Asian Shares Easing on Corporate Outlook, Uncertain Growth

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Asian shares sipped Monday as the investors shifted their attention away from the indications of stable growth in U.S., instead giving more attention to weaker corporate earnings and uncertain outlook of the economy. European shares were no brighter, with the financial spread betters hoping CAC-40 of Paris, DAX of Frankfurt and FTSE 100 of London to go down around 0.1%.

Stock futures of U.S. were also down 0.4%. The U.S. options and stock markets will be shut on Monday, and probably even on Tuesday, as exchanges, brokers and regulators worried about market’s integrity with the Hurricane Sandy heading towards East Coast. The MSCI index in Asia erased smaller gains outside Japan and plunged 0.2%, after giving up 1% on Friday, thus posting its maximum week drop seen in last 2 months of 1.3%.

Shares of South Korea shed initial gains to go down 0.1%. Nikkei of Japan, which plummeted 1.3% Friday, was seen flat after being little up early Monday. Shares of Hong Kong shed 0.2% and shares of Shanghai raised 0.3%. Shares of Australia were up 0.1%, mostly aided by great economic growth in U.S. in the third quarter.

Tim Waterer, one of the senior traders of CMC Markets said that today was all about share market of Australia. He said that positive GDP figures from U.S. reprieved the energy stocks and materials. Commodities were pretty much capped as well, with copper holing in London more than seven week lows plunged last week, while crude oil futures in U.S. contracted 0.4% to reach $85.96/barrel and Brent also eased 0.2% to reach $109.31.

Jonathan Barratt, chief executive at Barratt’s Bulletin, one of the leading commodity research companies in Sydney, said that people were unable to find any kind of optimism in the market as they hoped for slightly more robust corporate earnings from U.S. The dollar was seen steadying at around 79.63 yen, off a 4 month maximum of 80.38 yen reached on Friday, little ahead of policy decision of Bank of Japan. Markets are expecting BOJ to come up with more easing measures.

GDP of U.S. increased at 2% yearly rate in 3rd quarter, slightly more than the forecast of 1.9%, and increasing from 1.3% hike seen in the 2nd quarter. On the downside, the stronger rate of expansion fell little short of what is required for substantial increase in employment.

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