Australia | Jan 15 2013
Download related file: afternoon_report_2013-01-15
The analyst principally responsible for the production of this research report is: Howard Humphreys, Director & Lead Research Analyst, Seismic Research
Asian stocks ex. Japan slump on debt ceiling concerns
Asian stocks were mixed today as Japanese markets returned from a public holiday, while the rest of the region slumped following a soft lead from Wall Street. Excluding Japan, Asian markets also retreated today as U.S. Treasury Secretary Tim Geithner said the debt ceiling could be breached as early as next month. This came shortly after President Obama said he will not negotiate over raising the debt ceiling, but will talk deficit reduction.
Asian-based suppliers to Apple Inc. fell today after the Nikkei newswire reported that the company plans to scale back production for the iPhone 5 due to weaker than expected demand. Sharp Corp., which makes display panels for the iPhone 5, dropped as much as 7% in Tokyo. TDK Corp., a battery maker, fell as much as 4.1%.
The yen rallied today from its lowest level since June 2010 against the dollar after Japan’s Economy Minister Akira Amari said Japan faces risks from a further depreciation of the yen, including a “spike in import prices” that would have “harmful effects on people’s livelihoods”.
To read the full report in PDF, see link at the top of this story.
(For a more comprehensive summary of last night’s market action see FNArena’s Overnight Report.)
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