Asian market buzz today

HONG KONG: Asian markets plunged Thursday on growing fears of a regional slowdown after South Korea unexpectedly cut interest rates, and Japan's central bank's  major policy changes failed to boost growth.

Tokyo fell 1.48 percent, or 130.99 points, to end at 8,720.01, while Seoul closed down 2.24 percent, or 41 points, at 1,785.39.

Hong Kong stocks closed 2.03 percent, or 394.76 points, lower at 19,025.11, amid concern over the Chinese economy. But Shanghai ended up 0.46 percent, or 10.11 points, at 2,185.49.

 After weak June jobs figures, Sydney fell 0.70 percent, or 28.5 points, to end at 4,068.0 

By cutting its key interest rate 25 basis points to 3.00 percent, South Korea's central bank joined an international drive to ease the impact of the euro-zone debt crisis that threatens export-dependent Asian economies.

The European Central Bank and China's central bank cut their rates last week, while Brazil on Wednesday slashed its rate to a record low.

Surprise element is the Bank of Japan which took no major steps despite lowering its growth forecast for the fiscal year, to 2.2 from 2.3 percent,

Following a two-day policy meeting, the bank said it would keep rates steady at zero to 0.1 percent and fine-tuned a 70 trillion yen ($880 billion) asset-purchase programme but kept the size of the policy tool steady.

The bank said it would reduce the amount of fixed-rate loans it offers by five trillion yen and increase the purchase of treasury discount bills by the same amount, but analysts said the move would have little effect.

Asian stocks slipped very early in trade, following a lead in the US after the minutes of the Federal Reserve's June meeting showed the rate-setting committee split on whether to provide more stimulus.

Several top policymakers urged the central bank to look at new tools to bolster the financial system amid a weak recovery, but the minutes also showed the Fed split on how, when and if to provide more stimulus.

The Dow Jones Industrial Average landed to 0.38 percent.

On currency markets, the euro slipped early in European trade. It bought $1.2217 and 96.90 yen, from $1.2238 and 97.58 yen in New York late Wednesday.

The dollar goes weak to 79.31 yen from 79.74 yen in New York.

Gold was worth $1,566.81 an ounce at 0930 GMT, compared with $1,578.20 late Tuesday.

U.S. stocks fell sharply on Friday after dismal jobs data heightened the impression the economy is stuck in a rut of slow growth.

News that the world's largest economy created just 80,000 jobs in June - far fewer than needed to bring down the 8.2 percent unemployment rate - added to evidence that Europe's debt crisis is weighing on global growth. 

The report followed news this week that U.S. manufacturing shrank in June and the service sector growth slowed to its lowest level since January 2010, which might spur speculation the Federal Reserve will take more action to stimulate the economy.

Though Fed action might cheer some investors if it were to come, many are starting to doubt the ability of central banks to counter the economic gloom, while Friday's number also might not be bad enough to prompt action.

The selling on Wall Street left the S&P 500 on track for losses of about 0.7 percent on the week. At current levels it would also be the worst week in just over a month.
On the day, the Dow Jones industrial average was down 155.19 points, or 1.20 percent, at 12,741.48. The Standard & Poor's 500 Index was down 14.90 points, or 1.09 percent,. The Nasdaq Composite Index was down 42.99 points, or 1.44 percent, at 2,933.13.
Spanish government bonds rose back to levels seen as unsustainable a day after the European Central Bank cut rates to a new record low and China and Britain also loosened monetary policy.
Shares of Informatica Corp plunged as much as 35 percent after the data-integration software maker forecast a weak second quarter hurt by delayed contracts. 

Informatica was last trading down 29.7 percent at $30.48.
Networking shares took a hit after gear maker Acme Packet Inc forecast second-quarter results below expectations on continued weakness in the North American telecom service provider market.
The Arca Networking index  was down more than 3 percent, while Acme Packet tumbled 13.80 percent to $15.86.
Skyrocketing sales of the Galaxy smartphone drove a record quarterly profit of $5.9 billion at Samsung Electronics  This is likely to stretch the firm's lead over rivals Apple and Nokia . Apple shares were off 1.26 percent at $602.27.

Wall Street journal

NEW YORK: US stocks edged higher in choppy trade on Thursday as another batch of positive earnings and a strong housing report put equities on track for a third straight day of gains.

While most corporate results topped expectations, some high-profile misses, including from Exxon and Aetna, kept a lid on gains.

Pending home sales rose to a near two-year high in March, but investors also had to contend with data showing a stumbling labor recovery as weekly initial jobless claims fell slightly but missed forecasts.

