Asian stocks (MXAP) retreated from a one- week high, while the Australian dollar and South Korean won snapped two days of gains as the European Central Bank’s efforts to increase lending underscored the difficulties facing euro- region banks.
The MSCI Asia Pacific Index lost 0.6 percent at 12:07 p.m. in Tokyo. Standard & Poor’s 500 Index futures slid 0.2 percent after the gauge completed its biggest two-day increase in almost three weeks. The euro traded at $1.3044, near the weakest level in 11 months, the Aussie declined 0.3 percent and the won sank 0.7 percent. Crude traded near a one-week high in New York after U.S. supplies slumped by the most in a decade.
Asian stocks are heading for the biggest yearly loss since 2008 as Europe’s crisis weighed on global economic growth and liquidity. The ECB said yesterday 523 euro-area lenders took a record 489 billion euros ($638 billion) of funds, while Greece’s creditors are said to resist pressure from the International Monetary Fund to accept bigger losses on their holdings. Data today may show a gauge of consumer confidence improved in the U.S., while initial jobless claims climbed last week.
“We’re still at the beginning of the crisis and nowhere near towards the end,” said Keagan York, the Sydney-based head of foreign-exchange strategy at Compass Global Markets. “The ECB loans operation was only a temporary measure to get some liquidity back into the markets.”
More than two shares declined for every one that gained on MSCI’s Asia Pacific Index, which has dropped 18 percent this year. That compares with declines of 1.1 percent in the S&P 500 and a 14 percent drop in the Stoxx Europe 600 Index. Japan’s Nikkei 225 Stock Average retreated 0.6 percent today and Australia’s S&P/ASX 200 Index sank 1.1 percent. China’s Shanghai Composite Index slumped 1.2 percent, a fourth day of losses.
Tokio Marine, Advantest
Tokio Marine Holdings Inc. (8766) decreased 2.7 percent on concern Japan’s second-biggest casualty insurer may be paying too much to buy Delphi Financial Group Inc. Advantest Corp. (6857), the world’s biggest maker of memory-chip testers, sank 3.5 percent after JPMorgan Chase & Co. cut the stock’s rating to “underweight” from “neutral.”
S&P 500 futures expiring in March swung between gains and losses after a two-day, 3.2 percent advance in the U.S. stock gauge. Treasury 10-year yields were little changed at 1.96 percent. The Thomson Reuters/University of Michigan final index of consumer sentiment probably increased to 68 this month from a preliminary reading of 67.7 and from 64.1 at the end of November, according to the median estimate of economists in a Bloomberg News survey. That would be the strongest level in six months.
Separate surveys showed the number of applications for unemployment payments climbed to 380,000 in the week ended Dec. 17 from 366,000, while an index of leading indicators grew 0.3 percent in November, down from 0.9 percent previously.
‘Bearish’ on Euro
The euro maintained yesterday’s losses against the dollar after European banks took larger-than-forecast loans from the central bank. The borrowings equal about 63 percent of the European bank debt maturing in 2012, according to Goldman Sachs Group Inc.
Greece’s lenders want the 70 billion euros of new bonds the government will issue in return for existing securities to carry a coupon of about 5 percent, said people with knowledge of the talks, who declined to be identified because the negotiations are private. The IMF is pushing for creditors to accept a smaller coupon in order to reduce Greece’s debt-to-gross domestic product ratio, the people said.
“I’m bearish on the euro,” said Toshiya Yamauchi, a senior currency analyst in Tokyo at Ueda Harlow Ltd., which provides foreign-exchange margin trading services. “It will take more time until we see a resolution to Europe’s debt crisis.”
Aussie, Won
The Aussie weakened to $1.0072, while the New Zealand dollar slipped 0.4 percent to 76.71 U.S. cents. South Korea’s won fell to 1,157.97 per dollar after having yesterday recouped all of its losses from Dec. 19, when news of North Korean leader Kim Jong Il’s death sparked a sell-off.
Crude for February delivery climbed as much as 0.5 percent to $99.16 a barrel on the New York Mercantile Exchange before trading at $98.78. Futures advanced 5.5 percent in the previous three days. Figures from the Energy Department yesterday showed U.S. stockpiles declined 10.6 million barrels last week to 323.6 million, the largest drop since Feb. 16, 2001. They were forecast to decrease 2.13 million barrels, according to a Bloomberg News survey. Imports slipped to a three-year low.
Gold for immediate delivery extended a decline from a one- week high, losing as much as 0.4 percent to $1,608.55 an ounce. Holdings in bullion-backed exchange-traded products dropped for a fifth day, according to data compiled by Bloomberg. That’s the longest losing run since September.
