Markets & Finance

Asia Closes Lower


European stock markets were mixed on Tuesday. In London, the Financial Times-stock Exchange 100 Index rose 5.80 points To 5190.10. But 63 BTSE stocks fell, 32 rose on turnover of 1,540,000,000 shares. U.K. June BRC retail sales fell 0.5%, August Brent crude oil prices rose. Woolworths Group and J. Sainsbury fell on weak retail sales report. Yields on 10-year gilts rose to 4.26% from 4.21% yesterday. Sterling fell to $1.7543. George Wimpey fell after company said profits in the first six months will be "well below" year-earlier levels. Alphameric rose as company had first-half profit vs. a loss a year ago. Northgate fell on plans to buy Record Rent in Spain for as much as 140 million euros.

In Germany, the Dax index, plagued by higher oil prices, fell 19.76 points to 4603.65 even though German May retail sales rose 1.2% after falling 1.5% in April. Yields on 10-year Bunds rose to 3.20% from 3.16% yesterday amid reports European Central Bank will not cut rates any time soon. 27 DAX stocks fell, 7 rose on turnover of 83,584,000 shares. The euro was flat at $1.1902. SAP fell afte UBS cut its recommendation on the stock to "neutral" from "buy". Deutsche Telekom fell on JPMorgan Chase report company unlikely to sell its T-Mobile wireless business in the U.S. because it has no immediate need for cash. EM.TV rose as company said to be open to talks with other companies about a merger for its entertainment unit. FJH rose on higher first quarter earnings.

France's CAC 40 lost 11.85 points to 4252.75 as oil prices rose. 28 CAC stocks fell, 11 rose on turnover of 80,083,000 shares. Yields of 10-year bonds rose to 3.21%. Michelin fell amid reports natural rubber prices headed to nine-year high on increased demand. Lagadere fell after Goldman Sachs lowered its rating on stock to "in line" from "outperform". Accor rose after Goldman Sachs rated stock "outperform". Publicis Groupe fell on new its U.K. ZenithOptimedia unit forecast lower U.K. advertising growth. Vinci fell on reports Citigroup sold a stake in the company.

Asian markets were lower on Tuesday. In Japan, the Nikkei 225 fell 34.85 points, or 0.30%, to 11,616.70. Stocks in Tokyo pulled back after five consecutive days of gains. The broad-based TOPIX index eased 0.2% to 1183.41. Declining issues on the first section of the Tokyo Stock Exchange outpaced advancers by 1063 to 427. Volume was average. Losses in major banking stocks such as Mizuho Financial and automobile plays, led by Nissan Motor, weighed on the market. Media reported uncertainty in the investment community as to whether Japan's House of Representatives would approve bills for privatizing Japan Post.

In Hong Kong, the Hang Seng fell 53.07 points, or 0.37%, to 14,124.80. The Hong Kong market was hurt by concern that the outlook for more rate hikes in the U.S., after last week's FOMC policy meeting, would push up local rates. Breadth on the Hang Seng was 24-7 negative. Volume was average. China Mobile and HSBC Holdings led the Hang Seng lower by index points.

Canada's benchmark TSX/S&P gained 133.34 points, or 1.34%, to close at 10,075.13.


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