improved partly due to a progress in parliamentary vote across the euro zone to ratify July 21's agreement to beef up the bloc's bailout fund. "But the euro-zone situation is still far from comfort and there are many hurdles to be cleared," he adds.
The pair is at 1.3580 from its 1.3584 late New York trade Tuesday

Kimco Gets Upgraded After Recent Stock Dive

2011-04-14T10:15:00.000+08:00

Kimco Gets Upgraded After Recent Stock Dive

After 21 months at underperform--during which shares soared sharply until the broad market slump of the summer--Baird is upgrading Kimco (KIM) to neutral, saying the valuation of the shopping-center owner is now "more attractive."

When it downgraded KIM, Baird noted Tuesday, "we were concerned about the state of the consumer, execution risk of their disposition strategy and development lease-up, particularly of their non-US portfolio."

But in addition to valuation attraction, there's been "modest success on the non-core disposition strategy" while there's a "generally more constructive outlook for the investment portfolio outside the US. We remain concerned about the US consumer but view KIM's large, diversified portfolio...as somewhat insulated, for now."

USD/JPY Higher Tracking Gains In JPY Crosses

2011-03-03T10:03:00.003+08:00

USD/JPY Higher Tracking Gains In JPY Crosses

The USD/JPY is higher tracking gains in JPY crosses as some market participants shift toward JPY selling on an improvement in risk sentiment, says Yuji Kameoka, managing director of foreign exchange at Daiwa Securities. The USD/JPY is at 76.45, after rising to a high of 76.56, and compared with an earlier low of 76.34. A Japanese government announcement earlier that it will take some strong yen measures including extending a safety net to small firms, may have helped the pair, but the announcement did not add to expectations for any potential Japan yen-selling intervention, he says. He tips the pair in a 76.30-76.70 range for the global day.

USD/KRW Down 1,170 - 1,190 Range Eyed

The USD/KRW is down at 1,184.20 from 1,195.80 late Monday in Seoul amid a strong Kospi rebound (up 3.5%) after three days of declines. Risk appetite somewhat recovers on new hopes for an euro-zone debt resolution, though uncertainties remain until Germany holds a vote on the EUR440 billion European Financial Stability Facility Thursday, says a local bank trader; "sharper falls in the pair are unlikely." He tips a 1,070-1,090 range for the session, adding that eyes will likely be on foreign investors' moves in the local stock market; they are net buyers of KRW19.63 billion worth of stocks so far today.

USD/SGD Likely Choppy Floor At 1.2900

A slight recovery in risk sentiment drags the USD/SGD lower but macroeconomic events in Europe will keep the pair choppy over the near term, says Thomas Harr, head of Asian FX strategy at Standard Chartered. The pair is at 1.2954 from 1.3062 late Asia Monday. Harr notes reports that European officials were actively developing a plan to use funds for the euro-zone bailout facility to shore up financially strapped European banks, and says "that's contributed to somewhat improved risk sentiment, but it's still going to be choppy...Europe will still be the key." Among other things, markets will watch out for parliamentary votes this week in countries like Germany and Finland on the European Financial Stability Facility, he adds. Harr tips the USD/SGD to trade between 1.2900 and 1.3000 today, with a 1.2830-1.3020 range likely over the next few days.

Wall Street Closed Near High Level Session

2010-12-24T10:00:00.002+08:00

Wall Street Closed Near High Level Session

U.S. stocks rose following the news that plans to increase the number of EFSF are in the process, according to senior European zone. The plan would use some funds for European banks to strengthen capital, while others streamed into the European Investment Bank. "Currently the market is stable, but this is not the point of equilibrium and we begin to lose the drive up ... this increase can not survive for the long term," said Brian Battle, vice president of trading at Performance Trust Capital Partners. "A lot of important news this week but two big things were voting on EFSF Germany on Thursday and the U.S. Congress," Battle added.

Meanwhile, European stock markets also closed higher following news that European officials have begun discussing the next steps to be taken to ease the debt crisis of the European zone, as governments try to perfect EFSF. Of economic data, sales of new U.S. homes fell 2.3% at an annual rate of 295,000 -, according to Dep.Perdagangan. The data are consistent with analysts' estimates. Another important housing data also exist in this week, including house price index S & P / Case-Shiller on Tuesday and pending home sales on Thursday.

