Asian Stocks Erase Losses as China Opens to More Foreign Money
2012-04-05 06:06:57.137 GMT
By Yoshiaki Nohara
April 5 (Bloomberg) -- Asian stocks erased losses as Chinese developers advanced after the government said it will more than double the amount foreigners can invest in the country’s equities. Shares fell earlier on renewed concern Europe won’t be able to contain its debt crisis.
Soho China Ltd. rose 3.2 percent, leading gains among mainland property companies. NHN Corp., operator of South Korea’s largest Internet search engine, gained 8.1 percent on speculation its mobile-advertising business will boost earnings. Hutchison Whampoa Ltd. and other companies that do business in Europe slid after demand fell at a Spanish auction, sparking.
The MSCI Asia Pacific Index erased losses, trading little changed at 125.40 as of 3:03 p.m. in Tokyo after losing as much as 1.2 percent.
“Expectations for China’s additional easing are causing short-covering,” said Yutaka Miura, a senior technical analyst at Mizuho Securities Co. “It’s not that a real solution has been brought to Europe’s crisis. That’s why Spain’s debt sale is reviving concern.”
Shares fall as Europe debt worry stings risk appetite
TOKYO, April 5 (Reuters) - Asian shares fell after a weak Spanish bond sale heightened concerns about funding difficulties or weaker euro zone countries, further undermining sentiment hurt by fading expectations of more stimulus from the U.S. Federal Reserve.
"More policy support from the ECB in the near-term appears unlikely, following the hawkish slant in tone during its press conference," said Barclays Capital analysts. "Widening peripheral European government bond spreads, higher Treasuries, higher implied vol, a lower EUR and a stronger USD are reminiscent of past episodes of elevated European concern."
FOREX-Euro nurses losses after sell-off, still vulnerable
TOKYO, April 5 (Reuters) - The euro hovered within shouting distance of a three-week trough on the yen and the dollar on Thursday after a poor Spanish bond auction reignited jitters about the euro zone debt crisis, while commodity currencies were a shade stronger after a sell-off.
The euro and risk currencies have been under pressure against the dollar, which climbed broadly after Fed policy meeting minutes released on Tuesday showed the central bank was becoming less eager to print more money to bolster the economy.
US farmers resist temptation to rush corn planting
CHICAGO, April 4 (Reuters) - Many U.S. farmers are waiting for crop insurance coverage to kick in before getting too aggressive in planting corn early, resisting the temptation presented by record warm temperatures this spring, a top agronomist said on Wednesday.
"Monday's numbers from USDA certainly showed 'some' early planting but the dam has not broken yet.
Wheat ticks up after losses, market eyes crop-weather
SINGAPORE, April 5 (Reuters) - Chicago wheat edged higher as the market took a breather following an almost 3 percent fall in the last session, triggered by crop-friendly weather in the United States and Europe.
"Follow-up rain is expected for France over the Easter weekend and rains are also forecast for Germany and Britain," said Luke Mathews, commodities strategist at Commonwealth Bank of Australia in Sydney in a report.
Argentine soy, corn outlooks stable - exchange
BUENOS AIRES, April 4 (Reuters) - A leading Argentine grains exchange kept its forecasts unchanged for that country's 2011/12 corn and soy crops on Wednesday but warned that later-planted soybeans were at risk from early frosts that could crimp yields.
The Buenos Aires Grains Exchange held its estimate for soy production in the world's No. 3 exporter at 45 million tonnes and also left its forecast for the corn crop at 20.8 million tonnes.
Informa cuts Brazil, Argentina soy crop estimates
CHICAGO, April 4 (Reuters) - Private analytical firm Informa Economics lowered its forecasts for the 2011/12 soybean harvests in Brazil and Argentina and projected a year-on-year rise in U.S. 2012/13 winter wheat production, trade sources said on Wednesday.
Informa lowered its forecast of Brazil's soybean crop to 66.5 million tonnes, from its previous estimate of 68 million.
