Mixed Monday for Asia

Stocks end amid uncertain direction post disappointing non-farm data

Asian markets ended mixed today with the modestly higher closing in the US stocks on Friday despite weaker than expected jobs report for November not helping shape the sentiments either way. The Irish Department of Finance on Saturday confirmed that the 2011 budget deficit would fall to 12.2% of gross domestic product (GDP), before Budget Day adjustments, from 32% in 2010. This turned out to be a slightly positive news from the point of view of easing the Eurozone debt troubles to some extent. Meanwhile, on Friday, in a disappointing piece of data, the US unemployment rate edged up to 9.8% in November, and nonfarm payroll employment gained just 39000, as per the latest report from US Bureau of Labour Statistics. Temporary help services and health care continued to add jobs over the month, while employment fell in retail trade. Employment in most major industries changed little in November.



The broad measure of unemployment, including discouraged workers, was 17%. The number of unemployed persons was 15.1 million in November. The unemployment rate edged up to 9.8%; it was 9.6% in each of the prior 3 months. US stocks cut initial losses and jumped to end with moderate gains on Friday, despite the disappointing non farm report. The major averages moved higher late in the day, with the tech-heavy Nasdaq index rising to a three-year high. The Dow advanced by 19.68 points or 0.2% to 11,382.09.

The Australian stocks ended in red with the markets giving up early gains on soaring inflationary concerns and a dull trading environment in the regional peers. Banks dipped and the benchmark S&P/ASX200 Index pared its early gains after a released by the TD Securities- Melbourne Institute revealed that a gauge measuring consumer price inflation in the country rose at a faster pace in November. The TD Securities-Melbourne Institute Monthly Inflation Gauge rose by 0.4% in November, following a 0.3% rise in October. The trimmed mean of the inflation gauge, which strips out volatile price changes, rose by 0.3% in November, after a 0.2% rise in October. On a year-over-year basis, the inflation gauge rose by 3.9%, following a 3.8% rise in the previous month. The benchmark S&P/ASX200 Index dropped 5.60 points, or 0.12% to close at 4,689 points, with a critical benchamkr broken in the form of 4700.

In China, stocks gathered small gains on buying in oil refiners and banks. Markets were comforted by the media reports stating that the consumer price index in December will not exceed 5% year-on-year and will be lower than in November. China's CPI, a main gauge of inflation, soared by 4.4 percent in October to reach a 25-month high. The benchmark Shanghai Composite Index was up 14.75 points or 0.52% to close at 2,857.18.

In Mumbai, the key benchmark indices reversed initial strong gains as profit taking emerged at higher level. The market reversed course after hitting a 3-week high in early afternoon trade on weak European stocks and lower US index futures. The BSE Sensex provisionally closed below the psychological 20,000 mark after regaining that mark in early trade. The 50-unit S&P CNX Nifty, too, closed below the psychological 6,000 mark after claiming that mark in early trade. Banking stocks fell across the board. Index heavyweight Reliance Industries (RIL) pared gains. Metal and IT stocks rose. As per provisional figures, the BSE 30-share Sensex was down 1.91 points or 0.01% to 19,965.02. The Sensex rose 250.93 points at the day's high of 20,217.86 in early afternoon trade, its highest level since 16 November 2010. The index fell 22.22 points at the day's low of 19,944.71 in late trade.

In other markets, South Korea's Seoul Composite fell 0.2%, Hong Kong's Hang Seng shed 0.4% while Taiwan's Taiex gained 0.91%. DOW futures fell in the afternoon, sliding 44 points on the day. Crude oil futures came off highs near $90 and currently trade at $88.72, down 47 cents on the day.