By Daniel Inman
HONG KONG--Australian stocks hit a six-year high early Tuesday
before slipping into negative territory in a day of mixed trade in
Asia.
In Sydney, the S&P ASX 200 ended down 0.9% at 5486.60. It
had risen to a multiyear high of 5554.50 earlier in the
session.
There was broad-based selling in Australia, with banks and
miners pulling down the market. Westpac Banking Corp. and National
Australia Bank both fell after they were downgraded by Citigroup,
while Rio Tinto Ltd. and BHP Billiton ended lower after spot
iron-ore fell 2.2%.
A disappointing earnings report from retailer Wesfarmers Ltd.
also weighed on sentiment in Sydney. The company's shares fell 2%
after same-store sales growth, which covers stores open for at
least one year, in its Coles food and liquor business slowed in the
most recent quarter.
The rest of Asia lacked clear direction. Hong Kong's Hang Seng
Index bounced back from a one-month low hit Monday and rose 1.5% to
22453.89, while South Korea's Kospi fell 0.2% to 1964.77 and
Singapore's Straits Times Index was down 0.2% late in Asia.
With Japan closed for a public holiday, trading was thin across
Asia. The dollar (USDJPY) edged higher against the yen to
Yen102.63, compared with Yen102.49 late Monday in New York.
More broadly, the region appeared to tread water as markets look
to the conclusion of the U.S. Federal Reserve's policy meeting on
Wednesday for an update on the central bank's stance on stimulus
measures. This will be followed Friday by nonfarm payrolls, a labor
report that provides a health check on the world's largest
economy.
In Asia, the week's main piece of economic data will be April
manufacturing for China on Thursday. China's official purchasing
managers index likely ticked up in April, according to economists
surveyed by The Wall Street Journal.
Investors also are digesting earnings from companies such as
Sinopec (SNP) , whose shares edged higher in Hong Kong but
underperformed the broader market. The Chinese company reported
weaker-than-expected first-quarter earnings because of higher
upstream costs and a broadened loss from chemicals.
Samsung Electronics Co. shares fell in Seoul after the company
reported a 5.9% increase in first quarter profit. Although the
performance of its mobile unit was better than expected, smartphone
margins were flat from a year earlier, highlighting the need for
the world's largest smartphone maker to keep costs low given
uncertainties about demand for its new flagship Galaxy S5.
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