Aug 10, 2011
HONG KONG (MarketWatch) — Mainland Chinese and South Korean stocks rebounded, and some of the other Asian markets came off their lows on Thursday, as investors circled back into equities, attracted by cheap valuations.
China’s Shanghai Composite Index CN:000001 +0.43% rose 0.4%, South Korea’s Kospi KR:0100 -0.15% added 0.7%, and Taiwan’s Taiex gained 0.1%, with each erasing initial losses.
Australia’s S&P/ASX 200 index AU:XJO -0.59% slipped 0.5% after changing direction a few times, while Hong Kong’s Hang Seng Index HK:HSI -1.59% was 1.6% lower, and Japan's Nikkei Stock Average JP:NIK -0.92% was down 0.9% in afternoon trading.
“At the current level, valuations look just too attractive. A lot of people have already sold what they needed to, so maybe there is some room to buy,” said Yoji Takeda, head of Asian equities at RBC Investment.
Dow plummets 519 points The Dow Jones Industrial Average plunges to an 11-month low as investors are squeezed between fears of further contagion among European banks and the Federal Reserve's gloomy economic outlook
Takeda said that while it’s difficult to make forecasts under currently volatile market conditions, the sell-offs in recent sessions were because of “psychological” factors.
“As time goes, [volatility] will probably subside” and markets will stabilize, he said.
The choppy session followed another day of hefty losses Wednesday on Wall Street, when the Dow Jones Industrial Average DJIA -4.62% tumbled 4.6% on worries that European debt troubles were now spreading to France.
On Wednesday, the cost of insuring the French government’s debt rose to new highs, although all three major ratings agencies affirmed the country’s rating. Read more on U.S. stock losses.
“We think a sustained rally in risk assets depends on a significant and sustained reduction in euro-zone debt anxiety. It will take either strong global growth or a comprehensive solution to the debt crisis. Neither is the baseline scenario,” said Prakash Sakpal, an economist at ING Financial Markets Research.
Gains in Shanghai were led by airline stocks on hopes that steep recent fall in crude-oil prices would cut their fuel costs, with bargain buyers also circling back into some financial and property shares.
Shares of Air China Ltd. AIRYY +2.59% CN:601111 +4.68% HK:753 +1.45% jumped 4.8% and China Eastern Airlines Corp. CEA -6.84% HK:670 +1.18% CN:600115 +8.70% soared 8.1%. The Hong Kong-listed stocks of the airlines gained 1.8% and 3%, respectively.
Attractive valuations also pushed several financials higher in the region, with China Construction Bank Corp. CICHY -2.46% HK:939 +1.52% rising 1.9%, and Bank of China Ltd. HK:3988 -0.33% BACHY -4.28% adding 0.7% in Hong Kong.
Cathay Financial Holding Ltd. jumped 4.3% in Taipei, while Australia & New Zealand Banking Group Ltd. AU:ANZ +1.21% ANEWF +3.76% climbed 1.5% in Sydney, and Korea Exchange Bank rose 3.1% in Seoul.
HSBC Holdings PLC UK:HSBA -5.28% HBC +1.20% HK:5 -3.04% , dropped 3%, however, after trading in the stock was suspended Wednesday afternoon because of a disruption to the exchange’s corporate-announcements website.
Shares of Tencent Holdings Ltd. HK:700 -5.77% TCEHY -12.76% , Cathay Pacific Airways Ltd. HK:293 -3.55% CPCAY -4.20% and Hong Kong Exchanges & Clearing Ltd. HK:388 -3.33% HKXCY -3.15% all dropped — by 4.9%, 3.6% and 2.6%, respectively — after each reported their first-half results. The losses in Cathay and HKEx came after their stocks were also suspended in Wednesday’s afternoon trading. See report on Hong Kong stock exchange alleged hacking attack.
Supporting the Australian stock market, shares of Telstra Corp. AU:TLS +4.59% TTRAF 0.00% rose 4.8% after the telecommunications major’s profits beat analyst forecasts. See report on Telstra earnings.
Japanese financials and exporters were among the major losers in Tokyo, after a tumble for their Wall Street peers. Shinsei Bank Ltd. JP:8303 -4.40% SKLKF +9.01% fell 4.4%, while larger rival Mitsubishi UFJ Financial Group Inc. MTU -3.39% JP:8306 -1.65% dropped 2.2%.
With the dollar USDJPY -0.32% dropping below the 77-yen mark, exporters suffered, as Panasonic Corp. JP:6752 -1.60% fell 1.8%, and Sony Corp. JP:6758 -2.18% SNE +1.07% surrendered 2.4%.
Varahabhotla Phani Kumar is a reporter in MarketWatch's Hong Kong bureau. Sarah Turner is MarketWatch's bureau chief in Sydney.
Techcompany: The legal traps of leaping into the cloud, The tech bubble that never was, Are we searching ourselves into recession?
|Carbon debate fires up as Abbott returns|
|TONY Abbott is back from holidays and set to resume his campaign against the Gillard government's carbon tax.|
Julia Gillard is in Esperance, Western Australia. She'll attend a community forum tonight on the carbon price, organised by the West Australian newspaper and Sky News. Earlier, she'll be talking about the government's support for a national disabilities insurance scheme. Her first event of the day will be mid-morning, WA time.
