Financial Communique » MSCI

Free fall of Asian indexes

Viliyana Filipova — Mon, 19 Apr 2010 17:16:54 +0000

News of the investigation against Goldman Sachs, who is suspected of large-scale fraud mortgage securities caused a wave of sales of U.S. and European markets on Friday, which spilled over in Asia today. The Best Mortgages dropped the good results of Asian indexes. The reduced risk appetite of investors not only lower stock prices, but those of raw materials, while the rate rose strongly in the dollar against all major currencies. Analysts said the charges against the investment bank Goldman Sachs will severely undermine the already fragile confidence in financial markets and could lead many investors to leave them. The strong decrease of the Asian indexes today also contribute to the news that the Chinese government continues to restrict investment in real estate. Regional stock measure MSCI Asia Pacific, which oversees securities markets in ten Asian countries plus Australia and New Zealand sank by as much as 2.1 percent to 125.62 points. Today’s decline was its strongest over the past two months. On Friday, Asian markets retreated sharply from its 20-month peak for sales in the residential construction sector and the stock exchanges in Shanghai and Hong Kong.
The most painful fall from 4.4 percent today to 1 175.3 points bear the broad index Chinese Shanghai Composite. Reason for this given the news that the Beijing government has ordered banks to stop the country to grant mortgage loans to purchase a third property. The main stock index in Hong Kong Hang Seng in turn, lost 2.1 percent to 21 405 points for sales in the financial sector. Oil prices fell below 82 dollars at today’s e-commerce in Asia, compared with 86 dollars early last week. Shares of Goldman Sachs is payments with goals 13% by the end of Friday’s session of the New York Stock Exchange. Financial companies were the losers in today’s session in the Asian and Pacific region together with those from the extractive sector. The index of the largest companies traded on the Tokyo Stock Exchange with the Nikkei 225 retreated 1.7 percent to 10 908.77 points, while in Taiwan Taiex lost 3.2 percent to 7 854.22 points. Australia’s S & P / ASX 200 fell 1.4 percent to 4 915.10 points, while New Zealand NZX 50 fell 0.9 percent to 3 282.20 points. The Stock Exchange of Thailand SET main index continued to fall rapidly and decreased by 1.7 per cent after anti-government demonstrators called for the organization of new mass protests in the capital Bangkok tomorrow. Clashes between police and demonstrators in early April led foreign investors to withdraw, and Thailand sell shares for 200 million dollars.

Possitive session of Asia Stock indexes

Viliyana Filipova — Tue, 06 Apr 2010 13:02:41 +0000

Almost all the major stock indexes in Asia and the Pacific ended today’s session of positive territory, led by increases in mining companies, after economic optimism increased the prices of metals and energy resources. The regional MSCI Asia Pacific Index rose for a fourth day, adding 0.4 percent to 127.43 points. The price of copper rose above the psychological level of 8 thousand dollars per ton, since in recent days it became clear that employment in the U.S. grows, along with activity in the services sector. Companies from the raw materials sector was best performing group in the composition of the MSCI Asia Pacific today, over the past four days the price of their shares has risen by an average of 1.5 percent, according to Bloomberg. Exchange Taiex in Taiwan rose 0.8 percent to 8 089.7 points, while South Korean Kospi, and the Chinese Shanghai Composite, ended the session with a growth of 0.1 percent. Hong Kong Stock Exchange remained closed since April 1 because of the celebration of national holidays. The main measure in India BSE Sensex 30 rose 0.2 percent to 17 971.1 points, while in Indonesia Jakarta Composite decreased by 0.4% to 2 876 points after the central bank left the main interest of its record low level of 6.5 percent for the eighth consecutive month. Among the few indexes fell today, and ordered the Japanese Nikkei 225, which lost 0.5 percent, but remained above the psychological level of 11 thousand points. Appreciation of the yen against the euro has put pressure on shares of companies exporting the Tokyo Stock Exchange today.
The Australian dollar has also become more expensive against the euro and dollar after the central bank raised the country’s main interest for the fifth time in seven months. However, the blue chip index of the Exchange in Sydney rose by nearly 1 percent to 4 953.7 points.

2010 began with the strongest monthly decline for the stock exchanges in Asia till February 2009

