Asian shares lower despite G20 pledge

After a weak lead from Wall St, markets are looking to a string of US data in the week ahead for clues about the health of the world's largest economy.

Asian stock markets have lost ground, with investors little moved by the G20's weekend commitment to boost global growth by $2 trillion over five years.

After a weak lead from Wall Street on Friday, markets were looking to a string of US data in the week ahead for clues about the health of the world's largest economy, with figures due out on housing, consumer confidence and GDP growth.

In Tokyo the benchmark Nikkei-225 index fell 0.19 per cent on Monday, or 27.99 points, to close at 14,837.68. Seoul lost 0.45 per cent, or 8.78 points, to end at 1,949.05 and Sydney closed a marginal 0.03 per cent, or 1.5 points, higher at 5,440.2.

Hong Kong shares fell 0.80 per cent, or 179.68 points, to end at 22,388.56. On the Chinese mainland, shares extended losses on worries about possible tightening of credit to the property sector.

Shanghai dropped 1.75 per cent, or 37.00 points, to close at 2,076.69. The Shenzhen Composite Index, which tracks stocks on China's second exchange, narrowed earlier losses to close down 0.07 per cent, or 0.82 points, at 1,134.19.

The world's biggest economies vowed on Sunday to boost global growth by more than $2 trillion over five years, shifting their focus away from austerity as a fragile recovery takes hold.

The G20 members said they aim to lift their collective GDP by more than two percentage points over the next five years.

However, investors appeared to be focusing more on the forthcoming US figures, as analysts suggested the data may disappoint.

US February consumer confidence figures are due to be released on Tuesday, followed by data showing durable goods orders and initial jobless claims on Thursday. On Friday, the final estimate for fourth-quarter US gross domestic product is out.

Japan will also publish a string of other data, including key inflation figures, on Friday.

US stocks finished last week with modest declines. The Dow Jones Industrial Average fell 0.19 per cent, or 29.93 points, to 16,103.30 on Friday.

The broad-based S&P 500 dropped 0.19 per cent, or 3.53 points, to 1,836.25, while the tech-rich Nasdaq Composite Index slipped 0.10 per cent or 4.13 points to 4,263.41.

On currency markets, the dollar stood at 102.35 yen in afternoon trade in Asia, down from 102.49 yen in New York Friday.

The euro was at $US1.3765 and 140.89 yen, compared with $US1.3734 and 141.00 yen.

Oil prices rebounded in Asia owing to strong US demand driven by prolonged sub-zero temperatures across much of the country and geopolitical worries.

New York's main contract, West Texas Intermediate for April delivery, gained 22 US cents to $US102.42 in afternoon Asian trade. Brent North Sea crude for April rose 20 US cents to $US110.05.

Gold fetched $US1,333.44 an ounce at 1050 GMT, after striking $US1,332.45 late Friday, driven by strong Asian demand.

In other markets, Mumbai rose 0.53 per cent, or 110.69 points, to end at 20,811.44 points. Tata Power was up 3.95 rupees or 5.02 per cent at 82.65 rupees while public power producer NPTC was down 15.10 rupees or 11.43 per cent at 117.05 rupees.

Kuala Lumpur ended 0.11 per cent, or 2.06 points lower, to close at 1,828.68. IOI Corp gained 1.3 per cent to close at 4.61 ringgit and UMW Holdings rose 1.0 per cent to 11.90 ringgit, while Genting Bhd lost 2.5 per cent to end trading at 10.10 ringgit.

Jakarta ended down 0.49 per cent, or 22.58 points, at 4,623.57. Cement maker Indocement Tunggal Prakarsa lost 2.31 to 22,250 rupiah, while tin miner Aneka Tambang fell 0.47 per cent to 1,050 rupiah.

Singapore rose 0.19 per cent, or 5.91 points, to close at 3,105.84. Singapore Telecommunications gained 1.11 per cent to Sg$3.64 while DBS Bank slid 0.24 per cent to Sg$16.65.

Bangkok lost 0.22 per cent, or 2.83 points, to 1,301.38. Telecoms company Advanced Info Service fell 1.90 per cent to 206.00 baht, while Bangchak Petroleum dropped 0.86 per cent to 28.75 baht.

Manila fell 0.19 per cent, or 12.04 points, to 6,296.32. Megaworld Corp. bucked the trend to rise by 2.81 per cent to 4.02 pesos while Ayala Land Inc. fell by 1.22 per cent to 28.40 pesos.

Wellington closed up 42.01 points, or 0.85 points, to end at 4,969.65 on positive earnings results. Freightways rose 2.84 per cent to NZ$4.70 and Sky Network Television City soared 5.74 per cent to NZ$6.08.

Taipei fell 0.48 per cent, or 41.25 points, to 8,560.61. Taiwan Semiconductor Manufacturing Co was 0.47 per cent lower at Tw$107.0, while Cathay Financial Holdings shed 3.04 per cent to Tw$44.7.


5 min read

Published

Updated

Source: AAP


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