Asian markets had a mixed outing today, with a late attempt by the bulls to come back into the action bringing some gains for stocks in select markets. The day started in characteristically bearish fashion with the strong overnight cues failing to have much of cascading effects on the equities amid continued dollar strength. The sentiments were clouded even more after the International Monetary Fund warned Asia of potential spillovers from the European debt crisis. The Dow Jones futures held mostly firm, indicating that the US markets might gain for a second day in today's session.
The Japanese stocks ended in red with the benchmark Nikkei 225 index at a six-month low, getting bruised the most among the prominent indices. The strengthening of the yen against the Euro and the US dollar led exporters to sell stocks as a stronger yen reduces the realization of money in local currency upon repatriation and as such affects the bottom line of exporters. The benchmark Nikkei 225 Index dropped 98.8 points, or 1.04%, to a six-month low of 9,439, while the broader Topix index of all First Section issues closed down 7.96 points, or 0.93%, at 850.
On the economic front, a report released by the Cabinet Office in Japan revealed that core private sector machinery orders rose sharply for the second straight month in April. As per the report, orders were up 4% in April compared to the previous month, following the 5.4% surge in March. Compared to a year ago, core private sector machinery orders increased 9.4% compared to the same month in the previous year in April. It followed a 1.2% increase in the prior month.
The Australian market closed on a flat note as losses were curbed by a modest up tick in metals, energy and retail stocks. The benchmark S&P/ASX200 Index managed to gain 4.10 points, or 0.09% and closed at 4,385, while the All-Ordinaries Index ended at 4,403, representing a gain of 1.40 points, or 0.03%.
On the economic front, a report revealed that the Westpac-Melbourne Institute consumer confidence index pulled back sharply in June to 101.9 from 108.0 reported for the previous month as consumers were concerned about the deteriorating conditions abroad as well turmoil in the financial markets.
Meanwhile, Chinese shares went up swiftly amid reports of continued surge in exports and bargain buying. The markets extended a rebound from 13 month lows last week and witnessed good buying emerging in major market movers today. The Shanghai Composite rose 69 points or 2.80% to 2,583.87.
In other markets, the Hang Seng index bounced back into positive territory with a rise of 0.7% while stocks in Taiwan and Singapore dropped 1.12% and 0.03% respectively.
In Mumbai, stocks had a volatile outing. After two sessions of sharp declines, the markets tested highs above 16800 for the benchmark BSESENSEX but failed to hold above the same. The index paring its intraday gains and closed up40 points or 0.25% at 16,658, while the broad Nifty rose 13 points or 0.26% to 5,000.
In commodities, crude oil added to its gains, recording steady rise after breaking above $72 per barrel and nearing to $73 per barrel ahead of the US weekly supplies data. Dollar eased slightly in the London trades, quoting around 1.1970 as a modest comeback in risk appetite made some investors cut their greenback longs. Gold showed signs of correcting from all time highs but found a good support just above $1230 and rose. The commodity was last seen quoting at $1237.30, down $8.30 per ounce.
