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ASIAN stocks closed mixed yesterday after another batch of disappointing economic figures in the US shoved Wall Street into negative territory and sent regional players into the wings. However, the extent of the sell-off and a turnaround in early European business led to late bargain hunting which eased some of the pressure and allowed a few markets to end the day slightly higher.

TOKYO: Japanese share prices lost ground for a second straight day.

The Nikkei-225 index dropped 102.05 points to 12,604.58. Volume rose to 1.673 billion shares from 1.575 billion on Wednesday.

SYDNEY: Australian share prices closed down 0.2 per cent on weaker financial stocks, although gains in miners BHP Billiton and Rio Tinto limited the market’s losses. The S&P/ASX 200 closed down 9.8 points at 5,371.6. A total of 1.54 billion shares worth A$5.35 billion was traded.

SHANGHAI: Chinese share prices plunged 5.42 per cent, the sharpest percentage decline in two months. The Shanghai Composite Index, which covers A and B shares, closed down 195.36 points at 3,411.49.

TAIPEI: Taiwan share prices closed sharply lower as selling pressure intensified in technology firms amid worries the Taiwan dollar’s appreciation will hurt export earnings. The weighted index closed down 162.07 points at 8,605.95 on turnover of T$160.83 billion.

SEOUL: South Korean share prices closed slightly lower as investors locked in profits from recent gains, with sentiment undercut by Wall Street’s decline. The KOSPI closed down 3.43 points at 1,676.24. Volume reached 252 million shares worth US$4.31 billion.

BANGKOK: Thai share prices closed 0.66 per cent higher as investors chased gains in blue chips, in banking and energy stocks.

The composite index rose 5.39 points to 822.96 on turnover of 3.10 billion shares worth US$522.34 million.

JAKARTA: Share prices closed 0.4 per cent higher as late buying of blue chips and oil-related stocks triggered a rebound in the main index. The composite index closed up 10.71 points at 2,405.15.

MANILA: Philippine share prices closed 0.3 per cent higher as investors picked up bargains among the blue chips.

The composite index closed up 7.54 points at 2,925.91. – AFP

The US dollar was trading mixed against major currencies on Wednesday morning in Sydney,
following overnight losses after the release of soggy economic data.

The US Conference Board said its consumer confidence index fell to 64.5 in March from 76.4 in February — the lowest reading since March 2003 and well below the 73.5 reading the market had expected.

Meanwhile, the Standard & Poor’s (NYSE:MHP) /Case-Shiller home price index indicated that US home prices fell 11.4 percent in January, the steepest drop since data was first collected in 1987.

At 10.15 am (2315 GMT) the dollar was at 100.13 yen from 100.52 in late trading in New York while the euro was at 1.5611 dollars from 1.5651 dollars.

Overnight, the dollar weakened against the euro after European Central Bank vice-president Lucas Papademos said euro zone inflation developments are ‘unsatisfactory’, adding that the ECB governing council is committed to ensuring that the objective of price stability is achieved in the medium term.

John Noonan at Thomson IFR said Papademos’ statements were not helpful to the dollar which had made some gains on Monday on better US economic data.

Noonan said in a fairly quiet session the dollar bounced to a high of 100.67 yen in Europe before dropping to 99.64 as softer data was released in the US.

He said high-yielding currencies such as the Australian dollar also slipped on risk-aversion selling after the weak US data but improved as Wall Street recovered from its lows for the session.

The Australian dollar dipped to 91.05 US cents but then recovered to trade in a range of 91.70
to 91.75 cents.

Noonan said the mostly positive sentiment on equity markets overnight despite the poor US
economic data should extend into the Asian session.

‘Overall, it looks like an Asian session of range trading, with a US dollar negative bias,’ he said.

Sydney 10.10 am (2310 GMT)
US dollar
yen 100.13
sfr 1.0082
Euro
usd 1.5611
stg 0.7796
yen 156.24
sfr 1.5752
Sterling
usd 2.0029
yen 200.38
sfr 2.0210
Australian dollar
usd 0.9163
stg 0.4575
yen 91.655
New Zealand dollar
0.8052
bruce.hextall@thomson.com
Copyright Thomson Financial News Limited 2008. All rights reserved.

The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.

Source: CNN Money

Forex - Japanese Currency Slightly Higher In Asian Trading [USD/JPY]

3/26/2008 12:52:41 AM Wednesday in Asia, the Japanese yen traded slightly higher against its major counterparts.

According to data released today by the Finance Ministry, Japan’s February trade surplus increased 0.9% over one year earlier. The increase was the first in four months, but came in below economists’ forecasts. The February surplus increased to 970 billion yen (US$9.69 billion), compared to analysts’ estimates of a 16.8% increase to 1.123 trillion yen.

