WELLINGTON, March 16 (Reuters) - Asian stocks face a mixed
outlook on Wednesday as the uncertainty about the nuclear crisis
in Japan looks set to underpin investor fear levels and demand
for safe haven assets, but with tentative signs the sell-off may
be close to a bottom.
The Tokyo Stock Exchange, Japan's biggest bourse, plunged more than 10 percent on Tuesday for its worst two-day showing since 1987 as overseas hedge funds dumped stocks on reports of rising radiation.
The market closed off its lows as steps were taken to reduce short selling, placing limits on broker sales of stocks for arbitrage trading, which sparked a bout of short-covering.
There were signs in the U.S. that some investors are poised to buy with Nomura's New York derivatives desk reporting large risk-reversal trade in the iShares MSCI Japan Index exchange traded fund, or EWJ.
The EWJ ETF closed down just 0.2 percent after falling more than 8 percent during the day. Nikkei futures traded in Chicago recovered to close down 4.3 percent -- after being down by more than 10 percent -- to be 345 points above the Osaka close.
Singapore-listed Nikkei futures last traded up more than 2 percent.
On Wall Street, the main indexes fell between 1.1 percent and 1.3 percent, but closed off their lows as a more upbeat view from the Federal Reserve helped to limit Japan-related losses.
The Fed stuck with its ultra-loose monetary policy but said the economy was gaining traction lifting sentiment. See
Asian stocks listed on Wall Street fell 1.09 percent, while U.S.-listed shares of Japanese companies declined and the index of leading Japanese American Depositary Receipts lost just 0.14 percent.
The yen is on track to reach a record high against the dollar amid the nuclear crisis and talk that Japanese insurers and companies will repatriate funds to help pay claims and rebuilding costs arising from the quake.
British stocks fell 1.3 percent to a 15-week low and European shares slid 2.2 percent to a three-and-a-half month low on Japan.
Australian stocks are seen mixed with Japan and weak metals weighing, but signs also that bargain hunters are poised after the recent losing streak. Share price index futures are up 0.3 percent at 4,548, a 19.3 point premium to the close of the underlying S&P/ASX 200 index.
HEADLINES: > Japan braces for potential radiation catastrophe > Japan nuclear fears roil markets > Tepco may be liable for nuclear plant explosions > Brokers say Japan quake to hurt insurers' capital > Quake impact may spread beyond Japan automakers > Bahrain declares martial law, violence flares > Gaddafi forces seize key town, G8 stalls on no-fly > US energy chief: don't delay new nuclear plants > IEA warns of oil price shock on global economy > SPECIAL REPORT-In Chernobyl, a disaster persists > EU ministers adopt tough rules on debt, imbalances
- -
KEY INDEXES pct change
Bank of New York Asia ADR index -1.09
Dow Jones Industrial Average -1.15
Nasdaq Composite Index -1.25
Nikkei futures in Chicago 8,985
Nikkei futures in Osaka 8,640
TOP ASIA EVENTS:
For more Asian company earnings, see ASIA/EQTY
JAPAN - Government business sentiment survey for Q1
HONG KONG - China Mobile Ltd final results
- China Shipping Development Co Ltd
final results
- Li Ning Company Ltd final results
- PetroChina Company Ltd final results
- Shui On Land Ltd final results
- JM Holdings Ltd final results
- Tencent Holdings Ltd final results
AUSTRALIA - Dwelling unit starts, Q4
(Reporting by Gyles Beckford; Editing by Narayanan Somasundaram)
((gyles.beckford@reuters.com; +64-4-4714231; Reuters Messaging: gyles.beckford.reuters.com@reuters.net)) For top Asian company news, double click on: U.S. company news European company news U.S. weekly outlook European weekly outlook Forex news Global Economy news Tech/Telecoms/Media Banking news Political/General news Asia Macro data ASIA STOCK MARKETS: Pan-Asia........ Japan....... S.Korea... S.E. Asia....... Hong Kong... Taiwan.... Australia/NZ.... India....... China..... DIARIES & DATA: IPO diary/data Asia earnings diary U.S. earnings diary European diary Hong Kong diary Wall Street Week Ahead Eurostocks Week Ahead LIVE PRICES & DATA: World Stocks Asian Stocks Dow Jones/NASDAQ / Nikkei FTSE 100 Debt Currency rates Keywords: MARKETS ASIA/ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The Tokyo Stock Exchange, Japan's biggest bourse, plunged more than 10 percent on Tuesday for its worst two-day showing since 1987 as overseas hedge funds dumped stocks on reports of rising radiation.
