HONG KONG: Asian shares dipped on Friday, March 11 as weak economic data and spreading unrest in Saudi Arabia prompted some profit taking, while the euro looked shaky after its biggest one-day fall versus the dollar in a month.
Brent crude held near $115 per barrel as investors monitored developments in the Middle East. Forces loyal to Libyan leader Muammar Gaddafi battled rebels at an oil port, while Saudi police fired in the air to disperse protesting Shi'ites.
Oil prices are up by a quarter this year, with most of the gains coming since the Libyan crisis erupted.
While oil prices around this level posed no substantial threats to the world economy or financial markets, the risk that prices may rise to damaging levels has risen substantially, Barclays Capital strategists said.
Chinese inflation in February remained around 5 percent, suggesting tighter monetary policy may be needed, adding to the uncertainty.
Key stock indexes in Australia and South Korea closed down more than 1 percent each. The broader Asian market outside Japan also fell about 1 percent, extending its drop by more than 3 percent for the week as fresh outbreaks of violence in the Middle East kept markets on edge.
Japan's Nikkei average closed down 1.7 percent at 10,254.43 points after an earthquake measuring 7.9 struck off the northeast coast of Japan, strongly shaking buildings in Tokyo. The benchmark was lower throughout the day on worries over the Middle East. The broader Topix index ended down 1.7 percent at 915.51.
Despite this week's weak trade data from China, Hong Kong and Chinese shares were poised for small weekly gains, suggesting investors may be returning to emerging markets after a sharp selloff earlier this year.
Weak U.S. economic data spurred some profit taking in shares in developed markets which have enjoyed a handsome run this year, though some bargain buying checked losses. .
''
JAPAN QUAKE
Japanese shares tumbled to a five-week low, falling 1.7 percent after an earthquake measuring 7.9 struck off Japan, shaking buildings in Tokyo.
Overnight, a weak Wall Street which ended down nearly 2 percent. The S&P 500 is up by a third since last July.
"It is another day of reducing risk across the portfolio. We have had it one way for too long and with big issues hitting, everyone is running to the exit at the same time," Chris Weston, an institutional dealer at IG Markets said.
In credit markets, sovereign credit default swap spreads pushed wider, reflecting the general risk aversion sentiment.
Shanghai copper rebounded but was on track to post its biggest weekly loss since May 2010 while London futures were looking at their worst week since last June, dragged by worries of high oil prices hurting the global economy.
The drop in stocks lifted demand for U.S. Treasuries. Benchmark 10-year notes held near a 1-1/2 month low of 3.39 percent, down from 3.56 percent hit earlier this month.
In currency markets, the euro stayed weak after having suffered its biggest one-day fall against the dollar in a month, and further losses may loom if a euro zone summit fails to soothe market nerves on sovereign debt.
Any disappointment could heap more pressure on the single currency, which slid to one-week lows near $1.3770 overnight. It last traded at $1.3820 . - Reuters
Brent crude held near $115 per barrel as investors monitored developments in the Middle East. Forces loyal to Libyan leader Muammar Gaddafi battled rebels at an oil port, while Saudi police fired in the air to disperse protesting Shi'ites.
Oil prices are up by a quarter this year, with most of the gains coming since the Libyan crisis erupted.
While oil prices around this level posed no substantial threats to the world economy or financial markets, the risk that prices may rise to damaging levels has risen substantially, Barclays Capital strategists said.
Chinese inflation in February remained around 5 percent, suggesting tighter monetary policy may be needed, adding to the uncertainty.
Key stock indexes in Australia and South Korea closed down more than 1 percent each. The broader Asian market outside Japan also fell about 1 percent, extending its drop by more than 3 percent for the week as fresh outbreaks of violence in the Middle East kept markets on edge.
Japan's Nikkei average closed down 1.7 percent at 10,254.43 points after an earthquake measuring 7.9 struck off the northeast coast of Japan, strongly shaking buildings in Tokyo. The benchmark was lower throughout the day on worries over the Middle East. The broader Topix index ended down 1.7 percent at 915.51.
Despite this week's weak trade data from China, Hong Kong and Chinese shares were poised for small weekly gains, suggesting investors may be returning to emerging markets after a sharp selloff earlier this year.
Weak U.S. economic data spurred some profit taking in shares in developed markets which have enjoyed a handsome run this year, though some bargain buying checked losses. .
''
JAPAN QUAKE
Japanese shares tumbled to a five-week low, falling 1.7 percent after an earthquake measuring 7.9 struck off Japan, shaking buildings in Tokyo.
Overnight, a weak Wall Street which ended down nearly 2 percent. The S&P 500 is up by a third since last July.
"It is another day of reducing risk across the portfolio. We have had it one way for too long and with big issues hitting, everyone is running to the exit at the same time," Chris Weston, an institutional dealer at IG Markets said.
In credit markets, sovereign credit default swap spreads pushed wider, reflecting the general risk aversion sentiment.
Shanghai copper rebounded but was on track to post its biggest weekly loss since May 2010 while London futures were looking at their worst week since last June, dragged by worries of high oil prices hurting the global economy.
The drop in stocks lifted demand for U.S. Treasuries. Benchmark 10-year notes held near a 1-1/2 month low of 3.39 percent, down from 3.56 percent hit earlier this month.
In currency markets, the euro stayed weak after having suffered its biggest one-day fall against the dollar in a month, and further losses may loom if a euro zone summit fails to soothe market nerves on sovereign debt.
Any disappointment could heap more pressure on the single currency, which slid to one-week lows near $1.3770 overnight. It last traded at $1.3820 . - Reuters
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