AFP
Asian markets mostly slipped yesterday on profit-taking after the big gains at the end of last week, while the dollar eased from more than six-year highs against the yen.
Investors seemed unimpressed after the Group of 20 said the world’s biggest economies were on track to achieve an extra 1.8% growth on top of current projections within five years.
Tokyo, which on Friday ended at an almost seven-year high, slipped 0.71%, or 115.27 points to 16,205.90, while Sydney shed 1.29%, or 70.1 points, to 5,363.0. Seoul lost 0.71%, or 14.55 points, to 2,039.27.
Shanghai fell 1.70%, or 39.59 points, to 2,289.87 and Hong Kong sank 1.44%, or 350.67 points, to 23,955.49 as investors await the release today of preliminary manufacturing data out of China.
Desmond Chua, market analyst at CMC Markets in Singapore, said a series of economic reports had come in below expectations. He added that another weak reading “will underscore weakness in the Chinese economy”.
Wellington was the stand-out performer, jumping 1.06%, or 54.95 points, to 5,236.29 after the pro-business National Party won a resounding election victory at the weekend.
Regional markets ended last week on a high, helped by news that Scottish voters had rejected independence from the United Kingdom.
But there are still concerns about the Chinese economy as dealers look ahead to the release of HSBC’s purchasing managers index (PMI) that market watchers expect to indicate further weakness in the economy.
However, in Tokyo yesterday Softbank, which holds about a third of Alibaba’s shares, slipped 6.1% on profit-taking despite saying it would probably book a gain of about $4.6bn from the IPO. The firm rose about 30% in the six weeks leading up to the listing.
The dollar bought 108.86 yen, compared with 108.99 yen in New York and sitting close to levels not seen since 2008. While it is well off the 109.21 yen earlier Friday in Asia, analysts are tipping it to break the 110 yen barrier soon.
The euro bought $1.2858 and 139.99 yen, against $1.2832 and 139.84 yen in US trade.
The G20 at the weekend said members could overcome geopolitical tensions and financial problems to boost global growth.
Finance ministers and central bank governors at the two-day meeting said in a communique that reforms agreed so far – including accelerating infrastructure investment, financial reform and encouraging free trade – could add 1.8% to GDP and create millions of new jobs. But more work was needed to meet a desired 2% goal agreed in Sydney earlier this year.
In New Zealand investors cheered a third straight election win for the party of Prime Minister John Key, who has been credited with hauling the economy out of torpor following the financial crisis.
On oil markets US benchmark West Texas Intermediate for October delivery eased 40 cents to $92.01, while Brent crude for November fell 48 cents to $97.91 in afternoon trade. Gold was at $1,213.14 an ounce at 1140 GMT, against $1,221.56 an ounce late Friday.
In other markets, Taipei closed down 1.14%, or 105.80 points, at 9,134.65; Manila was 0.10% lower, dipping 7.43 points to 7,279.86; Bangkok added 0.29% or 4.60 points to 1,589.51; Kuala Lumpur lost 3.4 points, or 0.19%, to end at 1,846.05; Jakarta ended down 0.15%, or 7.78 points, at 5,219.80 and Singapore closed down 0.26%, or 8.48 points, at 3,296.57.