Tuesday, June 1, 2010
May 31, 2010
FGC BOLSA - FGC FINANCIAL MARKETS.-The Japan Times: Business.- Wen open to treaty to end gas field row. (Japan June, 1rst., 2010)
Tuesday, June 1, 2010
Chinese Premier Wen Jiabao agrees to begin bilateral negotiations on a treaty over gas fields in the East China Sea.
The Hatoyama administration finds itself in an increasingly tight spot after the Social Democratic Party signals it would side with a no-confidence motion against the Cabinet.
Japan Airlines terminates all of its flights at Kobe Airport as part of its restructuring.
Monday, May 31, 2010
Asian Stocks Fall on Japan Political Concern; Toyota, Sony Drop - Bloomberg.com: "By Masaki Kondo and Satoshi Kawano. (Japan June 1rst., 2010)
Asian Stocks Fall on Japan Political Concern; Toyota, Sony Drop - Bloomberg.com: "By Masaki Kondo and Satoshi Kawano
June 1 (Bloomberg) -- Asian stocks fell, extending the MSCI Asia Pacific Index’s biggest monthly drop since October 2008, as speculation over the future of Japanese Prime Minister Yukio Hatoyama dragged the country’s equities lower.
Toyota Motor Corp., Japan’s largest automaker, sank 1.4 percent. Sony Corp., which gets 69 percent of its sales outside Japan, dropped 1.5 percent as a stronger yen threatened to hurt the value of overseas revenue. Tokyo Electric Power Co. led gains among utilities after Goldman Sachs Group Inc. upgraded the stock.
The MSCI Asia Pacific Index declined 0.4 percent to 113.04 as of 10:20 a.m. in Tokyo, with more than two stocks gaining for each that fell. Japan’s Nikkei 225 Stock Average lost 0.8 percent before a meeting between Hatoyama and Ichiro Ozawa, secretary-general of the ruling party, to discuss the party’s future.
“Political turmoil may make some investors refrain from buying stocks,” said Toshiyuki Kanayama, a market analyst at Tokyo-based Monex Inc. “There’s also risk in selling stocks, considering the earnings recovery and relatively low valuations.”
Chinese equities may be active after a purchasing managers’ index showed the country’s manufacturing industry expanded at a slower pace in May. Australia’s S&P/ASX 200 Index dropped 0.8 percent. The Kospi Index slumped 0.4 percent in Seoul.
Exporters in Japan declined as the yen strengthened to 111.59 per euro today from 112.59 at the 3 p.m. close of stock trading in Tokyo yesterday, while appreciating to 90.99 per dollar from 91.52. A stronger yen reduces the value of overseas sales at Japanese companies when repatriated.
Japanese stocks fell after Hatoyama pledged appropriate action in the face of plunging approval ratings. Three polls released on May 30 showed Prime Minister Hatoyama’s rating at or below 20 percent and six in 10 voters think he should quit.
Yahoo Japan Corp. and Murata Manufacturing Co. gained after brokerages raised their investment ratings.
To contact the reporters for this story: Masaki Kondo in Tokyo at firstname.lastname@example.org; Satoshi Kawano in Tokyo at email@example.com.
Last Updated: May 31, 2010 21:21 EDT
European Market Updates
European Stocks May See Cautious Start: "European Stocks May See Cautious Start
5/31/2010 2:25 AM ET
TOP MARKET NEWS
Apple Sells More Than Two Mln IPads In 59 Days - Update
Euro Mixed Against Majors
Emerging Countries Strengthen World Economy, Central Bankers Say
Canadian Dollar Eases Against Most Majors
Gold Fields Chairman Alan Wright To Retire; Names Mamphela Ramphele Successor - Update
(RTTNews) - European stocks may open on a flat to slightly subdued note Monday, weighed by a negative close on Wall Street Friday after the downgrade of Spain's credit rating. That said, sentiment could be aided by higher U.S stock futures, rising oil prices and gains in Asia Monday.
The major U.S averages lost around a percent each on Friday after ratings agency Fitch downgraded Spain's credit rating. However, the Dow futures are now rising by 46 points. The U.S. markets will remain shut today for the 'Memorial Day' Holiday. The U.K market is also closed for the Spring Bank holiday.
After settling down 0.8% at $73.97 a barrel on Friday, light, sweet crude futures for July delivery are now trading firm above $74 a barrel in Asian trading.
Fitch Ratings downgraded Spain's Long-term foreign and local currency Issuer Default Ratings to 'AA+' from 'AAA'. The rating outlooks on both long-term IDRs are Stable. This comes a few weeks after S&P downgraded Spain one notch to AA from AA+ and kept a negative outlook.
In other economic news, European Central Bank President Jean-Claude Trichet on Monday said emerging countries remain a source of strength for the world economy following the global financial downturn. 'One distinctive aspect of this crisis has been its originating in industrial economies,' he said via a video address to a Bank of Korea conference in Seoul.
'Emerging economies have also been severely affected, but as a group remained a source of strength for the world economy. It is therefore not surprising that the crisis has led to even better recognition of their increased economic importance and need for full integration into global governance, ' he said.
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GLOBAL FINANCIAL CRISIS
Posted June 1, 2010 07:18:00Investors on the local market will be taking their cues today largely from official data and from the Reserve Bank's decision, with both London and New York stock exchanges closed overnight for public holidays.
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