US, Asia markets mixed on Tuesday

The Asia and Pacific markets were mixed on Tuesday, with most markets higher but Tokyo seeing declines. In India, the Sensex added 0.09 percent to 13,189.54. The Singapore Straits Times index was 0.67 percent to 3,422.62, while the Hang Seng index gained 0.68 percent to 20,347.87 in Hong Kong. In Australia, the Sydney Ordinaries added 1.25 percent to close at 6,139.1.

The Tokyo markets were lower as the yen strengthened slightly. It is thought to be likely that the continuing weakness in the yen will be a topic of conversation when the G7 finance ministers meet soon. There have been some accusations that Japan has been keeping the yen artificially weak in order to benefit export-focused business there. The Nikkei 225 dropped 0.45 percent to 17,664.69 and the Topix index fell 0.14 percent to 1,735.69. The electronics and automobile manufacturing sectors were both lower on the day. Rumors that the proposed merger between glassmaker Hoya Corp (TYO: 7741) and camera manufacturer Pentax (TYO: 7750) is about to be abandoned sent both companies lower. Meanwhile, the news that activist fund Steel Partners has increased its stake in Nissin Food (TYO: 2897) sent the manufacturer of noodles higher.

European markets were also higher on the session. The FTSE Eurofirst 300 added 0.44 percent to 1,546.93. In Frankfurt, the Dax added 0.94 percent to 7,166.67, while the CAC-40 was 0.43 percent higher to close at 5,766.27 in Paris. At midday, Daimler Chrysler (FWB: DCX; NYSE: DCX; TYO: 7663) was higher on an offer of $4.5 billion (€3.35 billion) from US investor Kirk Kirkorian for its troubled US Chrysler division. Mr. Kirkorian was at one time Chrysler’s largest shareholder. The real estate sector was higher on bids news. Consolidation rumors also hit the retail sector, with French company PPR (Euronext: PP) announcing that it will bid for German sportswear manufacturer Puma (OTC: PMMA). PPR has already agreed to purchase 27 percent of the company. The possibility that Adidas (OTC: ADDYY) could also get involved in a deal resulted in a gain for it as well.

The London markets saw gains, with the FTSE 100 up 0.32 percent to 6,417.8 and the FTSE 250 adding 0.63 percent to 11,991.1. Supermarkets were lower after it was reported that the consortium which has been looking to purchase J Sainsbury (LSE: SBRY) is about to fall apart. Miners were higher on the day as metals prices soared.

Wall Street was mixed in midday trade. The Dow Jones Industrial Average was 0.1 percent lower to 12,555.97, while the Nasdaq composite was up 0.11 percent to 2,471.93 and the S&P 500 had added a bare 0.03 percent to 1,445.05. Investors seemed to be waiting for companies to announce their quarterly results, which will begin with Alcoa’s (NYSE: AA) report, which is due after the day’s session. There was also tension ahead of addresses by several Federal Reserve officials in the absence of any other new data. Home builder DR Horton saw declines after it said that orders for the second quarter were down by 37 percent overall, with bigger declines in the Southwest and in California. The pharmaceuticals sector was mixed. Generic drug maker Mylan Laboratories (NYSE: MYL) was higher on an upgraded profits projection, while biopharmaceutical company Adolor Corp. (NAS; ADLR) declined after it was downgraded by several brokers on the news that it had halted clinical trials and had withdrawn an application for approval of a new drug. In the chemicals sector Dow Chemicals was lower after it said that, contrary to weekend reports in the UK press, it is not talking to anyone about a leveraged buyout.

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