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Wednesday, March 10, 2010 Foreign Market Wrap
Major Asian markets ended mixed Wednesday after moving in a narrow range as investors looked toward crucial economic data due this week, while Chinese stocks snapped a three-day advance amid concerns about policy tightening.
The Nikkei 225 index in Tokyo fell 3.73 points to 10,563.29
The Hang Seng Index in Hong Kong gained 0.74 points to 21,208.29.
Japanese shares moved in a tight range after January core machinery orders -- a leading indicator of capital expenditure -- dropped 3.7% in January from the previous month, in line with market expectations.
The slip in Japanese core machinery orders in January doesn't obscure the general recovery in this leading capex indicator, according to some experts. After the 20.1% on-month surge in December, they said January's drop represented a surprisingly good result, adding the recovery was likely to be sustained by stronger exports, particularly to China and other Asian neighbours.
The data helped machinery plays, with Okuma adding 5.3% and Komatsu rising 1.2%, while Hitachi Construction Machinery Co. gained 1.3%.
Toyota Motor Corp. fell 1.4% on concern about the financial impact from its global recall of vehicles.
Nisshin Steel jumped 6.9% after the Nikkei said it will make the stock a component of the Nikkei 225 Stock Average.
In Sydney trading, Aurox Resources was the highlight as it powered 172.2% ahead. Atlas Iron Tuesday said it agreed to merge with Aurox in a share deal valuing Aurox at 143 million Australian dollars ($130 million U.S.), an A$90-million premium to its market capitalization.
Atlas Iron shares added 4.5%.
Building and construction products distributor Alesco tumbled 31.6% after its profit warning on Tuesday prompted downgrades from several brokers.
In Seoul, Kumho Tire fell 2.7% after its union workers voted to go on strike next week if talks with the company over its layoff plans fail.
Foreign exchange majors were in tight ranges as investors looked for fresh cues. The U.S. dollar was at 90.17 yen from 90.01 yen in late New York trade Tuesday, while the euro was at $1.3574 U.S. from $1.3603 U.S. and at 122.44 yen from 122.43 yen.
CHINA
The main stock index in Shanghai backtracked after three straight days of gains.
Shanghai's CSI 300 Index subtracted 26.17 points, or 0.8%, to 3,279.69
Official data released earlier in the day showed China's trade surplus shrank to $7.6 billion U.S. in February from $14.2 billion U.S. in January. Exports registered a 45.7% jump from the same month a year-earlier, while imports increased 44.7%.
Property counters paced falls in China, as cautious investors locked in gains after recent advances. Poly Real Estate Group Co. dropped 1.8% and Beijing Huaye Realestate Co. lost 3.2% in Shanghai, while China Vanke Co. dropped 1.5% in Shenzhen.
Chinese automobile industry data showed a 46.3% jump in February sales, but stocks fell on concerns the rate of growth may moderate in coming months. SAIC Motor Corp. dropped 3.7% in Shanghai and FAW Car Co. dropped 3% in Shenzhen.
Elsewhere;
Korea's Kospi index eked out a gain of 1.41 points to 1,662.24
Singapore's Straits Times Index advanced 22.75 points, or 0.8%, to 2,862.29
Taiwan's Taiex Index put on 8.49 points, or 0.1%, to 7,779.08
New Zealand's NZX Index prospered 12.98 points, or 0.4%, to 3,226.19
Australia's S&P/ASX 200 moved down 0.10 points to 4,820
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