Las acciones en el Asia bajan, los yields 10 anios caen
El Euro tambien cae a territorio record o 1.91%, el MSCI perdia 1.0.9% a las 11:24 a.m. en tokyo, los futures del S&P 500 caian 2.4%, el euro bajaba 0.5%, el petroleo caia 2.9%, mientras el Brent subia.
Asia Stocks, Euro Drop as Treasury 10Y Yield Falls
By Shiyin Chen and Yoshiaki Nohara - Sep 5, 2011 10:55 PM ET .
Asia Stocks, Euro Drop as Treasury 10-Year Yield Falls Tomohiro Ohsumi/Bloomberg
A pedestrian walks past an electronic stock board outside a securities firm in Tokyo. Japan’s Nikkei 225 Stock Average slid 1.2 percent.
Asian stocks and U.S. futures fell, Treasury 10-year yields sank to a record, and the euro slid for a fifth day against the franc on speculation Europe’s debt crisis is worsening. Asian credit risk rose to a two-year high.
The MSCI Asia Pacific Index lost 0.9 percent at 11:24 a.m. in Tokyo. Standard & Poor’s 500 Index futures slid 2.4 percent, while Treasury 10-year yields reached a low of 1.91 percent. The euro slid 0.5 percent to 1.1044 Swiss francs. Crude dropped 2.9 percent in New York, while Brent oil climbed. The Markit iTraxx Asia index that tracks default risk for 50 borrowers outside Japan headed for the highest close since July 2009.
Financial shares led losses in Asia, following a slump in bank stocks in Europe as the cost of bank default insurance surged to records. Ministers from Germany, Finland and the Netherlands will meet today to discuss a Finnish demand for collateral in a bailout for Greece, while the Italian Senate will debate an austerity plan amid a strike. Data today may show U.S. services industries grew at the slowest pace in more than a year as markets there resume trading after Labor Day.
“It’s another market riot,” said Nader Naeimi, a Sydney- based strategist for AMP Capital Investors Ltd., which manages almost $100 billion. “Volatility is likely to remain high until there’s clarity around Europe’s ability to work out a lasting solution. Right now, it seems policy makers are going in the opposite direction.”
More than three shares retreated for every one that gained on MSCI’s Asia Pacific Index, which is extending a two-day, 3.7 percent slump. The gauge is valued at 11.6 times estimated earnings, the lowest level since November 2008. Japan’s Nikkei 225 Stock Average slid 1.2 percent, Australia’s S&P/ASX 200 Index declined 1.1 percent and Hong Kong’s Hang Seng Index retreated 1 percent.
‘Free-fall’
“There are some very, very cheap markets in Asia right now but obviously we’re in free-fall so you’ve got to pick your entry,” Todd Martin, an Asia equity strategist at Societe General SA, said in a Bloomberg Television interview in Hong Kong. “The euro-basis risk among banks is getting wider, so we’re getting into crisis territory.”
An index of financial companies on MSCI’s Asian index dropped 1.3 percent, paced by losses in National Australia Bank Ltd. (NAB) and Sumitomo Mitsui Financial Group Inc. Toshiba Corp., Japan’s largest maker of nuclear power plants, sank 5.8 percent after the Wall Street Journal reported that the company is in talks to buy Shaw Group’s 20 percent stake in Westinghouse Electric, a nuclear reactor builder.
U.S. Futures
Futures expiring in September indicate the S&P 500 may extend a two-day, 3.7 percent sell-off. Data today may show U.S. services industries grew at the slowest pace in more than a year, two days before President Barack Obama addresses the nation on his plan to reignite the economy and boost hiring.
Yields on Treasury 10-year notes fell five basis points to 1.93 percent after earlier retreating as much as eight basis points. Demand for longer maturities narrowed the extra yield that investors get for buying 10-year notes instead of two-year debt to 1.71 percentage points, the least since March 2009.
Bonds of Europe’s most-indebted nations dropped yesterday, with the yield on two-year Greek notes rising above 50 percent for the first time. The European Union and International Monetary Fund officials decided last week to suspend a review of Greece’s budget.
Euro Weakens
Finland’s Finance Minister Jutta Urpilainen will meet with her German and Dutch counterparts today. Finnish Prime Minister Jyrki Katainen said yesterday his nation will find a Greek collateral model that respects the priority creditor status of the IMF and honors existing bondholder claims.
The Stoxx Europe 600 Index dropped 4.1 percent yesterday, rounding out its worst two-day loss since March 2009, after a measure of banks on the gauge sank 5.9 percent.
The euro retreated against 10 of its 16 major peers and was weaker for a sixth day against both the yen and dollar. Deutsche Bank AG Chief Executive Officer Josef Ackermann said yesterday market conditions remind him of late 2008 and urged lawmakers to act to avoid a repeat of the financial crisis.
The Australian dollar slid 0.4 percent to $1.0510, weakening for a third day. The Reserve Bank of Australia is forecast to keep its overnight cash rate target unchanged at 4.75 percent today, according to all 25 economists surveyed by Bloomberg News.
South Korea’s won lost 0.2 percent to 1,071.00 per dollar. Losses were capped after the central bank said South Korea’s economy expanded 0.9 percent in the second quarter from the first, faster than a July estimate of a 0.8 percent gain.
Ebbing Inflation
Taiwan’s government bonds advanced for a third day, pushing five-year yields to their lowest level of 2011, after data showed consumer prices rose less than economists estimated in August. Philippine debt also rallied on lower-than-expected inflation.
Taiwan’s inflation rate was 1.34 percent, little changed from 1.33 percent in July, the statistics bureau reported late yesterday. That compared with the median forecast of 1.5 percent in a Bloomberg survey. The Philippine government said today that consumer prices increased 4.7 percent from a year earlier, after a 5.1 percent rise in July. The median estimate in a Bloomberg News survey was for a 5 percent gain.
The yield on Taiwan’s 2 percent notes due July 2016 declined two basis points to 0.94 percent. The yield on the 8 percent July 2031 peso bond fell six basis points to 7.072 percent.
Default Risk
The Markit iTraxx Asia index of 50 investment-grade borrowers outside Japan surged 12 basis points to 175 basis points, while the Markit iTraxx Australia index increased 12 basis points to 185.5 basis points, Credit Agricole CIB prices show. Both gauges are headed for their highest close since July 2009, according to data provider CMA, which is owned by CME Group Inc. and compiles credit-default swap prices quoted by dealers in the privately negotiated market.
Oil for October delivery fell as much as 3.8 percent to $83.20 a barrel on the New York Mercantile Exchange before trading at $84.94. Floor trading was closed yesterday for the Labor Day holiday and electronic trades will be booked with today’s transactions for settlement purposes. Brent crude rose 0.5 percent to $110.62 a barrel, following three days of losses.
Wheat for December delivery slipped 1.2 percent to $7.66 a bushel. Corn slid 1.2 percent, while soybeans retreated 0.9 percent. Gold for immediate delivery traded at $1,901.75 an ounce. Bullion is less than $15 from its all-time high.
Copper for December delivery on the Comex in New York dropped as much as 2.1 percent to $4.038 a pound, the lowest level since Aug. 25. Three-month copper on the London Metal Exchange swung between gains and losses and last traded at $8,922.50 a metric ton.
To contact the reporters on this story: Shiyin Chen in Singapore at
schen37@bloomberg.net; Yoshiaki Nohara in Tokyo at
ynohara1@bloomberg.net.