Hong Kong shares seen weak, poised for monthly index gainHong
Kong shares could start weaker on Friday ahead of the release of the
official China PMI over the weekend and the outcome of a two-day
European leaders summit later in the day, but the benchmark index should
record a monthly gain.
Data due over the weekend is expected to
show that activity at China's factories fell to seven-month lows in
June. That would compound market concerns that the economy is stuck in a
deeper and longer downturn than anticipated.
On Thursday, the Hang Seng Index <.HSI> closed down 0.8 percent at 19,025.3. It is up 2.1 percent in June.
Seoul shares seen rangebound before EU outcomeSeoul
shares will likely be trapped in a narrow range on Friday as investors
keep to the sidelines while they await the outcome of the European
Union's debt crisis summit.
"Investors are waiting for further
developments overnight in Europe and the reaction in Wall Street before
making their bets, which will take place after the market closes out the
week here, so trading looks to be quiet as the market braces for what
might be a busy Monday," said Cho Byung-hyun, an analyst at Tong Yang
Securities.
Italy and Spain held up agreement on measures to
promote growth at a European Union summit on Thursday to demand urgent
action to bring down their borrowing costs, although EU leaders remain
deep divided over the crisis response.
South Korea cut this
year's economic growth target on Thursday and unveiled plans to boost
public spending by more than $7 billion to shore up Asia's
fourth-largest economy in the face of the euro zone crisis.
Nikkei set to rise on end-of-month short-coveringJapan's
Nikkei share average is likely to rise on Friday as a spurt of
month-end short covering winds back quarterly losses, although early
trading may be depressed after EU leaders ended the first day of a
summit at loggerheads.
The Nikkei has fallen 12 percent so far
in the second quarter, which ends today, wiping out much of the
first-quarter's 19.3 percent surge, the biggest first-quarter gain in 24
years.
Market players said the Nikkei <.N225> was likely
to trade between 8,750 to 8,950, potentially dipping initially before
gains accelerate into the afternoon session as investors unravel their
short bets.
"Hopes for any significant progress at the EU
summit have already evaporated, but if they don't even agree on the
details of the Spanish bank bailout and hint that the ECB will drop
rates, there will be disappointment," said Masayuki Doshida, senior
market analyst at Rakuten Securities.
Euro zone leaders are to
conclude the two-day meeting later on Friday to discuss how to tackle an
expanding debt zone crisis. On Thursday, Italian and Spanish leaders
refused to sign a growth package until Germany agreed to a short-term
plan to reduce the cost of their credit.
Gold down over 1 pct on US healthcare ruling, EuropeGold
fell more than 1 percent on Thursday, hit by worries of an economic
slowdown after a U.S. Supreme Court ruling upheld a landmark healthcare
law and by fading hopes that a European Union summit will resolve that
region's debt crisis.
Bullion investors were frustrated as it is
unlikely that additional stimulus will come out of the summit beginning
Thursday in Brussels, as European finance officials were working on
urgent measures to ease market pressure on Spain and Italy, which are
too big to bail out.
Earlier in the session, gold extended losses as
crude oil and U.S. equities tumbled after the Supreme Court upheld
President Barack Obama's healthcare law, which assesses a financial
penalty to individuals who do not obtain health insurance.
The metal
has for the most part of this year moved in tandem with riskier assets.
In previous years, investors often flocked to gold as a safe haven,
driving its price higher in response to economic fears.
Spot gold
<XAU=> was down 1.4 percent at $1,553.10 an ounce by 3:16 p.m. EDT
(1916 GMT), having earlier hit a four-week low at $1,547.39.
U.S. gold futures <GCQ2> for August delivery settled down $28 at $1,550.40.
Euro falls to more than 3-wk low as EU leaders meetThe
euro slipped against the dollar for a fourth straight day on Thursday
and touched its lowest in more than three weeks as doubts persisted that
a summit of European leaders will make progress in resolving the
region's deepening debt crisis.
But investors were reluctant to
punish the euro further as expectations for the summit were already very
low. Any surprise positive development could spark a short squeeze and
give the euro zone common currency a lift, analysts said.
A short
squeeze is when those who bet against a currency or security are forced
to buy to reduce losses when the market moves against their bets.
European Union leaders began the summit on Thursday deeply divided over how to resolve the euro zone's debt crisis.
Many
international investors have deserted Spanish and Italian debt, pushing
yields to levels that Madrid at least cannot afford for long as it
tries to save banks ravaged by a property market collapse and rein in an
overshooting deficit.
German Chancellor Angela Merkel has previously dismissed pleas from Rome and Madrid for rapid measures to support their bonds.
