Asian markets slip on US losses, Europe woes

Asian markets mostly fell Thursday as dealers followed losses on Wall Street while selling pressure was also stoked by fears over Spain and nervousness ahead of Greek polls at the weekend.

Tokyo fell 0.22 percent, or 19.95 points, to 8,568.89, Sydney closed 0.53 percent, or 21.6 points, lower at 4,042.2 and Hong Kong was 1.15 percent, or 218.12 points, down at 18,808.40.

Shanghai lost 0.99 percent, or 22.97 points, to close at 2,295.95.

However, Seoul gained 0.65 percent, or 12.16 points, to 1,871.48.

With the eurozone's $125 billion loan for Spain's banking sector almost a distant memory, the country has seen its borrowing costs surge to unsustainable levels and traders are growing concerned about its own financial state.

On Wednesday Madrid was dealt another blow when Moody's slashed its credit rating by three notches to just one level above junk status, saying the bailout will add to an already shaky debt position.

Spanish 10-year government bond yields -- the rate of return earned by investors -- spiked at a new record of 6.878 percent in early European trade Thursday, the highest since the eurozone was founded.

Anything above 6.0 percent is considered too high to continue servicing its debts for the medium term and point to investors' concerns about Spain's future as unemployment sits at record highs and public debt rockets.

Eyes are also on Sunday's elections in Greece -- its second in six weeks -- with dealers fearing a victory for anti-austerity parties that could lead to Athens tearing up a bailout deal, which in turn would likely lead it to exit the eurozone.

French President Francois Hollande said in an interview with Greek Mega Channel television that if it appears from the vote that they do not want to respect the bailout deal "there will be countries in the eurozone which would prefer to end Greece's presence in the eurozone."

In a transcript of the interview provided by his office he added that "the abandoning pure and simple of the (bailout and austerity) memorandum would be seen by many eurozone members as a break up".

The euro bought $1.2581 in late trade, up from $1.2556 in New York late Wednesday. The common currency was fetching 99.90 yen against 99.78 yen. The dollar was at 79.40 yen against 79.46 yen.

On Wall Street the major indexes fell on the European concerns as well as weak domestic figures.

The Dow closed down 0.62 percent, the S&P 500 lost 0.70 percent and the Nasdaq slipped 0.86 percent.

Traders went into selling mode after May retail sales fell 0.2 percent from April, and excluding autos shed a heftier 0.4 percent, the Commerce Department reported.

On oil markets New York's main contract, light sweet crude for delivery in July, was up 23 cents at $82.85 a barrel and Brent North Sea crude for July delivery fell 18 cents to $96.95 in late afternoon.

Gold was worth $1,620.75 an ounce at 0820 GMT, compared with $1,609.60 late Wednesday.

In other markets:

-- Taipei fell 0.19 percent, or 13.73 points, to 7,075.10.

Taiwan Semiconductor Manufacturing Co. lost 1.0 percent at Tw$79.2 while Hon Hai Precision edged down 0.12 percent to Tw$82.1

-- Manila ended 1.74 percent, or 88.76 points, lower at 5,020.85.

Philippine Long Distance Telephone gave up 3.69 percent to close at 2,350 pesos and Globe Telecom retreated 6.5 percent to 1,020 pesos.

-- Wellington ended 1.02 percent, or 34.36 points, higher at 3,416.09.

Fletcher Building was up 0.33 percent at NZ$6.15, Telecom rose 3.0 percent to NZ$2.40 and Contact Energy was up 1.5 percent at NZ$4.66.

Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • Southwest transport terminal construction start still in limbo

    The construction of the country’s first intermodal transport facility is in limbo as both the government and the winning private concessionaire are waiting on each other before finally pushing through with the contract signing. Transportation Secretary Joseph Emilio Abaya said the ongoing titling of the project site for the R2.5-billion Integrated Transport System (ITS) Southwest Terminal should not delay the concession agreement signing, which has been indefinitely postponed since February …

  • Jesuit school confers honors on Deles, Ferrer, Iqbal

    Despite heavy opposition from the alumni and even parents of students, Xavier University – Ateneo de Cagayan conferred on Presidential Adviser on the Peace Process Teresita Quintos-Deles a degree on Doctor of Humanities, honoris causa Wednesday. The Jesuit-run university also recognized the other major players in the ongoing peace process between the Government of the Philippines (GPH) and the Moro Islamic Liberation Front (MILF) as it awarded GPH peace panel chair Miriam Coronel-Ferrer and …

  • Mobile market tapped for saleable items worth P21B

    With more than P21 billion worth of saleable items in Philippine households, online classifieds website OLX Philippines is aiming to tap this market by targeting mobile phone users who could be potential sellers and buyers of second hand items. OLX Philippines hopes to provide better support to mobile users with the OLX app since 50 percent of the website’s traffic is generated by mobile users. “We will soon become a mobile first company,” said OLX Philippines co-founder RJ David in a press …

  • Clark to host drag racing

    Drag racing takes an exciting turn as top guns try to push their respective bids in the third leg of the 2015 Philippine Drag Racing Championship Northern Series at the Clark International Speedway.Former US servicemen William “Bill” Hand and John Ryzia of the Angeles City Hot Rod Association (AHRA)-Garage Power hope to steer their respective American V8 muscle cars to repeat wins to secure solo leadership in their respective divisions. ... …

  • The greatest city in the world

    Flag carrier Philippine Airlines (PAL) proudly brought back our flag to the Big Apple when it landed at the JFK Airport last March 15, after an 18-year hiatus. The Manila-Vancouver-New York route 18 years ago was terminated due to an expensive leasing arrangement and the Asian financial crisis. JFK Airport at Queens Borough is 15 miles to midtown Manhattan, connected via the New York subway train system. Consider it normal if you can make it to Manhattan under two hours. …

  • The future of the BPO/KPO industry

    One of the few economic sectors in which the Philippines is a global player is the Business Process Outsourcing/Knowledge Processing Outsourcing (BPO/KPO) industry. According to a recent report of the Everest Group entitled “Global Trends in the Contact Center Market and Opportunities in the Philippines,” our country is the leader in the offshore/nearshore English Contact Center Outsourcing (CCO) market with some 36% share. In the Philippines, the growth has been close to 20% over the last …

  • Ars gratia artis

    The Ateneo Art Gallery, widely recognized today as the first museum of Philippine modern art showcasing works by postwar Filipino artists. Its “pilot,” Ateneo President Fr. Ramon Jose Villarin, SJ, admits that it “runs on the fuel of the generosity and munificence of its donors.”ARTISTS, MODELS, & MEDICIS. Last Monday, 23 March, four recent acquisitions were added to the collection. A Fernando Amorsolo life-size portrait of Liliana de Asis (1952) was a gift of Francisco and Mila de Asis and …

  • Baranda, Dumlao star in Vios Cup

    Defending champion Pauland Dumlao and showbiz personality Phoemela Baranda won their respective heats at the start of the Vios Cup Season 2 held recently at the Clark International Speedway in Pampanga.Dumlao of Team Toyota San Fernando took the second heat of the Sporting Class category while Baranda ruled the first heat of the Promotional Class division to open the second staging of the event organized by Toyota Motor Philippines. ... …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options