T. W. Merryman
Managing Director
Interconti, Limited
(Market Research Analysts)
Chicago, IL 60604
e: intercon@intercontilimited.com
w: www.intercontilimited.com
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04 October 2009
Nikkei hits 11-wk closing low; Fast Retailing soars
Though Mainland Chinese markets (Shanghai) remain closed for the National Day (week-long) holiday, Tokyo bounced after an early sell-off, only to re-weaken as the session wore on. Hong Kong opened slightly lower while Euro share trade pared early weakness shortly into the morning... Overnite US screen trade at 04:25 CDT showing an improvement from earlier on with +30 Dow point gains....
Japan's Nikkei average fell 0.6 percent to hit an 11-week closing low on Monday, dented by shares of exporters on concerns over the fragility of the U.S. economic recovery and lingering worries about the yen's recent strength. But a surge in shares of Fast Retailing which saw domestic same-store sales jump 32 percent in September, provided support to the benchmark index, which had earlier moved in and out of negative territory. The Nikkei slipped 57.38 points to 9,674.49, its lowest finish since July 21. The broader Topix declined 0.8 percent to 867.28.
This rally was driven by extraordinary amounts of monetary and fiscal stimulus and a spate of "less bad" news as the economy moved from recession to stabilization to the start of a recovery. But lately there's been a change, with the trend going from 'less bad' to 'less better' economic news, and it appears the market is trying to understand that switch. Although the recent trend doesn't undermine signs of a recovery, it does indicate that the road ahead is a lot more twisty than the stock market rally in and of itself would imply.
Hong Kong shares opened percent lower on Monday, as weak U.S. jobs data and a holiday in China further discourage investors. Early on, the benchmark Hang Seng Index was set to open down 32.91 points at 20,342.58. The China Enterprise Index of top locally listed mainland Chinese stocks was set to fall 0.37 percent to 11,483.74. HSBC fell 1.27 percent. The bank's CEO evidently expressed caution about "growing too fast" because he fears a second economic downturn could force the bank to make write-downs..
European shares pared losses to rise in early trade on Monday, having hit a four-week closing low in the previous session, with gains by mining shares more than offseting weakness for energy companies. The FTSEurofirst 300 index of top European shares are up 0.2 percent at 965.10. The index fell 1.9 percent to a four-week closing low on Friday, after U.S. jobless numbers were higher than forecast, but is still up 49 percent from the lifetime low it hit on March 9. "The tone of the market has been dominated by the (U.S.) employment report. The market was overbought, and had had a diet of positive surprises," said one analyst in London.
T. W. Merryman
Managing Director
Interconti, Limited
(Market Research Analysts)
Chicago, IL 60604
e: intercon@intercontilimited.com
w: www.intercontilimited.com
T. W. Merryman
Managing Director
Interconti, Limited
(Market Research Analysts)
Chicago, IL 60604
e: intercon@intercontilimited.com
w: www.intercontilimited.com
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