Asian stocks declined, dragging a regional benchmark index lower for a third day, as lower-than- forecast growth in U.S. service industries and jobs sparked concern the recovery in the world’s biggest economy is faltering.
James Hardie Industries SE (JHX), the largest seller of home siding in the U.S., and Billabong International Ltd., the world’s biggest surfwear maker, dropped at least 1.6 percent. Bharti Airtel Ltd., India’s largest mobile-phone operator, sank 3.2 percent in Mumbai after posting a worse-than-estimated decline in earnings. TPK Holding Co., the maker of touch screens for computers and hand-held devices, jumped 6.9 percent in Taipei after earnings that exceeded analysts’ estimates.
“The U.S. economic data looks to have lost significant momentum in the most recent month, and this is weighing on markets,” said Stephen Halmarick, Sydney-based head of investment markets research at Colonial First State Global Asset Management, which oversees about $150 billion.
The MSCI Asia Pacific excluding Japan Index fell 0.6 percent to 492.79 as of 6:57 p.m. in Hong Kong, with about three stocks declining for every two that advanced. The measure lost 0.3 percent last week as companies from Acer Inc. to LG Electronics Inc. posted earnings that missed estimates, sparking concern global growth may not be sustained even as the U.S. Federal Reserve renewed its pledge to stimulate the world’s biggest economy.
The Philippine Stock Exchange Index fell 1.2 percent as the country’s inflation accelerated in April to the fastest pace in 24 months. After the stock market close, the Philippine central bank raised its benchmark interest rate for a second time this year. Indonesia’s Jakarta Composite index was little changed after the nation’s economic growth slowed last quarter as investment eased.
Australia Retail Sales
Hong Kong’s Hang Seng Index (HSI) fell 0.2 percent, capping its longest streak of daily declines since the collapse of Lehman Brothers Holdings Inc. in September 2008. China’s Shanghai Composite Index climbed 0.2 percent, erasing losses of as much as 0.6 percent earlier. Markets in Japan, South Korea and Thailand were closed for a public holiday.
Australia’s S&P/ASX 200 Index increased 0.3 percent at the close. The gauge fell as much as 0.5 percent earlier after a report showed the nation’s retail sales unexpectedly fell in March. Taiwan’s Taiex Index advanced 0.8 percent.
Futures on the Standard & Poor’s 500 Index lost 0.4 percent today. U.S. stocks dropped in New York yesterday for a third day as the nation’s services industries expanded in April at the slowest pace in eight months, missing economist estimates, and companies added fewer-than-forecast jobs. The S&P 500 and the Dow Jones Industrial Average both declined 0.7 percent.
U.S. Jobs
The Institute for Supply Management’s index of non- manufacturing companies declined to 52.8 last month, lower than the median forecast of economists surveyed by Bloomberg News, from 57.3 in March, a report showed yesterday. Readings greater than 50 signal growth. Another report showed the pace of hiring cooled in April.
Employment increased by 179,000 in April from a revised 207,000 the prior month, according to figures from ADP Employer Services. The median estimate in the Bloomberg News survey called for a 198,000 advance this month.
James Hardie, which gets about 72 percent of sales from the U.S., declined 2.3 percent to A$5.65. Billabong International Ltd. (BBG), the world’s largest surf-wear maker, fell 1.6 percent to A$6.61. Foxconn International Holdings Ltd. (2038), the world’s No. 1 contract manufacturer of mobile phones, dipped 1.1 percent to HK$4.34 in Hong Kong.
News Corp. (NWSA)’s Class B shares sank 3.4 percent to A$16.69 in Sydney after the owner of Fox Broadcasting and the Twentieth Century Fox film studio said third-quarter net income declined 24 percent from a year ago to $639 million on falling movie revenue.
Asian Earnings
Bharti declined 3.2 percent to 357.90 rupees. The company said fourth-quarter net income dropped 31 percent from a year ago to 14 billion rupees ($314 million). That lagged behind the 16.3 billion rupees average of 10 analysts’ estimates compiled by Bloomberg.
