RTTNews - Asian markets are exhibiting mixed trend on Tuesday amid choppy movements following a mixed close on Wall Street. With concerns over the state of global economy continuing to weigh in to a marked extent, participants are rather wary of holding positions at higher levels even as a section of them appear to be evincing keen interest in going in for some bargain hunting at declines.
The Australian market opened on a fairly steady note but declined subsequently on selling in resource related stocks. Bank stocks are trading reasonably firm. Stocks from utilities, healthcare and technology sectors are also seen attracting attention.
The Australian benchmark index S&P/ASX 200 is trading 11 points down at 3,772. Earlier, after rising to 3,787, the index had dropped down to 3,763. The All Ordinaries index is down by around 12 points at 3,772.
The Australian dollar is trading higher against the U.S. dollar even as investors await the Reserve Bank of Australia's decision on interest rates. At noon today, the Aussie was trading at US$0.7950/55, up from Monday's close of US$0.7910/14.
In Tokyo, stocks drifted lower after a positive start due to a stronger yen and lower crude oil prices. The Nikkei, which rose to 9,735 in early trading before it fell to 9,620, is currently trading at 9,649, down nearly 32 points or 0.33% from its previous close.
Iron & steel, non-ferrous metals and financials are trading weak. Transport, food and services stocks are trading reasonably firm. Shipbuilding, bank and automotive stocks are also seen exhibiting a mixed trend.
Construction, foods, textiles, chemicals, pharmaceuticals and machinery stocks are mostly trading in positive territory.
Shares of Inpex Corp. and Japan Petroleum Exploration Co. fell sharply in early trading following a decline in crude futures in New York, and is still trading in the negative territory with notable losses.
Shares of retail major FamilyMart Co. are up sharply with the company's earnings for the March-May period turning out to be largely in line with market predictions. The firm said Monday evening that its group operating profit rose 1% year on year to 8.4 billion yen for the quarter, buoyed by brisk same-store sales. However, net profit declined 16% to 3.9 billion yen, largely due to changes in its accounting method.
King Jim Co. shares are trading higher on reports that the firm will likely post a nearly 1 billion yen group operating profit for the year through June 2010, 40-50% higher than the figure estimated for the previous year. On June 16, the electronic stationery maker upgraded its group earnings estimate for the year ended June, and now believes that operating profit likely fell 65% year on year to 640 million yen.
Yamato Holdings extended recent gains after its affiliate, Yamato Transport Co., said Monday that the number of packages it handled in June increased year-on-year for the first time in eight months.
In the Korean market, technology stocks are extending their gains. Market heavyweight Samsung Electronics, which rose sharply in the previous session on strong results, is up nearly 2% now. LG Electronics is up by 4.5%, Hynix Semiconductor is trading 3% up and LG Display LCD is trading with a gain of 1.5%.
Automobile stocks are exhibiting a mixed trend. Among bank stocks, Korea Exchange Bank is up nearly 4%. Woori Finance is trading 0.5% up while Shinhan Group and KB Financial are down in negative territory with modest losses.
Airlines are trading mixed while telecom stocks exhibit some weakness. Steel and shipbuilding stocks are trading weak. Oil and energy stocks are also seen struggling for support.
The Korean benchmark KOSPI, which had slipped into the red after a positive start, is currently up with a small gain of 2.70 points or 0.19% at 14,431.64.
Among other markets in the Asia-Pacific region, Hong Kong, Indonesia, Singapore and Taiwan are trading with notable gains. New Zealand and Shanghai are trading flat. Stock markets in the region had ended Monday's session mostly lower.
On Wall Street, stocks rallied after trading in the red for most of the session on Monday. Traders shrugged off a report from the Institute for Supply Management, which showed that activity in the service sector contracted for the ninth consecutive month in June, although at a slower pace than economists had been expecting.
The Dow closed up by 44.13 points or 0.5% at 8,325 and the S&P 500 rose by 2.30 or 0.3% to 899. However, the tech-heavy Nasdaq finished down by 9.12 points or 0.5% at 1,787.
Major European markets also saw notable weakness on the day, with the German DAX Index and French CAC 40 Index both finishing down 1.2%. The U.K.'s FTSE 100 Index also fell, posting a loss of 1% for the day.
Crude oil fell sharply to its lowest levels in nearly two weeks in the New York Mercantile Exchange on concerns over the slow pace of global economic recovery following weak labor data from the U.S. Light sweet crude for August delivery lost US$2.68 to close at US$64.05 a barrel as trade resumed after a three-day holiday weekend in the United States.
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