French
President Francois Hollande advocates joint "eurobonds", which would
bring down borrowing costs for the weak because the pool of guarantors
would include the strongest - principally Germany.
Germany, by
contrast, does not want to use its credit rating to support others
unless they share control of tax and spending powers first.
On
arriving at his first full EU summit after six weeks in office, Hollande
said he expected agreement on emergency steps to help euro zone
partners whose borrowing costs had reached unsustainable levels.
The
euro fell as low as $1.2405 <EUR=> on Reuters data, the weakest
since June 4. It was last down 0.2 percent at $1.2449.
Against the
yen, the euro slid 0.6 percent to 98.82 yen <EURJPY=>, having
earlier fallen to 98.30 yen, the lowest since June 6.
Wall St pares losses late, ends modestly lowerU.S.
stocks fell on Thursday but pared back sharp losses late in the session
on talk of progress by European leaders in easing the region's debt
crisis, while a Supreme Court ruling upholding a landmark healthcare law
hit large health insurers.
Markets are especially skittish about
any shift in expectations for the euro zone as European Union leaders
met on the first day of a two-day summit in Brussels.
Stocks began
lower and losses accelerated after a divided U.S. Supreme Court backed
the centerpiece of President Barack Obama's healthcare overhaul law.
The
decision surprised many investors who see the law, which requires that
most Americans obtain insurance by 2014 or face a penalty, as a hallmark
of a business unfriendly administration.
Shares later pared
losses, though major insurers such as Aetna Inc <AET.N>, which
face more regulation, ended lower. Other companies reliant on Medicaid,
such as Wellcare Health Plans Inc <WCG.N> rose as their patient
rolls are expected to increase.
The Morgan Stanley healthcare payor
index <.HMO> added 0.6 percent. Aetna ended down 2.7 percent to
$39.85; Wellcare jumped 8.8 percent to $53.98.
Shares of JPMorgan
Chase & Co <JPM.N> dropped 2.5 percent to $35.88 after a New
York Times report projecting that losses from a recent botched trade
could reach $9 billion, more than four times the original estimate. A
Reuters report estimated the losses between $4 billion to $6 billion.
U.S.-traded
shares of Barclays <BCS.N> slumped 12.1 percent to $10.84 after
Britain said it had brought in the fraud squad to investigate possible
crimes over attempts to manipulate lending rates, a scandal that is
expected to spread to other banks. Lloyds <LYG.N> fell 3.6 percent
to $1.87 in New York.
As EU leaders began the two-day summit,
finance officials were working on urgent measures to diminish financial
market pressure on Spain and Italy, which may prove to be more difficult
to bailout than smaller nations in the euro zone
Recent statements
from German Chancellor Angela Merkel have been at odds with those of
other European leaders on how to deal with the crisis, underscoring the
difficulties in reaching common ground.
The Dow Jones industrial
average <.DJI> dropped 24.75 points, or 0.20 percent, to
12,602.26. The Standard & Poor's 500 Index <.SPX> shed 2.81
points, or 0.21 percent, to 1,329.04. The Nasdaq Composite Index
<.IXIC> lost 25.83 points, or 0.90 percent, to 2,849.49.
Oil Drops to Eight-Month Low on U.S., German UnemploymentOil
fell to an eight-month low as unemployment data from the U.S. and
Germany spurred concern about the economic recovery as European Union
leaders met to address the debt crisis.
Prices dropped 3.1 percent
after the Labor Department reported U.S. applications for unemployment
benefits hovered near the highest level of 2012 last week and the prior
reading was revised up. German unemployment rose more than economists
forecast in June. Oil also fell as the Supreme Court upheld the core of
President Barack Obama’s health-care overhaul.
Crude for August
delivery declined $2.52 to $77.69 a barrel on the New York Mercantile
Exchange, the lowest settlement since October. Futures have fallen 25
percent this quarter, heading for the biggest drop since the final three
months of 2008.
Brent oil for August settlement decreased $2.14, or
2.3 percent, to $91.36 a barrel on the London-based ICE Futures Europe
exchange. It has retreated 26 percent since March 30.
Brent is set
to recover from its worst quarter since 2008 as a European Union ban on
Iranian oil takes effect, central banks act to protect growth and on
speculation OPEC will curb some of its excess supply.
Source : Reuters
Emas bergerak dekati tingginya 2 pekan hari Rabu ini, didukung oleh harapan akan adanya akomodasi tambahan kebijakan moneter dari para bank sentral guna mendukung pemulihan ekonomi global yang masih rapuh.