Base Metals Extend Losses Copper Down 1.9%

2010-11-22T09:58:00.003+08:00

Base Metals Extend Losses Copper Down 1.9%

Base metals extend their losses on the London Metal Exchange as the EUR loses ground against the USD, pressuring dollar-priced commodities.

Three-month copper is down 1.9% at $7,208 a metric ton, and traders say they are expecting further losses later in the day as macroeconomic concerns over the health of the European and U.S. economies continue to weigh on the market and investors limit their exposure to risky assets.

The EUR/USD is at 1.3409 from 1.3499 late in New York Friday; dollar-denominated commodities become more expensive to investors holding other currencies when the greenback is firm. Thinly-traded three-month tin is the biggest loser on the LME so far Monday; the soldering metal is down 5.0% at $19,180/ton.

NAB Cuts AUD/USD Outlook To 1.02

2010-11-22T09:56:00.002+08:00

NAB Cuts AUD/USD Outlook To 1.02

NAB Chief FX Strategist John Kyriakopolous cuts the AUD/USD's forecast to 1.02 from 1.07 by year-end; but he remains upbeat saying that moves below parity won't be long-lasting. He adds, while there are many risks to the global outlook, not least from Europe's debt crisis, the worries could be overdone.
"Any falls in AUD/USD to around the mid-90 cent level on overblown global recession/financial crisis fears are buying opportunities. We continue to see the AUD/USD at 1.10 as unsustainable in the face of a peak in Australia's terms of trade, no current account surplus and the RBA cash rate close to a peak." The pair is at 0.9696

USD/THB Surges 31.20 Resistance Tipped

The USD/THB surges to nearly eight-month high at 31.08-31.10 from 30.85 in late Asian trade Friday on heavy persistent portfolio outflows amid risk aversion on concerns over the U.S. economy and euro-zone debt problems.
"Selling pressure has been seen in stock and bond markets," says a dealer at a local bank, adding "everyone wants to hold the dollar, while the (dollar) seller side is hardly had." The Thai stock market tumbles 8.0% to 881.99, extending Friday's 3.3% slump and Thursday's 3.8% fall. The pair's resistance is tipped at 31.20, with support tipped at 31.00.

Singapore August Manufacturing Output +21.7%

2010-11-21T09:55:00.003+08:00

Singapore August Manufacturing Output +21.7%

Singapore's August manufacturing output rose 21.7% on year, faster than July's 7.6% expansion and the median forecast of a 13.8% rise from a Dow Jones poll of 11 analysts.
The rise was primarily driven by a 156.7% increase in the highly volatile pharmaceuticals sector. But the strong headline data mask underlying weakness; excluding biomedical products, manufacturing contracted 10.5% on year.
Electronics, the mainstay of Singapore's manufacturing, contracted 21.9% in August, worse than the 17.2% decline in July. The data are another indication of a slowdown in the economy and may prompt the MAS to ease its monetary policy next month by reducing the slope of the local dollar's rise against a basket of currencies of its key trading partners.
Measured in seasonally adjusted terms, manufacturing output rises 3.9% in August from a month earlier, compared with a 0.4% expansion in July. The median forecast of eight economists in the poll was for a 5.1% contraction on month

HSI Down 1.8% Midday, Fresh 26 Month Low, China Worries Weigh

2010-10-20T08:16:00.002+08:00

HSI Down 1.8% Midday, Fresh 26 Month Low, China Worries Weigh

While rising recession risks for U.S. and European economies and the ongoing European debt crisis are often cited for as reasons for the stock market weakness, it's likely the worry that the Chinese economy is itself in the deep trouble that have resulted in the recent selloff in Hong Kong stocks, as evidenced by the H-share index's 11.9% slump last week (vs the U.S. indices' around 6% decline).
Going into 4Q, the market "will not be short of uncertainties," says UBS, as it expects continued liquidity tightening, further investment and business slowdown, and property sector destocking from China, and "worries about inflation and Chinese banking system may not dissipate as well." ICBC (1398.HK), China's largest bank, perhaps optimises investors' China worry; the stock is down 3.5% at HK$3.82 at midday, and has fallen 19.9% in 6 sessions.
The HSI is down 1.8% at 17,352.00 at midday on a modest volume of HK$34.41 billion; its intraday low of 17,313.78 is the lowest since July 13, 2009