The market closed off its lows as steps were taken to reduce short selling, placing limits on broker sales of stocks for arbitrage trading, which sparked a bout of short-covering.
There were signs in the U.S. that some investors are poised to buy with Nomura's New York derivatives desk reporting large risk-reversal trade in the iShares MSCI Japan Index exchange traded fund, or EWJ.
The EWJ ETF closed down just 0.2 percent after falling more than 8 percent during the day. Nikkei futures traded in Chicago recovered to close down 4.3 percent -- after being down by more than 10 percent -- to be 345 points above the Osaka close.
Singapore-listed Nikkei futures last traded up more than 2 percent.
On Wall Street, the main indexes fell between 1.1 percent and 1.3 percent, but closed off their lows as a more upbeat view from the Federal Reserve helped to limit Japan-related losses.
The Fed stuck with its ultra-loose monetary policy but said the economy was gaining traction lifting sentiment. See
Asian stocks listed on Wall Street fell 1.09 percent, while U.S.-listed shares of Japanese companies declined and the index of leading Japanese American Depositary Receipts lost just 0.14 percent.
The yen is on track to reach a record high against the dollar amid the nuclear crisis and talk that Japanese insurers and companies will repatriate funds to help pay claims and rebuilding costs arising from the quake.
British stocks fell 1.3 percent to a 15-week low and European shares slid 2.2 percent to a three-and-a-half month low on Japan.
Australian stocks are seen mixed with Japan and weak metals weighing, but signs also that bargain hunters are poised after the recent losing streak. Share price index futures are up 0.3 percent at 4,548, a 19.3 point premium to the close of the underlying S&P/ASX 200 index.
HEADLINES: > Japan braces for potential radiation catastrophe > Japan nuclear fears roil markets > Tepco may be liable for nuclear plant explosions > Brokers say Japan quake to hurt insurers' capital > Quake impact may spread beyond Japan automakers > Bahrain declares martial law, violence flares > Gaddafi forces seize key town, G8 stalls on no-fly > US energy chief: don't delay new nuclear plants > IEA warns of oil price shock on global economy > SPECIAL REPORT-In Chernobyl, a disaster persists > EU ministers adopt tough rules on debt, imbalances
- -
KEY INDEXES pct change
Bank of New York Asia ADR index -1.09
Dow Jones Industrial Average -1.15
Nasdaq Composite Index -1.25
Nikkei futures in Chicago 8,985
Nikkei futures in Osaka 8,640
TOP ASIA EVENTS:
For more Asian company earnings, see ASIA/EQTY
JAPAN - Government business sentiment survey for Q1
HONG KONG - China Mobile Ltd final results
- China Shipping Development Co Ltd
final results
- Li Ning Company Ltd final results
- PetroChina Company Ltd final results
- Shui On Land Ltd final results
- JM Holdings Ltd final results
- Tencent Holdings Ltd final results
AUSTRALIA - Dwelling unit starts, Q4
(Reporting by Gyles Beckford; Editing by Narayanan Somasundaram)
((gyles.beckford@reuters.com; +64-4-4714231; Reuters Messaging: gyles.beckford.reuters.com@reuters.net)) For top Asian company news, double click on: U.S. company news European company news U.S. weekly outlook European weekly outlook Forex news Global Economy news Tech/Telecoms/Media Banking news Political/General news Asia Macro data ASIA STOCK MARKETS: Pan-Asia........ Japan....... S.Korea... S.E. Asia....... Hong Kong... Taiwan.... Australia/NZ.... India....... China..... DIARIES & DATA: IPO diary/data Asia earnings diary U.S. earnings diary European diary Hong Kong diary Wall Street Week Ahead Eurostocks Week Ahead LIVE PRICES & DATA: World Stocks Asian Stocks Dow Jones/NASDAQ / Nikkei FTSE 100 Debt Currency rates Keywords: MARKETS ASIA/ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.