The Opposition Leader is refreshed and raring to go after a week-long family holiday in France and the UK. He's in Perth today, visiting a local manufacturer of environmentally-friendly products "that will be adversely affected by the carbon tax".
Hostilities resume: With Tony Abbott back in the country, the debate will shift once more to the government's carbon tax. The PM did well from the climate brawl suspension, chalking up some major policy announcements on health, aged care and disabilities. But there's only one issue the Opposition Leader wants to talk about.
Lifeline: Papua New Guinea has handed the Gillard government a second offshore processing option as its Malaysian Solution flounders in the High Court. A spokesman for new PNG PM Peter O'Neill said the time frame for the reopening was "Australia's call".
Blue line: The Department of Immigration and Citizenship is drawing up a memorandum of understanding with state and federal police forces that would see local police become involved in security at detention centres. The recent Villawood riots convinced authorities that changes to security arrangements were necessary, with clear lines of responsibility between the department, police and detention centre operator Serco.
No surrender: Civilian workers at the Department of Defence have voted to take industrial action for the first time in 20 years. They're among 75,000 APS employees who've rejected pay offers in the latest bargaining round. CPSU secretary Nadine Flood said industrial action would commence if there was no progress in pay talks this week.
|Events, dear boy|
|You might have missed it, but a Newspoll came out yesterday. A standard one with no extras, and the numbers were pretty much a carbon…|
|More Peter Brent|
By Benjamin Pimentel, MarketWatch
SAN FRANCISCO (MarketWatch) — Shares of Cisco Systems Inc. jumped in after-hours trading on Wednesday after the tech giant reported slightly better-than-expected results despite posting a 36% drop in profit.
Cisco CSCO +7.02% shares rose 10% in after-hours trading as the company’s fiscal fourth-quarter financials exceeded Wall Street’s projections.
The real numbers behind Groupon Groupon may be the fastest-growing company in the history of mankind. But is some air coming out of the Groupon balloon?
Chief Executive John Chambers touted the company’s bid to become a more competitive and agile competitor. But he also underscored the ongoing weakness in the public sector market.
The company reported a profit of $1.2 billion, or 22 cents a share, compared with a profit of $1.9 billion, or 33 cents a share, for the year-earlier period. Revenue rose slightly to $11.2 billion, from $10.8 billion. Adjusted income was 40 cents a share.
The company’s results included pretax charges of $772 million and $923 million, respectively, related to restructuring and other charges.
Analysts had expected the San Jose, Calif.-based networking gear company to post earnings of 38 cents a share, on revenue of $11 billion, according to a consensus survey by FactSet Research.
“As we start our next fiscal year, you will see a very focused, agile, lean and aggressive company, that is laser focused on helping our customers use intelligent networks to transform their businesses,” Chambers said in a statement.
Ticonderoga Securities analyst Brian White said in a note that “Overall, the print looks clean and reflects solid execution by the company in a challenging market environment.”
Benjamin Pimentel is a MarketWatch reporter based in San Francisco.
The Economist | Selected new Articles: Buttonwood (looking for the bottom of the Market) / Blighty (London Burns) / Schumpeter ( Apple World's Biggest Public Company)... and More
Buttonwood: Looking for the bottom of the market
Blighty: London burns
Schumpeter: Apple becomes, briefly, the world's biggest public company
Democracy in America: Bachmann and the good book
Banyan: North Korean computer hackers
Johnson: The family tree of a mongrel language
Daily chart: How much of an iPhone is a Samsung?
Online debate: Is immigration bad for Europe?
|Banks drag Wall Street lower as fear returns|
|NEW YORK (Reuters) - Fear returned to Wall Street on Wednesday, sending the S&P 500 to another 4 percent decline, triggered by worries that Europe's debt crisis could engulf French banks and spill onto the U.S. financial sector. | Full Article|
|Most Americans say U.S. on wrong track: poll|
|August 10, 2011 04:21 PM ET|
|WASHINGTON (Reuters) - Economic fears are weighing heavily on Americans, with a large majority saying the United States is on the wrong track and nearly half believing the worst is yet to come, a Reuters/Ipsos poll said on Wednesday. | Full Article|
|Cisco's fourth quarter revenue beats view, shares firm|
|August 10, 2011 04:23 PM ET|
|SAN FRANCISCO (Reuters) - Cisco Systems Inc's quarterly revenue edged past Wall Street's expectations in a sign that IT spending held up despite warnings of a severe pullback, buoying its shares in extended trading. | Full Article|
|News Corp profit down as movies offset cable|
|August 10, 2011 04:27 PM ET|
|NEW YORK (Reuters) - News Corp reported a lower quarterly profit on Wednesday as weaker box office and DVD sales offset a strong performance by its cable and television business. | Full Article|
|Mutual fund outflows biggest since March 2009: ICI|
|August 10, 2011 04:33 PM ET|
|NEW YORK (Reuters) - Investors pulled the most money out of U.S. mutual funds in the week ended August 3 since the depths of the stock market collapse in March 2009, with net redemptions of $16.9 billion, data from the Investment Company Institute showed on Wednesday. | Full Article|
Stock investors hit sell; Dow closes down 520 pts: MarketWatch | U.S. Stock Market at Close - Market Pulse
By Laura Mandaro
Personal Finance Daily
AUGUST 10, 2011
Retailers are waging a back-to-school price war
- U.S. markets traverse less-charted territory
- Retailers wage back-to-school price war
- Top 10 real-estate markets in U.S. college towns
- Make this estate-planning move now
The U.S. markets have broken down technically over the past three sessions, Michael Ashbaugh writes today in a free edition of The Technical Indicator. He says that while a corrective bounce is overdue — and currently underway — serious technical repairs will be needed before the next sustainable market upturn. Looking ahead, he says, a close atop 1,200 for the S&P 500 would mark a first step toward stabilization, though a sustained break atop 1,250 would more firmly neutralize this month's breakdown. Check out his fascinating technical analysis of the current market activity.
