Asian markets toppled on Tuesday

Shanghai lead regional fallout while Seoul, Sydney, Sensex follows the suit

Stock markets in Asian region slipped on Tuesday, 24 November 2009, as investors shrugged off upbeat US home sale data and took a breather after recent gains. Investors also waited for some more clues on the strength of the world's largest economy from revised third-quarter US GDP data and a US consumer confidence report later on today.

On Wall Street, stock markets closed higher, dashing a three-day losing streak, propelled by better-than-expected home-sales data and expectations that interest rates will remain low in the near term. The Dow Jones Industrial Average closing up by 132.79 points, or 1.3%, to 10,450. The S&P 500 rose 14.86 points, or 1.4%, to 1106, and the Nasdaq advanced 29.97 points, or 1.4%, to finish at 2176.

The softer dollar supported stronger commodity prices throughout most of Monday's session and after a brief dip into negative territory late in the session, crude oil for January delivery settled 9 cents higher, or 0.1%, at $77.56 a barrel. The dollar, which fell 0.7% against a basket of currencies, was likely responsible for gold's continued trajectory with prices on the December gold contract, gaining $17.90, or 1.6%, to settle at $1,164.70 an ounce.

In the commodity market, crude oil fell below $77 a barrel as the dollar rebounded, damping the investment appeal of commodities, while a U.S. Energy Department report may show fuel stockpiles in the world’s biggest energy consumer had increased.

Crude oil for January delivery fell as much as 68 cents, or 0.9 percent, to $76.88 a barrel in electronic trading on the New York Mercantile Exchange. The contract was at $77.20 a barrel at 3:52 p.m. in Singapore.

Brent crude oil for January delivery on London’s ICE Futures Europe exchange fell as much as 49 cents, or 0.6 percent, to $76.97 a barrel. The contract, trading lower for the third day in four, was at $77.23 a barrel at 3:52 p.m. Singapore time.

Gold pared losses in Asia, trading within 0.4% of its record, on speculation central bank bullion purchases will increase, and as fading expectations about the global economic recovery spurred demand for a store of value. The metal jumped to a record in Shanghai.

Immediate-delivery bullion traded 0.3% lower at $1,163.15 an ounce at 3:09 p.m. in Singapore, after falling as much as 0.7% earlier. It climbed as high as $1,169.02 an ounce, 0.4% below its all-time high of $1,174 reached yesterday. December-delivery gold on the Comex division of the New York Mercantile Exchange traded little changed at $1,163.10 an ounce after yesterday reaching a record $1,174.

In the currency market, the US dollar eased slightly in light Asian trade as investors largely stayed on the sidelines ahead of the US Thanksgiving holiday later in the week.

The Japanese currencies strengthened against major counterparts in Asian session. The Japanese yen was quoted at 88.80 per US dollar and 132.59 per euro on Tuesday.

The Hong Kong dollar was trading at HK$ 7.7500 against the dollar. Actually the Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.

In Sydney trade, the Australian dollar gave way to waves of selling after investors bet the stellar gains of recent weeks were overdone. The Aussie pulled back to 91.97/92.00 US cents at the local close, down from the day's high of 92.56 US cents. It was also buying 81.7 yen, 55.5 pence and 61.6 euro cents in recent trading.

In Wellington trade, the New Zealand dollar was mixed and confined to a fairly narrow range today. It did not react to the Reserve Bank of New Zealand quarterly survey of inflation expectations, when it probably should have. The survey showed a rise in the two-year-ahead inflation expectation to 2.61 percent from 2.25 percent in the previous quarter. Westpac said the odds of a hawkish tone in the December monetary policy statement just got higher. The NZ dollar was at US72.80c at 5pm from US73.29c at 8am and US72.66c at 5pm yesterday. It spent much of the afternoon in a narrow range between US72.79c and US72.95c.

The South Korean won closed at 1,156.8 won to the greenback, down 1.1 won from Wednesday's close of 1155.7 won.

The Taiwan dollar weakened against the greenback. The Taiwan dollar was trading lower against the US dollar at NT$ 32.2800, 0.0130 down from Monday’s close of NT$32.2670.

In the equity market, Asian markets ended mostly lower, with Chinese-stock investors locking in profits after the country's banking regulator warned banks about their capital positions, raising fears that lenders may have to sell shares to raise capital.

In Japan, shares market lost the ground extending loosing streak for fifth consecutive day on broad based sell off across the major heavyweight. Shares of electronic and tech shares dragged the most in Tokyo on yen appreciation concern, while banks and real estate retreated due to concerns about the state of government and private sector finances. Shares of financing business companies shrank on persistent worries that more financial firms would tap the market for equity financing.

At the closing bell, the Nikkei 225 Stock Average index was at 9,401.58, lost 96.1 points or 1.01% from its previous close, while the broader Topix of all First Section issues on the Tokyo Stock Exchange tumbled 9.49 points, or 1.13%, to 829.22.

On the economic front, Japan’s central bank raised its economic assessment for the third straight month, the latest Monthly Report of Recent Economic and Financial Developments revealed Tuesday.

The Bank of Japan said Japan's economy is picking up mainly due to various policy measures taken at home and abroad, although the momentum of self-sustaining recovery in domestic private demand remains weak. Last month, the central bank said Japan's economy has started to pick up.

In Mainland China, share market tumbled as investors shrugged off upbeat US home sale data and took a breather on concerns Beijing will tighten monetary policy. The market witnessed steep sell off across the sector on worries China should strengthen its capital controls to ward off speculative inflows stemming from ultra-low U.S. interest rates. The market has consolidated after recent sharp gains brought mounting profit-taking pressure.

The Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, stumbled 115.13 points, or 3.45%, to 3,223.52, meanwhile the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, tumbled 3.2%, to 3,548.08. The Shenzhen Component Index on the smaller Shenzhen Stock Exchange shrank 2.9% or 401.38 points, to 13,899.84.

The China Banking Regulatory Commission said that banks are discouraged to engage in any extra push to lending before the end of the year warned banks with low capital adequacy ratios that no practical remedies for the problem will prevent them from expanding their businesses. Nevertheless, the commission denied the rumor that capital adequacy ratios will be raised from 11% to 13%.

In Hong Kong, the stock market dragged by the steep fall in mainland stocks in the afternoon, with banks and financials led the decliners. HSBC Holding and Bank of China weighed the most on worries China would raise capital adequacy requirements raise. The market has consolidated after recent sharp gains brought mounting profit-taking pressure.

At the closing bell, the Hang Seng Index stumbled 348.25 points, or 1.53%, to 22,423.14, meanwhile the Hang Seng China Enterprise, which tracks the overall performance of 43 mainland Chinese state-owned enterprises on the Hong Kong Stock Exchange, declined 255.73 points, or 1.88%, to 13,369.33.

In Australia, the share market gave up early gains inspired by better than expected housing sales data from U.S. and strong gains, as investors elected to take profits across the sector after strong recent rally. Banks and properties and resource stocks weighed the most as investor took a breather after recent gains. At the closing bell, the benchmark S&P/ASX200 index shrank 32 points, or 0.68%, to 4,685, meanwhile the broader All Ordinaries slipped 31 points, or 0.65%, to 4,708.20.

In New Zealand, stock market failed to keep up the upward momentum to dip into the negative terrain at the closing hours. The New Zealand share market started strong Tuesday after stocks surged in Europe and the United States. The NZX50 fell 0.17% or 5.36 points to 3107.61. The NZX 15 lost 0.36% or 20.03 points to close at 5629.54. The benchmark index declined for the third day in a row.

In South Korea, stocks dropped as investors took profits for a second day. The benchmark Korea Composite Stock Price Index (KOSPI) fell 12.63 points to 1,606.42.

In Singapore, stocks market gave up solid early gains to finish the session lower, snapped three days of winning streak on tracking declines in mainland market and other Asian bourses. Shares of banks and major blue-chip stocks led the decliners as investors elected to cash profit. China origin stocks tumbled on concerns Beijing will tighten monetary policy. At the closing bell, the blue chip Straits Times Index was at 2,779.98, slid 17.90 points or 0.64%.

On the economic front, the statistic department of Singapore announced today that visitor arrivals to Singapore reached 845,000 in October 2009, registering a 0.5% decline against October 2008

In Taiwan, stock markets stretched their gains for the second consecutive session, as Taiwan’s export orders in October rose from a year earlier for the first time in 13 months, boding well for export-reliant firms. The benchmark Taiex share index extended its upward movement for second straight session by moving forward by 27.41 points or 0.36% in a day, closing at 7714.56.

On the economic front, Taiwan’s export orders grew for the first time in 13 months in October, while rising demand for a wide array of electronics products from flat panels to mobile phones helped ease unemployment on the island. The Taiwan’s export orders in October increased 4.41% from a year earlier, the first growth since September 2008. The growth in export orders reversed September's 3.0% decline. According to the Ministry of Economic Affairs, export orders totaled US$31.75 billion, the highest after September 2008's US$31.79 billion, and also up from September's US$30.84 billion.

In other news, Taiwan's jobless rate fell for the second consecutive month to a four-month low of 5.96% in October from 6.04% in September, due to a decline in the number of first-time job seekers and people who lost temporary or seasonal employment, the Directorate-General of Budget, Accounting and Statistics said. That was the lowest headline jobless number since June's 5.94%.

In Philippines, strong gains were noted in the equities. At the closing bell, the benchmark PSEi added 26.66 points or 0.87% to end at 3074.66 points

In India, volatility was the order of the day as the key benchmark indices swung between positive and negative zone. The BSE 30-share Sensex was down 49.10 points or 0.57% to 17131.08. The Sensex opened with an upward gap of 50.68 points at 17230.86; also it’s highest since 21 October 2009. The S&P CNX Nifty was down 13 points or 0.25% to 5,090.55. It hit a high of 5,112.85.

Elsewhere, Malaysia's Kula Lumpur Composite index finished higher at 1272.09 while stock markets in Indonesia’s Jakarta Composite index gave up 9.53 points ending the day lower at 2471.88.

In other regional market, European shares declined, with miners paring strong gains from the previous session as the U.S. dollar took back some ground against major rivals. Overall, the French CAC-40 index declined 0.7%or 26.19 points to 3,787, the German DAX index lost 0.6% or 33.33 points to 5,768 and the U.K. FTSE 100 index declined 0.3% or 17.38 points to 5,324.30.

On the economic data front, German GDP was finalized at 0.7% quarter on quarter in third quarter. Swiss UBS consumer indicator rose to 0.87 in October. Looking ahead, German IFO business climate is the main focus in European session and is expected to rise from 91.9 to 92.5 in November. US GDP will be the main focus in US session and is expected to be revised lower from 3.5% to 2.9% annualized in Q3. House price index and Consumer confidence and FOMC Minutes will also be featured.