Asia-Pacific equities drop along with Japan business confidence

Most Asia-Pacific region equities markets were lower again on Friday after business confidence was reported down in Japan. The major exception to the declines was an advance by the Shanghai Composite, which added 1.01 percent to 5,007.91. The Sensex in India and the Straits Times index in Singapore each dropped 0.37 percent on the session, to 20,030.83 and 3,466.38 respectively. Hong Kong’s Hang Seng index was down 0.65 percent to 27,563.64 while in Taiwan the Taiex was 0.85 percent lower to 8,118.08. The Kospi fell 1.09 percent to 1,895.05. In Australia, the Sydney Ordinaries dropped 1.58 percent to 6,556.1 while the S&P/ASX200 was down 1.61 percent to 6,491.7.

Markets were lower in Tokyo after the Bank of Japan’s Tankan survey of business confidence dropped more than anticipated, to a reading of 19. It was the quarterly survey’s lowest level in over 2 years. The Nikkei 225 dropped 0.14 percent to 15,514.51 while the Topix index was down 0.98 percent to 1,501.25 and the Mothers market fell 4.04 percent to 834.14. Some game console manufacturers and their parts suppliers were higher on the session. The insurance sector, real estate, and builders and building materials were all lower.

European markets gained after Thursday’s significant declines. The Eurofirst 300 added 0.41 percent to 1,516.07. The Dax was up 0.25 percent to 7,948.36 while the Paris CAC-40 was 0.26 percent higher to 5,605.36 and the IBEX gained 0.49 percent to 15,575.7 in Madrid. The chemicals sector was up on mergers and acquisitions rumors. Utilities and the construction and construction materials sectors were also higher, but carmakers were mixed.

In London the FTSE 100 was up 0.52 percent to 6,397 and the FTSE 250 added 0.76 to 10,413.6. Banks and the oil sector saw gains, while the retail sector was mixed. Miners declined on a sector-wide downgrade from Goldman Sachs.

Wall Street was lower in afternoon trade after the Labor Department issued a report showing that consumer prices were up 0.8 percent in November, pushed up by gasoline prices and increases in the price of airline tickets, prescription drugs and clothing. This gain in inflation had some analysts questioning whether the Federal Reserve will cut interest rates again in January. The Dow Jones Industrial Average was down 0.83 percent to 13,405.21 while the Nasdaq Composite fell 0.66 percent to 2,650.99 and the S&P 500 dropped 0.82 percent to 1,476.22. Online retailers were lower on data indicating that Internet sales are down. The energy sector declined after crude oil prices dropped and on the new consumer price data. Refiners were up, however, on broker comment.

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