Asian shares sag as corporate gloom worsens in Japan
Asian shares were mainly depressed by late trade on Monday, as a slate of factors including Japan's key "tankan" survey showing worsening business sentiment and regional currency weakness pressured markets.
The dismal tankan survey, which confirmed the bearish outlook for the Japanese economy, initially took the dollar to a 30-month high against the yen in volatile trade before profit taking set in.
At 0730 GMT, the dollar was trading at 126.39 yen and 0.8758/63 to the euro.
The quarterly tankan survey produced a headline figure of minus five, down from December's plus 10. A positive reading means optimists outnumber pessimists.
Asian share markets largely ignored a rise on Wall Street on Friday but analysts said European share prices looked set to edge up on stronger U.S. stock index futures.
The Dow Jones industrial average ended up 0.81 percent at 9,878.78 on Friday while the Nasdaq ended up 1.08 percent at 1,840.26.
"We are definitely going higher first thing but the question is the durability of any rally," said one senior equity trader.
But markets in Europe were likely to be capped by the continued stream of corporate results from the U.S. and ahead of the slate of economic date out this week, including non-farm payrolls figures on Friday.
TOKYO SLIPS, SEOUL DOWN
Tokyo stocks slipped after the signs of weakness in Japan's economy chilled sentiment and sparked slides in major technology stocks.
"The bad 'tankan', while largely factored in, nails home the severity of Japan's economic situation," said Nobuaki Kurisu, chief fund manager at Sumisei Global Investment Trust Management.
"The market is likely to hang around these levels until investors can see if the government and ruling coalition can hammer out a viable remedy," added Kurisu.
Losses in Fujitsu Ltd and other major technology plays dragged down the tech-sensitive Nikkei average, which shed 0.48 percent to 12,937.86.
In other Asian markets, a mixed slate of factors acted to push markets down.
South Korea's benchmark stock index ended lower on Monday, as foreign investors unloaded index heavyweights Samsung Electronics and SK Telecom on the weakening won.
"Key blue chips were the downward leaders as foreign investors reacted sensitively to the weakening won and cashed in through them," said Yoo Seung-woo, fund manager at Balance Asset Management.
The Korean won -2 fell to 1,346.5 per dollar by 0600 GMT against Friday's close of 1,327.5, its worst closing low since October 20, 1998. The Korea Composite Stock Price Index (KOSPI) closed down 1.53 percent at 515.20.
Taiwan stocks closed more than three percent lower as weakness in the Taiwan dollar triggered caution while tech shares tumbled due to worries over first-quarter results and a slump in U.S. semiconductor shares.
The dominant electronics subindex fell 3.61 percent as U.S. semiconductor stocks fell on worries business will continue to slow after memory chip maker Micron Technology reported weaker sales.
The key TAIEX index closed 5,607.73 down 3.28 percent.
"The Taiwan dollar's depreciation has triggered worries that foreign funds, already showing a net selling, may flow out of the local market," said Fubon Securities research manager Norman Lee.
HK WEAKENS
Hong Kong stocks, meanwhile, weakened with local telecoms stocks taking a beating as the market awaited a statement by Pacific Century CyberWorks (PCCW) explaining the suspension of trading in its shares.
The Hang Seng Index was quoted 0.45 percent down at 12,703.22 by 0730 GMT. The index is down nearly 16 percent year-to-date, making it the worst performing benchmark index in Asia.
Britain's Cable & Wireless Plc said later that it would launch an issue of zero coupon bonds exchangeable into its 14.7 percent holding in PCCW.
special.scmp.com |