The Sensex is likely to open slightly higher, tracking a 0.1% rise in SGX Nifty futures and a positive close on Wall Street Friday, and is set to trade in a narrow 16,000-16,250 range today on a lack of domestic triggers, says a local analyst.
Emkay Global says "perplexity continues to prevail" over the direction of the benchmark, but a short-covering-driven bounce ahead of the expiry of September derivatives Thursday cannot be ruled out.
The analyst tips state-run fuel retailers Indian Oil Corp. (530965.BY) and Bharat Petroleum (500547.BY) to continue their outperformance on expectations of lower fuel subsidy losses, with Nymex crude dipping below $80/bbl.
The Sensex ended Friday down 1.2% at 16,162.06

EUR/USD Down On Nikkei Falls; May Fall To 1.34

2010-09-19T08:14:00.002+08:00

EUR/USD Down On Nikkei Falls; May Fall To 1.34

The EUR/USD is down on the back of drops in the Nikkei, which earlier hit a fresh post-Mar. 15 intraday low of 8434.27, says a senior dealer at a major Japanese trust bank. "Nothing concrete comes out of the G-20 meeting over the weekend," he says, noting "uncertainty will likely persist going forward."

The EUR/USD is at 1.3465 from an earlier high of 1.3585. The pair may fall to 1.3400 later, he says. The EUR/JPY is down in tandem at 103.25 from an earlier high of 103.80. The Nikkei is down 1.0% at 8471.39

USD/TWD Biased Up Central Bank Selling Anticipated

The USD/TWD is biased up, taking cues from the USD/KRW and continuing pessimism over the euro-zone's debt problems, a trader from a local bank says.

He tips the local pair to test 30.700, before the central bank will likely intervene to contain TWD weakness. On Friday, the pair tapped its highest onshore late afternoon levels since December 27 at 30.388, fueled by continuing foreign fund outflows.

Commodity Price Signals Not A Good Sign

2010-07-19T08:11:00.000+08:00

Commodity Price Signals Not A Good Sign

Citi isn't liking what's coming out of the commodity pits. "While concern over Europe has been growing given seemingly ineffective policy responses and Chinese manufacturing sector data has now been disappointing for three consecutive months, the more menacing aspect to the recent market turmoil appears to be commodity-price weakness, with copper falling meaningfully." The economic bellweather hit a 1-year low in the US on Thursday amid the broad market selloff and is off 17% this month. Still, Tobias Levkovich's group says, "With depressed investor sentiment, more intriguing earnings-estimate revision momentum and attractive valuation, we believe one should be looking to buy stocks

ING Optimistic On Irish Bonds After Reading

Irish situation looking optimistic, says ING after Thursday's 2Q GDP reading of +1.6% provided firm evidence of improvement amid a worsening debt position in other euro-zone peripheral countries. Investors should buy Irish bonds on a six- to 18-month time horizon, ideally when the yield reaches 9%, ING says. But "expect this to be a volatile trade through as testing times for EMU will also prove difficult for the Irish story," it adds. The 10-year Irish/German yield spread is currently 5bps wider at 678bps.

India Bonds Steady 10-Year Tipped 8.28% - 8.32%

India government bonds are steady in afternoon trade as investments into bonds due to global risk aversion are being offset by concerns of higher government borrowing in the October-March period, says a dealer with a state-run bank. The benchmark 7.80% 2021 bond is at 96.75, the same level as Thursday's close. "The sharp depreciation of the rupee can increase India's import bill significantly and may force the government to borrow more from the market," the dealer says. He tips yields on the 10-year paper in a 8.28%-8.32% band for the rest of the session; the bond yield is at 8.30%.

The Kospi is down 1.3% at 1797.04

2010-07-18T08:09:00.000+08:00

The Kospi is down 1.3% at 1797.04 on Italy's sovereign debt ratings downgrade and escalating concerns over the fiscal health of the European economy, analysts say, though they don't expect much sharper declines from current levels as the move had been somewhat expected.

