HONG KONG, May 5: Many Asian markets were mixed on Thursday, finding only modest support from a strong Wall Street showing after the US Federal Reserves kept monetary policy on course, dealers said. They said the Fed stance of continued interest rate hikes at a “measured pace” may have helped reassure investors who have been concerned by mixed US economic data and uncertain whether it was time to move to defensive positions.
At the same time, several markets came off early highs, perhaps reflecting some caution ahead of the key US employment figures due Friday which could prove to be a make or break indicator in the current context.
The fact that oil prices continued to hold around the key 50 dollars a barrel level despite sharp gains in US oil and gasoline stocks was unwelcome as it adds to worries over inflation and the possible tighter monetary policy that would be needed to fight it.
Trade overall was quiet with Tokyo and so many other markets closed for public holidays.
Taipei outperformed, adding 2.13 per cent after recent sustained weakness but still falling short of the 6,000 points level, while Singapore was flat, getting no support from Wall Street after a weak manufacturing survey.
HONG KONG: Hong Kong share prices closed 0.84 per cent higher, with the benchmark index breaching the key 14,000 points level on Wall Street’s strong gains and continuing speculation over a revaluation of the Chinese yuan, dealers said.
At the same time, they said that while the advance looked significant, it came in relatively modest turnover and the gains could be susceptible to early profit-taking.
The Hang Seng Index closed up 116.65 points at 14,061.70, off a low of 14,021.93 and high of 14,110.29. Turnover was 17.3 billion Hong Kong dollars (2.2 billion US dollars). The Hang Seng China Enterprises Index was up 82.55 points or 1.76 per cent at 4,766.77.
“However, the momentum ... has not been very strong as the turnover was relatively weak. This means that the index is likely to encounter a pullback in the near term,” he added.
Property stocks extended their gains as local banks kept their lending rates unchanged despite Tuesday’s US rate hike, dealers said.
Sun Hung Kai Properties rose 0.50 at 75.50 dollars and Cheung Kong was up 0.50 at 74.00.
HSBC rose 0.50 at 126.50.
SYDNEY: Australian share prices ended a six-day losing streak to finish up 0.2 per cent after a mixed session where investors searched for direction after the release of weak economic data, dealers said.
The said a strong lead from Wall Street was undercut by figures showing Australia’s trade deficit had blown out to 2.7 billion dollars (2.1bn US) in March, the second highest on record.
SINGAPORE: Singapore share prices closed flat with losses in some major banking stocks after disappointing results undercut the sharp gains made on Wall Street, dealers said.
The Straits Times Index fell 1.28 points to 2,148.10, off a high of 2,154.57 and a low of 2,147.30. Volume was 606 million shares worth 707 million Singapore dollars (431 million US). Gainers led losers 242 to 196, with 689 stocks unchanged.
KUALA LUMPUR: Malaysian share prices closed flat, with sentiment weighed down by concerns over rising inflation after the government announced increases in petrol and diesel prices, dealers said.
The Kuala Lumpur Composite Index closed up 0.99 points at 904.06. Volume was 4337m shares worth 739m ringgit (194 million dollars). Losers led gainers 473 to 226, with 310 stocks unchanged.
WELLINGTON: New Zealand shares prices closed 1.5 per cent lower, with investors spooked by signs of a slowing economy in Australia rather than finding any support in strong overnight gains on Wall Street, dealers said.
The benchmark NZSX-50 gross index fell 44.91 points to 2,946.96 on turnover of 116.87 million New Zealand dollars (85.7 million US). There were 30 rises and 71 falls among the 151 stocks traded.—AFP
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