Asian shares were lower Tuesday as investors took a conservative approach ahead of the year-end, with cyclicals such as technology and resource firms succumbing to mild selling pressure as the focus remained on euro-zone sovereign debt problems and slowing global growth.
Japan’s Nikkei Stock Average was down 0.5%, South Korea’s Kospi Composite fell 0.6%, and China’s Shanghai Composite Index slipped 0.4%. India’s Sensex fell 0.1%, Taiwan’s Taiex lost 0.2%, while Singapore’s Strait Times Index fell 0.2% and Indonesian shares were 0.4% lower.
Trading volumes were thin as financial markets in Australia, Hong Kong and New Zealand remained closed for the holidays, while investors were reluctant to commit new funds before the new year as lingering worries over euro-zone debt troubles eclipsed a recent batch of upbeat US economic data.
In foreign exchange markets, the EURO remained range bound against the USD and the JPY amid subdued trading activity ahead of year-end and new year festivities. The EUR was at $1.3066 against the dollar from 1.3061 around 2150 GMT Monday, and at Y101.81 versus the JPY from Y101.87. The USD was at Y77.91 from Y77.97. Spot gold was at $1,593.50, down $13.50 from its previous settlement, while February Nymex crude oil futures were recently up 15 cents at $99.83 a barrel.
EasyForexNews Research Team