0941 GMT [Dow Jones] Indonesia shares end down 1.5% at 2702.401 in moderate volume, led by foreign selling in most commodity-related, telecom, bank stocks on renewed risk aversion amid fears that global equity markets will continue to correct after recent rally amid lingering concerns over Europe debt woes. Foreigners net sellers of IDR355 billion worth of shares. "Selling occurred almost across the blue chip board on fears that shares will continue to correct tomorrow," says trader with First Asia Capital; tips support at 2680 Tuesday. Among decliners: gold, nickel miner Antam (ANTM.JK) down 3.4% at IDR2,125 after reporting weak 2009 earnings, coal miner Bumi (BUMI.JK) down 9.7% at IDR2,325, heavyweight Telkom (TLKM.JK) off 2.4% at IDR8,050 on profit taking. (edhi.pranasidhi@dowjones.com)
0914 GMT [Dow Jones] USD/IDR remains up late at 9,125 vs 9,105 late Friday, but fails to advance further ahead of Indonesian government's bond auction Tuesday, dealers say. "We still expect the government's bond auction tomorrow to attract fund inflows," a dealer says; government aims to raise IDR5 trillion from auction tomorrow; but others say it's unclear if foreign investors will flock to bond auction after India's surprise rate hike Friday raises risk for rate hikes in other Asian countries, including Indonesia; traders say bonds could selloff on these concerns. Two Indonesian central bankers, however, dismiss rate hike plan here, with one indicating to keep policy rate unchanged at 6.50% for rest of year; 9,120-9,140 tipped for USD/IDR tomorrow. (i-made.sentana@dowjones.com)
0828 GMT [Dow Jones] Indonesian government's rupiah bond prices softer on profit taking ahead of IDR5 trillion-bond auction Tuesday and after recent strong rally, dealers say. "I think profit taking will continue Tuesday and Wednesday as bond prices are already close to their highs since June 2007," dealer with state bank says; foreigners last week bought mostly long-term bonds after S&P upped Indonesia's ratings one notch; yield of FR27 (due 2015) up at 8.39% vs 8.37% Friday; FR28 (due 2017) up at 8.74% vs 8.72%; FR36 (due 2019) up at 9.03% vs 8.94%; (I-Made.Sentana@dowjones.com)
0937 GMT [Dow Jones] GBP/USD's 3 cent decline over the last 2 trading sessions hints of a widening short investor base ahead of this week's key events says Lloyds Banking Group. Tuesday's CPI number could give GBP/USD temporary relief above 1.50 if it comes in stronger than forecast, however selling rallies with a target of the recent 1.4784 low is the bank's favored near-term strategy. GBP/USD now at 1.4975 from the day's high of 1.5014. (gary.stride@dowjones.com)
0915 GMT [Dow Jones] EUR/USD may have missed printing an orthodox key-day reversal by just two pips, says SE Banken, however last week's price action clearly indicates that the last six weeks of congestion is over and fresh lows are on the way. Now at 1.3540, the bank has 1.31 and 1.29 as likely targets en route to 1.23. EUR/USD now at 1.3437. (gary.stride@dowjones.com)
0500 GMT [Dow Jones] HSI down 1.7% at 21,009.10 midday as RBI's rate hike Friday raises concerns other central banks in region may follow India's lead; interest rate sensitive property stocks underperforming broader market with Hang Seng Property Subindex last down 2.2%. On technical front, BGC's Jamie Coutts says HSI can only be defined as directionless, as it continues to oscillate above and below technically important 21,000 level whist pushing through mediocre volumes. Benchmark index touched intraday low at 20,899.69. "Today's price action has broken the rising trend line from the February low so we could be in for some further short term weakness." Volume modest at HK$31.39 billion. Bank of China (3988.HK) down 0.7% at HK$4.00 after shareholders approve its plan to issue convertible bonds, while Citic Pacific (0267.HK) down 2.2% at HK$18.32 as Shijiazhuang deal likely priced in. (susanna.tai@dowjones.com)
0403 GMT [Dow Jones] China shares lower midday, reverse earlier gains led by declines in property developers on skepticism over whether government's pledge to limit state-owned firms' participation in property development business would be effective in easing land costs. Shanghai Composite Index down 0.2% at 3062.60; immediate support at 3050. "This could be a technical correction, as trade volumes are improving to normal levels, so buying appetite is likely to recover soon," says Simon Wang from Guoyuan Securities. China Vanke (000002.SZ) off 1.0% at CNY9.52, China Merchants Property Development Co. (000024.SZ) off 0.9% at CNY24.23. Shenzhen Composite Index down 0.2% at 1178.97. (esther.fung@dowjones.com)
0429 GMT [Dow Jones] AUD/USD will look to RBA speech this week and U.S. data for guidance, but could end week a little higher, says CBA FX Strategist Joseph Capurso. "Any strength from local influences is likely to be supported by temporary softness in U.S. economic data. We see mild upside risks to AUD this week." AUD/USD last 0.9142. (enda.curran@dowjones.com)
0330 GMT [Dow Jones] NZX-50 likely to close broadly flat on low volume, lack of direction, says Macquarie Equities broker Brad Gordon; "We're not in reporting season and there isn't a lot of data coming out." Adds Fletcher Building (FBU.NZ) buoying market, +0.8% at NZ$8.42; "There is a general consensus out there that housing data can only improve and will improve over the next 12 months." Fellow bellwether Telecom (TEL.NZ) +1.4% at NZ$2.14 after opening at all time low; "I suspect there is some bargain hunting coming through." Companies Sky City (SKC.NZ) down 1.7% at NZ$3.36, Hallenstein Glasson (HLG.NZ) down 3.9% at NZ$3.46 after stocks went ex-dividend. NZX-50 last +0.1% at 3232.12. (lucy.craymer@dowjones.com)
