Asian markets ignored a positive cue from Wall Street to trade lower yesterday, as investors took profits from the previous day’s gains amid lingering caution over sovereign debt in Europe.
The region’s focus gyrated “between sovereign deficit/debt concerns on the one hand and better news on the corporate and economic front,” Credit Agricole Corporate and Investment Bank said in a note cited by Dow Jones Newswires.
Deutsche Securities senior foreign exchange strategist Koji Fukaya said: “We are not hearing anything positive about Europe right now.”
In Tokyo investors mulled The Bank of Japan’s decision to hold its benchmark rate steady at 0.1 percent in a bid to stamp out deflation, as it faces political pressure not to end stimulus measures prematurely.
The Nikkei closed up 0.28 percent, or 28.86 points, at 10,335.69. Toyota lost 0.59 percent to ¥3,360 (US$37.02) after US authorities opened a probe into complaints of steering problems with the best-selling Corolla, the latest in a string of safety problems besetting the Japanese maker.
Hong Kong fell 0.54 percent, or 111.86 points, to close at 20,422.15 amid a lack of buying conviction.
Singapore closed 0.89 percent, or 24.87 points, lower at 2,769.19, Seoul closed down 0.38 percent, or 6.24 points, at 1,621.19, and Sydney closed down 0.28 percent, or 13.0 points, at 4,654.9.
“We had a very strong day yesterday and I suspect there’s been a bit of profit-taking,” Macquarie Private Wealth Client Adviser Marcus Droga said.
Shanghai and Taipei remain closed until Monday for the Lunar New Year break.
Continued concerns over Europe’s debt problems appeared to dent demand in the region, analysts said, despite EU finance ministers approving moves to force Athens to put its finances in order by March 16.
Bank of New Zealand said in a note to clients that investors remain cautious.
“Despite yesterday’s news Greece would be given one month’s reprieve [by the EU] to rejig its finances, investors decided this was not a panacea for the region’s debt problems,” it said.
Shares in Wellington fell 0.30 percent, or 9.29 points, to 3,101.77.
Concerns have stalked markets that Greece’s public debt — which at 12.7 percent of GDP is more than four times the limit permitted by the 16-member eurozone — would spill over into other European nations.
Risk aversion saw the euro fall to US$1.3587 in Tokyo afternoon trade from US$1.3598 in New York late on Wednesday, and to ¥123.46 from ¥124.06. The dollar dropped to ¥90.89 from ¥91.23.
Gold-related stocks fell as sentiment was hit after the IMF surprised traders by saying it is selling 191.3 tonnes on the open market.
Hong Kong gold opened US$1,098.70 to US$1,099.70 an ounce, down from Wednesday’s close of US$1,121.50 to US$1,122.50.
Oil was lower, with New York’s main futures contract, light sweet crude for delivery in March, down US$0.39 at US$76.94 a barrel.
Brent North Sea crude for April delivery declined US$0.51 to US$75.76.
In other markets, Jakarta fell 0.83 percent, or 21.31 points, to 2,560.03. Manila shed 0.62 percent, or 19.73 points, to 2,999.94. Kuala Lumpur was flat, with the index edging 0.07 points lower to 1,259.00.
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