By Kana Nishizawa - Jan 21, 2013 8:05 AM GMT+0400
Asian stocks swung between gains and losses as Japanese shares dropped after the yen rebounded from its lowest level against the dollar in 2 1/2 years. Outside Japan, China Vanke Co. led gains on plans to move trading of its foreign-currency denominated shares to Hong Kong.
Gome (493) Electrical Appliances Holding Ltd. tumbled 5.1 percent in Hong Kong after confirming a report it is closing Gome- branded stores in the city. Japanese chemical makers dropped after Bank of America Corp. cut their ratings. Sims Metal Management Ltd. (SGM), the world’s largest scrap metal recycler, dropped 5.3 percent in Sydney as an internal investigation revealed potential fraud at two of its U.K. businesses. China Vanke Co., the country’s biggest publicly traded property developer by market value, surged 10 percent in Shenzhen.
The MSCI Asia Pacific Index was little changed at 132.70 as of 1:03 p.m. in Tokyo, after falling as much as 0.4 percent and rising less than 0.1 percent. About five stocks declined for every four that rose. The MSCI Asia Pacific Excluding Japan Index (MXAPJ) rose 0.1 percent as China Vanke contributed the most to the gauge’s advance.
“Markets are at highs and some investors are becoming cautious after everyone turned bullish on stocks,” said Koji Toda, chief fund manager at Resona Bank Ltd. in Tokyo, which oversees about $174 billion. “Most investors are still optimistic on the equity market. Just because markets are falling today doesn’t mean they will continue to drop, people will start to buy as well. That’s healthy.”
BOJ Meeting
The Asia-Pacific gauge rallied 11 percent from Nov. 14 through Jan. 18 as Japanese shares jumped on optimism Prime Minister Shinzo Abe will pursue more aggressive stimulus policies to boost the economy. The index traded at 14.3 times average estimated earnings on Jan. 18, compared with 13.4 for the Standard & Poor’s 500 Index and 12.1 times for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.
Japan’s Nikkei 225 Stock Average fell 1 percent as a Bank of Japan policy meeting starts today. The BOJ will need to slow monetary easing if the effects on prices and the yen go too far, said Koichi Hamada, who’s advising Prime Minister Shinzo Abe on choosing a new central bank chief.
Australia’s S&P/ASX 200 Index (AS51) swung between gains and losses. South Korea’s Kospi Index rose 0.2 percent, reversing an earlier retreat, and Singapore’s Straits Times Index gained 0.4 percent. Hong Kong’s Hang Seng Index (HSI) and China’s Shanghai Composite Index advanced 0.1 percent.
Japanese Exporters
Japan’s exporters dropped as the yen rebounded against the dollar. The currency earlier traded at its weakest level since June 2010. Abe, who came to power in elections last month on a campaign of increased fiscal and monetary stimulus, is pressuring the BOJ to double its 1 percent inflation goal and accelerate cash infusions to end deflation. A stronger yen reduces income at Japanese companies when overseas revenue is converted into their home currency.
Nissan Motor Co. (7201), an automaker that gets about a third of its revenue from North America, slid 0.8 percent to 871 yen in Tokyo. Sharp Corp., which gets about 12 percent of its sales from the Americas, dropped 2.6 percent to 33.5 yen. The company slowed a Japaneseproduction line making screens for Apple Inc. iPads to a minimum level as the U.S. company manages inventory, Reuters reported, citing two people it didn’t identify who have knowledge of Sharp’s production plans.
“Expectations for the Bank of Japan and its easing measures have been priced into stocks,” said Ayako Sera, a market strategist at Sumitomo Mitsui Trust Bank Ltd. in Tokyo. “The speed at which Japanese shares rose was very fast, so we’re seeing some adjustments as the yen also corrects.”
Stores Closed
Gome slumped 5.1 percent to 94 Hong Kong cents after confirming it is closing its branded stores and saying it won’t have an impact on operations of the listed company. The company’s six branded shops will be closed in Hong Kong by March, the Hong Kong Economic Journal reported today, citing a statement from the operator.
Korea Petrochemical Industrial Co. slumped 4.7 percent to 47,950 won in Seoul, the second-steepest drop in the Kospi Index (KOSPI), after the chemical products maker reported a loss of 10.4 billion won ($9.82 million) in 2012, compared with a 28.4 billion won profit a year earlier.
Among stocks that rose, China Vanke’s yuan-denominated A shares rose 10 percent to 11.13yuan in Shenzhen, and its Hong Kong dollar-denominated B-shares also surged 10 percent to HK$13.75. The company plans to convert all 1.3 billion B-shares into Hong Kong-listed H shares, according to a filing to the Shenzhen stock exchange.