Russia grain export from reserves seen 0.5-1 mln T
MOSCOW, April 4 (Reuters) - Russia may export between 0.5 million and 1 million tonnes of grain from state inventories over an unspecified period of time, and wheat will account for over half, according to a government source, two traders and two analysts.
State intervention sales, which started on Wednesday, are envisaged at 2 million tonnes of grain from the Agriculture Ministry's 7 million tonnes of reserves.
India to build 2.5 mln bales cotton reserves
MUMBAI, April 4 (Reuters) - India has decided to build cotton reserves of 2.5 million bales of 170 kg each to meet the needs of the domestic textile industry, a government statement said on Wednesday.
State-run Cotton Corporation of India (CCI) has been directed to intervene in the market to ensure stability of prices, the statement said.
Brent rises near $123; eyes U.S. jobs report
SINGAPORE, April 5 (Reuters) - Brent crude rose towards $123 a barrel after falling sharply in the previous session on a big jump in U.S. oil inventories, as investors covered short positions ahead of a key U.S. economic report.
"There is some short covering after yesterday's big fall, and economic data is also helping," said Ken Hasegawa, a commodities derivatives manager at Newedge brokerage in Tokyo. "Trading will be quiet with everyone waiting for the U.S. employment data on Friday."
Indonesia weighs mine export tax to curb output boom
JAKARTA/PERTH, April 4 (Reuters) - Indonesia is considering a hefty tax on mining exports to stop miners from overexploiting resources to beat a 2014 ban on shipments of some unprocessed metals and lower grade coal, an official said on Wednesday, but the plan may backfire if foreign buyers turn elsewhere.
The proposal to impose a 25 percent export tax on coal and base metals - rising to 50 percent in 2013 - was greeted with a mix of confusion and scepticism as both producers and importers across Asia tried to assess its impact.
London copper gains, Shanghai cuts losses after data
SINGAPORE, April 5 (Reuters) - London copper rose, regaining ground after its biggest fall in nearly two months in the prior session, aided by data showing a sustained growth in top consumer China's services sector which also helped Shanghai prices come off session lows.
"I think last night's selloff was at least overdone," said Judy Zhu, commodity analyst at Standard Chartered Bank in Shanghai.
Gold rebounds; dashed easing hopes, euro weigh
SINGAPORE, April 5 (Reuters) - Gold edged up after two straight days of deep losses, but investors remain wary of gold's fortune after the U.S. central bank dashed hopes for more monetary stimulus, while a weakened euro also weighs on sentiment.
"The world in 2011 was all about QE (quantitative easing) and more potential QE. Now the environment is a little different - the U.S. economy is back on better footing and needs less central bank help," said Dominic Schnider, head of commodity research at UBS Wealth Management in Singapore.
Oil trader Hall stays long, not worried about SPR
April 4 (Reuters) - Veteran oil trader Andy Hall said he is betting that a release of emergency oil stockpiles by consumer nations will not provide any lasting relief to high prices, with OPEC spare capacity reduced to a "wafer thin" margin by year-end.3
Although his $5 billion Astenbeck Capital Management LLC fund trimmed its exposure to commodity markets in March after a run-up in prices earlier in the year, Hall remains confidently bullish and may add to his positions if prices fall much further, he said in a letter to investors this week.
METALS-London copper gains, Shanghai cuts losses after data
SINGAPORE, April 5 (Reuters) - London copper rose on Thursday, regaining ground after its biggest fall in nearly two months in the prior session, aided by data showing a sustained growth in top consumer China's services sector which also helped Shanghai prices come off session lows.
Wednesday's 3-percent slide in London copper provided buying opportunity for China, where markets reopened after a three-day holiday.
PRECIOUS-Gold rebounds; dashed easing hopes, euro weigh
SINGAPORE, April 5 (Reuters) - Gold edged up on Thursday after two straight days of deep losses, but investors remain wary of gold's fortune after the U.S. central bank dashed hopes for more monetary stimulus, while a weakened euro also weighs on sentiment.
Bullion lost more than 3 percent over the past two days after the U.S. Federal Reserve released minutes from its last policy meeting which showed policy makers were less inclined to launch more monetary stimulus as the economic outlook gradually improves.
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