The equities markets in the Asia/Pacific region were lower on Tuesday with financial leading the decline as Bank of America Corp. first quarter earnings release raised the prospect for more write-downs amongst large banks. The Nikkei ended the session 2.4% lower after falling as much as 3.34% decline during the morning session.
[B][U]Asia[/U][/B][B][U] Session Key Developments[/U][/B]
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· [B]Crude oil falls to $45.70/bbl, copper futures tumble 4.5% to $4590 per metric ton[/B]
· [B]Bank of America sees more loan-related losses, will continue to raise reserves[/B]
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[B]Asian Stock Markets Weighed by Banking Concerns, Lower Commodity Prices[/B]
The equities markets in the Asia/Pacific region were lower on Tuesday with financial leading the decline as Bank of America Corp. first quarter earnings release raised the prospect for more write-downs amongst large banks. The Nikkei ended the session 2.4% lower after falling as much as 3.34% decline during the morning session, while the appreciation in the Japanese yen weighed on exporters, with bank and tech stocks also coming under selling pressure. Meanwhile, a broad decline in base metals spurred investors to selling holdings of resource and mining stocks.
[B]NKY 225 8711.33[/B]
Japan’s Nikkei 225 Stocks Average fell 213.42 points, or 2.39% to close at 8711.33 in Tokyo, which is the largest decline in nearly two weeks. Toyota sank 3.9% while Honda Motor Co. lost 4.9% following the news that the automakers may cut domestic outputs as profits falter, and Sony Corp., which gets a quarter of its sales from the U.S., retreated 4.1% after Nikko Citigroup Ltd. lowered the firms rating to ‘hold’ from ‘buy.’
[B]HSI 15285.89[/B]
Hong Kong stock decline for the first time in three days as the Hang Seng Index dropped 465.02 points, or 2.95% to end the session at 15285.89, snapping a two-day, 1.1% advance as China Mobile earnings missed estimates, while commodity prices continued to tumbled lower. China Mobile Ltd., the world’s biggest wireless carrier, fell 5.1% after 1Q profit missed estimates, while HSBC Holding Plc, which owns a U.S. mortgage business, slumped 5.1% following the comments from Bank of America, and Cnooc Ltd., China’s biggest offshore energy explorer, slid 5.2% as oil prices slipped below $46/bbl.
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[B]ASX 200 3677.40[/B]
Australia’s ASX 200 Index slipped 91.60 points, or 2.43% to close at 3677.40, led by a 3.25% drop in financials and a 3.19% decline in basic materials. BHP Billiton Ltd and Rio Tinto Group plunged 4.0% and 5.8%, respectively, as metal-trade in London slumped 4.4%, while banking shares tumbled lower after Bank of America Corp. announced that it will continue to build reserves for loan-related losses over ‘the next couple quarters.’
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[B][U]Notable Asian Session Event Risk / Economic Releases[/U][/B]
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