Asian shares mixed as China tightens market oversight

AP News
Posted: May 08, 2017 11:12 PM
Asian shares mixed as China tightens market oversight

TOKYO (AP) — Shares were mixed in Asia on Tuesday after record highs on Wall Street overnight. Chinese markets lost ground on news of further tightening of market oversight by regulators.

KEEPING SCORE: Japan's Nikkei 225 index edged 0.1 percent lower to 19,879.98 and the Shanghai Composite index dropped 0.5 percent to 3,062.88. Australia's S&P ASX 200 lost 0.3 percent after a report of weak retail sales data. Hong Kong's Hang Seng index gained 0.2 percent to 24,630.42 and shares in Taiwan and Southeast Asia were higher.

SOUTH KOREA ELECTION: South Korea's markets were closed Tuesday for the presidential election. On Monday, the benchmark Kospi rallied 2.3 percent on expectations the vote will help ease the uncertainties brought on by the influence peddling scandal that led to Park Geun-hye's impeachment. While the policy stances of the leading candidates are similar, "the filling of the political vacuum could go a long way to benefiting the economy," Jingyi Pan of IG said in a commentary.

CHINA REGULATORS: New guidelines issued by the China Banking Regulatory Commission on management of loan collateral suggest a further tightening of oversight amid complaints over abuses and excess lending.

WALL STREET: Trading was calm and investors have turned their attention to strong earnings reports following the French presidential election. The Standard & Poor's 500 index ended flat at 2,399.38, up by just 0.09 points. The Dow Jones industrial average likewise edged up a fraction of a percent, adding 5.34 points to 21,012.28. The Nasdaq composite rose 1.90 points, or less than 0.1 percent, to 6,102.66.

THE QUOTE: "Corporate earnings have been phenomenal, the best quarter in five years," said Phil Orlando, chief equity strategist at Federated Investors. "The earnings recession that was about seven or eight quarter long is definitively behind us. It's over."

FRANCE: The French CAC 40 fell 0.9 percent on Monday, but that followed a 7.4 percent surge in the previous two weeks.

CURRENCIES: The euro had been climbing against the dollar in recent weeks as expectations built for a Macron victory. The euro rose to $1.0927 from $1.0925 on Monday. The dollar slipped to 113.23 Japanese yen from 112.25 yen. The British pound rose $1.2942 from $1.2939.

ENERGY: Benchmark U.S. crude gained 2 cents to $46.25 in electronic trading on the New York Mercantile Exchange. It settled at $46.43 per barrel on Monday. Brent crude, the international standard, rose 4 cents to $49.38 a barrel.


AP Business Writer Stan Choe in New York contributed to this report.