Asia Market Commentary

Asian stocks slide into negative territory

14/6/2012, Peter Esho, Chief Market Analyst, City Index

Asian stocks were on the slide again today as negative offshore leads did little to ease jittery traders. In Hong Kong, the Hang Seng was lower in early afternoon trading with Esprit Holdings falling by another 11 today after yesterday’s slide. Sands China – owner and operator of resorts and casinos in Macau – was 2.6 lower. Australian listed Echo Entertainment, which has attracted regional casino investors like Crown and Genting, remains in a trading halt pending the release of a capital raising, which seeks to raise around $450m in new capital. In Singapore, the Straits Times index was 0.3 lower which brings the year to date performance to a gain of 5.3 . This compares with Australia’s ASX200 index which is up by only 0.2 for the same period. Today’s losses were 0.5 , no doubt impacted by commodity prices which remain in a slumber. The Australian dollar was last trading at 99.56 US cents with parity possible but not likely in the afternoon trading session. There will be stiff resistance even if tested. The Euro managed to climb through the session, last at 125.79 against the US dollar with all eyes on the Greek election due over this upcoming weekend. The dollar yen was almost flat on yesterday afternoon’s levels, last at 79.41. Gold continues to creep higher, it last traded near its intra-session high of US$1621 oz. Comments around more quantitative easing out of the US, even an increase in possibility and wording, will no doubt see gold bulls jumping for joy. Silver, also a good indicator of currency anticipation, last traded slightly above US$29 oz.

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