Mixed bag for Asian stocks

Markets stay braced up for critical economic data on both sides of the Atlantic

Asian markets had a very mixed outing today as the sentiments were mostly dull ahead of the key European Central Bank (ECB) interest rate decision today and the US non farm payrolls data tomorrow. The US markets had a decent outing in the last session as the ADP Employer Services showed US payrolls, excluding government agencies, climbed by 42,000 last month, recording a rise for the sixth consecutive month. The US dollar lost out in the London trades today, having stayed almost unaltered in the bulk of the Asian session, paving way for a very minute upturn in the US index futures. Select markets went up but the rest of the pack saw uninspiring moves. Yesterday, in the US, the major averages closed firmly in positive territory, after losing out in the previous session. The Dow added 44.05 points or 0.4% the Nasdaq rose 0.9% while the S&P 500 climbed 0.6%.



The Japanese stocks witnessed good gains as upbeat US economic data and positive closing on Wall Street in the previous session lifted market sentiment. Yen also eased slightly against the dollar, coming off a 15 year high and supported the exporters. The benchmark Nikkei 225 Index raced up by 164.58 points, or 1.73%, to 9,654, while the broader Topix index of all First Section issues was up 11.16 points, or 1.32%, to 857

On the economic front, a statement released by the Ministry of Finance indicated that Japanese residents sold a net 20.4 billion yen in foreign stocks in the week ended July 31. The statement further noted that Japanese investors purchased a net 1.27 trillion yen in foreign bonds and notes last week. Foreign investors bought a net 144.1 billion yen in Japan stocks, the data showed, and also purchased a net 287.4 billion yen in Japan bonds and notes.

The Australian stocks also edged up as mining and banks continued to gain. Commodity prices managed to hold ground, supporting the resource and the benchmark S&P/ASX200 Index closed up 24.40 points, or 0.54% to close at 4566 points, while the All-Ordinaries Index ended at 4,585, representing a gain of 25.20 points, or 0.55%.

Chinese stocks ended marginally lower as banks and property shares on reports Beijing had ordered a new stress test on lenders and was seeking to tighten mortgage lending. This kept the buying activity thin though the 2600 points levels continued to support the sentiments for the barometer Shanghai Composite Index. The index closed at 2,620.8 points, down 17.76 points or 0.67% on the day after staging an impressive intraday rebound in last session.

In Mumbai, the markets eased in late trade as the two and half year high levels triggered plenty of profit selling. The market opened on a firm note, tracking gains in Asian stocks. The market extended gains in morning trade, with the key benchmark indices hitting 2-1/2-year highs. The BSE SENSEX lost out after nearing to 18300 levels and a moderation throughout the day was seen giving way to a substantial wave of across the board sell off as the SENSEX dropped 44.61 points or 0.24% to close at 18172.

In other markets, the Hang Seng index in Hong Kong was almost unchanged while the Straits Times index in Singapore added 0.16%. TSEC index in Taiwan lost 0.45%.

The commodity prices were slightly lower as crude oil eased under $82 levels. Copper also faced selling pressure while gold stayed supported, extending recent rebound off a 3 month low.