# Asian Markets Fundamental Outlook



## CFDTrading (10 October 2008)

Asian Stocks Torn On Volatility After Big US Drop And Before Bailout Vote

Written by John Kicklighter, Currency Strategist

Direction for the Asian markets will be driven by a number of different factors. The most immediate ingredient for price action was the aggressive selling that didn’t’ pick up steam until the second half of the US session 

Asia: Watch To Watch For

*• Asian Stock Futures Mixed Despite US Guidance
    • Will The US Stem The Financial Bleeding? Is This A Global Fix?

Asian Stocks Torn On Volatility After Big US Drop And Before Bailout Vote*

Direction for the Asian markets will be driven by a number of different factors. The most immediate ingredient for price action was the aggressive selling that didn’t’ pick up steam until the second half of the US session – that suggests the turn in sentiment is relatively fresh and likely to carry over to the Asian markets. However, there is a greater damper for volatility looming just ahead. The US House of Representatives is prepared to vote on the second version of the bail-out bill for Friday. However, the market won’t have an answer as to whether the credit markets will find some relief mostly likely until the afternoon of the US session – well after the Japan and its fellow markets close. Taking on fresh positions before such a macro event would be inviting incredible risk. Therefore, volatility and direction will likely reflect investors hunkering down for a potential storm.

Nikkei                                               11,154.76
Futures activity shows the Nikkei 225 is set for a strong open; but the pace set by the US markets and a look to event risk ahead suggests this will quickly change. Japan itself has not macro data that would act as a good trigger for a broad reaction from shares. On the other hand, a look at the performance of the major US sectors shows the there will be considerable weights on some of the key sectors of the Japanese market – particularly in the financial sector. On the other had, the sharp drop in commodities may help to ease the pain, though its implications for growth probably mean more of a dour outlook for returns and business activity.

Hang Seng                                        18,211.11
After the mid-week holiday, the Hang Seng index came back with a bullish edge. This certainly will be difficult to sustain as the dominate bear trend reflects the overwhelming bias towards a global economic slowdown and ongoing uncertainty in the financial market. The Congressional vote following the Asian market close will likely encourage caution in the risk-sensitive finance and property indexes. Another consideration for price action will be the return of Chinese traders to the markets after an extended holiday.  Regulators and policy officials in China may make a move to instill confidence in domestic markets rather than keeping them open to the whims of the US government.

S&P/ASX 200                                     4,761.10
Australia’s benchmark equities index is set for a sharp decline on Friday’s open. The ASX 200’s leverage in financial and resource producing firms will be a significant burden for the market. With the guidance of the sharp declines from US stocks, the risk aversion from the US session will almost certainly carry over to the Sydney. The banking and financial services group will come under pressure as investors try to reduce their exposure to any stocks that are will be highly leveraged against the bailout vote in the US  - it is a long weekend to fret about gaps. Another major movers will likely be the mining and resource producing groups. Commodity prices plunged on North American exchanges, with oil down 4.6 percent and gold also tanking 4.7 percent.


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## Aussiejeff (10 October 2008)

Will this help?

CompareShares news today.

_"*Steel maker FerroChina has become one of the highest-profile Chinese victims yet of the global economic crisis, saying it is unable to service huge debts and is immediately stopping production*.

FerroChina said Thursday it could not pay back part of its working capital loans worth 706 million yuan ($A156.79 million), while warning even larger loans were due soon.

"Due to the current economic crisis, the group is unable to repay part of its working capital loans," the company said in a statement filed with the Stock Exchange of Singapore, where it is listed.

The announcement came amid rising concerns among Chinese officials and economists that the current global crisis could hurt the local economy and threaten the survival of key exporters.

FerroChina added that it had a further 2.03 billion yuan worth of loan facilities and notes, in addition to other working capital loans of 2.49 billion yuan, some of which would be due in the near future.

The company, based in east China's Jiangsu province, a major export base, said it was "in active negotiations" with its creditors to explore various options but was not sure if an agreement would be reached.

The company temporarily stopped its manufacturing operations in its factories in Jiangsu, it said, adding that it was still pursuing plans, announced last month, of introducing a potential strategic investor.

"Given the weak capital market and poor economic conditions, there is no assurance that we can be successful in securing such funding," it said.

FerroChina said its shares will remain suspended until further notice"_.


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## chops_a_must (10 October 2008)

Lol.... whoops...


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## CFDTrading (31 March 2009)

*Asian Equities Tumble Lower as Treasury's Geithner Says Bank's Will Need Large Amounts of Government Aid *

Monday, 30 March 2009 09:44:45 GMT
Written by David Song, Analyst, Geng Chen 


Asian stocks fell for the first time in six days, which led the Nikkei to pare its largest monthly gain since 1995, as U.S. Treasury Secretary Timothy Geithner said some banks will need “large amounts” of government aid to weather the economic downturn.