— Anne Stanley, Managing Editor, Personal Finance
Retailers wage back-to-school price war
With costs rising for everything from apparel to food, retailers are waging a price war this back-to-school shopping season.
Read more: Retailers wage back-to-school price war.
U.S. markets traverse less-charted territory
The U.S. markets have broken down technically over the past three sessions, Michael Ashbaugh writes today in a free edition of The Technical Indicator.
Read more: U.S. markets traverse less-charted territory.
Top 10 real-estate markets in U.S. college towns
Is it time to invest in college-town real estate? Housing demand is usually high in such places, vacancy rates are low and rental prices are on the rise, according to Move Inc. Here are 10 college towns where it could pay off to invest in a rental property.
Read more: Top 10 real-estate markets in U.S. college towns.
Make this estate-planning move now
With the current $5 million federal estate tax exemption, you may not be thinking much about estate planning. After all, there's no way your estate would owe the tax if you happen to die between now and 2013. So no worries, right? Wrong.
Read more: Make this estate-planning move now.
ECONOMY AND POLITICS
U.S. moves to sell, rent 92,000 foreclosed homes
Struggling to clear its inventory of foreclosed properties, the Obama administration said Wednesday it's considering converting over 90,000 foreclosed properties owned by the U.S. government into rental units, in a sign of the depths to which the U.S. housing market has sunk.
Read more: U.S. moves to sell, rent 92,000 foreclosed homes.
Fed isn't done, experts say
A day after the Fed's historic pledge to keep rates near zero for the next two years, experts said they expect more moves from the central bank in coming months.
Read more: Fed isn't done, experts say.
Will Australia hike rates or cut them?
As the Federal Reserve pledges an interest rates pause for a least two years, speculation is mounting that its Australian counterpart will soon begin cutting rates, as global economic uncertainty drains consumer and business confidence in the nation.
Read more: Will Australia hike rates or cut them?
China's trade surplus widens more than forecast
Chinese trade surplus widens sharply in July, boosted by above-forecast export growth and offering an upbeat sign for the country's economy.
Read more: China's trade surplus widens more than forecast.
Money managers called the summer market plunge
A few people predicted the market crash. Columnist Al Lewis tells us the story of two money managers who got it right.
Read more: Money managers called the summer market plunge.
Betting on Bank of America over Apple
Apple's stock is on an unbelievable tear, while Bank of America is off nearly 50% from its 52-week high. Yet Rob Arnott, founder of Research Affiliates, makes a strong case that Bank of America is the better bet.
Read more: Betting on Bank of America over Apple.
The second side of the financial storm
If our past was focused on wealth, accumulation and consumption, the next few years will witness a migration toward something altogether more austere, if not more sensible, writes Todd Harrison.
Read more: The second side of the financial storm
The euro: How Europe's grand dream went sour
In excerpts from his definitive history of the euro, MarketWatch columnist David Marsh chronicles the European monetary union's rise and fall, and asks: Where now for the euro?
Read more: The euro: How Europe's grand dream went sour.
» Read full article
» Read full article
» Read full article
» Read full article
» Read full article
Spot Prices as of the close of trading in New York
As of: Wednesday August 10, 2011
|Today||Change||Week Ago||Month Ago||Year Ago|
|London Fix Wed Aug 10 00:00:00 EDT 2011|
| Metals || Gold || Silver || Platinum || Palladium |
|Tips for Traders |
Never Ditch a Proven Indicator, Greg Harmon
| Options Idea |
Historic Put/Call Action Seen This Week, Moby Waller
| Charts in Play |
Grabbing High Yields Overseas, Tom Aspray
| Currency Corner |
The Right Way to Trade EUR/USD Here, Jeremy Wagner
| Trading Idea of the Day |
5 ETFs for Fear-Riddled Markets, Jared Cummans
| Daily Market Studies |
Trading Outlook for Today: August 10, Daniel Gramza
| MoneyShow.com Exclusive Interviews |
A Different Look at Implied Volatility, Steve Lentz
| Today's Featured Videos |
Questions to Answer Before Your Trade, Brian Shannon
Weak Dollar Creates "Golden" Opportunity, Oliver Velez