The MSCI Asia Pacific Index lost 0.6 percent at 12:07 p.m. in Tokyo. Standard & Poor’s 500 Index futures slid 0.2 percent after the gauge completed its biggest two-day increase in almost three weeks. The euro traded at $1.3044, near the weakest level in 11 months, the Aussie declined 0.3 percent and the won sank 0.7 percent. Crude traded near a one-week high in New York after U.S. supplies slumped by the most in a decade.
Asian stocks are heading for the biggest yearly loss since 2008 as Europe’s crisis weighed on global economic growth and liquidity. The ECB said yesterday 523 euro-area lenders took a record 489 billion euros ($638 billion) of funds, while Greece’s creditors are said to resist pressure from the International Monetary Fund to accept bigger losses on their holdings. Data today may show a gauge of consumer confidence improved in the U.S., while initial jobless claims climbed last week.
“We’re still at the beginning of the crisis and nowhere near towards the end,” said Keagan York, the Sydney-based head of foreign-exchange strategy at Compass Global Markets. “The ECB loans operation was only a temporary measure to get some liquidity back into the markets.”
More than two shares declined for every one that gained on MSCI’s Asia Pacific Index, which has dropped 18 percent this year. That compares with declines of 1.1 percent in the S&P 500 and a 14 percent drop in the Stoxx Europe 600 Index. Japan’s Nikkei 225 Stock Average retreated 0.6 percent today and Australia’s S&P/ASX 200 Index sank 1.1 percent. China’s Shanghai Composite Index slumped 1.2 percent, a fourth day of losses.
Tokio Marine, Advantest
Tokio Marine Holdings Inc. (8766) decreased 2.7 percent on concern Japan’s second-biggest casualty insurer may be paying too much to buy Delphi Financial Group Inc. Advantest Corp. (6857), the world’s biggest maker of memory-chip testers, sank 3.5 percent after JPMorgan Chase & Co. cut the stock’s rating to “underweight” from “neutral.”
S&P 500 futures expiring in March swung between gains and losses after a two-day, 3.2 percent advance in the U.S. stock gauge. Treasury 10-year yields were little changed at 1.96 percent. The Thomson Reuters/University of Michigan final index of consumer sentiment probably increased to 68 this month from a preliminary reading of 67.7 and from 64.1 at the end of November, according to the median estimate of economists in a Bloomberg News survey. That would be the strongest level in six months.
Separate surveys showed the number of applications for unemployment payments climbed to 380,000 in the week ended Dec. 17 from 366,000, while an index of leading indicators grew 0.3 percent in November, down from 0.9 percent previously.
‘Bearish’ on Euro
The euro maintained yesterday’s losses against the dollar after European banks took larger-than-forecast loans from the central bank. The borrowings equal about 63 percent of the European bank debt maturing in 2012, according to Goldman Sachs Group Inc.
Greece’s lenders want the 70 billion euros of new bonds the government will issue in return for existing securities to carry a coupon of about 5 percent, said people with knowledge of the talks, who declined to be identified because the negotiations are private. The IMF is pushing for creditors to accept a smaller coupon in order to reduce Greece’s debt-to-gross domestic product ratio, the people said.
“I’m bearish on the euro,” said Toshiya Yamauchi, a senior currency analyst in Tokyo at Ueda Harlow Ltd., which provides foreign-exchange margin trading services. “It will take more time until we see a resolution to Europe’s debt crisis.”
Aussie, Won
The Aussie weakened to $1.0072, while the New Zealand dollar slipped 0.4 percent to 76.71 U.S. cents. South Korea’s won fell to 1,157.97 per dollar after having yesterday recouped all of its losses from Dec. 19, when news of North Korean leader Kim Jong Il’s death sparked a sell-off.
Crude for February delivery climbed as much as 0.5 percent to $99.16 a barrel on the New York Mercantile Exchange before trading at $98.78. Futures advanced 5.5 percent in the previous three days. Figures from the Energy Department yesterday showed U.S. stockpiles declined 10.6 million barrels last week to 323.6 million, the largest drop since Feb. 16, 2001. They were forecast to decrease 2.13 million barrels, according to a Bloomberg News survey. Imports slipped to a three-year low.
Gold for immediate delivery extended a decline from a one- week high, losing as much as 0.4 percent to $1,608.55 an ounce. Holdings in bullion-backed exchange-traded products dropped for a fifth day, according to data compiled by Bloomberg. That’s the longest losing run since September.
