By Lynn Thomasson and Yoshiaki Nohara - Jan 24, 2012 12:07 PM GMT+0700
Jan. 24 (Bloomberg) -- Michael McCarthy, a chief market strategist at CMC Markets Asia Pacific Pty in Sydney, talks about global stocks and his investment strategy. He also discusses Europe's sovereign debt crisis. He speaks with Susan Li on Bloomberg Television's "First Up." (Source: Bloomberg)
Jan. 24 (Bloomberg) -- Jesper Koll, head of equity research at JPMorgan Chase & Co. in Tokyo, talks about the outlook for Japan's economy and stocks. He speaks with Susan Li on Bloomberg Television's "First Up." (Source: Bloomberg)
Jan. 24 (Bloomberg) -- John Vail, chief global strategist and head of asset allocation at Nikko Asset Management, talks about the outlook for Japan's economy, stocks and currency. Vail also discusses the impact of Europe's debt crisis on global financial markets. He speaks with Rishaad Salamat on Bloomberg Television's "On the Move Asia." (Source: Bloomberg)
Jan. 24 (Bloomberg) -- Travis Hamilton, managing director at Khan Investment Management Ltd., talks about investing in Mongolia, and the outlook for the country's stocks and economy. Hamilton speaks from Singapore with Rishaad Salamat on Bloomberg Television's "On the Move Asia." (Source: Bloomberg)
The Australian dollar fell from the highest level in 12 weeks and U.S. equity futures declined amid a stalemate between European policy makers and Greek bondholders over how to resolve the nation’s debt crisis.
The so-called Aussie weakened 0.3 percent to $1.0492 as of 1:48 p.m. in Tokyo. Standard & Poor’s 500 Index futures slid 0.3 percent and the MSCI Asia Pacific Index was little changed. Gold and silver lost at least 0.2 percent, while natural gas extended yesterday’s 7.8 percent surge. Treasuries rose following four days of declines. Bond risk in Australia and Japan dropped to the lowest since October.
Markets in China, Hong Kong, South Korea and Singapore are shut for the Lunar New Year holiday. European finance ministers balked at putting up more public money for Greece, calling on bondholders to provide greater debt relief. India’s economic growth outlook has weakened and inflation remains elevated, the nation’s central bank said on Jan. 23, signaling it may leave interest rates unchanged today.
“After such a big run up in the last month or so, it wouldn’t surprise me to see markets correct a little bit,” Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors Ltd., which has almost $100 billion under management, said in a Bloomberg Television interview. “There’s still a lot of uncertainty around Europe and the Greek restructuring issue is still to be resolved.”
About the same number of stocks rose and fell in the MSCI Asia Pacific Index (MXAP), which has rallied 6.3 percent this year. The gauge trades at 12.7 times estimated profit, 24 percent less than the six-year average, data compiled by Bloomberg show.
U.S. Earnings
Apple Inc., McDonald’s Corp. and Johnson & Johnson are among U.S. companies scheduled to report quarterly results today. Earnings topped estimates at about 65 percent of the 52 companies in the S&P 500 that released results since Jan. 9, data compiled by Bloomberg show.
The 10-year Treasury yield declined one basis point to 2.04 percent. The Federal Reserve begins a two-day policy meeting today after which it will provide forecasts for the benchmark interest rate for the first time.
Data later today may show a euro-area composite index based on a survey of purchasing managers in both manufacturing and services industries rose to 48.5 this month from 48.3 in December, according to the median economist estimate from a Bloomberg survey before the report from Markit Economics is released. That would be the fifth monthly reading below 50, indicating contraction.
Japan’s Economy
The Nikkei 225 Stock Average rose 0.1 percent, paring an early gain of as much as 0.7 percent after the Bank of Japan cut its growth outlook. Governor Masaaki Shirakawa and fellow board members lowered the economic forecast to 2 percent from an October estimate of 2.2 percent for fiscal 2012.
Elpida Memory Inc. (6665) advanced 3.1 percent for a sixth day of gains. The Japanese chipmaker is in talks with Micron Technology Inc. and Nanya Technology Corp. for a three-way merger, the Yomiuri newspaper reported, without saying where it got the information.
Oil fluctuated below $100 a barrel in New York, failing to extend yesterday’s gain, as speculation U.S. supplies rose last week countered concern Iran will respond to a European ban on its crude exports by shutting the Strait of Hormuz. Crude for March delivery was little changed at $99.69 a barrel in electronic trading on the New York Mercantile Exchange.
Natural gas rose a third day in New York after Chesapeake Energy Corp., the second-largest U.S. producer, said it will cut production and reduce spending. The contract surged 7.8 percent yesterday, rebounding from a 10-year low on Jan. 19.
The cost of insuring corporate bonds in Australia and Japan against non-payment decreased, according to credit-default swap traders. The Markit iTraxx Australia index fell 5 basis points to 157, according to Westpac Banking Corp. The Australian benchmark slid to 157 basis points yesterday, its lowest level since Oct. 28, according to data provider CMA prices in New York. The Markit iTraxx Japan index declined 3.5 basis points to 168, Citigroup Inc. prices show. That’s on course for its lowest level since Oct. 31, according to CMA.
To contact the reporters on this story: Lynn Thomasson in Hong Kong at lthomasson@bloomberg.net; Yoshiaki Nohara in Tokyo at ynohara1@bloomberg.net
To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net
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