Asian markets edge up amid thin trades

Easing worries on the Japanese radiation front support sentiments

Asian markets edged up amid thin trades as traders eyed more clarity on the global macroeconomic front though the easing worries on the Japanese radiation front supported the sentiments today. US markets rose in overnight trades amid steady buying even as the sales of new homes in the U.S. plunged to a new record low in February, indicating that the housing market woes are far from over. The New home sales in the country came in at an annual rate of 250,000 in February, reflecting a 16.9 percent drop from the revised January figure of 301,000. The headline figure is now down 28% from the same month a year ago. Traders eyed the rebuilding efforts in Japan and the steady flow of liquidity, largely ignoring the poor state of US housing.



The stocks in Asia started off decently though the Japanese market failed to hold in positive territory and closed with minor losses. The benchmark Nikkei 225 index closed down 14.46 points or 0.15% to end the day at 9,435.01 points. On the economic front, the Ministry of Finance reported that the country posted a merchandise trade surplus of 654.109 billion yen in February, up 2.5% on year.

In Australia, the stocks edged higher after the LME Copper gained impressively in the last session and crude oil rebounded. The traders bought index-linked counters like banks, metals and energy plays and the benchmark S&P/ASX200 Index added 47.20 points, or 1.01% to close at 4,699.60 points. On the economic front, a report published by the Conference Board revealed that the leading index for Australia went up 0.1% in January. The Conference Board also stated that its Coincident Index increased 0.1% for the month.

In China, the markets treaded water today with a moderate bounce in early moves failing to hold on for the headline Shanghai Composite Index. The market witnessed sustained selling in second half of the day and closed down by 1.77 points, or 0.06% to end at 2,946.71. Financial stocks led the declines after the central bank said it would strengthen liquidity management this year to reduce imbalances of international payments. Non-ferrous metals producers also slipped after the recent wave of gains with a moderate selling pressure in industrial metals capping the upside.

In other markets, Taiwan Weighted index in Taiwan added 0.37%, Seoul Composite index in South Korea added 1.22% while the Straits Times index in Singapore moved up 0.65%. In commodities, crude oil added impressive gains after turning lower in early Asian trades. The US Department of Energy said in its weekly report yesterday that crude stocks rose by 2.1 million barrels last week, but that gasoline stockpiles dived by 5.3 million barrels, extending the gains in the last session. Crude bounced off a low of $105.11 and currently quotes at $106.38, up 63 cents on the day.