Global Markets Higher; Australia Is the Exception
June 26 2017 - 11:31PM
Dow Jones News
By Ese Erheriene
Global shares were higher in Asia-Pacific trade Tuesday, lifted
in part by a stronger U.S. dollar, though markets in Australia
bucked the trend due to declines in utility and mining stocks.
Industrial and precious metals prices were down, pressuring
shares of Australian-listed heavyweights like BHP Billiton, which
was last down 0.8%, while Rio Tinto was off 0.7%.
Spot gold prices were recently down 0.2%, extending losses after
Monday's flash crash, which was caused by suspected human error. It
plunged 1% shortly after the opening call in London on Monday and
traded about 1.8 million troy ounces in a minute, "which is more
than the volumes traded seen during recent global risk events,"
noted ANZ Research.
Australia's benchmark S&P/ASX 200 was down 0.3%, with the
utilities subindex falling 1.7% to an almost two-week low, while
the materials subindex was off 0.7%.
Elsewhere, the Nikkei Stock Average was up 0.4% to a one-week
high, while Hong Kong's Hang Seng Index was up 0.2%. Korea's Kospi
edged up 0.1%. Singapore's Straits Times Index was last up 0.4%,
with markets there reopening after a three-day weekend.
An overnight slump in the U.S. technology sector saw similar
stocks in Asia region turn lower in early trade. Taiwan's
Technology index slid 0.8% versus a 0.1% decline in the benchmark
Taiex. Samsung Electronics dipped 0.2% in Seoul.
"Asia Pacific shares, which saw broad gains at the start of the
week, could find more disparate returns on the heels of a tech
slide," said Jingyi Pan, a market strategist at IG Group.
In Japan, a softer yen gave exporter stocks a lift by making it
cheaper for them to ship their goods around the globe. The dollar
nearly reached Yen112, hitting its highest levels in a month. Among
individual stocks, Hitachi rose 2.3% while Murata Manufacturing
added 1.6%.
However, trading in troubled air bag maker Takata's shares
remained ask-only following its bankruptcy filing, meaning that no
shares have been traded because sell orders have overwhelmed buy
orders.
The air-bag maker, which will be delisted July 27, filed for
bankruptcy protection after failing to agree with auto makers and
other creditors on how to split ballooning recall expenses for its
defective air bags. Shares plunged 67% last week as reports of a
looming bankruptcy filing crushed the stock.
Also, Toshiba was off 2% as expectations grew that it could
formally agree to sell its memory chip business in the near
term.
More broadly, investors will be closely watching comments later
in the day by U.S. Federal Reserve Chairwoman Janet Yellen. The
U.S. dollar was getting some support early Tuesday due to hopes
that Ms. Yellen will repeat the hawkishness she presented in a news
conference earlier this month, according to Kathy Lien, head of
forex strategy at BK Asset Management.
"What matters most this week is Fedspeak," said Ms. Lien, adding
that a hawkish Ms. Yellen could to send the dollar to Yen112.20 at
the least.
Investors are concerned about whether Ms. Yellen believes recent
softness in U.S. data is transitory, as they look for more guidance
on the pace of rate increases.
Kenan Machado and Kosaku Narioka contributed to this
article.
Write to Ese Erheriene at ese.erheriene@wsj.com
(END) Dow Jones Newswires
June 26, 2017 23:16 ET (03:16 GMT)
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