0249 GMT [Dow Jones] Kospi down 1.2% at 1666.55 in light volume, extending losses on foreigners' selling of both stocks, futures on rise in risk aversion amid renewed concerns over Greek debt issues, global tightening. Most large-cap stocks weak on massive program selling; market remains muted to Vice Finance Minister Hur Kyung-wook's comments in NY Friday there's "good chance" MSCI could upgrade Korea to developed markets measure this year from emerging markets status as nothing official, say analysts. Kospi's next support pegged at 1660. Among large caps, KB Financial (105560.SE) down 1.1% at KRW52,300, Samsung Electronics (005930.SE) down 1.1% at KRW795,000, Posco (005490.SE) down 2.9% at KRW531,000. But Kia Motors (000270.SE) +0.8% at KRW24,150. Hynix (000660.SE) +0.2% at KRW24,400. (soo-kyung.seo@dowjones.com)
0409 GMT [Dow Jones] "The start of a new monetary tightening cycle in China poses the main risk to (base metals) price outlook heading into the second quarter," says Deutsche Bank. Tips policy tightening in China to include new loan quota of CNY7.5 trillion vs CNY9.6 trillion in 2009, two further reserve ratio hikes, an 81-bps increase in key rates, planned slowdown in central government capex growth from 120% last year to just 7% in 2010. Says these measures to cut fixed asset investment, industrial production growth by 5, 3 percentage points respectively. Adds, efforts by some local governments in China to engineer correction in property prices could also hurt sentiment for industrial commodities. LME metals steady in thin trade with LME 3-month copper at $7,445/ton, up $13 since Friday's kerb with 446 lots done. (james.campbell@dowjones.com)
0532 GMT [Dow Jones] Gold still rangebound with solid support says Phillip Futures. "Gold prices should remain supported above the psychological $1,100 level and we foresee some upside after the sell-off last Friday." MKS Finance says gold likely to trade within $1,100 to $1,130 range but intraday volatility likely; "With very little liquidity in the market, investors should expect more volatile moves in the week to come." Spot gold steady at $1,108.10, up 20 cents in quiet Asian trade with absence of Japan players a factor as Tocom closed for a holiday. (james.campbell@dowjones.com)
Crude Oil Likely to Extend Losses This Week: Survey
Benchmark crude oil futures will likely extend last week’s 0.7 percent slide after failing to make a convincing break above $83 a barrel to challenge the highs of 2010, according to a CNBC weekly market poll.
http://www.cnbc.com/id/35978924
Week Ahead: Health Care Could Bruise Stocks in Short Term
Health care reform could be a temporary dose of bad medicine for stocks, at least in the immediate term.As the House of Representatives moved toward a vote on a health care reform bill, Wall Street was gaming both the legislation's chance of success and its potential impact on markets.
http://www.cnbc.com/id/35956840
Prep Your Portfolio for Next Week: Stock Pickers
What should investors be buying for the week ahead? Charles Bobrinskoy, vice chairman and director of research at Ariel Investments, and Wayne Kaufman, chief market analyst at John Thomas Financial, shared their best plays.
http://www.cnbc.com/id/35948286
Hong Kong Stock Index May Test January High: Technical Analysis
(Bloomberg) -- Hong Kong’s Hang Seng Index may rise toward its Jan. 11 intra-day high of 22,671.92 in coming weeks after breaking out of a so-called bearish descending triangle pattern, according to BGC Partners.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a_3zK70_VpuA
Asian Stock Gauge to Challenge January High: Technical Analysis
(Bloomberg) -- Asian stocks may extend a rally to challenge 2010 highs after a benchmark index in the region broke out of its channel, according to CIMB Investment Bank Bhd.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aTC14RLRYnsw
Thai Stocks to Gain on ‘Ascending Triangle’: Technical Analysis
(Bloomberg) -- Thai stocks are set to rally to their highest level since May 2008 after a chart of the benchmark index formed an “ascending triangle” pattern, according to Asia Plus Securities Pcl.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=anE9BXDq5d7g
S&P 500 in ‘Air Pocket,’ Could Reach 1,225: Technical Analysis
(Bloomberg) -- The Standard & Poor’s 500 index has entered an “air pocket” of little resistance as it pushed to a 17-month high, according to analysts at Instinet, who say the benchmark could extend its rally.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a21gL2v78Xdg
China Bubble Anxiety Doesn’t Mean Shun Stocks: John Dorfman
(Bloomberg) -- In the 1980s, a crucial question for portfolio managers was what to do about Japan. Today, the parallel question is what to do about China.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=armqHLfXm_Es
India Rate Rise to Hurt Priciest BRIC Stocks, Boost Rupee
(Bloomberg) -- Indian stocks, the most expensive in the largest emerging markets, may fall as a surprise interest rate increase hurts financial and consumer shares, while the rupee is poised to extend gains, EM Capital Management LLC and Prudential Financial Inc. said.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aiflyTEbV2IY
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