Regional Market Update Markets mixed after IBM, TI results

Regional Market Update

Markets mixed after IBM, TI results

·         Asian markets were mixed as disappointing as U.S. earnings restrained buyers. Technology stocks falling sharply as sentiment was weighed by second-quarter earnings from IBM and Texas Instruments, which reported after the U.S. market closed on Monday. IBM dropped 4.3% in after-hours trading as revenue growth wasn't as strong as expected while Texas Instruments shed 5.3% as its results were merely in line with the company's raised guidance. The yen's recent strength against the U.S. dollar and the euro further undermined sentiment.

·         In foreign exchange markets, the euro managed to withstand some negative news out of the euro-zone, including Moody's Investors Service on Monday cutting Ireland's rating to Aa2 from Aa1. Investors are now focusing on the results of European banks' stress tests.

Index Movements	Level	% Chg	% Chg 5D	% Chg 1M	% Chg 3M	% Chg 6M	% YTD	P/E (Fwd)	P/B (Fwd)
Nikkei 225	9,295	(1.2)	(2.6)	(7.0)	(14.8)	(13.7)	(11.9)	17.3	1.2
S&P/ASX 200	4,375	0.4	(0.1)	(3.9)	(11.2)	(10.1)	(10.2)	14.1	1.7
Taiwan Taiex	7,658	0.1	0.8	2.2	(3.1)	(6.8)	(6.5)	13.0	1.7
Kospi	1,726	(0.3)	(0.5)	0.8	0.5	0.7	2.6	9.7	1.3
Hang Seng	20,109	0.1	(1.6)	(0.9)	(7.0)	(5.5)	(8.1)	13.3	1.7
Shanghai SE Composite	2,494	0.7	1.8	(0.8)	(16.3)	(20.9)	(23.9)	14.7	2.1
Hang Seng China Enterprises	11,348	0.3	(2.4)	(2.4)	(8.8)	(7.6)	(11.3)	12.0	1.9
Straits Times	2,949	0.1	0.7	4.1	(1.1)	1.9	1.8	14.3	1.6
Jakarta Composite	2,976	(0.6)	0.6	1.6	2.9	11.6	17.4	15.1	3.0
Nifty	5,386	(0.1)	0.1	2.4	3.0	3.2	3.6	17.3	2.8
Nifty level with one day's lag

Australia and New Zealand

·         The Australian market was modestly higher. Material and financial stocks were underpinning the market, with BHP Billiton up 0.4%, Rio Tinto up 0.9%, while ANZ bank was up 0.5% and Westpac Banking rose 0.8%.

Japan

·         Technology plays were leading a broad-based decline in Tokyo shares, weighed by results from IBM and Texas Instruments. The yen's recent strength against the U.S. dollar and the euro further undermined sentiment. Tokyo Electron lost 2.2%, Advantest fell 2.3% and Sony fell 1.9%. Auto makers were also weak, with Toyota Motor down 1.8%, Nissan Motor off 1.6% and Honda Motor off 2.0%.

Taiwan

·         Taiwan’s Taiex Index was flat as gains in tech stocks were offset by losses in consumer, financials and resources companies.

South Korea

·         The South Korean market was down in sluggish trade as investors awaited this week's release of second-quarter earnings from several major companies. Samsung Electronics was down 0.4% and LG Display lost 0.5%, while auto makers were modestly higher with Kia Motors up 0.6% and Hyundai Motors up 0.3%.

China

·         China’s stocks rose for a second day as automakers rallied on improved earnings and the prospect the government may relax its tightening policies as the economy slows.

Hong Kong

·         Hong Kong’s Hang Seng Index was flat in choppy trade as gains in Chinese automakers, coal and telecom companies offset losses in energy and financials.

Singapore

·         Singapore Strait Times index inched up on gains in commodity trading stocks, financials and some property developers. Neptune Orient Lines climbed 1.5% to S$1.99. Southeast Asia’s biggest container carrier said average revenue increased 32% YoY in the four weeks to June 25, compared to a year earlier, as it transported 29% more cargo during the period.

·         Yangzijiang Shipbuilding Holdings gained 2.1% to S$1.47. The China-based shipbuilder said it won 10 contracts valued at US$234.2 million between April and June. Separately, the company said its application to list Taiwan Depositary Receipts has been approved by the Taiwan Stock Exchange.

Currency Updates

Date	20-Jul-10
	USD	EUR	GBP	JPY	INR
USD	1.0000	1.2966	1.5253	0.0115	0.0212
EUR	0.7713	1.0000	1.1765	0.8856	0.0164
GBP	0.6556	0.8500	1.0000	0.7527	0.0139
JPY	87.1000	112.9300	132.8500	1.0000	1.8490
INR	47.1250	60.8365	71.8719	0.5410	1.0000