European market bounces back, Asian shares mixed

AP and AFP

TOKYO/HONG KONG–Shares were higher Wednesday as European and Chinese markets clawed back losses from selloffs the day before. But Japan’s benchmark extended its retreat after government surveys showed deteriorating business and consumer confidence in the world’s third-largest economy.

France’s CAC-40 gained 0.6 percent to 4,291.38 and Germany’s DAX was up 1 percent at 9,891.15. Britain’s FTSE 100 added 0.4 percent to 6,558.37. Wall Street looked set for a flat start: Futures for the Dow Jones industrial average and Standard & Poor’s 500 were both little changed.

Asian markets were mixed Wednesday. Tokyo shares closed down 2.25 percent on Wednesday following a sell-off across global markets, while a stronger yen pressured exporters. The benchmark Nikkei 225 index at the Tokyo Stock Exchange tumbled 400.80 points to 17,412.58, suffering the worst points loss in more than three weeks. The Topix index of all first-section issues was down 2.04 percent, or 29.26 points, at 1,406.83. Monday’s downward revision in Japanese July-September growth data had too small an impact to trigger selling. Equities markets were down globally on Tuesday with Shanghai shares plunging 5.43 percent on worries over tighter lending rules. Investors also want to decide on their next move after seeing the result of snap elections in Japan on Sunday, he said. Bucking the overall downward trend, Skymark shares rocketed up 17.31 percent to 271 yen on the possibility of the struggling budget carrier getting assistance from the nation’s two biggest airlines. The firm said Wednesday it was considering asking for help from domestic giant All Nippon Airways, even while eyeing a tie-up with ANA’s rival Japan Airlines. Many exporters were lower, with Toyota down 3.00 percent at 7,523.0 yen and Canon off 2.65 percent at 3,792.5 yen.

Construction machinery maker Komatsu dropped 3.42 percent to 2,750.0 yen. Sydney fell 0.45 percent, or 23.7 points, to 5,259.0 and Seoul slipped 1.29 percent, or 25.39 points, to 1,945.56. Hong Kong stocks edged up Wednesday after a two-day sell-off, while Shanghai rebounded strongly from the previous day’s slump as more weak Chinese inflation data fuelled hopes for further easing measures. The Hang Seng Index added 0.16 percent, or 38.69 points, to 23,524.52 on turnover of HK$109.93 billion (US$14.18 billion). Shanghai Rebounds after Slump