(1888PressRelease)
May 21, 2009 - Asian stocks meandered Wednesday as investors held back in the face of dour reports about Japan's economy and the U.S. housing market. The directionless trade followed a mixed session on Wall Street, where news that construction of homes and apartments had fallen to the lowest pace on record punctured the growing sense of optimism about the country's housing market.
Indicators in Asia also offered little encouragement. Japan's economy continued its slide in the first quarter, with gross domestic product shrinking at an annual rate of 15.2 percent as exports plunged and companies slashed production. It was the fastest decline since 1955.
"The rally doesn't seem to be driven by fundamentals right now. We've gone higher because of liquidity and sentiment from overseas, so I think it's a good time be cautious and take some profits," said Stephen Yang an analyst with Seedorf Luxman & Partners in Singapore.
Most markets were little changed in light trade. Japan's Nikkei 225 stock average edged up 47.76, or 0.5 percent, to 9,338.05, while Hong Kong's Hang Seng lost 73.49 points, or 0.4 percent, to 17,470.54. South Korea's market added 0.4 percent to 1,433.60, Among losing markets, Shanghai's index declined 0.3 percent and Australia's benchmark shed 0.1 percent.
India's market was flat in a seesaw session after soaring in recent days with the end of national elections that settled the country's near-term political future. Taiwan's market was higher, while Singapore's was flat.
In New York overnight, the Dow Jones industrial average fell 29.23, or 0.3 percent, to 8,474.85, with Home Depot the index's biggest loser after saying its markets are still under pressure. Profits at the nation's largest home improvement retailer climbed 44 percent, better than expected, as the company booked fewer charges.
Broader stock indicators were mixed. The Standard & Poor's 500 index fell 1.58, or 0.2 percent, to 908.13.
Futures pointed to another lackluster day on Wall Street. Dow futures were down 16 points, or 0.2 percent, at 8,433 and S&P futures were off 2.3, or 0.3 percent, at 904.20. Oil prices hovered above $60 a barrel Wednesday in Asia, with benchmark crude for July delivery up 45 cents to $60.55 a barrel.
Seedorf Luxman & Partners are a specialized advisory and consultancy company that provides investors with the resources necessary to find small stocks with tremendous growth potential, unknown to the general investing public. All of our team with comprehensive fields of expertise are driven by a focus upon helping our clients meet their investment objectives. Whether you are an individual investor or an institutional client we will provide an excellent level of service.
###
