Asian markets end mixed

Select indices stumble slightly after recent gains as investors take some money off the table

Asian stocks witnessed a mixed movement today as select indices stumbled slightly after recent gains. Investors took some money off the table by booking profits and the US and rose along with Gold prices, indicating a bounce back in the risk aversion at a global scale. The global stocks rose by notable margins to open the week on Monday, as less rigorous than anticipated bank capital requirements from the latest Basel summit. The US markets saw additional buying to close the day at their best closing levels in a month. The Dow gained 81.36 points or 0.8% to end at 10,544.13.



Japanese stocks were seen fluctuating during the session but gave up in the end to close in red. Banks were supporting the broad markets in the early moves on the outlook for capitalization rules but the markets ultimately proved no match to the relentless strength in the Japanese Yen. The yen strengthened against the dollar to strike fresh 15-year highs as global economic worries stayed in place. Japanese Prime Minister Naoto Kan retained leadership of the ruling Democratic Party of Japan and continued to hold his current position as the Prime Minister -- defeating challenger Ichiro Ozawa.

In Australia, stocks ended in green, adding to the recent gains as positive cues from Wall Street and the recent upward bias in the commodity prices supported the sentiments. The benchmark S&P/ASX200 index closed up 11.6 points, or 0.3%, at 4626.5, after earlier rising to a fresh four-month high of 4649.1. The broader All Ordinaries index added 14.9 points, or 0.3%, to 4669.1.

On the economic front, results of a latest survey released by National Australia Bank revealed that business confidence in the country surged in August. The Bank's business confidence index reading for August was 11.0 in August compared to 2.0 in July. Business conditions were flat, NAB said. Its index of the current business climate held at 5.0, unchanged from July.

In China, stocks managed to hold ground but the overall trading remained lackluster. Financials continued to drop on worries that the government would crack down on rising house prices. The key Shanghai Composite Index finished at 2,688.5, up 0.01%, encountering heavy resistance around its four month high mark.

In Mumbai, the key benchmark indices rose for the sixth straight day on data showing heavy buying by foreign funds during the past two trading sessions on Thursday, 9 September 2010 and Monday, 13 September 2010. Data showing easing of inflation also helped equities score further gains. The BSE Sensex and the 50-unit S&P CNX Nifty scaled 32-month highs. The BSE 30-share Sensex was provisionally up 146.40 points or 0.76%.

On economic front, India's year-on-year inflation was up 8.5% in August - slightly below expectations, due to seasonal rainfall. The figure was calculated using a new base year. Had the old methodology been used, inflation would have been 9.5%, compared to July inflation of 9.8%.

In other markets, Hang Seng index in Hong Kong gained 0.17%, TSEC index in Taiwan edged up 0.51% while Straits Times index in Singapore slid down 59%.

In commodities, crude oil faced selling pressure, dropping from a four week high as the rise fo dollar a mildly negative cues from US index futures triggered profit selling. WTI Crude was last seen quoting at $76.60, down 59 cents on the day. Gold amassed impressive gains though, adding more than 10 dollars from the close to strike a high of $1259 per ounce in electronic trades.