Thursday, January 12, 2012

why asian stock markets down janaury 12 2012

why asian stock markets down janaury 12 2012 : Asian stock markets retreated on Thursday, as lingering concerns over the euro zone’s financial crisis overshadowed data showing that Chinese consumer prices rose at the slowest pace in 15 months in December.

During late Asian trade, Hong Kong's Hang Seng Index dipped 0.2% Australia’s S&P/ASX200 fell 0.15%, while Japan’s Nikkei 225 Index slumped 0.75%.

Concerns over the euro zone’s debt crisis continued to dominate market sentiment after ratings agency Fitch said Wednesday that the European Central Bank should do more to avoid a 'cataclysmic' collapse of the single currency.

The news outweighed hopes for near-term monetary easing in China after official data showed that consumer price inflation rose by a seasonally adjusted 4.1% in December, easing from 4.2% in November.

Shares in oil producers led losses in Hong Kong, tracking oil prices lower. Oil giant PetroChina fell 1.5%, offshore gas driller CNOOC dropped 2.3%, while Sinopec shares slumped 1.55%.

Losses were limited as shares in the financial sector outperformed, boosted by the China inflation figures. Hong Kong-listed shares of Bank of China jumped 2.25%, while China Construction Bank shares added 1.05%.

Meanwhile, in Japan, shares in exporters performed poorly after data showed that the nation’s current account surplus fell by a greater-than-expected 85.5% in November, as exports dropped amid slowing global demand.

Consumer electronics giant Sony saw shares decline 2.3%, shares in rival Sharp slumped 3.15%, while automakers Toyota and Nissan retreated 1.2% and 1.5% respectively.

Financials also contributed to losses. Japanese investment bank heavyweights Nomura Holdings and Daiwa Securities, which both have large exposure to European sovereign debt, tumbled 3.5% and 3.2% respectively, while the nation’s third largest lender Mizuho Financial Group dropped 1.8%. For the latest updates on the stock market, visit Stock Market Today
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