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.

ENDS

http://www.cmcmarkets.com/

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news