*Asia Session Key Developments

•         Deutsche Bank cuts BHP’s rating to hold from buy
•         Falling commodity prices drag on the Asian equities market

Asian Equities Tumble Lower as Treasury’s Geithner Says Bank’s Will Need “Large Amounts” of Government Aid*

*NKY 225                                           8236.08*

Japanese stocks dropped the most in more than two months on fear of corporate failures. The Nikkei 225 Stock Average dropped 390.89 points, or 4.53% to end the session at 8236.08, with all of the components falling lower. Mitsui Fudosan Co., Japan’s largest real estate developer, plunged 9.2% after small rival Azel Corp. went bankrupt, while Mizuho Financial Group Inc, Japan’s second largest listed bank, lost 8.8% as Goldman Sachs Group recommended selling the stock.

*HSI                                                         13456.33*

Stocks in Hong Kong plunged lower to post the biggest decline since March 9th, which was led by a 7.2% drop in basic materials as crude oil prices dropped more than 3% to hold just above $50/bbl. The Hang Seng Index slipped 663.17 points, or 4.70% to close at 13456.33. China Construction Bank Corp. the world’s second largest lender by market value, lost 9.6% after reporting a slump in 4Q profit, while Aluminum Corp. of China Ltd, the nation’s biggest producer of the metal, dropped 12% after saying it would be unprofitable in the 1Q.

*ASX 200                                            3604.40*

The Australian benchmark index dropped 67.90 points, or 1.85% to 3604.40 at the close in Sydney, which is the biggest decline since March 2. The details of the index showed 9 of 10 components closed lower, led by a 3.52% decline in the energy sector and a 3.12% drop in basic materials. Woodside Petroleum Ltd, Australia’s second largest oil and gas producer, fell 4.4% as crude oil prices continued to slide lower, while BHP Billiton Ltd, the world’s largest mining company, lost 4.3% after Deutsche Bank cut its rating to hold from buy.

*Notable Asian Session Event Risk / Economic Releases*


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## Aussiejeff (31 March 2009)

Yeah.

It's all good, ain't it.

Not to worry.

KruddBank will save us all.


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## inenigma (31 March 2009)

Thank God I'm just a fat naked short fella.


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## CFDTrading (7 May 2009)

*Re: Asian Markets Fundamental Outlook (Focus: ASX, Nikkei, Yen)*

*Asian Stock Markets Mixed Ahead of U.S. 'Stress Test' Results, BofA May Need to Raise $34B in Capital *

Wednesday, 06 May 2009 09:57:31 GMT
Written by David Song, Analyst, Geng Chen, CFDtrading.com 
Full Article

Price actions in Asia/Pacific region were mixed on Wednesday as investors turned wary ahead of the results of the U.S. bank stress test. Australia’s benchmark index slipped lower during the session as basic materials pulled back from the recent high, while reports that Bank of America will need to raise $34B in capital following the initial results of the stress test weighed on the overall market however.

*Asia Session Key Developments*

*•         BHP Billiton cuts outlook for iron ore production
•         Bank of American may need to raise nearly $34B following the initial results of the ‘stress test’

Asian Stock Markets Mixed Ahead of U.S. ‘Stress Test’ Results, BofA May Need to Raise $34B in Capital*

Price actions in Asia/Pacific region were mixed on Wednesday as investors turned wary ahead of the results of the U.S. bank stress test. Australia’s benchmark index slipped lower during the session as basic materials pulled back from the recent high, while reports that Bank of America will need to raise $34B in capital following the initial results of the stress test weighed on the overall market however, the Hang Seng Index managed to pare losses at the open, with banking shares advancing 3.18%.

*NKY 225                                           8977.37*
The Nikkei stock will be closed until Thursday.

*
HSI                                                         16834.57*
The Hong Kong stock market rose for a fifth day as the benchmark index added 404.49 points, or 2.46% to end the session at 16834.57 after falling as much as 1% during the morning trade. HSBC Holdings Plc, Europe’s biggest bank, gained 4.1% after JP Morgan Chase & Co. upgraded the firms rating, while New World Development Co. jumped 7.4% after Goldman Sachs Group Inc. raised its share-price estimate.


*ASX 200                                            3867.10*
Australia’s ASX 200 slipped 23.30 points, or 0.60% to close at 3867.10 in Sydney, weighed down by falling commodity prices. BHP Billiton Ltd., the world largest mining company, lost 1.7% after copper retreat from its highest in two weeks, while the company stated that its iron ore production may fall short of its previous projection by a ‘few million tons’ due to accidents arising at its mines in Western Australia.

* 
Notable Asian Session Event Risk / Economic Releases*


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