Korea Investment & Securities analyst Kim Jung-hoon doesn't expect the index to break out of the recent 1750-1900 range in September; "neither a 'V-shaped' rebound nor another deep set-back in stock prices is likely to happen," from current levels, with the market focusing on the next FOMC meeting.

Oil refiners are among the biggest losers so far; SK Innovation (096770.SE) falls 3% to KRW160,000 and S-Oil (010950.SE) slides 2.1% to KRW117,500. On the upside, STX Corp. (011810.SE) is +3.1% at KRW16,800 and STX Offshore & Shipbuilding (067250.SE) +3.1% at KRW20,200 after STX Group dropped its bid for Hynix (000660.SE). Hynix shares fall 2.9% to KRW20,400, while SK Telecom (017670.SE) sheds 1.3% to KRW152,000

RBI Concern On Inflation Justified

2010-07-17T08:07:00.002+08:00

JPMorgan says the Reserve Bank of India's concern on hardening inflationary expectations seems well justified. "Rising global risk aversion in recent weeks has caused a significant INR depreciation but no corresponding price relief of global commodities. This makes inflation management more, not less, difficult for the RBI," the house says. "We expect the RBI to raise policy rates again at its October review, and perhaps even after that, until there is clear evidence that inflation is on a path of sustained moderation," it adds. Since March 2010, the RBI has raised its key lending rate 12 times, including the 25 bp hike last Friday

Thai Goverment Bonds Down, Foreigners Selling

2010-06-16T08:05:00.001+08:00

Thai government bonds fall sharply; offshore banks were spotted selling five and seven-year notes, as lingering concerns over eurozone debt problems hurt demand for risk-sensitive emerging market assets, says a bond dealer. "Foreigners are selling (Thai) assets and this is well reflected in the U.S. dollar's strength against the Thai baht," he adds. Yields are expected to stay near current levels with bargain-buyers lending some support. The market will focus the FOMC meeting (starting Tuesday) for near-term trading cues. The bid/offer yield for bonds due December 2015 is quoted at 3.54%/3.48% from 3.44%/3.40% late Friday, the October 2017 bond yield is at 3.64%/3.60% from 3.54%/3.50% and the December 2021 bond yield is at 3.88%/3.80% from 3.72%/3.69%

NZD/USD Lower On Weak Asian Equity Markets

2010-05-15T08:04:00.001+08:00

The NZD/USD is largely rangebound at 0.8234 versus 0.8263 early in New Zealand as risk assets take a hit in holiday-thinned Asian trade, says ANZ Foreign Exchange Manager Murray Hindley. "It's very quiet, it has just weakened off with Asian bourses in the red," he says. "There is just a bit of risk off." He says the main focus for this week is on the FOMC meeting and what Fed Chairman Bernanke may announce. Support should hold at 0.8210-0.8215 short term, with resistance now at 0.8280, Hindley says. -------------------------------------------------------------------------------------------------- The NZD/USD is largely rangebound at 0.8234 versus 0.8263 early in New Zealand as risk assets take a hit in holiday-thinned Asian trade, says ANZ Foreign Exchange Manager Murray Hindley. "It's very quiet, it has just weakened off with Asian bourses in the red," he says. "There is just a bit of risk off." He says the main focus for this week is on the FOMC meeting and what Fed Chairman Bernanke may announce. Support should hold at 0.8210-0.8215 short term, with resistance now at 0.8280, Hindley says

USD/KRW Extends Gains 1,135 Resistence Tipped

2010-04-14T08:03:00.000+08:00

The USD/KRW extends gains and is at 1,122.80 from 1,112.50 late Friday in Seoul. Despite the BOK's suspected USD-selling intervention spotted earlier by traders, offshore buying consistently supports the pair, traders say. Four Seoul-based traders suspect the BOK had been offering some USD near and above the 1,120 level to smooth its gains, but strong USD demand persists, briefly lifting the pair to 1,123.00, its highest since it marked 1,124.00 on March 24. Amid weakness in other regional currencies against the USD, including the AUD and the SGD, "long dollar interests seem to remain strong," says a local bank trader; "I think the pair has seen its intraday low at 1,114.00 and will likely receive upward pressure" for the rest of the session. He tips the next resistance at 1,135. ------------------------------------------------------------------------------------------ The USD/KRW extends gains and is at 1,122.80 from 1,112.50 late Friday in Seoul. Despite the BOK's suspected USD-selling intervention spotted earlier by traders, offshore buying consistently supports the pair, traders say. Four Seoul-based traders suspect the BOK had been offering some USD near and above the 1,120 level to smooth its gains, but strong USD demand persists, briefly lifting the pair to 1,123.00, its highest since it marked 1,124.00 on March 24. Amid weakness in other regional currencies against the USD, including the AUD and the SGD, "long dollar interests seem to remain strong," says a local bank trader; "I think the pair has seen its intraday low at 1,114.00 and will likely receive upward pressure" for the rest of the session. He tips the next resistance at 1,135.