The MSCI Asia Pacific excluding Japan Index climbed 3.5 percent this year through yesterday, compared with gains of 7.1 percent by the S&P 500 and 1 percent by the Stoxx Europe 600 Index. Stocks in the Asian benchmark index are valued at 12.9 times estimated earnings on average as of the last close, compared with 13.6 times for the S&P 500 and 11.3 times for the Stoxx 600.
About 42 percent of companies on the Asian benchmark index that reported earnings since April 11 beat analysts’ estimates. That compares with 62 percent for the MSCI World Index of developed stock markets.
Property developers in Hong Kong retreated after a government report showed home sales in April declined 37.6 percent from a year earlier to 7,635. That’s the lowest since March 2009, according to data compiled by Bloomberg. The value of transactions slid 26.8 percent from a year earlier to HK$39 billion ($5 billion), the biggest yearly drop since June 2010, the report showed.
Hong Kong Developers
Hang Lung Properties Ltd. (101), Hong Kong’s third-biggest developer by market value, fell 1.6 percent to HK$33.50. Cheung Kong Holdings Ltd. (1), controlled by billionaire Li Ka-shing, dropped 0.6 percent to HK$118.90. New World Development Co., a real-estate company controlled by billionaire Cheng Yu-tung, lost 0.6 percent to HK$13.38.
San Miguel Corp. (SMC), the Philippines’ biggest food and beverage maker, tumbled 28 percent to 109.50 pesos, the worst performance since 1990. The company said it and controlling shareholder Top Frontier Investment Holdings Inc. sold shares at a discounted price of 110 pesos each. The sale of shares and convertible bonds raised $1 billion, it said.
Among stocks that advanced, Woodside Petroleum Ltd. (WPL), Australia’s second-biggest oil and gas producer, climbed 1.9 percent to A$45.55 in Sydney. The Perth-based oil and natural gas explorer said it discovered 18 meters of new oil-bearing sand in the Laverda North-2, off Australia’s west coast. The Greater Laverda area may have 100 million barrels of oil that has the potential to be recovered, the company said.
TPK Holding Co. jumped 6.9 percent to NT$941 in Taipei. The company’s first-quarter profit was NT$2.47 billion ($86.4 million), 39 percent higher than the mean estimate of 13 analysts polled by Bloomberg.
Source: www.bloomberg.com
James Hardie Industries SE (JHX), the largest seller of home siding in the U.S., and Billabong International Ltd., the world’s biggest surfwear maker, dropped at least 1.6 percent. Bharti Airtel Ltd., India’s largest mobile-phone operator, sank 3.2 percent in Mumbai after posting a worse-than-estimated decline in earnings. TPK Holding Co., the maker of touch screens for computers and hand-held devices, jumped 6.9 percent in Taipei after earnings that exceeded analysts’ estimates.
“The U.S. economic data looks to have lost significant momentum in the most recent month, and this is weighing on markets,” said Stephen Halmarick, Sydney-based head of investment markets research at Colonial First State Global Asset Management, which oversees about $150 billion.
The MSCI Asia Pacific excluding Japan Index fell 0.6 percent to 492.79 as of 6:57 p.m. in Hong Kong, with about three stocks declining for every two that advanced. The measure lost 0.3 percent last week as companies from Acer Inc. to LG Electronics Inc. posted earnings that missed estimates, sparking concern global growth may not be sustained even as the U.S. Federal Reserve renewed its pledge to stimulate the world’s biggest economy.
The Philippine Stock Exchange Index fell 1.2 percent as the country’s inflation accelerated in April to the fastest pace in 24 months. After the stock market close, the Philippine central bank raised its benchmark interest rate for a second time this year. Indonesia’s Jakarta Composite index was little changed after the nation’s economic growth slowed last quarter as investment eased.
Australia Retail Sales
Hong Kong’s Hang Seng Index (HSI) fell 0.2 percent, capping its longest streak of daily declines since the collapse of Lehman Brothers Holdings Inc. in September 2008. China’s Shanghai Composite Index climbed 0.2 percent, erasing losses of as much as 0.6 percent earlier. Markets in Japan, South Korea and Thailand were closed for a public holiday.
Australia’s S&P/ASX 200 Index increased 0.3 percent at the close. The gauge fell as much as 0.5 percent earlier after a report showed the nation’s retail sales unexpectedly fell in March. Taiwan’s Taiex Index advanced 0.8 percent.
