Nikkei big loser in Asia; yen climbs

Pedestrians walk past a share prices board in Tokyo. The Nikkei sank 194.48 points to 19,570.24 yesterday.AFP/TokyoTokyo’s Nikkei index was the biggest loser of Asia’s major markets yesterday as the yen climbed against the dollar, while Wall Street provided a weak lead following more below-forecast US data. The euro added to recent gains after data showing the eurozone economy picking up trumped worries about Greece’s ongoing debt reform talks. Tokyo sank 0.98%, or 194.48 points, to 19,570.24 while Sydney eased 0.33%, or 18.6 points, to 5,696.5 and Seoul added 0.29%, or 6.17 points, to 2,120.33. Hong Kong climbed 0.14%, or 37.27 points, to 27,286.55 and Shanghai was slightly higher, adding 2.55 points to 4,378.31 In other markets, Taipei fell 1.16%, or 113.28 points, to 9,610.83; smartphone maker HTC slipped 1.75% to Tw$112.0 while Taiwan Semiconductor Manufacturing Co was 1.35% lower at Tw$146.0. Wellington shed 0.23%, or 13.46%, to 5,738.40; Contact Energy slipped 1.07% to NZ$5.55 and Warehouse Group was down 1.08% at NZ$2.76. Manila added 0.30%, or 23.09 points, to 7,831.44; Jakarta was closed for a public holiday. Singapore rose 0.08%, or 2.61 points, to 3,455.78; United Overseas Bank fell 0.41% to Sg$24.05 while agribusiness company Wilmar International gained 0.31% to Sg$3.26. Malaysia’s share index rose 4.53 points, or 0.25%, to close at 1,807.55; Tenaga Nasional gained 0.58% to close at 13.88 ringgit, while Sime Darby fell 0.22% to 9.02 ringgit. Malayan Banking went up 0.22% to 9.28 ringgit. Thai stocks closed flat, up just 0.10%, or 1.45 points, to 1,497.40; Bangkok Bank rose 1.63% to 186.50 baht, while the Siam Cement conglomerate dipped 2.25% to 522baht. US traders were left disappointed Wednesday after the Commerce Department said retail sales, a key part of consumer spending that drives most of the US economy, stagnated in April after rising 1.1% in March. The average consensus estimate had been for a 0.2% increase. Year-on-year, retail sales rose 0.9%, the weakest growth since 2009. The news adds to unease about the world’s biggest economy, which grew slower than expected in the first quarter, and makes a Federal Reserve interest rate rise unlikely in the early summer, reversing expectations from the start of the year. “While US growth is rebounding, it may not rebound as far and as fast as many investors had expected,” Russ Koesterich, global chief investment strategist at New York-based BlackRock, told Bloomberg TV. The Dow edged down 0.04% and the S&P 500 dipped 0.03% but the Nasdaq added 0.11%. On currency markets the dollar softened as the chances of a rate hike abated. In Japanese trade it bought ¥119.10 against ¥119.16 in New York and was well down from ¥119.83 earlier Wednesday in Asia. The euro pushed higher after official data showed the eurozone economy met expectations and grew 0.4% quarter-on-quarter in January-March, up from 0.3% in the previous three months. The expansion came after getting some help from the European Central Bank’s massive bond-buying programme, launched in March to kick-start the single-currency bloc. The single currency was at $1.1389 and ¥135.74 against $1.1354 and ¥135.29 in New York and also well up from the $1.1246 and ¥134.80 in Tokyo earlier Wednesday. However, debt-saddled Greece confirmed that its economy had slipped back into recession, with no end in sight to tense bailout reform talks with its international creditors.