India Bonds Firm, 2021 Note Capped At 96.60

2010-03-13T08:01:00.002+08:00

Indian government bonds are firm as risk appetite across Asia takes a beating, says a trader with a state-run bank. The 7.80% 2021 bond is at 96.48 vs 96.35 at Friday' close. Still, the market may not be able to count on global cues to keep bonds up for long, given the risk of an overshoot in the federal government borrowing plan, the trader says. He reckons the benchmark 10-year could face resistance at 96.60 in the near term. ------------------------------------------------------------------------------------------------ Indian government bonds are firm as risk appetite across Asia takes a beating, says a trader with a state-run bank. The 7.80% 2021 bond is at 96.48 vs 96.35 at Friday' close. Still, the market may not be able to count on global cues to keep bonds up for long, given the risk of an overshoot in the federal government borrowing plan, the trader says. He reckons the benchmark 10-year could face resistance at 96.60 in the near term.

Aksi Investor Global Menekan Rupiah

2010-02-12T08:00:00.003+08:00

Rupiah tergelincir dan mencatat penurunan mingguan terbesar dalam lebih dari 2-tahun, setelah investor global mengurangi kepemilikan aset Indonesia akibat kekhawatiran bahwa krisis hutang Eropa akan meredam permintaan ekspor. Lembaga keuangan internasional menjual lebih dari $414 juta saham indonesia yang mereka beli sejak awal pekan, menurut data bursa. Rupiah yang terus melemah hingga 2,6% pada pekan lalu telah memaksa Bank Indonesia untuk melakukan intervensi dalam pasar mata uang dan obligasi, menurut pernyataan Deputi Gubernur Hartadi Sarwono pada 14 September lalu. "Kemungkinan default dan keluarnya Yunani dari zona Euro telah memicu aksi hindar resiko," kata Wiwig Santoso, kepala treasury dan pasar pada PT. Bank DBS Indonesia di Jakarta. "Pasar mengkhawatirkan perlambatan ekonomi global, dan Rupiah terkena imbas dari perkembangan pasar."

Tiring Transports Suggests Same For Industrials

2010-01-11T07:58:00.002+08:00

While the Dow industrials continue their upward march, the Dow transports are warning that a pullback is imminent. The industrials are up 0.4% and reached a 2-week high intraday, but the transports have reversed earlier gains to trade down 0.4%, and today's high is thus far below yesterday's. In addition, while the transports are up 2.5% since Sept. 7, the index's momentum indicator, which measures the rate of change, has fallen below zero (-0.86) from a 2-month high of 7.30 on the 7th. This bearish technical divergence suggests the rally has run out of steam. And if the transports start pulling back, the industrials are likely to follow.

Buying Returns To Treasurys As Stocks Fade

2009-11-25T07:56:00.003+08:00

Buying on dips again rescues the bond market as US stocks pare gains. The swings underline continued uncertainty about the euro zone's debt problems, even though fears of a default from Greece have eased the past several sessions. Today's gain in the 30-year bond also reflects speculation the Fed could decide to buy long-dated Treasurys at next week's FOMC meeting to stimulate the economy. Such hopes have sparked strong flows into the long bond in recent weeks. The 30-year bond is 8/32 higher, yielding 3.339%, while the 10-year is now flat

Emerging Markets, Small-Caps Fear Gauges Climb

2009-10-24T07:55:00.003+08:00

CBOE's VIX Volatility Index has been on a "wild but directionless ride" over the last month, says ConvergEx Group's market strategist Nicholas Colas. VIX down 2.4% recently to 31.21; month ago, it closed at 32.85. But Colas says the implied volatility of emerging markets (EEM), small caps (IJR) and gold (GLD) have had an upward journey, with the VIX-like measures for each rising up more than 20% over the last month; the implied volatility of high-grade bonds (LQD) and high-yield (HYG) fell sharply. One upshot is that for investors who think risk-on can continue, emerging markets and small-caps "absorbed the largest shock waves of concern and should therefore rebound the hardest.

