RTTNews - Taking cues from Wall Street, stock markets across the Asia-Pacific region opened on a weak note on Monday but have rebounded from lower levels, with participants going in for some bargain hunting in subsequent trading.
The mood, however, remains cautious on concerns over global economic conditions. Though there are sure signs of a revival, market analysts and economists are of the view that a full recovery will take a fairly long time.
Energy, materials and financials stocks fell sharply in the Australian market, pushing the benchmark indices, the S&P/ASX 200 and All Ordinaries down into the red in early trading. Despite some modest buying at lower levels, the two indices are still down in negative territory, trading lower by more than a percent from their previous close.
The Nikkei 225 benchmark of the Japanese stock market opened with a negative gap of over 100 points this morning as a stronger yen took a toll on exporters. However, with several front line stocks garnering good support at lower levels, the Nikkei bounced back and was down by just 7.35 points at 9,257 at the end of the morning session.
The Korean benchmark KOSPI has recovered after a weak start and is up by about half a percent or 7 points at 1,429. Bank, automobile, steel and telecom stocks have shrugged off a weak start and are trading higher. Automobile and oil stocks are exhibiting a mixed trend.
In Hong Kong, the Hang Seng index slipped after an early surge but has rallied sharply on some strong buying in shares of Hang Seng Bank, Sino Land, Bank of China and New World Development. The index is now trading up 63.04 points or 0.37% at 17263.
Among other markets in the region, Indonesia is trading flat. The New Zealand market is down with a modest loss. Singapore and Taiwan are trading in positive territory.
Disappointing economic data rendered the mood bearish on Wall Street and sent stock prices down to a negative close on Thursday. The data released by the U.S. Labor Department showed that first time jobless claims slowed but continuing claims reach rose yet again, reaching a new historic high.
The Philadelphia Federal Reserve's business activity index for the first half of May showed improvement, but rose by less than expected, further mitigating risk appetite.
Finishing slightly off its lows, the Dow lost 129.91 points as it settled at 8,292.13. The Nasdaq finished down by 32.59 points at 1,695.25, and the S&P 500 ended down by 15.14 points at 888.33.
It was a negative close for all the stock markets across the Asia-Pacific region on Thursday. Japan's benchmark Nikkei 225 Index slipped 0.8 percent and Hong Kong's Hang Seng Index fell 1.5 percent.
Major European markets also closed firmly on the downside. The French CAC 40 Index and the German DAX Index both fell considerably on the day, dropping 2.6 and 2.7 percent, respectively. The U.K.'s FTSE 100 Index also finished lower, closing down 2.7 percent.
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