Asia Markets Archives | Email alerts

Dec. 20, 2016, 3:24 a.m. EST

Asian markets mainly rise on good economic news from U.S., Japan

But Chinese markets fall after Beijing outlines regulation

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    NIKKEI 225 Index (NIK)
  • X
    S&P/ASX 200 Benchmark Index (XJO)
  • X
    KOSPI Composite Index (180721)

or Cancel Already have a watchlist? Log In

By Kenan Machado and Ese Erheriene


Reuters
A man walks during a smoggy sunrise Thursday as a red alert was issued for air pollution in Beijing.

A positive outlook on the economies of the U.S., Germany and Japan helped Asian traders on Tuesday look past the fallout of attacks in Berlin and Turkey.

Speaking at the University of Baltimore’s midyear commencement ceremony on Monday, U.S. Federal Reserve Chairwoman Janet Yellen said recent improvements in the economy have created one of the strongest job markets in years for graduates.

“[Yellen] is really expecting the U.S. economy to be growing strongly,” said Greg McKenna, chief market strategist at AxiTrader. That in turn led to a return of risk-on trade in the market despite the attack in Berlin and the killing of Russia’s envoy in Turkey, he said. “Markets seem to have moved on.”

The Nikkei Stock Average /zigman2/quotes/210597971/delayed JP:NIK +2.13%   closed up 0.5%. Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -0.86%   was last up 0.5%, Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 -0.90%   added 0.2%, and Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI -1.17%   lost 0.6%.

Overnight, all three of the major U.S. stock indices notched gains, with the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.16%  rising 0.2%, the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.12%  adding 0.2%, and the Nasdaq Composite /zigman2/quotes/210598365/realtime COMP -0.33%  gaining 0.4%.

The Bank of Japan on Tuesday raised its assessment of the economy for the first time since May 2015, closing a turbulent year on a positive note, but stood pat on monetary policy.

The yen saw some early safe-haven buying against the euro /zigman2/quotes/210561215/realtime/sampled EURJPY -0.0597%  following the attacks in Berlin and Turkey. Russia’s envoy to Turkey was shot and killed in Ankara during a gallery opening Monday.

Click to Play

Berlin truck crash a 'probable terrorist attack,' police say

A black semitrailer truck plowed through a busy Christmas market in Berlin, Germany, killing at least 12 people and injuring scores more. Police said the truck was steered deliberately.

The Japanese currency /zigman2/quotes/210561789/realtime/sampled USDJPY +0.1333%  gained as much as 0.8% against the dollar on Tuesday. However, those gains largely unwound during the session, particularly following comments by Bank of Japan Governor Haruhiko Kuroda that showed support for, and a tolerance of, yen weakness.

The yen was last down 0.7% to the dollar and hovering around the psychologically crucial ¥118 benchmark.

The yen reversal, however, failed to save export stocks though with Suzuki Motor /zigman2/quotes/201794956/delayed JP:7269 +1.90%   down 1% for the day, Toshiba /zigman2/quotes/205628942/delayed JP:6502 -1.52%   losing 1.1% and Panasonic /zigman2/quotes/201785256/delayed JP:6752 +0.76%   declining 1.5%.

In the bond market, the U.S. government-bond market rallied Monday after the biggest six-week selloff in more than seven years. Geopolitical news added to demand for haven bonds and contributed to lower bond yields, traders said.

The yield for U.S. Treasurys settled at 2.544% Monday, compared with 2.6% Friday, which was the highest close since September 2014.

“We’ve had a little bit of a setback for risk appetite with the events in Turkey and in Germany,” said Christoffer Moltke-Leth, director of global sales trading at Saxo Capital Markets.

Even so, positive news from Germany helped markets tide over the developments. The $3.5 trillion (annual gross domestic product) economy showed signs of a “marked acceleration” at year-end, Bundesbank said Monday.

