Asian markets down on China trade data, U.S. rate talk
- by Dan Gutierrez
- in Markets
- — Oct 14, 2016
Asian markets retreated Thursday as weak Chinese trade data reinforced worries about the world's number two economy, while Federal Reserve minutes fanned expectations of a United States rate hike before the year's end.
Imports fell 1.9 percent on-year to 142.5 billion, Customs said, and the trade surplus declined to 42.0 billion. Futures indicated that Wall Street was set for a weak start.
"They need US growth and they need global growth to really grow earnings", said Chalupnik.
Financial firms took the largest losses as investors feared the latest reports on China mean banks won't lend as much money to consumers and businesses around the world.
Bank of America fell 28 cents, or 1.7 percent, to $15.76 and Bank of New York Mellon skidded $1.15, or 2.9 percent, to $38.96.
US crude prices were down 0.3 percent at $50.05 a barrel as the market braced for USA government data likely to show the first crude inventory build in six weeks, with record Chinese imports of crude limiting losses.
The S&P/TSX Composite recovered 69.37 points to conclude Wednesday at 14,618.97, with December futures off 0.3% Thursday.
Oil prices struggled following a 1 percent drop overnight after the Organization of Petroleum Exporting Countries reported its output hit an eight-year high in September, offsetting optimism over the group's pledge to restrict output. Reflecting the weakness in the steel sector, the NYSE Arca Steel Index has slumped by 3.3 percent.
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China's economy seemed to be doing better over the last few months, said David Chalupnik, head of equities for Nuveen Asset Management.
The bank's US shares were down 3.2 percent.
Earlier the Dow fell as much as 184 points, but it's regained nearly all of its losses. Thailand's benchmark equity gauge and currency have fallen every day after the royal palace said Sunday that King Bhumibol Adulyadej's condition was unstable.
The bank is investigating how two million accounts were opened without customers' permission.
South Korea's Kospi index slid 0.7 per cent. Samsung Electronics Co Ltd. jumped 1.6 per cent, heading for its first advance in four days, The manufacturing giant said Yesterday that it now projects profit of 5.2 trillion won (RM19.3 billion) instead of 7.8 trillion won in the three months ended September, after ending production of its fire-prone Galaxy Note 7 smartphones.
OIL: Benchmark U.S. crude oil slid 28 cents to $49.90 per barrel in NY. Brent crude, the worldwide standard, rose 22 cents to $52.03 a barrel in London.
The dollar soared to 104.72 yen in NY from 103.63 yen earlier in Asia.
METALS: The price of gold rose $3.80 to $1,257.60 an ounce. MercadoLibre lost $13.83, or 7.5 percent, to $169.38. The euro rose to $1.1026 from $1.1011. "Clearly Unilever won't be the only company wanting to pass on a 10 per cent or similar price increase due to the fall in the pound", Rabobank's Foley added.
