SINGAPORE: Asian shares fell yesterday, dented by chip makers after a negative report on Intel Corp and by energy companies as crude slipped, but the dollar was helped by signs the US mortgage crisis had not derailed the economy.
The dollar’s revival has hit gold, which retreated further from its recent 28-year high of $747.65 an ounce, dropping to around $726 an ounce.
On Wednesday a report on the US service sector and another on private-sector payrolls indicated modest growth in the labour market last month, bolstering hopes the housing market troubles had not yet dragged down other parts of the US economy.
Even so, investors were cautious ahead of Friday’s US payrolls data for September.
European stock markets were set to open lower, wary of interest rate decisions by the European Central Bank and the Bank of England.
Financial bookmakers in London expected Britain’s FTSE 100 index to open as much as 14 points lower, the German Dax as much as 23 points down and the French CAC 40 up to 12 points lower.
Japan’s Nikkei ended down 0.6%, with chip maker Advantest off 0.8%.
Gains in banks such as Mitsubishi UFJ Financial Group cushioned the fall as they extended a rally on the view the worst is over for US subprime loan problems.
“It’s natural the market adjusts itself after the recent rally, but it generally has room to go up much further,” said Akihito Yamanoi, general manager of the equity investment department at AIG Global Investment Corp
“But before the US jobs data, investors find it hard to make a move.”
US Treasuries and Japanese government bonds (JGBs) fell, with December 10-year JGB futures down 0.32 point at 134.58.
Chip-related shares were among the biggest fallers in Asia, taking their cue from a drop in US giant Intel Corp.
Morgan Stanley initiated coverage of the chip maker with an “underweight” rating, saying it expected an inventory correction and a price war.
In Seoul, the benchmark Kospi fell 0.5% from a record closing high hit on Tuesday before a national holiday.
It was pulled down by a drop in Samsung Electronics as a quarterly loss from US rival Micron Technology and Morgan Stanley’s report on Intel highlighted concerns over earnings.
Australia’s S&P/ASX 200 index fell 1.4%, led by declines in miners BHP Billiton Ltd and Rio Tinto as commodity prices cooled. Hong Kong’s Hang Seng Index was down 1.5% by 0603 GMT.
The dollar was slightly higher at 78.655 on an index that measures its value against a basket of six major currencies, having recovered from a record low of 77.660 on Monday.
“Investors expect the dollar to extend gains against the euro if Friday’s non-farm payrolls report shows a fair reading,” said Hideki Amikura, a currency manager at Nomura Trust and Banking.
The euro was little changed at $1.4090, having retreated from an all-time high of $1.4283 hit on electronic trading platform EBS earlier this week. - Reuters
|
