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Market Update

Asia Ends on a Mixed Note

Asian markets ended mixed Friday as investors waited for cues from the U.S. nonfarm payrolls report due later and Chinese trade and inflation data expected over the weekend.

The Nikkei was up 0.9%. The Shanghai Composite ended near the flat-line, down 0.1% while the Hang Seng slipped 0.2%. The Sensex was up 1.9% and at a record high while the All Ordinaries edged up 0.3%.

In news around the region, the dollar broke the 103 yen threshold on Thursday for the first time since late January following a better-than-expected jobless claims report.

In Australia, Reserve Bank Governor Glenn Stevens said the exchange rate is "high by historical standards" causing the Australian dollar to weaken slightly. The AI Group/HIA construction index, a privately compiled report, revealed a drop of 4.0 points to 44.2 with the lowest number of new orders since June last year.

The annual meeting of the China National People's Congress underway till March 13 remains an important backdrop for the region. At a news briefing during the meeting, Commerce Minister Gao Hucheng said Friday the country can reach its trade-growth target this year as the global economy continues to recover.

U.S. crude oil futures climbed higher despite upbeat supplies data as the markets remained cautious on the risk from the Ukraine crisis that could result in a potential disruption of supply of oil and gas from Russia to Europe.

Stocks on the Move

Sony was up about a percent despite the surprise departure of its head of U.S. video games Jack Tretton even after a strong debut for the PlayStation 4. The Wall Street Journal quotes an analyst as saying Tretton may have quit due to tense relations with Andrew House, global head of Sony Computer Entertainment.

Retailer Aeon was edged up 0.2% despite a broker downgrade.  TDK Corp. gained 2.2% after a broker recommendation.

Fast Retailing was up 2%.

Exporters were generally higher after the gains for the U.S. dollar.

Tencent Holdings was up 0.8% earlier in the day to a record high before falling down 0.6% on profit-taking. The stock was up yesterday after comments from Chinese Premier Li Keqiang that the government would support the development of online industries.

Fast Retailing was down 1.4% on profit-taking after a successful debut earlier this week.

The Sensex rose to a fresh record high with BHEL the top gainer, up 6.3%

L&T notched up around 5% after an upgrade by brokerage house Citi. Other gainers included ICICI Bank, up 6%, followed by Axis Bank up 5.9%. RIL and Bharti Airtel were up around 5.5% each.

However, IT stocks missed the rally as the rupee strengthened above 61 to the dollar, almost at a three –month high. Wipro gave up 3.3% and Infosys lost 2.5%.

Rio Tinto was up half a percent in Sydney. According to a Reuters report, the company is moving ahead with its long-delayed plans for an iron-ore project in Guinea in West Africa.

Qantas was down 0.9% while James Hardie gained 1.1%. Dow Jones reports that Qantas has lost its spot in the S&P/ASX 50 index of top market-cap shares to James Hardie.

 

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