🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

RPT-GLOBAL MARKETS-Asia shares fall, dlr gains after China data

Published 10/22/2009, 02:23 AM
C
-
BARC
-
HMC
-

* Asia shares slide as China GDP data offers no surprises

* Dollar gets a reprieve as China data disappoints fx mkt

* Slump in Japanese exports adds downward pressure on shares

* European equity futures down 1.4 pct (Repeats to more subscribers)

By Susan Fenton

HONG KONG, Oct 22 (Reuters) - Asian shares fell on Thursday amid disappointment that robust Chinese growth data offered few surprises, but the dollar gained some respite as an expected shift to higher-yielding currencies failed to materialise.

European stock futures were down 1.4 percent, while U.S. equity futures were flat.

News that China's economy surged 8.9 percent in the third quarter, together with bullish September economic data, failed to inspire equity investors as the data was bang in line with forecasts. [ID:nSP527740]

Hong Kong's Hang Seng Index <.HSI> was down 1 percent while shares in Shanghai <.SSEC> dipped 0.2 percent.

"The Chinese economy has taken off, but it is flying on one engine, China's recovery has been impressive but it has been heavily reliant on government-directed investment funded by aggressive bank lending," said Brian Jackson, a strategist at Royal Bank of Canada in Hong Kong.

"To keep the economy moving at a fast pace we need to see a more broad-based recovery."

The MSCI index of Asia Pacific stocks traded outside Japan <.MIAPJ0000PUS>, which struck a 15-month high this week, fell 1.2 percent as investors took a breather for a second day. The Thomson Reuters index of regional shares <.TRXFLDAXPU> was down 0.7 percent.

The dollar bounced off a 14-month low against a basket of currencies <.DXY>, edging up 0.4 percent on the day to 75.279, as expectations strong China data would encourage buying of higher-yielding assets like the Australian and New Zealand dollars failed to materialise.

The Aussie dollar briefly slipped on disappointment the China data was not more upbeat, but it quickly recovered.

However, underlying dollar weakness was likely to persist, dealers said.

"There have not been any factors to alter the global recovery scenario," said Masafumi Yamamoto, chief forex strategist, Japan at Barclays Capital in Tokyo, adding that the bank forecasts the Aussie dollar will rise towards parity against the dollar.

HYUNDAI TRIPLES PROFIT

Japan's Nikkei index <.N225> fell 0.6 percent with exporters losing ground. Sentiment was not helped by data showing Japanese exports slumped 30 percent in September, with a rising yen aggravating declining demand. [ID:nT206997]

Equity investors across the region were cautious after losses on Wall Street but earnings reports continued to suggest Asia is on a sustainable recovery track.

Japanese car maker Honda Motor Co <7267.T> and tech giant Toshiba <6502.T> bucked the share slide in Tokyo after newspaper reports said both were on course to beat their own projections and post first-half operating profits. Honda shares rose 1.8 percent while Toshiba gained 3.3 percent. [ID:nT234387] [ID:nT257030]

In South Korea, Hyundai Motor Co. <005380.KS>, the world's No. 4 car maker, reported quarterly profit more than tripled to a record high. Hyundai's shares dipped 0.5 percent though as the Korean KOSPI <.KS11> index slid 1.4 percent, reflecting concern about recent strength in the Korean won and the oil price.

Shares in mobile phone and TV manufacturing giant LG Electronics <066570.KS> skidded 5 percent in reaction to the company's warning of a slower fourth quarter after forecast-beating third-quarter profits.

Oil dipped just below $81 a barrel after jumping to a one-year high at $81.37 on Wednesday on news of a sharp drawdown in U.S. gasoline stocks. It was quoted at $80.98.

Disappointment that the Chinese economic data was not more bullish dampened expectations for currency appreciation in China, prompting the yuan to pullback in non-deliverable forwards .

South Korea treasuries fell, tracking U.S. Treasuries, after the Bank of England raised anxiety over an exit strategy [ID:nLL60939] and on uncertainty over whether Citigroup will include Korean bonds in its World Government Bond Index. December treasury bond futures fell 12 ticks to 108.36. (Additional reporting by Rie Ishiguro and Masayuki Kitano in TOKYO; editing by Kazunori Takada)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.