Stocks in the Asia/Pacific region declined for a second day this week as mounting concerns about the swine flu paired with reports about the U.S. bank stress test sparked increased volatile across the markets. The Nikkei pushed higher during the morning session but failed to hold onto the gains during the afternoon after the Wall Street Journal reported that Citigroup and Bank of America were being pressed by U.S. regulators to increase their capital holdings.
[B][U]Asia[/U][/B][B][U] Session Key Developments[/U][/B]
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· [B]Swine flu pandemic spreads into Europe[/B]
· [B]U.S. regulators state Citi and BofA need more capital, WSJ says[/B][B][/B]
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[B]Asian Equities Market Falters as U.S. Regulators Say Citigroup and BofA Need More Capital[/B]
Stocks in the Asia/Pacific region declined for a second day this week as mounting concerns about the swine flu paired with reports about the U.S. bank stress test sparked increased volatile across the markets. The Nikkei pushed higher during the morning session but failed to hold onto the gains during the afternoon after the Wall Street Journal reported that Citigroup and Bank of America were being pressed by U.S. regulators to increase their capital holdings, while a number of separate reports have been made that the swine flu pandemic is spreading into Europe.
[B]NKY 225 8493.77[/B]
The Nikkei 225 Stock Average slid 232.57 points, or 2.67% to close at 8493.77 in Tokyo after advancing as much as 0.9% during the early trade. Nippon Yusen K.K., Japan’s largest shipping company, lost 8.3% as analysts speculate net income to fall as much as 68% this year, while Toyota Motor Corp. dropped 3.4% after the JPY rose to a one-month. On the other hand, Daiwabo Co., which makes medical masks, soared 28% as the public takes precautionary steps to stem the spread swine flu.
[B]HSI 14555.11[/B]
The Hang Seng Index dropped 285.31 points, or 1.92% to 14555.11, which is the lowest in three weeks, as Ping An, China’s second-largest insurer, plunged 9% after the firm reported a lower-than-expected profit, while Angang Steel Co. slipped 4.9% after saying its first quarter profit slumped 99.7%. Meanwhile, the Wall Street Journal said U.S. regulators may force Bank of America Corp and Citigroup Inc. to raise capital following the results of the bank stress test, and fears of additional losses budding from the financial crisis continued to weigh on the markets as the IMF forecasts global write-downs to reach $4.1T.
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[B]ASX 200 3708.40[/B]
Australia’s ASX 200 Index declined 23.20 points, or 0.62% to end the session at 3708.40. Nation Australia Bank Ltd., the nation’s largest bank by assets, fell 3.5% as the lender said its first half profit fell 0.9% as bad debts rose, while BlueScope Steel Ltd., Australia’s biggest steelmaker which gets 19% of its sales from North America, slumped 5% after U.S. Steel Corp. reported its 1Q losses that was more than doubled estimates as prices slipped lower from the previous year.
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[B][U]Notable Asian Session Event Risk / Economic Releases
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