With 254 companies S&P 500 companies reporting, more than 72 per cent have topped estimates, according to Thomson Reuters data. A big beat from Apple Inc drove Wednesday's rally, which gave the Nasdaq its best day of the year.

Weapons maker Lockheed Martin Corp and online jobs recruiter Monster Worldwide Inc both had higher-than expected net. Monster jumped 15.6 per cent to $9.43, while Lockheed added 1.1 per cent to $91.99.

But Exxon Mobil Corp and Aetna Inc posted lower earnings, a nd United Parcel Service Inc's revenues missed expectations.

Exxon fell 1.8 per cent to $85.33, Aetna slid 10.4 per cent to $44.20 and UPS lost 3.2 per cent to $77.07.

The Dow Jones industrial average was up 61.11 points, or 0.47 per cent, at 13,151.83. The Standard & Poor's 500 Index put on 2.57 points, or 0.18 per cent, at 1,393.26. The Nasdaq Composite Index added 6.44 points, or 0.21 per cent, at 3,036.07.

Wal-Mart Stores Inc, grappling with a bribery probe at its Mexican operation, was one of the top gainers on the Dow, climbing 2.6 per cent to $58.86. The retailer remains down 5.5 per cent for the week.

Wednesday's rally helped to purge much of April's losses brought on by investors' worries over prospects of a seasonally weak market in May as well as signs Europe's debt crisis was getting worse.

The S&P 500 was back above its 50-day moving average after the level was fiercely contested. Stocks pulled back as much as 4.2 per cent from yearly highs in early April.

Colgate-Palmolive Co slipped 0.9 per cent to $98.71, even as sales topped expectations, while PepsiCo Inc took off 0.3 per cent at $66.48 after earnings fell slightly but still topped estimates.

Shares of Whirlpool Corp, the world's largest appliance maker, dropped 4.6 per cent to $65.75 after sales declined and it missed estimates.

On the upside, Citrix Systems Inc surged 10.5 per cent to $85.81 a day after reporting strong net income, prompting analysts to raise estimates for the business software company.

Market buzz of the morning

Extending gains for the fourth straight session, the BSE benchmark Sensex rose by another 53 points in early trade on Thursday on sustained buying by funds and retail investors.
The 30-share barometer, which had gained nearly 300 points in the previous three sessions, up by
53.18 points, or 0.31%, at 17,445.57.
All sectoral indices, except capital goods, were trading in the positive zone with gains of up to 0.69%.
The wide-based National Stock Exchange index Nifty moved up by 15.90 points, or 0.30%, to 5,315.90.
Brokers said continued buying by funds and retail investors, driven by a cut in lending rate by RBI on Tuesday amid expectations of encouraging Q4 earnings by corporates, mainly influenced the sentiment.
In the Asian region, the Hong Kong's Hang Seng Index rose by 0.17%, while Japan's Nikkei index shed 0.91% in morning trade today. The US Dow Jones Industrial Average ended 0.63% lower in 's trade.
As far as European shares are concerned they are still waiting for Spain's bond auction so they are called mixed to flat Thrusday

Friday Market

Market went down much than the previous day
On previous day DOW ended at 10670 but today it opened at 10,535. highest mark was 10,535.80 but soon went down to lowest mark 10,527.10 and now at 10,580.
Same with other US markets
S&P today at 1114.96
NASDAQ at 2274.74

Oil Barels $80.48 price/barel
World Gainers are
Rdiff.com India ltd, China lodging grp, spreadtrum communication, KUBOTA.CORP

Thousands of homes in dark

On Monday the announcement of more than 70,000 job cuts pushed thousands of homes into darkness due to Global economic downturn. The global job losses proved that the financial crisis that erupted on Wall Street 2 years ago has now infected the whole global corporate world, engulfing industries ranging from health care to heavy equipments manufacturers.
The general public view believes, its not due to the global recession but the fact that with the current scandals coming out of the carpet and the World Bank tightening its hands on corporates has made the companies to cover them by this major job cuttings and see them as another scandal jointly performed my major companies.
From the recent history of job cuts :-

• 4000 post in Britain were cut down, UK's largest steel maker owned by TATA alone shedded 2500 employees.
• In US, a total of approx. 45000 workers were sacked many times higher than Jet Highways 1900, later taken back and slashed payrolls.
  
• In US jobs dissapering into home building and mortagage operations.
• Last week, Microsoft announced a major job cut.
• 22 out of 30 companies that are part of Dow Jones Industrial s have announced job cuts since oct.

In India soon this is expected to be felt in fields of gems and jeweleries, textiles and IT enabled services. Now US is solely seems to have eye on OBAMA's workout list.