Market Updates

Shanghai Extends Rally

Elena
09 May, 2006
New York City

    Asian markets closed mostly in the negative on currency jitters, profit taking and cautiousness ahead of U.S. Fed Reserve

[R]7:45AM Asia closed largely lower. China Shanghai Composite surged.[/R]
Asian-Pacific benchmarks finished broadly lower, reflecting currency jitters, profit taking and cautiousness ahead of U.S. Fed Reserve’s decision on interest rates Wednesday. However, China Shanghai Composite jumped 2.3%, extending Monday’s rally on improved demand for Chinese shares. Brokerage Citic Securities rose by the 10% daily limit on news that it plans to issue 500 million new shares to Chinese institutional investors. Across the region, the Nikkei slipped 0.6% to 17,190.90 as weaker dollar weighed on exporter issues, threatening to hurt overseas earnings. Export-related high-tech component maker Kyocera fell 2.3%, followed by optics and electronics giant Canon, which dropped 1.4%. In currency markets the dollar bought 111.65 yen. Hong Kong’s Hang Seng slid 1%, dragged down by real-estate issues and energy stocks. Taiwan weighted index slipped 1.1%, Singapore Straits Times lost 1.1%, while Australia’s All Ordinaries inched up 0.05%, helped by the country’s top logistics firm, Toll Holdings, up 6.42%.

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