Select indices edge up in Asia

Most other indices end in red amid global concerns

Asian markets mostly ended lower though the indices in China and India recorded decent gains amid an uncertain global environment. The markets were off to a tentative start on concern that Europe's debt crisis will slow a recovery of the global economy. Drops were extended after the Dublin-based Central Bank said Anglo Irish Bank Corp. and Allied Irish Banks Plc may need an additional 14.4 billion euros ($19.6 billion) in capital. The overnight cues were also negative as Dow slipped by 22.86 points or 0.2% to close at 10,835.28. The high current of global liquidity and a persistent drop in US dollar supported the sentiments for though, making it possible for Chinese and Indian stocks to gain amid after positive growth forecasts about both the economies by the Asian Development Bank earlier in the week.



Japanese market ended lower, giving up a Tankan induced spurt in the last session as banks and exporters slid lower on profit selling amid global worries. A strong set of domestic vehicle output and exports data failed to enthuse buying as the Japanese Yen recorded further gains, hitting fresh highs near 83 per US dollar- its strongest level in two weeks and a fresh post intervention high. Electronic goods producers were hurt further as Nintendo, the world's largest maker of portable video-game machines, plunged 9.3% after it cut its profit and dividend forecasts. The Nikkei 225 Stock Average sagged by nearly 190 points or 2% to 9,369.35. The broader Topix also shed 2.1 percent to 829.51.

On the economic front, Japanese vehicle production recorded impressive growth in the last month. A total of 690,689 passenger cars, trucks and buses were produced in Japan in August, an increase of 20.8% compared with total vehicle production of 571,773 units in the same month last year.

Total automotive exports in August increased by 22.5% to 337,163 units, whereas a year earlier, 275,186 vehicles were exported. Exports have now increased for eight consecutive months compared with 2009 figures, JAMA said. Exports from Japan to the EU fell last month by 5.7% to 38,280 units, as did sales to the US, which were down 0.7% at 101,609 vehicles. Sales of new vehicles in the domestic market continued to rise, growing 37.7% in August to 424,986 units.

The Australian stocks closed in red on across the board selling in the index linked counters with the gains in commodity prices not really offering much of help amid a weary global climate. The Reserve Bank of Australia stated today that the credit extended by Australian financial intermediaries to the to the country's private sector rose by 0.1% in August, following a 0.3% rise in the previous month. The report further revealed that housing credit increased by 0.6% over August, following an increase of 0.6% over July. Banks were under hammer today and the benchmark S&P/ASX200 Index dropped 62.10 points, or 1.34%, and closed at 4,583 points, while the All-Ordinaries Index ended at 4,637, shedding 57.10 points, or 1.22%.

In China, stocks went up despite a global wave of bearishness as realty companies rose on ideas government measures to tame real-estate prices will remove uncertainty over tightening and prevent asset bubbles from hurting the economy. Resources also flared up and the Shanghai Composite Index added 44.98 points or 1.7% to close at 2,655.66. Chinese authorities warned Washington on today that economic ties might be damaged after American lawmakers escalated the conflict over China's currency controls.

Yesterday, the US House of Representatives accelerated pressure on China to let Yuan appreciate from artificially deflated levels, with lawmakers approving legislation that could lead to duties on a number of Chinese exports that are considered unfairly cheap because of the undervalued currency. House lawmakers voted 348 to 79 in favor of the bill, which supporters say will help American industries hurt by undervalued currencies of countries such as China yesterday.

In Mumbai, the key benchmark indices reversed losses to hit fresh intraday highs in late trade. The BSE Sensex and the S&P CNX Nifty regained the psychological 20,000 and 6,000 levels respectively in late trade. Intraday volatility was high as traders rolled over positions in the derivatives segment, from the near-month September 2010 series, to October 2010 series, ahead of the expiry of the near-month September 2010 derivatives contracts today, 30 September 2010. Banking, metal and FMCG led the late rebound. As per provisional figures, the BSE 30-share Sensex was up 97.37 points or 0.49% to 20,053.71.

In other markets, the Hang Send Index in Hong Kong dropped 0.09%, Straits Times index in Singapore shed 0.27% while the TSEC index in Taiwan nudged lower by 0.04%. Dollar plummeted to fresh six-month lows of 1.3674 levels against the Euro while commodities were seen picking up steadily. Crude oil rose to a two and half week high of $78.58 per barrel and trades at $78.43 per barrel, up 57 cents on the day. Gold also rose to highs of $1316.20 per ounce