HONG KONG: Asian markets mostly rose on Friday
following upbeat US economic growth data and easing concerns about an
imminent strike on Syria although gains were capped by mild
profit-taking following the previous day's gains.
The quiet trade brought an end to a torrid month for global shares and currencies dominated by fears over the end of the US Federal Reserve's stimulus programme as well as the possibility of military action in the Middle East.
Tokyo eased 0.53 per cent, giving up 70.85 points to end at 13,388.86 but Sydney added 0.84 per cent, or 42.60 points, to 5,135.00, while Seoul was 0.99 per cent higher, adding 18.82 points to 1,926.36.
In the afternoon Hong Kong was 0.11 per cent higher while Shanghai edged up 0.56 per cent.
There were also gains for Jakarta, which was up 0.93 per cent, while Kuala Lumpur added 0.89 per cent and Manila advanced 1.40 per cent.
Wall Street provided a positive lead after the Commerce Department said the US economy grew at an annual rate of 2.5 per cent in the April-June quarter, much better than the original estimate of 1.7 per cent.
It said stronger consumer spending and exports underpinned the pickup from the first quarter's sluggish 1.1 per cent pace, while exports were stronger and imports slower than originally estimated.
The Dow rose 0.11 per cent; the S&P 500 added 0.20 per cent and the Nasdaq increased 0.75 per cent.
Investors were a little more buoyant as the likelihood of a US-led attack on Syria looked less imminent, as lawmakers in London voted against such a move.
And while the White House signalled it was ready to go it alone in punishing Syria for a deadly chemical attack on its civilians, analysts said they did not expect a strike this weekend, as was initially thought possible.
“There just seems to be less urgency about an attack any time soon,” said Alec Young, global equity strategist for S&P Capital IQ. “The stress level has come down a little.”
Expectations of a military strike against Syria sent shares diving this week as it fuelled concerns that a wider conflict was looming in the oil-rich region.
On forex markets, the dollar – which sank below 97 yen this week – was at 98.14 yen, compared with 98.32 yen late in New York.
Currency traders seemed unmoved by data out of Tokyo showing July consumer prices rose at their fastest pace in almost five years, giving cheer to the government's easy-money policy. The rises were mostly attributed to the weaker yen making energy imports more expensive.
The euro traded at $1.3247, from $1.3241, while fetching 130.00 yen from 130.18 yen.
Emerging-market currencies were also slightly up. The Indian rupee was at 66.80 to the dollar, well down from the record low of 68.80 on Wednesday, partly thanks to central bank moves to support the unit.
The Indonesian rupiah was at 10,920 to the dollar, compared with levels above 11,000 this week, while the greenback bought 32.06 Thai baht down from 32.29.
Emerging markets have been hammered this month as dealers bet on the Fed winding down its bond-buying stimulus, which has helped fuel an investment splurge in developing economies over the past year.
Among the worst hit markets have been Manila, which has lost 10.5 per cent this year, while Jakarta has fallen 11 per cent and Bangkok 9.2 per cent.
Oil prices declined further after peaking on Wednesday at multi-month highs because of supply fears linked to the Syria crisis.
New York's main contract, West Texas Intermediate for delivery in October, was down 95 cents at $107.85 a barrel, while Brent North Sea crude for October eased 44 cents to $114.72.
WTI touched a two-year-high of $112.24 Wednesday while Brent rose to $117.34 at one point, its highest for six months.
Gold cost $1,406.80 an ounce at 0630 GMT, down from $1,409.96 late Thursday.
In other markets:
The quiet trade brought an end to a torrid month for global shares and currencies dominated by fears over the end of the US Federal Reserve's stimulus programme as well as the possibility of military action in the Middle East.
Tokyo eased 0.53 per cent, giving up 70.85 points to end at 13,388.86 but Sydney added 0.84 per cent, or 42.60 points, to 5,135.00, while Seoul was 0.99 per cent higher, adding 18.82 points to 1,926.36.
In the afternoon Hong Kong was 0.11 per cent higher while Shanghai edged up 0.56 per cent.
There were also gains for Jakarta, which was up 0.93 per cent, while Kuala Lumpur added 0.89 per cent and Manila advanced 1.40 per cent.
Wall Street provided a positive lead after the Commerce Department said the US economy grew at an annual rate of 2.5 per cent in the April-June quarter, much better than the original estimate of 1.7 per cent.
It said stronger consumer spending and exports underpinned the pickup from the first quarter's sluggish 1.1 per cent pace, while exports were stronger and imports slower than originally estimated.
The Dow rose 0.11 per cent; the S&P 500 added 0.20 per cent and the Nasdaq increased 0.75 per cent.
Investors were a little more buoyant as the likelihood of a US-led attack on Syria looked less imminent, as lawmakers in London voted against such a move.
And while the White House signalled it was ready to go it alone in punishing Syria for a deadly chemical attack on its civilians, analysts said they did not expect a strike this weekend, as was initially thought possible.
“There just seems to be less urgency about an attack any time soon,” said Alec Young, global equity strategist for S&P Capital IQ. “The stress level has come down a little.”
Expectations of a military strike against Syria sent shares diving this week as it fuelled concerns that a wider conflict was looming in the oil-rich region.
On forex markets, the dollar – which sank below 97 yen this week – was at 98.14 yen, compared with 98.32 yen late in New York.
Currency traders seemed unmoved by data out of Tokyo showing July consumer prices rose at their fastest pace in almost five years, giving cheer to the government's easy-money policy. The rises were mostly attributed to the weaker yen making energy imports more expensive.
The euro traded at $1.3247, from $1.3241, while fetching 130.00 yen from 130.18 yen.
Emerging-market currencies were also slightly up. The Indian rupee was at 66.80 to the dollar, well down from the record low of 68.80 on Wednesday, partly thanks to central bank moves to support the unit.
The Indonesian rupiah was at 10,920 to the dollar, compared with levels above 11,000 this week, while the greenback bought 32.06 Thai baht down from 32.29.
Emerging markets have been hammered this month as dealers bet on the Fed winding down its bond-buying stimulus, which has helped fuel an investment splurge in developing economies over the past year.
Among the worst hit markets have been Manila, which has lost 10.5 per cent this year, while Jakarta has fallen 11 per cent and Bangkok 9.2 per cent.
Oil prices declined further after peaking on Wednesday at multi-month highs because of supply fears linked to the Syria crisis.
New York's main contract, West Texas Intermediate for delivery in October, was down 95 cents at $107.85 a barrel, while Brent North Sea crude for October eased 44 cents to $114.72.
WTI touched a two-year-high of $112.24 Wednesday while Brent rose to $117.34 at one point, its highest for six months.
Gold cost $1,406.80 an ounce at 0630 GMT, down from $1,409.96 late Thursday.
In other markets:
- Taipei climbed 1.32 per cent, or 104.23 points, to 8,021.89. Taiwan Semiconductor Manufacturing Co. rose 1.82 per cent to Tw$100.5 while Hon Hai gained 1.75 per cent to Tw$81.2.
- Wellington rose 0.45 per cent, or 20.47 points, to 4,540.97. Fletcher Building was up 0.23 per cent at NZ$8.76, Air New Zealand added 2.16 per cent to NZ$1.42 and Mainfreight eased 0.47 per cent to NZ$10.60.
