Asian stocks retreat
Asian stocks declined on Tuesday from a four-week high, tracking a sluggish performance of US markets yesterday amid weak economic data.
US stocks had ended weak on Monday, with Dow Jones Industrial Average retreating after flirting with the historic high achieved in January 2000. The weakness followed a weaker-than-expected US manufacturing data. The ISM manufacturing index dropped to 52.9 last month from 54.5 in August, signaling that a slowdown in housing may have spread to other areas of the economy. A prospect of a weakening of the world’s largest economy fuels concerns in Asian economies, as US happens to be the region’s largest export market.
Japan's Nikkei 225 index lost 0.1 percent today to close at 16,242.09, after touching a low of 16,148.89. The decline comes after four days of gains fueled by optimism about the economy shown in upbeat economic data and business sentiment survey.
In Hong Kong, on the other hand, share prices moved up, mainly driven by strong demand on large Chinese financials in view of strong gains in the Chinese currency. The blue-chip Hang Seng Index rose 63.48 points, or 0.4 percent, to 17,606.53.
Mirroring the decline in US markets and the general trend in Asia, Indian stocks also faced some selling pressure from funds and investors. The 30-share Sensex on Bombay Stock Exchange lost 88.03, or 0.7 percent, to 12,366.39. The broader 50-share Nifty Index on the National Stock Exchange declined 18.80, or 0.5 percent, to 3569.60.
The decline was led by IT heavyweights, with Infosys losing 1.6%, reflecting the concerns on US economy. US accounts for about 60 percent of the market for Indian software biggies. Another factor weighing on the market sentiment was the impending earnings season, when companies will report their quarterly earnings. Other major losers of the day were HDFC, HLL, Ranbaxy, Tata Power, Cipla, L&T, Maruti, OBC and Wipro.
Asian stocks declined on Tuesday from a four-week high, tracking a sluggish performance of US markets yesterday amid weak economic data.
US stocks had ended weak on Monday, with Dow Jones Industrial Average retreating after flirting with the historic high achieved in January 2000. The weakness followed a weaker-than-expected US manufacturing data. The ISM manufacturing index dropped to 52.9 last month from 54.5 in August, signaling that a slowdown in housing may have spread to other areas of the economy. A prospect of a weakening of the world’s largest economy fuels concerns in Asian economies, as US happens to be the region’s largest export market.
Japan's Nikkei 225 index lost 0.1 percent today to close at 16,242.09, after touching a low of 16,148.89. The decline comes after four days of gains fueled by optimism about the economy shown in upbeat economic data and business sentiment survey.
In Hong Kong, on the other hand, share prices moved up, mainly driven by strong demand on large Chinese financials in view of strong gains in the Chinese currency. The blue-chip Hang Seng Index rose 63.48 points, or 0.4 percent, to 17,606.53.
Mirroring the decline in US markets and the general trend in Asia, Indian stocks also faced some selling pressure from funds and investors. The 30-share Sensex on Bombay Stock Exchange lost 88.03, or 0.7 percent, to 12,366.39. The broader 50-share Nifty Index on the National Stock Exchange declined 18.80, or 0.5 percent, to 3569.60.
The decline was led by IT heavyweights, with Infosys losing 1.6%, reflecting the concerns on US economy. US accounts for about 60 percent of the market for Indian software biggies. Another factor weighing on the market sentiment was the impending earnings season, when companies will report their quarterly earnings. Other major losers of the day were HDFC, HLL, Ranbaxy, Tata Power, Cipla, L&T, Maruti, OBC and Wipro.
US stocks are trading higher on Tuesady, as oil prices continue to decline. The blue-chip Dow Jones Index again crossed its highest-ever close of 11,722.98, set in January 2000, for a fourth straight session today.
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