Asia Markets Mixed Ahead of Lunar New Year Holiday -- Update
February 14 2018 - 12:02AM
Dow Jones News
By Kenan Machado
Asia-Pacific equity markets broke away from their recent
lockstep trading, as the global stock rout over the past two weeks
abated and local factors took center stage.
U.S. benchmarks rose modestly Tuesday after fresh declines in
most of Europe. The S&P 500's trading range, which was within
the levels the index moved on Monday, indicates "overall caution"
among investors, said Ric Spooner, chief market strategist at CMC
Markets.
Indexes in Hong Kong and South Korea rose more than 0.5%
Wednesday, with the Kospi helped by a 2.9% jump in Samsung
Electronics. That put the electronic giant's gains for the week at
9.4%, which erased most of the month's decline.
In Hong Kong, index heavyweight Tencent Holdings is up 5% this
week, nearly halving its February pullback.
Japanese stocks fared the worst, pressured by a rallying yen.
The Nikkei Stock Average was recently down 1.2% as the U.S. dollar
fell to a 15-month low of Yen106.85. It traded around Yen108.30 at
the end of stock trading Tuesday.
Cautious risk sentiment amid stock volatility is likely buoying
the safe-haven currency, said Heng Koon How, head of markets
strategy for United Overseas Bank in Singapore. He said he expects
the yen to remain strong, with some Bank of Japan officials facing
the end of their term in next two months.
The yen's move came as Japan said its fourth-quarter economic
growth slowed, missing analysts' expectations. Still, the economy
has grown for eight straight quarters, the longest run in 28
years.
New Zealand's NZX 50 closed down 0.8% as Fletcher Building
slumped 9.3% to a two-year low after it revealed additional losses
at its building-and-interiors division. The company's shares were
halted for nearly a week after Fletcher said Thursday it expected
more red ink for the segment.
Chinese stocks were slightly lower ahead of the weeklong Lunar
New Year holiday. Markets there will be closed until Feb. 22.
U.S. consumer inflation data is due to be released later
Wednesday. Inflation worries have driven global bond yields higher.
The yield on the benchmark 10-year U.S. Treasury note was recently
at 2.81% versus 2.837% in late New York trading.
Write to Kenan Machado at kenan.machado@wsj.com
(END) Dow Jones Newswires
February 13, 2018 23:47 ET (04:47 GMT)
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