Asia markets mostly up but Tokyo hit by strong yen
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HONG KONG - Most Asia markets rose Tuesday but Tokyo sank on a strong yen as traders await central bank meetings in Japan and the United States this week.
Promises of monetary easing after last month's shock British EU exit vote led to a surge in shares -- and record highs on Wall Street -- but a degree of nervousness has set in as two of the biggest central banks prepare to meet.
The Federal Reserve ends its gathering Wednesday. Although no big announcement is expected, its statement will be pored over for clues following a series of strong data that have fanned talk of an interest rate rise.
The Bank of Japan, which closes its meeting Friday, is thought to be preparing to widen its broad monetary easing programme, a prospect which sent the yen tumbling and the Nikkei index soaring this month.
However, the two reversed course Tuesday with a drop in oil prices also hitting confidence.
"The market expectation for the BoJ to move is very high," Angus Nicholson, a strategist at IG Markets Ltd. in Melbourne, said on Bloomberg Radio.
"There's a real risk we would see a sharp retracement if they disappoint."
By the close Japanese stocks were down 1.4 per cent -- a third straight loss -- with exporters hurt as the dollar fell to 104.15 yen from 105.82 yen.
Oil fall hits energy firms
However, the advances that have characterised most of July continued elsewhere.
Hong Kong closed 0.6 per cent higher, boosted by a rally in casino firms after Macau operator Sands China posted a positive earnings report. The firm rallied six per cent, while Galaxy Entertainment was up 6.5 per cent.
Shanghai ended 1.1 per cent up, Sydney added 0.1 per cent, Seoul put on 0.8 per cent and Singapore rose 0.1 per cent in late trade. Taipei, Manila and Bangkok also chalked up gains, although Wellington edged down slightly.
US traders provided a negative lead as they took their cash off the table after pushing multiple records on the Dow and S&P 500 over the previous two weeks.
Wall Street's main indexes were dampened by another drop in oil prices on fresh worries about a global supply glut, with the US holiday driving season coming to a close and stockpiles still high.
Both main contracts fell more than two per cent Monday, although there was a minor uptick Tuesday.
The soft oil prices filtered through to energy firms. Australia's Woodside Petroleum lost 0.8 per cent, CNOOC sank 2.6 per cent in Hong Kong and Tokyo-listed Inpex dived 3.3 per cent.
In early European trade, London added 0.3 per cent but Frankfurt eased 0.1 per cent and Paris dropped 0.3 per cent.
Key figures at 0800 GMT
Tokyo - Nikkei 225: DOWN 1.4 per cent at 16,383.04 (close)
Hong Kong - Hang Seng: UP 0.6 per cent at 22,129.73 (close)
Shanghai - Composite: UP 1.1 per cent at 3,050.17 (close)
London - FTSE 100: UP 0.3 per cent at 6,728.85
Euro/dollar: UP at $1.1002 from $1.0993
Pound/dollar: DOWN at $1.3083 from $1.3139
Dollar/yen: DOWN at 104.15 yen from 105.82 yen
New York - DOW: DOWN 0.4 per cent at 18,493.06 (close)
- AFP
