Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Shanghai drop amplifies falls elsewhere

15.01 AEDT, Monday 4 March 2013

Shanghai drop amplifies falls elsewhere
By Tim Waterer (Senior Trader, CMC Markets)

With this week’s global economic calendar looking stacked with potentially market-moving events, investors across Asia were largely exhibiting caution rather than optimism to kick things off today. However, the mind-set of negativity was not uniform across all Asian bourses, with the Japanese market liking what they heard from (BOJ Governor nominee) Kuroda in terms of his game plan to tackle deflation.

While the Nikkei was in good spirits to start the week, sliding property stock prices on the Chinese market caused higher yielding assets elsewhere across the region to retreat. The sharp drop on the Shanghai market had an amplifying effect on the negative performance of the ASX200, with the Australian market having commenced the day with losses far more modest in nature.

Ex-dividend trading from BHP played its part in the ASX200 slide, while lower trading on commodity markets to end last week set the stage for a weak showing by the resource stocks in general. A decline in base metals left the key miners on the Australian market particularly susceptible today, as illustrated by the clear underperformance of the Materials sector. That is not to say there was much joy elsewhere on the market today, with index pullbacks in the order of 1% or so becoming noticeably more common place in the past several weeks.

Trading conditions and events today were clearly not conducive to a good performance from the AUD, with support at 1.0150 being called into question following poor local building approvals data as well as Chinese equity market woes. Throw into the mix the upcoming RBA interest rate decision and general US Dollar strength and it is apparent that the Aussie Dollar has its work cut out at the moment. The AUD may be relying on the RBA striking a hawkish tone on Tuesday if the currency is to halt the slide.


© Scoop Media

Business Headlines | Sci-Tech Headlines


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news