Asia shares mixed, Mumbai jumps as Modi heads for PM job| MENAFN.COM

Monday, 04 July 2022 06:26 GMT

Asia shares mixed, Mumbai jumps as Modi heads for PM job


(MENAFN- AFP) Asian markets were mixed Friday following another sell-off on Wall Street and worse-than-expected eurozone data while Mumbai hit a record high as pro-business candidate Narendra Modi headed for a landslide general election victory.

Tokyo's benchmark Nikkei index fell 1.41 percent, or 201.62 points, to finish at 14,096.59, while the Topix index of all first-section shares was down 1.63 percent, or 19.22 points, to 1,159.07.

Japan Display, the world's biggest maker of screens for smartphones and tablets and a key Apple supplier, plunged 12.05 percent to 518 yen after its annual outlook failed to beat market expectations.

The firm said operating profit for the year to March 2015 will likely reach 40 billion yen ($390 million), an annual jump of 45 percent but well below market expectations for 58.8 billion yen.

Japan Display has been under pressure since a disastrous market debut in March when it plunged 15 percent. It is now down 42 percent from its initial public offering price.

Hirokazu Kabeya, senior strategist at Daiwa Securities, attributed the Nikkei index drop to losses on Wall Street, which came as a generally upbeat Japanese earnings season draws to a close.

"While earnings announcements by major domestic companies are almost over, New York shares tumbled, discouraging buying," Kabeya said. "The dollar's fall pressured Japanese (export) companies."

Sony fell 2.89 percent to 1,646 yen in Tokyo, following a more than 6.0 percent dive Thursday after it announced a $1.26 billion loss in the past fiscal year and warned of another negative result in the next 12 months.

Toyota slipped 2.00 percent to 5,522 yen while All Nippon Airways fell 2.18 percent to 224 yen after its budget airline division announced it was cancelling over 150 flights next month due to a pilot shortage.

Hong Kong shares clawed back most of the morning's losses to close a touch lower, bringing an end to a six-day winning streak.

The benchmark Hang Seng Index ticked down 17.95 points to 22,712.91.

In China, the benchmark Shanghai Composite Index was flat, reversing earlier losses to end up 1.53 points at 2,026.50. The index rose 0.76 percent for the week.

The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 0.31 percent, or 3.15 points, to 1,019.36. It added 0.16 percent over the week.

The Sydney market eased 0.58 percent, or 31.8 points, to close at 5,479.0 but Seoul edged up 0.16 percent, or 3.24 points, to 2,013.44.

- Mumbai hits record on Modi poll hopes -

Indian shares jumped more than six percent at one point, hitting a record high above 25,000 points, before easing back a touch as opposition leader Modi prepared for become the country's next prime minister.

His Hindu nationalist Bharatiya Janata Party (BJP) declared "the start of a new era" in the world's biggest democracy as preliminary results and media projections put them on track for the first parliamentary majority by a single party in 30 years.

The clear win give Modi a free hand to push through reforms to boost the economy but some warn he may not be able to turn around years of frustration about low economic growth, rising food prices and corruption.

Banks were leading the gainers, with Canara Bank surging 21.57 percent and Andhra Bank jumping 16.17 percent, while the rupee rallied 1.14 percent to 58.52 against the dollar.

The currency has been strengthening in recent weeks on expectations that Modi would win the marathon six-week election and introduce structural reforms to turn the economy around. It has now risen 17.45 percent since it sank to a record low of 68.85 in August.

India's share market has risen 5.0 percent in the past week on hopes Modi will kickstart investment and growth in the economy, which is growing at a decade low.

The dollar bought 101.55 yen in the afternoon compared with 101.57 yen late in New York and well off the 101.83 yen in Tokyo earlier Thursday. The euro fetched 139.28 yen, against 139.26 yen in New York but much lower than the 139.65 yen in Japan earlier Thursday.

The euro was at $1.3715 against $1.3711.

Oil prices rose. New York's main contract, West Texas Intermediate for June delivery, was up 10 cents at $101.89 60 a barrel in afternoon trade, while Brent North Sea crude for July was flat at to $109.10.

Gold fetched $1,293.48 an ounce at 0810 GMT compared with $1,305.46 late Thursday.

In other markets:

-- Taipei was flat, edging up 7.80 points to 8,888.45.

Smartphone maker HTC rose 0.31 percent to Tw$163.0 while Hon Hai was 0.23 percent higher at Tw$88.8.

-- Wellington was down 0.17 percent, or 8.77 points, at 5,186.19.

Fletcher Building was down 0.87 percent at NZ$9.13 while Telcom added 0.74 percent to NZ$2.73.

-- Manila dipped 0.46 percent, or 31.62 points, to 6,817.71.


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