Adobe Downgrade Highlights Enterprise Worries

2009-09-23T07:53:00.000+08:00

JMP Securities downgrades Adobe (ADBE) to market perform, saying, "While we believe there are some key things that could go right for the company over the next 2-3 years, near term we have grown incrementally concerned about the success of the company's enterprise business and about their ability to retain key management and sales personnel. We also believe the lack of economic growth in the US and other countries may have caused certain customers to delay their technology purchases from Adobe" in its just-concluded F3Q. JMP trims EPS estimates for this year and next amid specific worry on the enterprise segment. It also has concern "about the financial health and continuing relationships with many of Adobe's distributors and resellers." ADBE, which reports Tuesday, is down 2.6% at $25.45

Japan Fin Min Azumi : Will Watch Europe Fin Min Meeting Closely

2009-08-22T07:51:00.001+08:00

Japan's finance minister said Friday that he will be watching both the upcoming meetings of European finance ministers in Poland as well as how markets react to the coordinated move by major central banks overnight.

"I feel that the sense of urgency to do the utmost to prevent Greece's crisis from spreading is beginning to be shared" within Europe, Jun Azumi said at a press conference after a regular Cabinet meeting.

Azumi said he will keep a close eye on a planned meeting later in the day of European finance ministers. U.S. Treasury Secretary Timothy Geithner is expected to attend the gathering.

He called the recent meeting of leaders from Germany, France and Greece a "positive move."

Japan Trade Min Edano : Accept Rate Hike By Tepco If Necessary

Japan's trade and industry minister said Friday that the government will approve a rate hike by Tokyo Electric Power Co. (9501.TO) if it proves necessary provided the company takes thorough cost-cutting measures.

"It is important for the government to ensure a secure supply of electricity, and the necessary increased costs of paying for substitute fuels will eventually have to be shouldered in some way," Economy, Trade and Industry Ministry Yukio Edano said at a regular press conference. "As long as enough cost-cutting measures are undertaken to win support from the public for rate hikes," the government would approve them, he added.

Japanese media has reported that Tepco is seeking a rate hike of 15% over the next year.

Brazil Grants Steep Tax Advantage On Cars With National Content

2009-07-21T07:50:00.000+08:00

Brazil's government on Thursday moved to protect its auto manufacturing industry from a rising tide of imports, granting steep tax advantages for cars produced locally.

The government raised the IPI industrial products tax on all vehicles by 30 percentage points, but simultaneously introduced large tax breaks for those manufacturers that comply with a series of local content and investment criteria.

"The measures we're taking will stimulate national production," said Brazilian Finance Minister Guido Mantega. "They'll allow industry that invests and create jobs to keep growing.

The measure could make foreign vehicles between 25% and 28% more expensive than local models, according to government officials.

(This story and related background material will be available on The Wall Street Journal website, WSJ.com.)

A study released in June by automaker association Anfavea said that higher parts, labor and bureaucratic costs make Brazilian cars 60% more expensive than Chinese alternatives.

Imports have been on the rise in Brazil, largely due to the appreciation of the Brazilian real, which has strengthened nearly 30% against the dollar over the last three years. More recently, weakness in developed markets in the U.S. and Europe have led manufacturers to divert cars to healthier economies such as Brazil's.

Sales in Brazil are expected to be up by around 5% this year, down from 12% growth last year, when sales in Brazil reached a new record high. Imports now account for more than 20% of sales, from less than 10% five years ago.

Speaking after the announcement, the president of Brazil's Motor Vehicle Manufacturers Association, Anfavea, said the measures would help, but may not be enough to allow local producers to compete with cheap imports from countries such as China.

"This is a step in the right direction," said Anfavea President Cledorvino Belini. "It won't alter prices much, but it strongly supports national production."

