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ASEAN Market Preview

It will be a lower open today in ASEAN as concerns creep in regarding Europe and Wall St.

In technical terms Wall St looks to be approaching heavy resistance and investors should begin to hedge their equity bets,

Today I have lowered my Dow Jones target for 2013-2014 to 10,500 despite the Fed’s never ending QE and the political talk of a recovery.

My view remains negative as we have to look at this market in context, both financial and political, the chart and the context concern me.

Remembering that this rally has included record low interest rates, massive bail outs and trillions in Quantative Easing.

Now as 2013 is well under way we expect to see the US raise the Debt Ceiling, …

Overnight


    SPI futures are 7 points lower at 4887
    The $A is lower at $US1.0284
    In recent trade in New York, the S&P500 was 0.351% lower at 1506.81
    In London, the FTSE100 fell 1.063% to 6228.42
    China iron ore was flat at $US155.10 a metric tonne
    Gold rose 40 cents  to $US1671.65 an ounce
    WTI crude oil fell 86 cents to $US95.76 a barrel
    Reuters/Jefferies CRB index fell 0.67% to 301.04

International investors are bullish on China equities, with their optimism fueled by the repeated emphasis from new Party chief Xi Jinping and Vice-Premier Li Keqiang on the need for reforms, coupled with receding market concerns of an economic "hard landing" in China, a senior executive at Goldman Sachs said.

Speaking at a news conference in Hong Kong on Wednesday, Helen Zhu, managing director of global economics, commodities & strategy research, global investment research at Goldman Sachs (Asia), said international investors she has spoken to over the past two weeks are quite positive that equities will have healthy earnings growth despite the country's cyclical GDP growth.


ASEAN Market Preview

Tokyo’s Nikkei suffered a deep correction after storming almost four percent to its highest level since September 2008 as the yen reclaimed some of its losses in recent days.

Tokyo fell 0.93 percent, or 106.68 points, to 11,357.07 and Seoul slipped 0.23 percent, or 4.42 points, to 1,931.77.

Sydney rose 0.30 percent, or 14.7 points, to 4,935.7, Hong Kong fell 0.34 percent, or 79.93 points to 23,177.00, and Shanghai closed down 0.66 percent or 15.95 to 2,418.53.

– Singapore slipped 0.45 percent, or 14.76 points, to 3,261.77.

Singapore Telecom rose 0.86 percent to Sg$3.54 and Singapore Airlines dropped 1.76 percent to Sg$11.15.

– Jakarta was flat, edging up 4.17 points to 4,503.15.

Asia Pacific Fibres rose 1.03 percent to 196 rupiah, Indofood Sukses Makmur climbed 3.15 percent to 6,550 rupiah and carmaker Astra International rose 1.32 percent to 7,650 rupiah.

– Manila closed 0.45 percent higher, or 28.64 points, to 6,459.9.

Metropolitan Bank rose 0.09 percent to 110.50 pesos, and Manila Electric Co. rose 1.87 percent to 304.60 pesos.

– Wellington fell 0.40 percent, or 16.71 points, to 4,195.24.

Telecom Corp lost 2.12 percent to NZ$2.31, Fletcher Building was off 0.78 percent at NZ$8.90 and New Zealand Oil and Gas added 0.53 percent to NZ$0.95.

– Kuala Lumpur added 0.34 percent, or 5.43 points, to 1,619.57.

DiGi was up 3.4 percent to 4.82 ringgit while Genting Malaysia rose 1.7 percent to 3.70 ringgit and IOI Corp eased 1.4 percent to end at 4.79 ringgit.

– Bangkok was barely changed, dipping 0.54 points to 1,499.81.

Airports of Thailand added 4.23 percent to 111 baht, while telecoms company Total Access Communication jumped 3.49 percent to 89 baht.

– Mumbai fell 0.30 percent, or 59.40 points, to 19,580.32, a sixth straight loss.

Sterlite, the local arm of global resources Vedanta Group, fell 2.92 percent to 104.6 rupees and mobile phone firm Bharti Airtel slid 2.82 percent to 319.1 rupees.

– Taipei was closed for a public holiday.

Shayne Heffernan Ph.D.
Economist/Hedge Fund Manager

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