Asian markets ease off pedal after rally
AFP
AFP, HONG KONG: Asian stock markets ended a volatile first quarter on a cautious note yesterday, as upbeat sentiment fuelled by the prospect of lower US borrowing costs was offset by profit-taking after recent gains.
Shanghai and Tokyo were the two worst performers among major global indexes over the past three months, despite a March rally.
Wall Street provided a strong lead
Thursday with another healthy advance on all three main indexes, but traders remained wary and some took profits a day before the release of key data from China and the United States.
World markets soared after Federal Reserve chief Janet Yellen said on Tuesday the bank was unlikely to raise interest rates in the first half of this year, citing ongoing concerns about the slow global economy.
A lot of the recent rebound has been down to the Fed back-tracking on rate hikes, Mark Lister, head of private wealth research at Craigs Investment Partners in Wellington, told Bloomberg News.
Weve seen a big rally but there are still some genuine worries out there. Markets had been overpricing some of the risks, whereas now theyre probably underpricing them.
Shanghai and Tokyo led world markets lower in the first three months of the year, weighed down by Chinas economic woes and plunging oil prices. Japans Nikkei ended the quarter 12 per cent down while Shanghai lost around 15 per cent.
Most regional bourses ended the quarter in the red, although March saw some much-needed gains as central banks unveiled monetary easing measures.
On Thursday, Tokyo lost 0.7 per cent, while Shanghai eked out a 0.1 per cent gain.
Elsewhere Hong Kong finished 0.1 per cent lower, while Singapore lost 1.3 per cent and Seoul finished down 0.3 per cent. However, Sydney closed 1.5 per cent higher.
In early trade London and Frankfurt dipped 0.5 per cent, while Paris shed 0.6 per cent.
Investors will now be watching out for Chinas March manufacturing activity, released Friday, for the latest snapshot of the mainland economy. That is followed by official US jobs figures later in the day.
In Hong Kong, Chinese firm Dalian Wanda Commercial Properties soared 20 per cent after its parent firm said it was considering buying all its shares backjust 16 months after listing.
Billionaire Wang Jianlin, who owns Dalian Wanda Group, is looking to buy the firm back for HK$48 a share, the price it listed, marking a 24 per cent premium to its Wednesday close.
Analysts say he has likely become disillusioned with its performance.
The firms stock has tumbled since listing as Chinas property market has been hammered by a slowdown in the worlds number two economy.
In currency trade, the dollar retreated against most emerging units as the prospect of low US interest rates boosts demand for higher-yielding assets.