Viliyana Filipova — Fri, 29 Jan 2010 05:33:19 +0000

The first month of the new year has brought a loss of securities markets in the Asian and Pacific region. National stock indexes registered significant decreases on a monthly basis, which are highest for measures of stock in China and Hong Kong. They lost between 6% and 10% of its value last month amid a tightening of monetary policy of many central banks. The regional index MSCI Asia Pacific fell 2.5 percent below its closing by the end of December 2009 This is the strongest part of its loss in February 2009 then the stock measure, which covers the securities markets in ten Asian countries, plus Australia and New Zealand, losing 10 percent in one month and fell to multi-floor because of the crisis in the global economy. During today’s trading MSCI Asia Pacific sank 1.7 percent to 117.05 points up and is on track to record strong weekly loss of 4.5 percent. This is the strongest weekly decline for the regional index of March 2009 The reason for this largely rose the news that the central banks of China, India and the U.S. tightened its monetary policy, which will reduce investments in financial assets. Central Bank of India today increased the minimum mandatory reserves commercial banks must hold as a deposit on it. The rate now stands at 5.75 per cent of their deposits to the previous 5 percent, cited by Bloomberg. This is a measure to withdraw excess liquidity from the economy of India, which along with China is the fastest growing Asian country.
Meanwhile in China had taken a series of steps the government and the central bank to curb speculation in the real estate market and bank lending. In this week’s Federal Reserve in turn said it would suspend its programs to promote liquidity in the economy by buying government securities and mortgage. This news sparked sales in the financial sector on the stock exchange in Shanghai, Tokyo, Hong Kong and Sydney. Extractive and energy companies also suffered because of cheaper raw materials, but to join them today and technology companies. The Japanese Nikkei 225 index slid 2.1 percent to 10 198.04 points to end today’s session and ended months with a decline of 3.3 percent. Series of economic data today showed that industrial production in Japan increased for the tenth consecutive month, while the unemployment rate unexpectedly fell to 5.1 percent in December. Deflation in the country, however, remains for the tenth consecutive month and amounted to 1.3%.
In Australia the S & P / ASX 200 slipped 2.2 percent to 4 569.60 points and the index of blue chips NZX 50 in New Zealand fell by 0.6 percent to 3 164.65 points. The monthly decline in the Australian market is estimated at 5.5 percent, while in New Zealand is 1.8%. South Korea KRX 100 lost 2.4 percent daily and 5.2 percent for the month, a Taiwanese Taiex index slid 0.7 percent today to increase the monthly loss to 5,8 per cent. The most significant monthly decrease, however, suffered the securities markets in China and Hong Kong. Wide Chinese Shanghai Composite Index slid 0.2 percent today, ending months with a loss of 8.4 percent. CSI 300, which brings together the largest and most traded companies on the Shanghai Stock Exchange, in turn, decreased by 10 percent on a monthly basis, while Hong Kong’s Hang Seng lost 6.4 percent compared to December. Data EPFR Global research company showed that investors have pulled more than 608 million dollars from funds that invest in the stock companies in developing countries over the past week. This is the first outbound cash flow for the past 12 weeks due to investor fears of inflation in the prices of financial assets in those countries.

Painful weekly decline for the Japanese and Chinese markets

Viliyana Filipova — Mon, 30 Nov 2009 10:13:22 +0000

Today’s session brought indexes in Asia and the Pacific region, the strongest decrease their day for the past eight months, but ended the week with a painful decline in most markets in the region. Stood at the head Japanese, Chinese and South Korean securities market, which lost between 4% and 6% of its market capitalization over the past five trading sessions. Reason for mass sales became the news of the failure of the Dubai government investment holding company Dubai World to meet its obligations to creditors. The Fund has a debt for 59 billion dollars, equivalent to most of Dubai’s foreign debt to 80 billion dollars. Meanwhile, the Japanese yen rose to its highest rate against the dollar since 1995. Financial difficulties of the Dubai World stocks fell on banks and insurers in the region, led by HSBC Holdings, whose shares fell nearly 8 percent. This is due to investor concerns about exposure of large international banks to fund Dubai. Construction companies also suffered because of the activity of the Dubai World in the construction sector. The regional index MSCI Asia Pacific, which brings together companies from stock markets in ten Asian countries plus Australia and New Zealand, slid 3.2 percent to 113.78 points. This is the strongest decrease in the stock measure within one day of 30 March so far. Financial companies in its composition have contributed most to the sharp drop in MSCI Asia Pacific. The good news that unemployment in Japan fell for the third consecutive month in October, while consumer spending increased household failed to stop reductions in the indexes. Thus MSCI Asia Pacific to cut their lead to five-year bottom of 9 March to 61 percent. For the past five trading sessions the index fell by 2,7 percent.
The Japanese Nikkei 225 fell 3.2 percent to 9081.5 points. Appreciation of the yen, Japanese exporters worried as Sony, Canon and Toyota, which warned that this rate against the dollar will fail to meet set financial goals. After news of the Japanese government signaled that it may intervene in currency markets to halt the yen’s appreciation. Hong Kong’s Hang Seng was down by 4.8% to 21 134.5 points to a major Chinese Shanghai Composite Index lost 2.4% to 3 096.3 points. Earlier this week exchanges in Shanghai, Chengen and Hong Kong dropped because of fears that planned by the major banks in China issues new shares will dilute the value of existing equity. Compared to last Friday the Nikkei 225 fell by 4,4%, Hang Seng – by 5.9% and Shanghai Composite has yielded at most 6.4%. Strong weekly decline of 5.9 percent and the broad record of the Exchange Kospi index in Seoul. It slid 4.7 percent to 1524.5 points, while Dubai is not expected to cause injury crisis on the Korean economy due to limited investment in South Korea in Dubai.
Australian Index of blue chip S & P / ASX 200 is lower by 2.9 percent to 4572.1 points, mainly due to mining and energy companies after metals prices and oil prices fell significantly during today’s e-commerce in Asia. In New Zealand NZX 50 is decreased by 1.1 percent to 3094.4 points, a weekly decline in two Pacific stock exchanges amounted to 2.4% and 0.6%. U.S. futures broader index S & P 500 shows a sharp drop in Wall Street, while European markets fell heavily yesterday, as the pan-European index Dow Jones Stoxx 600 slipped 3.3 percent. Red wool, which includes the stock exchange in Sofia shows that financial markets remain very sensitive to bad news relating to bankruptcies and financial difficulties of companies. The price of oil futures with delivery in January fell by more than 6% in electronic trading on the New York oil exchange. Prices of most metals is lower, led by copper, which is cheaper by almost 5%. Commodity prices are often an accurate indicator is the tendency of investors to buy riskier assets such as shares and high-currencies.