Additionally, Japan’s corporate service price index increased 0.3% in February. The index reading for February was 94.1 percent compared to 93.8 percent for January. Read more

The Canadian dollar finished Tuesday’s session on a little changed footing versus the US currency. Activity in the currency was consolidative in nature. Early support for the Canadian unit was linked to supportive economic data but ongoing worries about the health of the US economy worked against the currency making any significant strengthening move, market watchers said.

The Canadian currency closed out the North American session at 98.23 US cents or C$1.0180 on Tuesday. This compares with Monday’s closing North American mark of 98.22 US cents or C$1.0181. Read more

EUR/USDReady to resume ascent?Last week, we noted EURUSD price action had presented an inverted hammer candlestick, signaling a possible bearish reversal. That view has now been confirmed - the pair tumbled the following day. Our entry below 1.5800 yielded over 500 pips in profit, though our profit target of 1.5320 was narrowly missed by 20 pips (EURUSD reached a low of 1.5340 last week).Having completed the expected retracement, we now find the EURUSD at trend line support, with a Hammer reversal pattern waiting to be confirmed by a bullish candle. If that materializes, we will look for the bullish trend to resume. Those traders that have not taken profit on our suggested short position should do so here. With the long term bias still favoring the upside, we will re-enter long at trend line support with a tight stop in place should the pair break down further. Our initial profit target will eye the top of the most recent bullish run to 1.5740. However, we will keep a close eye on the pair’s momentum and adjust the profit target contingent with the price action.

EUR/USD Trading Strategy

1. If the Hammer formation is confirmed with a bullish candle, long EURUSD near 1.5380 (trend line support).

2. Set stop near 1.5270, just below the wick low of the 03/06-03/09 consolidation.

3. Set the initial profit target just below 1.5740, giving a favorable risk-reward ratio (risking 110 pips to gain 360).

TOKYO (Thomson Financial) - The US dollar was firmer against other major currencies in Asian morning trading Monday, continuing its rebound late last week, but was held within narrow ranges, with Asian players unwilling to move the market because of a lack of fresh trading leads and in the absence of players from further afield because of public holidays. Read more

The Bank of Tanzania (BoT) is working to reduce interest on Treasury-bills to force down the high lending rates being charged by commercial banks.

The central bank has in the past relied heavily on the sale of Treasury-bills to mop up excess liquidity in the financial system.
Read more

HwangDBS Investment Management Bhd chief investment officer David Ng said firstly, investing should not be about chasing the latest fad as doing so could work against the investor.

“Investors must always bear in mind their personal investment goals, risk tolerance level, time horizon and then asset allocate accordingly.”

“We think investors should consider having exposure to low-risk income-type funds as the returns from such funds will hopefully offset the impact of inflation on one’s purchasing power.

“Another interesting alternative would be to invest in commodities due to their historically low co-relation with the equities markets,” Ng said . Read more

Monday, 24 March 2008

KUALA LUMPUR, March 24 (Bernama) — The ringgit was lower against the U.S dollar in early trade today as the fall in crude palm oil prices weighed down on the local currency, dealers said. Investors were also cautious over rising concerns with prospects of a global credit market turmoil as the U.S. economy looks headed for an impending slowdown due to deepening housing woes.

The ringgit was lower at 9.10 am against the greenback at 3.1930/1960 from 3.1800/1830.

Against Asian currencies, the ringgit weakened, opening lower against the Singapore dollar at 2.2981/3011 from last Friday’s closing of 2.2926/2967 and easier against the yen at 3.1962/2008 from 3.1899/1945.

As for the European currencies, the ringgit was easier, declining against the euro at 4.9175/9228 from 4.9162/9252 and lower against the British pound at 6.3167/3242 from 6.3098/3170.

Brazil’s state-owned development bank, known as BNDES, will finance as much as half of the purchase price of electricity utility Cia. Energetica de Sao Paulo, the Estado de S. Paulo newspaper reported.

BNDES will provide credit for between 30 percent and 50 percent of the sale of the power generator, known as Cesp, that is scheduled for sale March 26, the newspaper said. Cesp is controlled by the government of Brazil’s State of Sao Paulo.

The minimum price at auction is 6 billion reais ($3.46 billion), Estado said.

Sao Paulo may not receive a large premium over the minimum price because the federal government, which has jurisdiction over the country’s hydroelectric resources, will not promise to renew the licenses to run three dams that expire in 2011 and 2013.

To contact the reporter on this story: Jeb Blount in Rio de Janeiro at jblount@bloomberg.net.