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Asian markets lifted by Apple earnings

Jul 21 2010 11:31

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Seoul -  Asian stock markets mostly posted mild gains on Wednesday after better-than-expected earnings from technology bellwether Apple and a rise on Wall Street.

Oil prices, meanwhile, traded below $78 a barrel after a report showed US crude supplies fell less than expected last week, suggesting demand for fuel is still tepid.

Gainers in Asian markets included tech stocks, which climbed after Cupertino, California-based Apple Inc. blew past expectations with its latest quarterly report on Tuesday. The company's net income rose 78% to $3.25bn and revenue for the April-to-June period rose 61% to a record high of $15.7bn.

Apple's result, which came after Wall Street closed, helped offset some of the gloom generated by mixed economic figures and other corporate results this week which disappointed investors. Goldman Sachs posted an 83% plunge in second quarter net income while Yahoo and IBM both reported revenue short of expectations.

Apple's results "brought some positive sentiment to all the technology stocks," said Jackson Wong, vice president at Tanrich Securities in Hong Kong.

But others cautioned Apple's results should be seen as specific to the company and urged caution about growth prospects for the technology sector as a whole.

There are "quite muted" expectations for personal computer demand in the United States and Europe, said Mark Tan, who helps manage about $10.9bn of equities and bonds at UOB Asset Management in Singapore.

Japan's Nikkei 225 stock average gave up early gains to fall 25.93 points, or 0.3 %, to 9 274.53 and has lost about 5% in the past three sessions.

Hong Kong's Hang Seng was up 0.6% at 20 375.40, South Korea's Kospi added 0.4% to 1 743.81 and Australia's benchmark was fractionally higher at 4 404.60.

China's Shanghai Composite Index edged up by 0.3% to 2 535.82 after big gains in the previous two sessions amid expectations that Chinese authorities are likely to moderate efforts to cool the world's No. 3 economy.

"A lot of global demand now centers on Chinese demand," said UOB's Tan. "There has been the expectation that the government is not going to implement any more tightening measures the rest of the year."

Elsewhere, markets in India, Malaysia and Indonesia rose while benchmarks in Singapore and Taiwan were moderately lower.

Among technology stocks, Nintendo rose 1.2% in Tokyo and Samsung Electronics advanced 1.5% in Seoul.

In Australia, miner BHP Billiton was up 1.2% after reporting iron ore production rose 16% in the April-June quarter.

The Dow Jones industrials rose 0.7% to 10 229.96 in an erratic day of trading on Tuesday.

The broader Standard & Poor's 500 index rose 1.1% to 1,083.48, and the Nasdaq composite index climbed 1.1% to 2 222.49.

In currencies, the dollar fell to ¥87.12 from ¥87.32 in New York late on Tuesday. The euro eased to $1.2884 from $1.2892.

Benchmark crude for September delivery was down 10c to $77.48 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose 68c to settle at $77.58 on Tuesday.

  - Sapa

 
 
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