Stocks gyrate to a moslty bearish close

Continued worries over Euro zone hurts appetite amid thin trades

Asian equities mostly slipped lower after the yesterday's gains as fluctuating conditions in the Euro zone peripheral economies kept the sentiments suppressed ahead of the Christmas break. The tensions in Korean peninsula continued to simmer and investors preferred to stay on the sidelines ahead of US Gross Domestic Product data today. The overnight trades witnessed US stocks posting solid gains with the Dow adding 55.03 points or 0.5% to close at 11,533.16. However, this failed to have a spill over effect as Ratings agency Fitch's warned today that it may lower Greece's credit rating to "junk" status.



Japanese stocks slumped on twin effects of bruised sentiments globally and poor economic data locally. The Bank of Japan (BOJ) maintained its economic assessment today, stating that the domestic economy still shows signs of a moderate recovery, but the recovery seems to be pausing. In its latest monthly report, the bank noted that Japan's economy is likely to grow at a slower pace for some time, but is expected to return to a moderate recovery path thereafter. The benchmark Nikkei 225 Index dropped 24.05 points, or 0.23% to close at 10,346.48 after hitting seven-month highs in the last session.

Further on the economic front, Japan's economic growth will slow to 1.5 percent in fiscal 2011 from 3.1 percent in the current fiscal year, as consumption further wanes following the expiration of special subsidies and exports fall on slipping demand and a strong yen, the Cabinet Office said in a report today "We need to keep a close eye on any possible slowdown in overseas economies and swings in the foreign-exchange rate," the report said.

The Australian shares closed with slight gains after an early dip as strength in resources pushed up giants like BHP Billiton and Rio Tinto in other poor day for index linked counters. Bnaks slipped as worries over economic growth came to the foray and dull trading in global markets kept advances limited. Australia's economy is likely to slow to a more moderate and sustainable pace of expansion next year, a survey suggested on Wednesday. The Westpac-Melbourne Institute Leading Index, which indicates the likely pace of economic activity three to nine months into the future, rose 4.1% on an annualized basis in October, easing from a 4.5% gain in the previous month, but higher than the long-term trend of 3.3%. October represents the seventh consecutive month in which the growth rate of the leading index has slowed since hitting a peak of 9.7% in March. The benchmark S&P/ASX200 Index gained 6.50 points, or 0.14% to close at 4,778 points after dropping to nearly 4860 earlier in the day.

In China, markets slipped as traders eyed further rate hikes by the Chinese central bank in the months to come and a break under 2900 points for the benchmark Shanghai Composite triggered a stiff sell off. China has decided to hike retail petrol and diesel prices by about 4% in what would be the third such an increase this year to protect refiners' margins. The country's economic planning agency, the National Development and Reform Commission, has also raised jet fuel prices by about 5%. The unexpected price increase came as China's headline inflation rose to a 28-month high in November at 5.1%. The benchmark Shanghai Composite Index dropped 26.21 points or 0.90% to close at close at 2,877.90.

In Mumbai, the market reversed its direction in late trades on renewed global worries and profit selling after the benchmark indices struck their five-week closing highs yesterday. Weak global cues made the SENSEX snap its three-day rise and the barometer ended down 45 points or 0.22% at 20,016.

In other markets, South Korea's Seoul Composite edged up by 0.05%, Hong Kong's Hang Seng added 0.22% while Taiwan's Taiex rose by 0.37%. Crude oil managed to add further gains to top a high of $89.77 per barrel. Oil has steadies above $90 per barrel on freezing weather across the northern hemisphere.