Asian Stocks Slip after Better Trading Yesterday

Cutting the losses in the last four days, yesterday Asian stocks were on a bright trade; however, that mood did not last long as today they fell to an extent. The MSCI Asia Pacific Index (TPX) slid 0.5 percent as of 1:56 p.m. in Tokyo. Following the trend even Japan’s Topix declined 0.4 percent and Standard & Poor’s 500 Index futures dropped 0.1 percent.

Amidst the expectations that U.S. growth data today and payrolls figures tomorrow may determine the mood of the Federal Reserve policy makers, Asian stock trading started with caution. According to some estimates the U.S. economy probably grew at a 2 percent annualized rate in the third quarter; however, this number is not enough for the Fed to taper its stimulus.

Particularly, when the unemployment rate increased to 7.3 percent from 7.2 percent in the previous month, William English, head of the Fed’s Division of Monetary Affairs, believes that the strategy of not raising interest rates is expected.

Twitter IPO Begins but Brings Bad Trade for Facebook and LinkedIn

Twitter Inc. raised $1.82 billion in its initial public offering which in fact is the largest IPO by a technology company since Facebook Inc.’s that took place in the last year. However, this news brought in negative trade for two other social networking companies Facebook and LinkedIn which slipped Wednesday, may be investors are willing to buy Twitter shares now than these two.

Reportedly, Twitter Inc. sold 70 million shares at $26 each. Earlier it offered the shares for $23 to $25. Earlier, while Facebook shed 2% to close at $49.12, LinkedIn declined 1.7% to close at $220.78. These two companies, particularly, Facebook has been faring better recently whose stocks gained strength after and trading close to $50.

Some other social network sites too declined in yesterday’s trading. Whereas shares of Groupon declined 2.7% to close at $10.01, Yelp was down by 6.4% to close at $66.61. Following the trend Zynga Inc. shed 2.5% to close at $3.71 amidst the news that Twitter is faring better and its shares are expected to rise even more.

Mixed Reactions to Twitter IPO

According to various reports reactions on Twitter’s IPO debut have been mixed. Whereas some analysts are warning against too much hype, some others see a potential in its shares and suggesting for investments. Caution was obvious as the investors have already seen the Facebook fiasco.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com

Jonathan Millet is currently the proud CEO of ForexMinute.com, the brand new financial news portal which is making waves among Forex traders around the globe for the innumerable Forex resources it off...

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Japanese Stocks Fall after Yesterday’s Bullish Trading

When things were going better yesterday and investors and traders started seeing positive movement this week in the Asian market, the stocks fell, trimming the best two-month rally for the regional benchmark gauge since the start of 2012. This is happening amidst the speculation that the Federal Reserve may start paring stimulus sooner than previously forecast.

Major Losers

Today’s major lose was Honda Motor Co. which lost 0.6 percent. The company which claims to be Japan’s third-largest carmaker recently brought up its quarterly report for the second-quarter could not meet the estimates from investors and due to that its shares fell remarkably. The fall in motorcycles sales in Southeast Asia was a reason behind low profits.

Another major loser in today’s trading is Alacer Gold Corp. which sank 4.1 percent in Sydney. The falling prices of gold are a major reason behind its slower growth and consequent dismal performance in stock market. A similar trend was seen in the share of National Australia Bank Ltd. (NAB) which retreated 2.3 percent.

A major reason behind the fall of NAB’s share is attributed to an increase in expenses that climbed. Two major companies in Japan, Mitsubishi Heavy Industries Ltd. and Japan Airlines Co. are going to release their reports today, and may see a boost in sales and profit thatcould fuel the stock market tomorrow.

A similar trend was seen in China’s Shanghai Composite which declined 0.7 percent after the nation’s top four banks came up with reports that showed that they have been able to profit.

Indexes Drop

Whereas Japan’s Topix index lost 0.3 percent amidst the news that the Bank of Japan maintained its campaign of unprecedented monetary stimulus, the MSCI Asia Pacific Index dropped 0.4 percent to 142.63 as of 12:25 p.m. in Hong Kong. Fall in MSCI Asia Pacific Index is due to eight of the 10 industry groups retreating.

Earlier, the Bank of Japan Governor Haruhiko Kuroda’s board kept a pledge to expand the monetary base by $711 billion a year. There is a lot of speculation on the tapering of stimulus by the Fed and investors are still worried about the quantum despite the fact that the Fed has already realized that fiscal policy is “restraining economic growth.”

Market analysts believe that stimulus will continue but tapering is inevitable. In fact, a lot of market analysts believe that the odds of the Fed starting to taper its stimulus in January have increased a lot.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com

Jonathan Millet is currently the proud CEO of ForexMinute.com, the brand new financial news portal which is making waves among Forex traders around the globe for the innumerable Forex resources it off...

View the original article here