Asian stocks salvage some pride

Markets eke out some gains today as bargain hunting and modestly positive cues from the overnight US markets support the sentiments

Asian markets eked out some gains today as bargain hunting and modestly positive cues from the overnight US markets supported the sentiments. The recent array of steep losses prompted buyers to swing in the action on ideas that stocks have fallen too far compared with the economic outlook. A rebound in crude oil prices and a slide in the US dollar also supported the sentiments. Euro charted a four session high against the dollar, spurring a tentative rebound for most risky assets but the mood seemed to turn around in late trades as the DOW futures slipped in red and the Dollar broke under 1.2700 against the Euro.



The Dow Jones Industrial Average broke a four-session losing streak Wednesday, and its 0.2% rise, despite disappointing U.S. new homes sales. The US Commerce department announced that the durable goods orders edged up by 0.3% in July following a revised 0.1% decrease in June. The increase was much less than market expectations and primarily due to increase in the orders for transportation equipment.

Japanese stocks climbed for the first time in five days after falling to 16 month low yesterday. Buying picked up in the index linked counters as the markets wondered if the strength in the Japanese Yen is overstretched and some policy action from the Japanese central bank is on the cards. The Nikkei 225 Stock Average added 61.09 points or 0.69% to 8906.48.

In Australia, the stocks gained modestly, after a four-day losing spree. Positive US market cues, and strong earnings results supported the sentiments. Strength in Crude and copper prices also pushed up the resource heavyweights. The benchmark S&P/ASX200 Index closed up 35.9 points, or 0.8%, at 4356, while the broader All Ordinaries Index rose 32.8 points, or 0.8 per cent, to 4389.4.

In China, the coal miners led stocks higher. China's key stock index edged up 0.3 percent at the close on Thursday, recovering part of Wednesday's losses keeping the index around the psychologically important 2,600-point level. The Shanghai Composite Index ended at 2,603.5 points after falling 2% and under 2,600 on Wednesday, as the global markets witnessed a rout following worries over economic recovery.

In Mumbai, the key benchmark indices recovered to end a tad higher after turning egative to hit fresh intraday low in late trade. Volatility was high as traders rolled position in the derivatives segment from the near-month August 2010 series to September 2010 series as August 2010 derivatives contracts expired today. As per provisional figures, the BSE 30-share Sensex was up 38.41 points or 0.21% to 18,218.05. The Sensex rose 81.42 points at the day's low of 18,261.06 in afternoon trade. The index fell 20.51 points at the day's high of 18,159.13 in late trade.

In other markets, the Hang Seng index in Hong Kong shed 0.11%, TSEC in Taiwan dropped 0.61% while Strait Times index in Singapore ended flat.

The US dollar plummeted to its four-session low but then rebounded to quote around 1.2700 levels against the Euro. Dow futures gained in late trades to quote up 32 points right now. The crude oil futures also advanced, adding nearly one dollar.