The MSCI Asia Pacific Index (MXAP) retreated 0.2 percent as of 11:16 a.m. in Tokyo. Standard & Poor’s 500 Index futures added 0.2 percent. The won dropped 0.3 percent, weakening against all major peers. Japan’s five-year note yield fell 2 1/2 basis points to 0.305 percent, a three-week low. Taiwan’s Taiex Index climbed 0.6 percent after the finance minister said the nation may exempt some foreign investors from a capital-gains tax.
Concern about Europe’s debt crisis deepened after French borrowing costs increased at an 8.44 billion euro ($11 billion) auction yesterday amid growing concern that Spain will follow Greece, Portugal and Ireland in requiring an international bailout. U.S. payrolls probably increased by more than 200,000 workers for a fourth month, according to economists surveyed by Bloomberg. Most markets are closed today for holidays.
“We haven’t seen any major improvements in the European debt situation,” said Marito Ueda, senior managing director in Tokyo at FX Prime Corp., a currency-margin company. “After Greece, investors may be beginning to shift their focus onto countries like Spain, Portugal and Italy.”
Japan’s Shares Retreat
The Nikkei 225 Stock Average (NKY) slid 0.7 percent while South Korea’s Kospi index was little changed. The Shanghai Composite Index retreated 0.1 percent. Markets in Hong Kong, India, Australia, Singapore, Indonesia, Thailand, Philippines, New Zealand and Sri Lanka are closed.
U.S. equity index futures will trade until 9:15 a.m. New York time on CME Group Inc.’s Chicago Mercantile Exchange and Treasuries will trade for part of the day to allow investors to react to the nonfarm payrolls report. There will be spot trading in precious metals.
Oil trading is closed on the New York Mercantile Exchange and London’s ICE Futures Europe exchange. Trading on the London Metals Exchange is also shut today.
Kobe Steel Ltd., Japan’s fourth-largest steelmaker, slid 1.5 percent after doubling its loss forecast for this fiscal year.
Taiwan’s Taiex (TWSE) snapped a three-day streak of losses. Overseas investors without offices and direct business operations in Taiwan will be exempt “in principle” from a capital-gains tax on stock trades that the government is deliberating, Finance Minister Christina Liu said during a government panel discussion yesterday about the tax.
The euro was little changed at 107.55 yen. The 17-nation currency is set for a 2.7 percent drop against the yen this week, the most in seven months. Spain, the euro-region’s fourth- largest economy, is in “extreme difficulty,” Prime Minister Mariano Rajoy said April 4. Spanish bonds fell yesterday, pushing the yield on the 10-year benchmark bond to 5.84 percent, the highest since December.
No comments:
Post a Comment