To contact the reporter on this story: Kana Nishizawa in Hong Kong atknishizawa5@bloomberg.net
To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net
Asian stocks swung between gains and losses as Japanese shares dropped after the yen rebounded from its lowest level against the dollar in 2 1/2 years. Outside Japan, China Vanke Co. led gains on plans to move trading of its foreign-currency denominated shares to Hong Kong.
Gome (493) Electrical Appliances Holding Ltd. tumbled 5.1 percent in Hong Kong after confirming a report it is closing Gome- branded stores in the city. Japanese chemical makers dropped after Bank of America Corp. cut their ratings. Sims Metal Management Ltd. (SGM), the world’s largest scrap metal recycler, dropped 5.3 percent in Sydney as an internal investigation revealed potential fraud at two of its U.K. businesses. China Vanke Co., the country’s biggest publicly traded property developer by market value, surged 10 percent in Shenzhen.
The MSCI Asia Pacific Index was little changed at 132.70 as of 1:03 p.m. in Tokyo, after falling as much as 0.4 percent and rising less than 0.1 percent. About five stocks declined for every four that rose. The MSCI Asia Pacific Excluding Japan Index (MXAPJ) rose 0.1 percent as China Vanke contributed the most to the gauge’s advance.
“Markets are at highs and some investors are becoming cautious after everyone turned bullish on stocks,” said Koji Toda, chief fund manager at Resona Bank Ltd. in Tokyo, which oversees about $174 billion. “Most investors are still optimistic on the equity market. Just because markets are falling today doesn’t mean they will continue to drop, people will start to buy as well. That’s healthy.”
BOJ Meeting
The Asia-Pacific gauge rallied 11 percent from Nov. 14 through Jan. 18 as Japanese shares jumped on optimism Prime Minister Shinzo Abe will pursue more aggressive stimulus policies to boost the economy. The index traded at 14.3 times average estimated earnings on Jan. 18, compared with 13.4 for the Standard & Poor’s 500 Index and 12.1 times for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.
Japan’s Nikkei 225 Stock Average fell 1 percent as a Bank of Japan policy meeting starts today. The BOJ will need to slow monetary easing if the effects on prices and the yen go too far, said Koichi Hamada, who’s advising Prime Minister Shinzo Abe on choosing a new central bank chief.
Australia’s S&P/ASX 200 Index (AS51) swung between gains and losses. South Korea’s Kospi Index rose 0.2 percent, reversing an earlier retreat, and Singapore’s Straits Times Index gained 0.4 percent. Hong Kong’s Hang Seng Index (HSI) and China’s Shanghai Composite Index advanced 0.1 percent.
Japanese Exporters
Japan’s exporters dropped as the yen rebounded against the dollar. The currency earlier traded at its weakest level since June 2010. Abe, who came to power in elections last month on a campaign of increased fiscal and monetary stimulus, is pressuring the BOJ to double its 1 percent inflation goal and accelerate cash infusions to end deflation. A stronger yen reduces income at Japanese companies when overseas revenue is converted into their home currency.
Nissan Motor Co. (7201), an automaker that gets about a third of its revenue from North America, slid 0.8 percent to 871 yen in Tokyo. Sharp Corp., which gets about 12 percent of its sales from the Americas, dropped 2.6 percent to 33.5 yen. The company slowed a Japaneseproduction line making screens for Apple Inc. iPads to a minimum level as the U.S. company manages inventory, Reuters reported, citing two people it didn’t identify who have knowledge of Sharp’s production plans.
“Expectations for the Bank of Japan and its easing measures have been priced into stocks,” said Ayako Sera, a market strategist at Sumitomo Mitsui Trust Bank Ltd. in Tokyo. “The speed at which Japanese shares rose was very fast, so we’re seeing some adjustments as the yen also corrects.”
Stores Closed
Gome slumped 5.1 percent to 94 Hong Kong cents after confirming it is closing its branded stores and saying it won’t have an impact on operations of the listed company. The company’s six branded shops will be closed in Hong Kong by March, the Hong Kong Economic Journal reported today, citing a statement from the operator.
Korea Petrochemical Industrial Co. slumped 4.7 percent to 47,950 won in Seoul, the second-steepest drop in the Kospi Index (KOSPI), after the chemical products maker reported a loss of 10.4 billion won ($9.82 million) in 2012, compared with a 28.4 billion won profit a year earlier.
Among stocks that rose, China Vanke’s yuan-denominated A shares rose 10 percent to 11.13yuan in Shenzhen, and its Hong Kong dollar-denominated B-shares also surged 10 percent to HK$13.75. The company plans to convert all 1.3 billion B-shares into Hong Kong-listed H shares, according to a filing to the Shenzhen stock exchange.
To contact the reporter on this story: Kana Nishizawa in Hong Kong at knishizawa5@bloomberg.net
To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net
