Asian stock markets mixed after Wall Street losses

25/04/2014 08:32 AST

Asian markets were mixed yesterday following losses on Wall Street, while Japanese traders were disappointed by the lack of progress on a stalled Pacific trade pact as US President Barack Obama visits Japan. The euro edged up, adding to gains on Wednesday after a survey of business activity hit its highest level in almost three years in April.

Tokyo, which rose more than one per cent on Wednesday, dropped 0.97 per cent, or 141.28 points, to 14,404.99 and Seoul lost 0.10 per cent, or 2.03 points, to end at 1,998.34. Sydney closed slightly higher, adding 0.24 per cent or 13.2 points to 5,531.0.

Shanghai fell 0.50 per cent, or 10.35 points, to 2,057.03 and Hong Kong rose 0.24 per cent, or 53.16 points, to 22,562.80. US shares dipped on Wednesday following a report showing sales of new homes unexpectedly plunged 14.5 per cent in March from February, reinforcing a picture of a weakening housing market.

Adding to the downward pressure was a touch of profit-taking after recent gains as well as some poor earnings releases, including from telecom giant AT&T and biotech firm Amgen. The Dow edged down 0.08 per cent, while the S&P 500 slipped 0.22 per cent, breaking a six-day winning streak. The Nasdaq Composite lost 0.83 per cent. On currency markets the euro fetched $1.3835 and 141.71 yen against $1.3816 and 141.65 yen.

The single currency rallied on Wednesday after Markit Economics said its Euro zone Composite Purchasing Managers Index for April — a leading indicator of manufacturing and services activity — jumped to 54 in April from 53.1 in March, its highest reading since May 2011.

Anything above 50 points to growth and a reading below that indicates contraction. The dollar was at 102.42 yen compared with 102.50 yen late in New York.

Obama is making the first state visit to Japan by a US president in almost two decades. The trip comes at a time of strained tensions between Tokyo and Beijing over a territorial dispute and Japan’s imperialist past. Investors had also been keen to see some movement on talks between the US and Japan on the Trans-Pacific Partnership (TPP), which has run into difficulties over the countries’ stand on auto and agricultural market access.

Oman Daily Observer