Asian markets mostly dipped on Tuesday (Apr 26) on investor caution before Federal Reserve and Bank of Japan policy meetings later in the week, while oil prices rallied after the previous day's sharp losses
A man uses a mobile phone in front of an electronic stock indicator of a
securities firm in Tokyo. (Photo: AP/Shizuo Kambayashi)
HONG KONG: Asian markets mostly dipped on Tuesday (Apr 26)
on investor caution before Federal Reserve and Bank of Japan policy
meetings later in the week, while oil prices rallied after the previous
day's sharp losses
Having piled up healthy gains last week, traders took a step
back before the Fed meeting which they hope will provide some forward
guidance on its policy plans, while the corporate earnings season also
kicks off.
"Overall we're in wait-and-see mode," Toshihiko Matsuno,
chief strategist at SMBC Friend Securities Co. in Tokyo, told Bloomberg
News. "It's easier for investors to lighten their positions so damage
will be limited in case something unexpected happens in US and Japanese
monetary policy."
After the turmoil across world markets at the start of the
year, the Fed has lowered expectations of rate rises this year - saying
it would closely watch overseas developments before moving.
Traders have predicted the next rise will be towards the end
of the year but every utterance from the bank will be pored over for
clues about its thinking.
Japan's Nikkei index ended 0.5 per cent lower, with the yen
holding Monday's gains against the dollar despite speculation the
country's central bank will ramp up its stimulus when a two-day policy
meeting ends Thursday.
The dollar was at ¥110.96, having pushed towards ¥112 at the
end of last week on speculation the Bank of Japan would unveil fresh
measures.
The BoJ has been tipped to further ease monetary policy
after this month's double earthquake in the south which caused factory
closures at a time when the economy is already stuttering.
MITSUBISHI CRASH
Wednesday sees the start of the earnings season, with Sony
and Nintendo among a slate of big-name firms set this week to report
results for the fiscal year through March.
Among other markets Sydney lost 0.3 per cent while Singapore shed 0.8 per cent and Wellington lost more than one per cent.
However, Hong Kong closed up 0.5 per cent thanks to a late
rally while Shanghai added 0.6 per cent after losing about four per cent
last week. Seoul also reversed initial selling to close up 0.3 per
cent.
In early European trade London and Frankfurt each gained 0.6 per cent and Paris added 0.2 percent.
The two main crude oil contracts - West Texas Intermediate and Brent - were up in the afternoon, having swung through the day.
They dived on Monday on a report that Saudi Arabia was close
to finishing a key oilfield expansion to help it boost output.
Investors are now awaiting a US stockpiles report Wednesday that will
give a handle on the state of the world crude market.
In Tokyo trade Mitsubishi Motors plunged almost 10 per cent,
a fifth straight hammering that has seen it give up more than 50 per
cent and wiped billions off its valuation owing to a fuel-efficiency
scandal linked to hundreds of thousands of cars.
The latest collapse came after a report that the carmaker
may have used fuel-efficiency tests inconsistent with government
guidelines since the 1990s.
After the market closed the firm admitted using improper fuel tests
since 1991 but said it did not know how many models were affected.
- Key figures around 0800 GMT -
Tokyo - Nikkei 225: DOWN 0.5 per cent at 17,353.28 (close)
Shanghai - Composite: UP 0.6 per cent at 2,964.70 (close)
Hong Kong - Hang Seng: UP 0.5 per cent at 21,407.27 (close)
London - FTSE 100: UP 0.6 per cent at 6,295.19
Euro/dollar: UP at US$1.1268 from US$1.1266 Monday
Dollar/yen: DOWN at ¥110.96 from ¥111.21
New York - Dow: DOWN 0.2 per cent at 17,977.24 (close)
- AFP/ec
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