China’s 10-year government bond futures fell 1.1% after opening, and were last down 0.4%, after China’s central bank said that, starting next quarter, it will include off-balance sheet investments in its assessment of financial institutions’ risk.

The proposal has sparked jitters in the bond market, as financial institutions may face further scrutiny of the bonds they funnel into high-yielding wealth management products.

“Now that a time frame is confirmed [for the enhanced regulation], investors are worried about tightening liquidity,” said Zhou Xu, an analyst at Nanjing Securities. “A weak bond market will also be a drag on stocks.”

The yield on China’s benchmark 10-year government bond was last at 3.379% compared with 3.342% late Monday.

The wealth management crackdown also weighed on China’s domestic equities, with the benchmark Shanghai index /zigman2/quotes/210598127/delayed CN:SHCOMP -0.19%   down 0.5% at 3,102.88 and the Shenzhen Composite Index /zigman2/quotes/210598015/delayed CN:399106 -0.16%   off 0.1% at 1,981.32.

/zigman2/quotes/210597971/delayed
JP : Nikkei
19,353.24
+403.06 +2.13%
Volume: 0.00
April 8, 2020 3:15p
loading...
/zigman2/quotes/210598100/delayed
AU : S&P ASX
5,206.90
-45.40 -0.86%
Volume: 1.16M
April 8, 2020 5:11p
loading...
/zigman2/quotes/210598069/delayed
KR : Korea Exchange
1,807.14
-16.46 -0.90%
Volume: 907,493
April 8, 2020 3:32p
loading...
/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
23,970.37
-282.92 -1.17%
Volume: 1.84M
April 8, 2020 4:08p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
2,659.41
-4.27 -0.16%
Volume: 4.22B
April 7, 2020 5:09p
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
22,653.86
-26.13 -0.12%
Volume: 595.87M
April 7, 2020 5:09p
loading...
/zigman2/quotes/210598365/realtime
US : U.S.: Nasdaq
7,887.26
-25.98 -0.33%
Volume: 3.54M
April 7, 2020 5:16p
loading...
/zigman2/quotes/210561215/realtime/sampled
US : Tullett Prebon
118.3743
-0.0708 -0.0597%
Volume: 0.0000
April 8, 2020 8:35a
loading...
/zigman2/quotes/210561789/realtime/sampled
US : Tullett Prebon
108.8950
+0.1450 +0.1333%
Volume: 0.0000
April 8, 2020 8:35a
loading...
/zigman2/quotes/201794956/delayed
JP : Japan: Tokyo
¥ 2,808.50
+52.50 +1.90%
Volume: 2.36M
April 8, 2020 3:00p
P/E Ratio
11.37
Dividend Yield
2.63%
Market Cap
¥1337.58 billion
Rev. per Employee
¥59.39M
loading...
/zigman2/quotes/205628942/delayed
JP : Japan: Tokyo
¥ 2,600.00
-40.00 -1.52%
Volume: 2.40M
April 8, 2020 3:00p
P/E Ratio
N/A
Dividend Yield
0.77%
Market Cap
¥1197.46 billion
Rev. per Employee
¥26.86M
loading...
/zigman2/quotes/201785256/delayed
JP : Japan: Tokyo
¥ 839.10
+6.30 +0.76%
Volume: 9.91M
April 8, 2020 3:00p
P/E Ratio
6.79
Dividend Yield
3.58%
Market Cap
¥1942.81 billion
Rev. per Employee
¥29.74M
loading...
/zigman2/quotes/210598127/delayed
CN : China: Shanghai
2,815.37
-5.39 -0.19%
Volume: 24.35B
April 8, 2020 3:01p
loading...
/zigman2/quotes/210598015/delayed
CN : Shenhzen Stock Exchange
1,740.65
-2.72 -0.16%
Volume: 39.69B
April 8, 2020 3:00p
loading...

This Story has 0 Comments
Be the first to comment
More News In
Markets

Story Conversation

Commenting FAQs »

Partner Center

World News from MarketWatch

Link to MarketWatch's Slice.