Asian markets ended the day on a sour note as cautious trading in neighboring markets following holiday in the US markets on Monday also impacted market sentiment. The DOW futures extended loses throughout the day as traders expected the barometer index to open in red after a long weekend. The euro dropped against the US dollar on a report from The Wall Street Journal that Europes recent stress tests of major banks strength understated some lenders holdings of potentially risky government debt. The Australian stocks closed in negative territory on weak global advices. However media reports about formation of government by Labor Party headed by Prime Minister Julia Gillard triggered a rebound in late trading session. The decision of the Reserve Bank of Australia to keep the interest rates steady also helped banks post modest gains. The benchmark S&P/ASX200 Index ended down 2.30 points, or 0.05% to close at 4,573 points, while the All-Ordinaries Index closed at 4,613, representing a loss of 2.70 points, or 0.06%. On the economic front, the Reserve Bank of Australia left the cash rate unchanged at 4.5%, in line with expectations. The central bank broadly retained its economic assessment, saying the Australian economy had been growing at around trend pace, boosted by commodity exports and strong investment. Stocks in Japan fell sharply, ending a four-session rally as global risk aversion and the stupendous strength in Japanese Yen hurt the investor sentiments. Japans Nikkei Share Average dropped 75.32 points or 0.8% to close at 9226. Japanese exporters declined as the yen appreciated against major currencies,, breaking under 84 per US dollar mark to a fresh 15 year highs. The Bank of Japan held its policy interest rate unchanged and left open the possibility of additional emergency action to support the economy, but it hardly seemed to have any effect on the ruthless rise in the Japanese currency. In China, the markets continued to move up though as a less than painful jobs data in US augured well. Chinas key stock index ended at a new four-month high. The Shanghai Composite Index finished up 0.1% t at 2,698.4, reversing early losses as investors turned cautious ahead of a slew of economic data later this week. In Mumbai, the key benchmark indices extended gains for the second consecutive trading session today, 7 September 2010, with good monsoon rains supporting stock prices. The barometer index BSE Sensex and the 50-unit S&P CNX Nifty scaled 31-month closing highs. But, trading was marked with immense volatility throughout the trading session. The BSE 30-share Sensex rose 85.01 points or 0.46% to 18,645.06, its highest closing since 5 February 2008. The S&P CNX Nifty rose 27.05 points or 0.49% at 5,604, its highest level since 21 January 2008. The index hit a high of 5625.50 in late trade. In other markets, the Hang Seng index in Hong Kong added 0.22%, Straits Times in Singapore gained just 0.05% while the TSEC in Taiwan slid by 0.08%. Dollar was higher against the major currencies, coming off a two week low above 1.2900 against the Euro. . DOW futures are down 41 points while crude oil succumbed to heavy losses, currently quoting down $1.39 at $73.20 per barrel.
Powered by Capital Market - Live News
