Tuesday, September 20, 2011

asian stock market sept 21 2011

asian stock market sept 21 2011 : Asian stock markets were mixed Wednesday as investors remained cautious ahead of the outcome of the U.S. Federal Reserve's two-day meeting, with choppy trade characterizing the early sessions in Seoul and Tokyo.

"The market is expecting some stimulus plan from (Fed Chief Ben) Bernanke, so if that doesn't happen it will be an ugly night" said RBS Morgans principal investment adviser Chris Macdonald in Sydney. The Fed concludes its two-day meeting later in the global day.

Japan's Nikkei Stock Average was flat, Australia's S&P/ASX 200 was flat, South Korea's Kospi Composite was up 0.1% and New Zealand's NZX-50 added 0.2%.

Dow Jones Industrial Average futures were up 21 points in screen trade.

In Japan and South Korea, there was no clear trend as investors were unwilling to make any fresh bets ahead of the outcome of the Fed meeting.

Tokyo Electron fell 0.4% after industry data released Tuesday showed weakening demand for chipmaking equipment, and raised concerns about the company's earnings outlook.

Toshiba gained 1.2% while Mitsubishi Electric added 0.3% after both companies separately announced plans Tuesday to raise dividends for the fiscal first half.

A few key exporter-stocks in Seoul received a boost from the recent weakness in the South Korean won, with Samsung Electronics up 0.9% while LG Electronics gained 0.8%. Trading, however, remained choppy.

The won fell to its lowest level for 2011 against the greenback Tuesday, with the U.S. dollar tapping 1,156.50 won. It was recently at 1,145.70 won.

In Sydney, David Jones rose 3.5% on relief the company didn't further downgrade its fiscal 2012 earnings guidance, while the upmarket department store operator's 2011 results met expectations.

The U.S. dollar was in a holding pattern as many investors were sidelined ahead of the Fed's widely-anticipated announcement.

"Given the weakness of the (recent U.S.) economic data, the (Federal Reserve) is now almost certain to do something, but exactly what is still not entirely clear," said Paul Ashworth, an economist at Capital Economics in a note.

"The proposal to lengthen the average duration of the Fed's asset holdings, dubbed Operation Twist, appears to be the front runner as the marked rebound in the rate of core inflation since late last year is likely to have made Fed officials more wary of implementing further quantitative easing for now," he added.

The single currency was at $1.3719 against the dollar from $1.3703 late Tuesday in New York, and at ¥104.74 versus the yen from ¥104.76. The greenback was at ¥76.35 from ¥76.46.

Oil futures settled higher Tuesday on expectations the Fed would announce steps to stimulate the U.S. economy. November crude oil futures were recently down 38 cents at $86.54 a barrel on Globex. Spot gold was at $1,800.20 per troy ounce, down $4.60 from New York trade Tuesday. source http://online.wsj.com

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