Futures on the Standard & Poor’s 500 Index lost 0.4 percent today. U.S. stocks dropped in New York yesterday for a third day as the nation’s services industries expanded in April at the slowest pace in eight months, missing economist estimates, and companies added fewer-than-forecast jobs. The S&P 500 and the Dow Jones Industrial Average both declined 0.7 percent.
U.S. Jobs
The Institute for Supply Management’s index of non- manufacturing companies declined to 52.8 last month, lower than the median forecast of economists surveyed by Bloomberg News, from 57.3 in March, a report showed yesterday. Readings greater than 50 signal growth. Another report showed the pace of hiring cooled in April.
Employment increased by 179,000 in April from a revised 207,000 the prior month, according to figures from ADP Employer Services. The median estimate in the Bloomberg News survey called for a 198,000 advance this month.
James Hardie, which gets about 72 percent of sales from the U.S., declined 2.3 percent to A$5.65. Billabong International Ltd. (BBG), the world’s largest surf-wear maker, fell 1.6 percent to A$6.61. Foxconn International Holdings Ltd. (2038), the world’s No. 1 contract manufacturer of mobile phones, dipped 1.1 percent to HK$4.34 in Hong Kong.
News Corp. (NWSA)’s Class B shares sank 3.4 percent to A$16.69 in Sydney after the owner of Fox Broadcasting and the Twentieth Century Fox film studio said third-quarter net income declined 24 percent from a year ago to $639 million on falling movie revenue.
Asian Earnings
Bharti declined 3.2 percent to 357.90 rupees. The company said fourth-quarter net income dropped 31 percent from a year ago to 14 billion rupees ($314 million). That lagged behind the 16.3 billion rupees average of 10 analysts’ estimates compiled by Bloomberg.
The MSCI Asia Pacific excluding Japan Index climbed 3.5 percent this year through yesterday, compared with gains of 7.1 percent by the S&P 500 and 1 percent by the Stoxx Europe 600 Index. Stocks in the Asian benchmark index are valued at 12.9 times estimated earnings on average as of the last close, compared with 13.6 times for the S&P 500 and 11.3 times for the Stoxx 600.
About 42 percent of companies on the Asian benchmark index that reported earnings since April 11 beat analysts’ estimates. That compares with 62 percent for the MSCI World Index of developed stock markets.
Property developers in Hong Kong retreated after a government report showed home sales in April declined 37.6 percent from a year earlier to 7,635. That’s the lowest since March 2009, according to data compiled by Bloomberg. The value of transactions slid 26.8 percent from a year earlier to HK$39 billion ($5 billion), the biggest yearly drop since June 2010, the report showed.
Hong Kong Developers
Hang Lung Properties Ltd. (101), Hong Kong’s third-biggest developer by market value, fell 1.6 percent to HK$33.50. Cheung Kong Holdings Ltd. (1), controlled by billionaire Li Ka-shing, dropped 0.6 percent to HK$118.90. New World Development Co., a real-estate company controlled by billionaire Cheng Yu-tung, lost 0.6 percent to HK$13.38.
San Miguel Corp. (SMC), the Philippines’ biggest food and beverage maker, tumbled 28 percent to 109.50 pesos, the worst performance since 1990. The company said it and controlling shareholder Top Frontier Investment Holdings Inc. sold shares at a discounted price of 110 pesos each. The sale of shares and convertible bonds raised $1 billion, it said.
Among stocks that advanced, Woodside Petroleum Ltd. (WPL), Australia’s second-biggest oil and gas producer, climbed 1.9 percent to A$45.55 in Sydney. The Perth-based oil and natural gas explorer said it discovered 18 meters of new oil-bearing sand in the Laverda North-2, off Australia’s west coast. The Greater Laverda area may have 100 million barrels of oil that has the potential to be recovered, the company said.
TPK Holding Co. jumped 6.9 percent to NT$941 in Taipei. The company’s first-quarter profit was NT$2.47 billion ($86.4 million), 39 percent higher than the mean estimate of 13 analysts polled by Bloomberg.
Source: www.bloomberg.com
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