The Canadian Press - ONLINE EDITION

Asian stock markets down for 3rd day as recent highs, earnings instil caution

  • Print

TOKYO - Asian stock markets fell for a third day Wednesday as caution spread ahead of corporate earnings and after record highs on Wall Street.

The just-started U.S. earnings season as well China's second quarter GDP figures, due next week, will help investors determine whether the recent run up in stock valuations has been justified. The Dow Jones industrial average last week topped 17,000 for the first time in its 118-year history.

"Investors globally have become a bit more cautious," said IG strategist Ryan Huang in a market commentary.

Japan's Nikkei 225 recouped some of its losses earlier in the day to close down 0.1 per cent at 15,302.65, and Hong Kong's Hang Seng shed 1.6 per cent to 23,169.09.

Seoul's Kospi dropped 0.3 per cent to 2,000.50, and China's Shanghai Composite was down 1.2 per cent at 2,038.61. Markets in Australia and Southeast Asia also fell.

"Every sector on the Australian share market fell today as investors headed for the exits on negative overseas leads," said Michael McCarthy, chief market strategist at CMC Markets in Sydney.

"In a glass half-empty trading environment, investors ignored higher iron ore prices, benign China inflation and a strong start to the US reporting season by Alcoa."

The U.S. earnings season got started after the closing bell Tuesday when aluminum maker Alcoa reported results that were better than investors expected. Wells Fargo, the No. 1 home mortgage lender in the U.S., reports on Friday.

The Dow closed down 117.59 points, or 0.7 per cent, 16,906.62. The Nasdaq fell 60.07 points to 4,391.46. The S&P 500 lost 13.94 points, or 0.7 per cent, to 1,963.71.

The immediate attention of markets is likely to be on the release of minutes later Wednesday from the U.S. Federal Reserve's last policy meeting.

CMC Markets said in a commentary that the minutes are likely to sound more "dovish" than current economic conditions warrant since the Fed's last meeting was before June's strong jobs numbers were released.

In energy markets, benchmark U.S. crude for August delivery was up 1 cent at $103.41 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 13 cents to close at $103.40 on Tuesday.

In currencies, the euro rose to $1.3621 from $1.3612 late Tuesday. The dollar rose to 101.64 yen from 101.52 yen.

___

Follow Yuri Kageyama on Twitter at twitter.com/yurikageyama

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Glenn January won't blame offensive line for first loss

View more like this

Photo Store Gallery

  • The sun peers through the fog to illuminate a tree covered in hoar frost near Headingley, Manitoba Thursday- Standup photo- February 02, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)
  • Ruth Bonneville Winnipeg Free Press January 18, 2011 Local Standup -

View More Gallery Photos

Poll

Will higher pork prices change your grocery-shopping habits?

View Results

View Related Story

Ads by Google