Asian shares lower despite G20 growth pledge

Employees work on the trading floor of the Tokyo Stock Exchange. The  Nikkei-225 index yesterday fell 0.19%, or 27.99 points, to close at 14,837.68.

AFP/Tokyo

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

After a weak lead from Wall Street 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%, or 27.99 points, to close at 14,837.68. Seoul lost 0.45%, or 8.78 points, to end at 1,949.05 and Sydney closed a marginal 0.03%, or 1.5 points, higher at 5,440.2.

Hong Kong shares fell 0.80%, 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%, or 37points, 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%, or 0.82 points, at 1,134.19.

China’s domestic banks have recently tightened lending to the real estate sector, state media said last week, although the four biggest state banks on Monday denied any such moves.

Official data released yesterday also showed fewer cities, 62 out of 70 tracked, recorded month-on-month increases in new home prices in January, down from 65 in December.

Analysts said fears were overblown.

“The (property) market doesn’t have any structural risks and the government wouldn’t clamp down too tightly on an area so important for China’s economy,” United Securities analyst Pei Xiaoyan told Dow Jones Newswires.

The world’s biggest economies vowed Sunday to boost global growth by more than $2tn 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.

“It is possible that data to be released this week could come out lower than expected. Caution is needed over continued worries about the possibility of a US slowdown,” Tsuyoshi Nomaguchi, a senior strategist at Daiwa Securities, said in a note to clients.

Nomaguchi said the US market could receive support from investors hopeful that weak data could encourage the US Federal Reserve to continue its zero interest rate policy.  Japan will also publish a string of other data, including key inflation figures, on Friday.

The euro was at $1.3765 and 140.89 yen, compared with $1.3734 and 141yen.

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 cents to $102.42 in afternoon Asian trade. Brent North Sea crude for April rose 20 cents to $110.05.

Gold fetched $1,333.44 an ounce at 1050 GMT, after striking $1,332.45 late Friday, driven by strong Asian demand.

In other markets, Kuala Lumpur ended 0.11%, or 2.06 points lower, to close at 1,828.68, Jakarta ended down 0.49%, or 22.58 points, at 4,623.57, Singapore rose 0.19%, or 5.91 points, to close at 3,105.84, Bangkok lost 0.22%, or 2.83 points, to 1,301.38, Manila fell 0.19%, or 12.04 points, to 6,296.32,Wellington closed up 42.01 points, or 0.85 points, to end at 4,969.65 on positive earnings results and Taipei fell 0.48%, or 41.25 points, to 8,560.61.