Asian Markets Rebound

Ivaylo
17 May, 2001
New York City

Nikkei index in Tokyo gained 0.2%, breaking six consecutive sessions of losses on positive U.S. economic data. Elsewhere across the region, Hong Kong

[R]7:30 AM Asian markets rebound following U.S data and investors rally.[/R]
Asian markets closed higher. Japan''s Nikkei index advanced 0.2%, breaking six consecutive session of losses to close at 16,307.67. U.S. producer price index data showed that energy prices have not impacted inflation as it had been expected. Less inflation translates as less pressure on the dollar which is good news for exporters. Industrial and machinery stocks led the gainers in Tokyo Wednesday. Shikawajima-Harima Heavy Industries advanced 3.23%, and Mitsubishi Heavy Industries gained 4.1%. Exporters were also among the top performers. Nikon advanced 6.26%, Konica Minolta gained 1.95% and Canon was up 1.23%. Automotive stocks also advanced. Toyota Motor was traded 1.13% higher and Honda Motor rose 0.78% in the wake of its proposed plans to spend $1.2 billion on the construction of new factories in Canada. Hang Seng''s top stock, HSBC Holdings, also advanced 2.91% while chip-maker Hynix Semiconductor of South Korea was up 5.18%. Samsung Electronics advanced as much as 1.87%. Singapore''s Straits Times Index rose 1.39%, and Taiwan''s Weighted Average advanced 0.66%.

[R]6:30 AM Early European trade gains on earnings and mining stocks.[/R]
European markets traded higher Wednesday morning as equity markets gained on strong advances in Asia, the optimistic earnings reports and upbeat mining stocks. Vivendi, the French media group, continued repel moves at breaking up the company, releasing robust earnings outlook. Its shares were up 4.9%.London-listed miners also gained. Antofagasta advanced 3.2%, while BHP Billiton rose 1.9%. Tesco, the UK’s retailer, advanced 1.1%, while France’s Credit Agricole lost 0.8%.

Light crude oil gained 19 cents at $69.72 a barrel by 0713 GMT after gaining a humble 12 cents on Tuesday. London Brent for July delivery advanced 20 cents at $70.28. Gold for June delivery rose $19.80 to $712.70 an ounce, thanks to stronger-than-expected open on the Tokyo Commodity Exchange. The euro was traded at $1.2863, up from $1.2853 in New York late Tuesday, while the British pound advanced to $1.8908 from $1.8876. The dollar bought 109.17 yen.

[R]5:00 AM Gold rises as the dollar weakens against the euro.[/R]
June gold advanced $7.90 to close at $692.90 an ounce Tuesday on the NYME. Gold had shed about 4 % on Monday but rebounded due to the decline of the greenback vs. the euro, following weaker than expected U.S. economic data, suggesting that the Federal reserve may pause its monetary tightening.Silver also advanced 20.5 cents to close at $13.540 an ounce, and platinum rose $18.10 to end at $1,302.90 an ounce. Palladium followed suit and added up $2.25 to finish at $377 an ounce. Copper closed with a gain of 9.55 cents at $3.8420 per pound.

Crude oil futures advanced 12 cents to close at $69.53 a barrel but according to traders the market is skeptical about slowing demand. Gasoline futures ended 2.79 cents down at $2.0261 a gallon. July Arabica coffee futures closed 1 cent up at $1.0260 a pound and raw sugar in foreign ports for July finished down 0.14 cent at 17.03 cents a pound.