Mixed close for Asian stocks

Global cues lack clear direction, select indices record modest gain

The Asian markets ended mixed today as weak overnight US cues along with continued global economic jitters kept the momentum frail. Traders were also seen locking some profits ahead of the weekend. Worse-than-expected U.S. jobless claims, a fall in Irish gross domestic product, a disappointing euro zone purchasing managers' index and a Portugal opposition party's refusal to help pass an early belt-tightening budget hurt the risk appetite. The Chinese markets were closed for a public holiday and the general movement in the risky assets was mixed with the US dollar quoting sideways against the Euro.



US stocks ended lower for second straight day last night. The US first-time claims for unemployment benefits rose quite modestly after the recent improvement in the employment scenario. The latest report from the Labor Department stated that report showed that the weekly initial jobless claims edged up to 465,000 from the previous week's revised figured of 453,000. Dow ended lower by 76.89 points at 10,662.42, tracking the labor market data, which undercut the surge in housing sales.

The Japanese stocks continued to drop, adding to the recent losses amid a weak global climate and trade frictions with China. The Bank of Japan intervened to weaken the yen Friday for the second time in just over a week, signaling Tokyo's determination to limit damage to its exporters from the strong currency. The yen's recent spike to 15-year highs has battered Japan's vital car and electronics exporters by making their products less competitive overseas and eroding the value of profits brought back from overseas. On Sept. 15, Japan intervened in the currency market for the first time in more than six years after the dollar had fallen to a 15-year low of 82.87 yen. The benchmark Nikkei stock index dropped 94.65 points or 1% to close at 9471.67.

The Australian market closed in red too, taking cues from Wall Street where the major averages posted moderate losses and a wave of profit booking hurt the mining and banking stocks. However, the losses were curbed as the waning strength in the Australian dollar, which came off a two year high against the US dollar lifted some of the stocks from their lows and the benchmark S&P/ASX200 Index dropped 31.70 points, or 0.68% to close at 4,602 points, while the All-Ordinaries Index ended at 4,651, down 28.50 points, or 0.61%.

On economic front, Wayne Swan, Treasury Secretary revealed that Australia's Final Budget Outcome for 2009-10 showed a small fiscal improvement from the estimate of the May Budget, due to lower spending. Swan defended Labor's stimulus spending as final budget figures for 2009-10 show a deficit $2.3 billion better than forecast.

However, the activity was bright and bullish in Mumbai. The key benchmark indices extended gains to hit fresh intraday highs in mid-afternoon trade. Recent strong foreign fund inflows underpinned sentiment. The BSE Sensex crossed the psychological 20,000 mark while S&P CNX Nifty crosses 6000 mark. US index futures rose. European markets trimmed losses while Asian stocks were mixed. The BSE 30-share Sensex was up 196.35 points or nearly 1% to close at 20057. 36 points. FMCG, consumer durables and realty stocks led the surge.

The US dollar eased today, quoting above 1.3400 mark against the Euro. In other markets, Hang Seng index in Hong Kong gained 0.33% while Straits Times index in Singapore added 0.31%. The TSEC in Taiwan closed in red though, shedding 0.44%. Markets in China were closed today. Gold continued hitting fresh highs near $1300 per ounce. Crude oil recovered to quote above $75 per barrel.