Asia Turns Red

Elena
14 Mar, 2006
New York City

Asian benchmarks lost ground Tuesday, reflecting a rebound in oil prices and concerns over interest-rate hikes. The Nikkei dropped 0.8% after a three-day rally when the market climbed 4.7%. Major shipping companies and tech stocks dragged the Japanese index down. Among other regional markets, Taiwan Weighted index dropped 1.3%, South Korean Kospi slipped 0.9%, while New Zealand hit a new all-time high of 1.7%.

8:00AM Asian markets lost ground. New Zealand hit a new record high.
Asian-Pacific benchmarks lost ground Tuesday as rising oil prices and concerns about higher interest rates discouraged investors from buying. The Nikkei slipped 0.8% to 16,238.36, ending a three-day rally during which the market surged 4.7%. The index was dragged by weakness in major shipping companies like Kawasaki Kisen Kaisha and tech stocks, such as Tokyo Electron. Taiwan Weighted index led decliners, falling 1.3% on heavy sell-off. South Korea’s Kospi dropped 0.9%, Hong Kong’s Hang Seng lost 0.1% on property stocks, while New Zealand hit a fresh all-time high of 1.7% thanks to a lower NZ dollar. In currency trading, the dollar fell to 118.60 yen.

European markets traded mixed at mid-day as lackluster close on Wall Street, recovery in oil prices, and some corporate news, weighed on sentiment. However, bid activity among retailers provided some support. The German DAX 30 dropped 0.4% on economic data with BMW rising 3.1% on upgrade from UBS. The French CAC 40 lost 0.2%, while London FTSE 100 gained 0.2%, lifted by mergers in the retail sector, including Kingfisher, up 6.9% and BSG International, up 5.9%.