Machinery Stocks Fail To Push Japan Higher

Ivaylo
15 Aug, 2006
New York City

Low volumes assited price volatility in Japan, where relatively flat indexes concealed large stock moves. Honk Kong also fell, as trading was muted due to investors awaiting U.S. inflation data, due later this week. South Korean markets were closed for the Independence Day holiday. Australian markets also decline. The Shanghai Composite in China was the only gainer.

[R]7:30AM Japanese stocks fall despite strong machinery gains.[/R]
Asian markets were mixed on Tuesday. The Nikkei 225 Average in Tokyo closed the day down 0.26% to 15,816.19, a day after a 1.9% rally during a power outage. Komatsu was up 2.6% and Kubota advanced 1.3% as stronger-than-expected machinery-order data released last week continued to lift industry stocks. Nippon Oil slipped 1.7% and Showa Shell Sekiyu was off by as much as 2.7%. Sony Corp.lost 0.4% on news that computer maker Dell Inc. was recalling more than four million laptop batteries containing Sony components.

In Hong Kong, the Hang Seng index shed 0.09% to 17,274.07. Developers performed well in Hong Kong. Henderson Land was up 1.1% and New World Development advanced 1.3%. The Shanghai Composite in China moved up 1.6% following a local newspaper reporing that regulators may allow insurance companies to invest a larger portion of their assets in stocks. Australia's S&P/ASX 200 index closed at 4,936, down 0.71%. BHP Billiton sank 1.1% and oil producer Woodside Petroleum was off 3%.

[R]6:30AM European markets fall by mid-morning on profit taking.[/R]
European markets were lower by mid-morning on Tuessay. The FTSE 100 in London fell 0.3% to 5,855.3, while Xetra Dax in Frankfurt fell 0.3% to 5,675.72, while in Paris, the CAC 40 shed 0.1% to 5,041.85. Atlas Copso, the Swedish engineer company, fell 1.5%, while Xstrata, the London-listed miner, shed 1.4%.

Drugs stocks offered the market some support. Britain''s Shire led the gainers, climbing 5.3%, Sanofi-Aventis gained 1.4 % after it said on Monday that along with US partner Bristol-Myers Squibb, it had requested a preliminary injunction to halt sales by Apotex of a generic form of their Plavix anti-clotting treatment. Dutch chemicals group, Akzo Nobel, rallied 3% after it said it was seeking shareholder approval to spin off its pharmaceuticals operations and float up to 30 per cent of its Organon Biosciences unit.

Oil prices continued to fall Tuesday as the market responded to a nearly day-old cease-fire in Lebanon.Light sweet crude oil for September delivery fell 28 cents to $73.25 a barrel , while September Brent at London''s ICE Futures exchange shed 35 cents to $73.95 a barrel. The U.S. dollar was trading at 116.48 yen, down from 116.67 yen late Monday in New York. The euro rose to $1.2746 from $1.2719.

[R]5:30AM Gold finishes lower on oil prices decline and downgraded terror threat.[/R]
Gold for December delivery finished down $5.10 at $639.30 an ounce on the NYME. September silver rose 27.5 cents to close at $12.16 an ounce. October platinum closed down $21.10 at $1,233.30 an ounce and September palladium retreated by $4.00 to $318.30 an ounce, moving in tandem with gold. September copper closed up 6.1 cents at $3.537 a pound.