Update Daily Investment News

Greenspan Says Crisis ‘By Far’ Worst, Recovery Uneven
(Bloomberg) -- Former Federal Reserve Chairman Alan Greenspan said the financial crisis was “by far” the worst in history and called the recovery from the global recession “extremely unbalanced.”
http://www.bloomberg.com/apps/news?pid=20601087&sid=a4lpUmEdbebw&pos=4

Gold Rebound Should ‘Soon Run Out of Puff’: Technical Analysis
(Bloomberg) -- Gold’s rally to the highest level in a month should end “soon” after it reached a resistance level, Commerzbank AG said, citing trading patterns.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a4RDpwl49NDc

Rogers Says Japan Stocks Will Offer Best Value in 2010: Video
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a4LPbXN.._qs

Hedge-Fund Assets Fell $2.85 Billion in January as Stocks Fell
Hedge-fund assets fell for the first time in eight months in January as stock and commodity prices declined last month, Eurekahedge Pte said.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aOMvezVp0kcU

CLSA's Wood Recommends Asia, Emerging Market Stocks: Video
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a4777YFuHve8

Market Volatility Coming—Focus on Yield: Strategist
By: JeeYeon Park CNBC News Associate
Markets opened lower on Tuesday, but the Dow briefly rebounded, led by Home Depot after its earnings beat analysts' estimates. How should investors be positioned? Jerry Kleintop, chief market strategist at LPL Financial, and Sarat Sethi, partner and portfolio manager at Douglas C. Lane & Associates, shared their market insights.
http://www.cnbc.com/id/35526009

0256 GMT [Dow Jones] Indonesia shares off 0.8% at 2562.238 in light volume, off earlier low of 2556.128 weighed by weak IDR, overnight falls on Wall Street; support at 2540. "It's mild selling and it looks like some investors are buying on weaknesses," says trader at Reliance Securities. Among decliners: Bank Danamon (BDMN.JK) down 2.9% at IDR5,000 after reporting flat 2009 earnings, Bank Rakyat (BBRI.JK) off 2.7% at IDR7,250. Bucking trend, cigarette maker Gudang Garam (GGRM.JK) +2.4% at IDR25,200 on hopes for strong 2009 earnings.

0337 GMT [Dow Jones] Daiwa Institute of Research says recent Nikkei weakness has shown failure of index to hold predicted firm technical bottom; house had expected a reversal to the upside in TSE 1st tier 25-day advance-decline ratio, implying risk of a further index decline. Says recent decline in weight of trading volume of 10 most actively traded TSE 1st tier stocks may also indicate investors are narrowing their investment focus until a new theme emerges.

0256 GMT [Dow Jones] Mitsui says gold's 50-DMA at $1,105/oz moving below 100-DMA at $1,107/oz is a technically negative indicator. "A close above $1,125 in the near future would go a long way towards avoiding a bearish signal here," says note. Barclays Capital analysts also concerned about gold's technical picture as it hovers near key support at $1,098/oz, February 18 high. "With risk assets coming under pressure Tuesday, odds are increasing for a near term turn in trend," it says. Adds, close below $1,098 would open way to test $1,089, $1,074 and then $1,044. Spot gold at $1,107.30/oz, up $3.80 since New York close.

0356 GMT [Dow Jones] Spot gold at $1,106.60/oz, up $3.10 since NY close with some dip buyers biting after yet another bounce off $1,100 overnight, says Hong Kong-based trader. Adds, $1,100 acted as magnet due to Comex options expiry Tuesday but that no longer a factor. However, notes gold came into this week with good momentum after riding out IMF sale news, Fed discount rate hike with ease, but that momentum has now been lost; "Gold really needs to close above $1,110," he says. Adds, risk appetite fragile due to steady flow of bad economic news recently, highlighted by drop in U.S. consumer confidence overnight so gold could get caught in any equities downdraft.(

0238 GMT [Dow Jones] Prevailing sense on trading desks is AUD still in 'buy on the dips' territory. "Technical sellers are in play at the moment and it's a bearish set-up in the short term. Longer term, it's going to remain supported as our central bank is still looking to hike rates," says trader at Australian regional bank. For today, AUD being weighed down by retreat in risk appetite after weak consumer confidence data in U.S., Fitch banking downgrade in Greece. AUD/USD recently at 0.8930, down from high of 0.9070 overnight, with trader pinpointing 0.8870 as solid level of support.(

0230 GMT [Dow Jones] HSI last down 0.9% at 20,447.18, taking cues from U.S. markets, but modest fall vs 3.7% gain over past 2 sessions. While HK government budget speech later today not expected to deliver market-moving measures, focus likely on whether government will unveil any cooling measures on local property market. "Perhaps bubbles are really emerging in both the Hong Kong and mainland property markets, as affordability becomes increasingly vulnerable to changes in interest rates, which have an upward bias, while price hikes get ahead of disposable income growth," says Taifook. Notes if there's enough time to let bubbles develop before they burst, exceptional investment opportunities present themselves; in other words, best returns are available by jumping into an emerging bubble but getting out before it bursts. Hang Seng Property Subindex down 0.4% at 25,878.35. Bank of Communications (3328.HK) down 0.1% at HK$7.98, off early low HK$7.86, as rights issue news removes overhang on stock. Cnooc (0883.HK) down 1.6% at HK$12.22, after April crude futures settles down 1.8% at $78.86/bbl on Nymex overnight. Volume of local bourse modest at HK$7.32 billion.

0222 GMT [Dow Jones] Volatilities implied by 1-month ATM USD/JPY options rise to 11.30%/12.00% from 11.15%/11.85% in NY overnight; gains due to USD/JPY's overnight drop below psychologically important 90.00 mark; but vols' gains limited as levels below 90.00 visited recently, last on February 16. Players say investors increasingly worried about USD/JPY's downside risk, 1-month vols may spike above 14% if USD/JPY falls below 88.00. "Many investors now believe the dollar won't fall below Y88.00. So, if that happens, investors will be forced to change their trading strategy," says options dealer at major bank in Tokyo. Many Tokyo dealers expect USD/JPY should find good support around 89.50 from Japanese trust funds, importers.(

0211 GMT [Dow Jones] Nikkei down 1.8% at 10,163.28 midday after touching intraday low of 10,129.65, as losses overnight on Wall Street souring mood for Japan shares; strong yen hurting exporters and resource shares also dropping due to falling gold and crude oil futures, market analysts say. "But with the Nikkei around 10,500, it's a comfortable level to buy back, so losses may be trimmed in the afternoon," says Japanese brokerage manager. Says index may be supported at intraday low mark for today. All 33 Topix subsectors lower, with techs/exporters broadly weaker; Nikon (7731.TO) down 2.8% at Y1,986, Canon (7751.TO) down 3.0% at Y3,710. Mitsubishi Corp (8058.TO) also down 1.9% at Y2,219. TSE 1st section trading volume tad higher than yesterday's midday level but still not robust, at 828.84 million shares.

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