Skip to main content
Advertising

Originally published June 13, 2013 at 4:21 AM | Page modified June 14, 2013 at 1:31 AM

  • Share:
             
  • Comments (0)
  • Print

Asian stocks rebound after Tokyo drop

Asian stocks rebounded Friday from Tokyo's sharp decline after investors were encouraged by positive U.S. economic news.

AP Business Writer

Most Popular Comments
Hide / Show comments
No comments have been posted to this article.
Start the conversation >

advertising

BEIJING —

Asian stocks rebounded Friday from Tokyo's sharp decline after investors were encouraged by positive U.S. economic news.

Oil stayed above $96 a barrel on signs of steady American hiring and stronger retail sales despite mounting signs of weakness in China's economic recovery.

Tokyo's Nikkei 225, the regional heavyweight, gained 1.9 percent to close at 12,686.52, recovering some of its losses after Thursday's 6.4 percent plunge that took the index into "bear market" territory.

China's benchmark Shanghai Composite Index gained 0.6 percent to 2,162.04, coming off its lowest close in six months following Thursday's 2.8 percent slide. Hong Kong's Hang Seng gained 0.4 percent to 20,969.14 and Seoul added 0.4 percent to 1,889.24. India's Sensex rose 1.6 percent to 19,126.03.

In early trading in Europe, Britain's FSTE 100 rose 0.5 percent to 6,336.27. France's CAC-40 gained 0.3 percent to 3,810.53 and Germany's DAX rose 0.6 percent to 8,143.96.

Markets are jittery about the possibility the U.S. Federal Reserve might wind down its stimulus, but were steadied by data showing U.S. retail sales rose 0.6 percent in May, their strongest showing in six months. Also, the number of Americans seeking unemployment benefits was smaller than expected last week.

"Gains in U.S. stocks overnight will help to calm sentiment," said Credit Agricole CIB analyst Mitul Kotecha in a report.

Taiwan's Taiex fell 0.2 percent to 7,937.74 and Sydney's ASX S&P 200 rose 2 percent to 4,791.80. Market benchmarks in Bangkok and Jakarta rose more than 3 percent.

Dow Jones industrial futures and Standard & Poor's 500 futures were flat on the Chicago Mercantile Exchange.

Japanese markets have weakened following a burst of euphoria over Prime Minister Shinzo Abe's economic turnaround plan. Markets had surged 50 percent since the start of the year but doubts are mounting about whether Abe's plan will work.

The Nikkei's plunge Thursday took the Japanese market to a 20 percent decline from its May 22 high - the definition of a bear market.

Markets have been uneasy since Fed chairman Ben Bernanke said the U.S. central bank might pull back on its $85 billion-a-month bond-buying program - known as quantitative easing - if U.S. economic data, especially hiring, improve.

Investors expect a reduction in the Fed's asset purchases later this year. Such stimulus has been a key driver of the rally in stock markets and other asset prices. Analysts say markets are looking ahead to next week's Fed policy meeting for more guidance on the scale and timing of any reductions.

"The markets now appear to be in panic mode over the prospect of a tapering of QE3 in the U.S., even though the Fed itself has stressed that monetary policy would remain `highly accommodative'," said economist Julian Jessop of Capital Economics in a report.

Sentiment about China has turned pessimistic after May exports and retail sales weakened, fueling concern the recovery for the world's second-largest economy might be stalling.

News reports said Eurozone finance ministers were due to meet Friday in Rome to discuss possible support for banks. The Wall Street Journal said that might include agreement on using up to 60 billion euros to rescue financial institutions.

"Such a deal would likely be viewed as positive as other components of the banking union will take a long time before they are implemented in full," said Credit Agricole CIB's Kotecha.

In currency markets, the euro declined to $1.3339 from $1.3345 late Thursday in New York. The dollar was nearly unchanged at 94.88 yen.

Benchmark oil for July delivery fell 2 cents to $96.67 after gaining 81 cents on Thursday on improved U.S. economic data.

News where, when and how you want it

Email Icon

The Seattle Times wins top award for multimedia storytelling

The Seattle Times wins top award for multimedia storytelling

Our Sea Change series received a prestigious 2015 DuPont-Columbia award for showcasing the power of storytelling on the Web. Experience the report here.

Advertising

Partner Video

Advertising


Advertising
The Seattle Times

The door is closed, but it's not locked.

Take a minute to subscribe and continue to enjoy The Seattle Times for as little as 99 cents a week.

Subscription options ►

Already a subscriber?

We've got good news for you. Unlimited seattletimes.com content access is included with most subscriptions.

Subscriber login ►