Asia Markets Face Tough Times as Beijing and Tokyo Plea for Calm

Asian stock markets started the week with no clear direction in the absence of Tokyo closed for a holiday. In Hong Kong, the Hang Seng remains close to balance (+0.1%), while the Shanghai Composite lost 1.1%, and 0.3% yield in Seoul. For its part, the Taiwan Stock Exchange advance 0.3%, 0.5% and Sydney wins Singapore at 0.2%. Only the Bombay Stock Exchange is characterized by an increase of 0.8% after the announcement by the government-shock of opening up the Indian market to foreign competition in the distribution and air transport.

After the relief provided by the Fed on Thursday night (purchase of $ 40 billion per month of mortgages securitized), investors find some caution against a still uncertain global economic situation. On the foreign exchange market, the dollar continues to erode at a $ 1.3136 Euro (0.04% for the latter) in interbank trading in Asia, while the raw materials benefit from a deferral of investors to tangible assets. Gold gained 0.25% to $ 1,774 an ounce, while the WTI oil remains near $ 100 a barrel to $ 99.10 (+0.1%). On equity markets, the values ​​related to its popular base materials, including Sydney, hence the title BHP Billiton gained 2.9% and that of its rival Rio Tinto ahead at 1.7%.

The Tokyo Stock Exchange is closed, she could not respond to violent protests that erupted this weekend in 85 cities in China against Japanese interests. The tension between Beijing and Tokyo on the sovereignty of a chain of islands in the China Sea that both countries argue … Shops and production facilities and Panasonic Toyota Motors have been especially targeted and suffered damage … Yesterday, the Premier Minister of Japan Yoshihiko Noda asked Chinese authorities to ensure the safety of its citizens and its economic interests …

In addition, Hong Kong property companies are struggling this morning after the government announced measures to calm speculation in the property market of Hong Kong, became the most expensive in the world, partly because of the influx of buyers from mainland China. Finally, in India, investors welcomed the government’s plan to allow foreign groups to intervene in retailing, while they were so far limited to wholesale. Foreigners may also acquire a minority stake of up to 49% in the capital of Indian airlines, announced Prime Minister Manmohan Singh. Among the most spectacular movements observed this morning in Bombay, the action of the distributor Pantaloon Retail India jumped by over 17% and Kingfisher Airlines, a private airline in financial trouble, jumped nearly 20%!