The new taxes take effect immediately and will remain in place until Dec. 2012, but companies have 60 days to adapt to the new rules on local content.

The measures won't apply to vehicles produced in the members of the regional Mercosur trade block, or for cars from Mexico, with which Brazil has a bilateral agreement on car sales.

Government officials said they believed at least 12 of the 15 companies which produce vehicles in Brazil would qualify for the tax break.

Car importers, meanwhile, were less than enthusiastic about the measure.

According to local press reports, the president of Brazil's Auto Importers Association, Jose Luiz Gandini, called the government's move "absurd" and said it would likely discourage new investments by foreign companies. Gandini's group represents at least 25 foreign car manufacturers, including popular Asian brands such as Suzuki, Jac Motors and Kia Motors

Euro Merespon Positif Fasilitas Pendanaan Dollar ECB

2009-06-20T07:47:00.002+08:00

Euro melonjak versus Dollar AS pada hari Kamis seiring meredanya kekhawatiran atas likuiditas akibat memburuknya krisis hutang kawasan setelah European Central Bank mengatakan bahwa pihaknya bersama bank sentral utama lainnya akan kembali meluncurkan operasi likuiditas Dollar pada kuartal ke-4 guna memudahkan pendanaan sektor perbankan Eropa.
ECB akan berkoordinasi dengan Federal Reserve AS, Bank of England, Bank of Japan, dan Swiss National Bank untuk menjalankan operasi yang akan berlangsung selama 3 bulan itu.
"Penyediaan likuiditas Dollar untuk bank-bank Eropa ini menunjukkan jika para pembuat kebijakan masih terus berusaha dan telah mengambil pelajaran dari pengetatan kredit pasca kejatuhan Lehman yang menyebabkan keterpurukan sektor perbankan," kata Dan Dorrow, kepala riset forex pada Faros Trading di Stamford, Connecticut.
Sebelumnya, dukungan baru untuk Yunani dari Jerman dan Perancis telah membantu Euro beranjak lebih tinggi.

Euro-Zone Inflation Remains Above ECB Target

2009-05-19T21:08:00.002+08:00

Euro-zone inflation held steadily above the European Central Bank's target rate in August, but economists said the bank is unlikely to tighten policy because of concerns over slowing growth in the currency bloc.

Eurostat, the European Union's statistics agency, said Thursday that consumer prices rose 2.5% in the year to August, the same annual rate as in July and above the ECB's medium-term target of just below 2.0%.

The rate was in line with analysts' forecasts and also confirms the preliminary estimate published by Eurostat last month.

Prices month-on-month rose 0.2%, again in line with forecasts.

Despite inflation remaining above target, speculation among investors is growing that the ECB will refrain from further increases in its key interest rate due to signs that economic growth in the 17-nation euro-zone economy is faltering.

The bank has made two quarter-point increases to its key rate since April, lifting it to 1.50% in an effort to head off inflationary pressures.

At his latest press conference earlier in September, ECB President Jean-Claude Trichet damped expectations for further increases, saying the euro zone's economy will grow more slowly in the coming years than previously expected and that the pressures forcing inflation higher have moderated.

Silvio Peruzzo, a euro-zone economist at the Royal Bank of Scotland, said the ECB's concerns have shifted to the slowdown in global growth, but predicted it won't react to fears of an economic slowdown for some months.

"For the ECB to change policy dramatically, we would have to wait until after December," he said.

Many economists believe the bank will be reluctant to cut its key interest rate unless the euro zone's economic prospects deteriorate significantly, especially as such a cut would come so soon after the ECB's two rate increases this year.

Adding to any ECB reluctance to lower rates is the fact that incoming ECB President Mario Draghi may be uneasy loosening policy so early in his tenure. Draghi, who takes over from Trichet in November, will be in an "uncomfortable position to prove himself more German than the Germans," said ING Bank economist Peter Vanden Houte. He was referring to Germany's famously tough-on-inflation Bundesbank, widely seen as the spiritual predecessor to the ECB.

Eurostat said prices in August were pushed higher by items heavily influenced by fuel prices, including transport and household energy costs. Further upward pressure came from items such as clothing, with retailers raising prices after July sales.

