Indonesia's stocks soar, rest of world's markets are mixed
By Youkyung Lee, AP and AFP July 11, 2014, 12:05 am TWN
SEOUL/HONG KONG--Global markets were mixed Thursday with a slight pickup in China's exports failing to give a lift to European stocks after most Asian indexes closed up. Indonesian stocks surged despite a contested presidential election result.
European markets failed to extend the gains from the previous session when investor sentiment was boosted by strong corporate earnings. Britain's FTSE 100 was down 0.4 percent to 6,693.71. Germany's DAX slid 0.8 percent to 9,731.29 and France's CAC-40 sank 1.1 percent to 4,310.81.
Asian markets were mostly higher Thursday after Wall Street advanced in response to an upbeat outlook for the U.S. economy by the Federal Reserve, while Chinese trade growth picked up pace in June.
An indication from the Fed that it will keep interest rates at record lows well into next year kept downward pressure on the dollar.
Sydney added 0.22 percent, or 11.92 points, to close at 5464.4 despite soft jobs figures, while Seoul added 0.12 percent, or 2.34 points, to 2,002.84 and Hong Kong put on 0.27 percent, or 62.92 points, to 23,238.99. Shanghai was flat, nudging 0.27 percent down to 2,038.34.
Tokyo dipped 0.56 percent, or 36.89 points, to 15,265.76 as the strong yen hit exporters.
Jakarta rallied on projections the business-friendly Joko Widodo would win a close presidential election, while Mumbai slipped 0.28 percent to 25,372.75 as India's new government unveiled its a much-anticipated first budget that lacked any major reforms.
U.S. shares provided a positive lead as investors picked up bargains after a two-day losing streak thanks to an upbeat assessment of the U.S. economy by Fed policymakers in the minutes of their June board meeting.
The minutes showed the bank plans to end its five-year-long, economy-boosting bond-buying scheme in October.
"If the economy progresses about as the committee expects... this final reduction would occur following the October meeting," the minutes said.
The timetable was as expected following a slew of strong data out of Washington in recent weeks, the latest being last month's better-than-forecast jobs report.
Jakarta Gains, Mumbai Dips
Adding to the buying sentiment was aluminium giant Alcoa, which kicked off the second-quarter earnings season by reporting it was in the black again after posting a big loss a year ago.
In New York the Dow edged up 0.47 percent, the S&P 500 rose 0.46 percent and the Nasdaq advanced 0.63 percent.
In China the General Administration of Customs said exports rose 7.2 percent year-on-year in June while imports gained 5.5 percent.
The figures were up from May although exports were well short of forecasts.
Indonesian shares rallied 1.46 percent, or 73.30 points, to 5,098.01, as unofficial tallies showed Widodo ahead of Prabowo Subianto in the race to lead Southeast Asia's biggest economy.
Investors have been hoping for victory for the Jakarta chief, the first serious presidential contender without deep roots in the Suharto era, seeing him as a potential reformer and clean leader in a graft-ridden country.
Prabowo, a general in the Suharto era who has been dogged by human rights abuse allegations, is seen as less friendly to overseas investors.
Traders in India digested the maiden budget of Prime Minister Narendra Modi's new government, which promised fiscal prudence and more opportunities for foreign investors in key sectors.
It slipped as dealers were left disappointed over the lack of any "big bang" reforms to jolt Asia's number-three economy back into life.
Gold fetched US$1,341.45 an ounce at 1125 GMT compared with US$1,324.87 late Wednesday.
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