Asia-Pacific, European markets mixed on session

Equities markets in the Asia-Pacific region were mixed on Thursday in the wake of Wednesday’s decision by the US Federal Reserve to cut US interest rates to 3 percent. Where gains came, they were on speculation that troubles for the US economy won’t hurt earnings in Asia too much. In Australia, the S&P/ASX200 and the Sydney Ordinaries each added 0.56 percent, to 5,650.3 and 5,697 respectively, while in South Korea the Kospi added 2.24 percent to 1,624.68. The Kospi was higher on gains for shippers and retailers. While the Australian markets gained on the day, they declined 11 percent in January. Among decliners in the region, the Taiex fell 0.3 percent to 7,521.13. The FTSE Straits Times index was down 0.61 percent to 2,981.75 while India’s Sensex was 0.62 percent lower to 17,648.71. The Shanghai Composite fell 0.78 percent to 4,383.39 and the Hang Seng dropped 0.84 percent to 23,455.39.

Tokyo’s markets were higher on the session. The Nikkei 225 added 1.85 percent to 13,592.47 while the Topix index was 1.98 percent higher to 1,346.31 and the Mothers market gained 0.89 percent to 653.18. Carmakers and related manufacturers were higher and internet-related companies saw gains while camera makers and the pharmaceuticals sector fell on the session.

Europe’s markets were mixed. The pan-European FTSE Eurofirst 300 added 0.13 percent to 1,331.12 as Madrid’s IBEX was up 0.09 percent to 13,229, but the Paris CAC-40 was down 0.08 percent to 4,869.79 and the Dax dropped 0.34 percent to 6,851.75. Industrial gases groups were higher on the session. Utilities were mixed, mostly seeing gains in Paris but falling in Frankfurt. Banks, car and truck makers, and the steel sector were all mixed as well.

In London, the FTSE 100 added 0.73 percent to 5,879.8 but the FTSE 250 fell 0.28 percent to 9,881. The oil sector was mostly higher and property investors saw gains. Miners were mixed on the session, while house builders, insurers and banks saw declines.

Wall Street saw gains in afternoon trade after the Dow Jones Industrial Average lost more than 190 points earlier in the day. The Dow was 1.11 percent higher to 12,581.43 while the Nasdaq Composite added 0.82 percent to 2,368.16 and the S&P 500 gained 0.86 percent to 1,367.52. Some bond insurers saw gains even though ratings agencies have recently lowered the credit ratings of some and continue to consider the ratings of others. Toymakers were higher on good profits in the fourth quarter despite recent recalls, while most fast food chains also saw gains. The consumer products sector saw declines.

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