RTTNews - It is turning out to be another day of losses for most of the markets in the Asia-Pacific region this Wednesday with participants indulging in some heavy selling amid renewed concerns over the state of global economy. The fall in U.S. industrial output on the back of a sharp drop in capacity utilization sent stock prices tumbling down on Wall Street on Tuesday and echoing the sentiment, most of the markets in the Asia-Pacific region are trading weak today.
Lower oil and base metal prices pushed resource-related stocks down into the red in the Australian market this morning. With most of these stocks failing to find support at crucial levels and going further down instead, the Australian benchmark index S&P/ASX 200 is currently down with a big loss of 77 points at 3,886. The All Ordinaries index is down by 73 points at 3,885.
Besides, energy and materials stocks, stocks from banking, consumer staples and industrials space are also down sharply in the red due to heavy selling.
In company news, capital goods major CSR Limited is reportedly in the final stage of due diligence towards demerging its sugar and renewable energy business. The company proposes to create two separate listings on the Australian Securities Exchange, one for its sugar and renewable energy business and another for its building products, aluminum and property business. The CSR stock is up 8% today.
According to the data released by the Australian Bureau of Statistics today, home building fell to its lowest level in eight years in the first three months of 2009, with work starting on just 30,949 properties, a seasonally adjusted decline of 4 percent compared to the December quarter 2008.
The Japanese market rallied higher in early trading today with investors shrugging off overnight negative cues from Wall Street and going in for some bargain hunting. However, with key stocks finding stiff resistance at higher levels, the market had pared a good portion of its gains in late morning trade.
The benchmark Japanese index Nikkei, which rose to 9,829 after opening at 9,706, was up 39 points or 0.4% at 9,792 at the end of the morning session.
Most of the stocks from the banking sector moved up sharply on strong buying interest. Automobile stocks were also mostly seen trading higher. Real estate, bank and oil stocks posted modest gains while machinery, technology and communications stocks traded weak.
Shares of Osaka Titanium Technologies Co. edged higher on news that Boeing Co. will build a second plant for its 787 jet. The 787 uses two to three times as much titanium as other planes do. The stock was up nearly 4% at the end of the morning session.
Kao Corp. expects its operating profit to decline by 9% to around 16 billion yen for the year ending March 2010. Sales at Kao's beauty care business, which includes subsidiary Kanebo Cosmetics Inc., are seen slipping 3% to 572 billion yen. The chemicals stock is trading flat at present.
Meanwhile earnings are likely to remain flat at Shiseido Co., a close rival of Kao Corp., and rise at three smaller rivals for the year ending March 2010. Shiseido is trading modestly lower this morning.
In the South Korean market, bank, steel and oil stocks are trading weak. Automobile stocks are exhibiting a mixed trend. Technology stocks are trading reasonably firm.
The KOSPI, which has been moving in a tight band today, is down by 8 points or 0.58% at 1,391. Earlier, after opening at 1,392, it had slipped to 1,387.
Among other markets in the Asia-Pacific region, Shanghai, Hong Kong and Singapore are trading sharply lower. The New Zealand, Indonesia and Shanghai markets are also trading weak, though with less pronounced losses. The Taiwanese index Taiwan Weighted Average, however, is up in positive territory with a modest gain.
Stock markets across the Asia Pacific region had ended Tuesday's trading on the downside. Japan's benchmark Nikkei 225 Index closed down by 2.9 percent and Hong Kong's Hang Seng finished down by 1.8 percent.
U.S housing starts rose at a better than expected annual rate, but lower industrial production on the back of a sharp drop in capacity utilization triggered a fairly heavy selling on Wall Street on Tuesday.
The major averages ended the session almost near the day's lows. The Dow closed down by 107.46 points or 1.3 percent at 8,505, the Nasdaq closed down by 20.20 points or 1.1 percent at 1,796 and the S&P 500 closed down by 11.75 points or 1.3 percent at 912.
Major European markets turned in a mixed performance. While the German DAX Index and the U.K.'s FTSE 100 Index both finished just above the unchanged line, the French CAC 40 fell by 0.2 percent.
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