The lowest annual rates were observed in two of the euro zone's most troubled economies, with Ireland's inflation rate unchanged at 1% in August and Greece's falling to 1.4% in August from 2.1% in July

Indonesia Bonds Mixed; Short End May Fall More

2009-04-18T07:43:00.001+08:00

Indonesia rupiah-denominated government bonds are mixed amid fragile sentiment after the rupiah's sharp drop Wednesday. Local traders say long-term investors may look for buying opportunities once the market is less jittery. "The notes are biased down further, especially the shorter-dated paper," says a local trader. The latest data shows foreigners sold IDR3.29 trillion worth of bonds Wednesday, bringing the total to IDR5.31 trillion in the week to Wednesday.

The five-year yield is at 6.28% from 6.26% Wednesday, the 10-year yield is at 7.07% from 6.99%, the 15-year yield is at 7.50% from 7.48% and the 20-year yield falls to 7.77% from 7.83%. A local trader says longer-term investors, both local and foreign, have started buying the long-dated notes, albeit in small volume

Philippines Foreign Portofolio Investment At Net Inflow $394.1 Mln in August

2009-03-17T07:41:00.002+08:00

Foreign portfolio investments in the Philippine in August showed a net inflow of $394.1 million, up 75% from the $225.1 million inflow a year earlier and 32% higher than the $299.6 million in July, the central bank said Thursday.

The Bangko Sentral ng Pilipinas said that funds ploughed into Philippine-listed stocks and peso-denominated government securities totalled $659 million and $685 million, or a total $1.34 billion, while outflow was $950.4 million. The inflows were down from the $1.35 billion in July but double the $787.9 million in August 2010. The outflow in August was down from the $1.05 billion in July but higher than the $562.8 million posted last year.

For the first eight months of 2011, total foreign portfolio investments showed a net inflow of $3.09 billion more than triple the $960.3 million recorded in the same period in 2010.

Total inflow in the eight-month period reached $11.92 billion, with investment in shares listed on the stock exchange reaching $6.2 billion, up from $4.1 billion in the same period of 2010. Total outflow in the January-August period reached $8.83 billion.

The PSEi, the main barometer of Philippine stock performance, ended August at 4348.50, down 3.4% from its level at the end of July but still up 3.5% from its end-2010 level.

Meantime, strong investment inflows have sent treasury bill rates to record lows, with all maturities falling below 1% for the first time.

Ireland Revises Up Jobless Rate As Employment Shrinks

2009-02-16T07:39:00.002+08:00

The Irish government Thursday said it revised upward its unemployment rate for August to 14.5% from 14.4% estimated in an initial release published last month.

The new estimate is based on the Quarterly National Household Survey which the Central Statistics Office said showed the numbers working in the country shrunk 2% to 1.82 million in the second quarter of the year from a year earlier.

Ireland's unemployment rate has soared from about 4% in 2007 when a severe banking crisis started to take hold. For the first time since the late 1980s emigration has returned as a feature of the economy.

The long term jobless now account for 54% of total unemployment, the CSO said Thursday.

Sensex +0.4% In Choopy Trade; 16,990 Cap Tipped

2009-01-15T07:38:00.001+08:00

The Sensex is +0.4% at 16,779.16 and trade is choppy, as expected, ahead of the RBI's rate-setting meeting Friday, says Sharmila Joshi, head of equities at Fairwealth Securities. "The market is expecting a 25bp hike, but what investors will be looking out for is the RBI's tone on inflation and whether the tightening cycle is close to an end," she adds. A local dealer tips the Sensex's resistance at 16,990 and support at 16,545. Eighteen of the 30 Sensex stocks are higher, with six BSE gainers for every five laggards.

Technology stocks extend Wednesday's gains as the rupee remains weak against the USD. Infosys (500209.BY) is +1.3% at INR2,382.60, also supported by a report it is close to acquiring Thomson Reuters' (TRI) healthcare business, and Tata Consultancy Services (532540.BY) is +1.7% at INR1,034.00. Tata Motors (500570.BY) is +3.5% at INR147.45 after recent steep losses. Among losers, Larsen & Toubro (500510.BY) is down 1.2% at INR1,590.00 and Tata Steel (500470.BY) is off 1.4% at INR463.00