By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Japanese and Australian stocks
wavered in choppy trade Monday, as worries about the Federal
Reserve's policy outlook and rising U.S Treasury yields weighed on
sentiment.
Japan's Nikkei Stock Average fell 0.3%, and Australia's
S&P/ASX 200 slipped 0.1%, with both changing direction a few
times. South Korea's fell 0.4%.
The weakness came after U.S. stocks ended lower on Friday,
handing the Dow Jones Industrial Average its worst weekly
performance of the year. Meanwhile, the yield on the 10-year
Treasury rose to hit the highest level in two years amid
monetary-policy jitters.
"Recent weakness in U.S. equity markets appears to have been
largely about positioning for the Fed to make a first step in the
process of winding back its quantitative easing in September," said
CMC Markets chief market analyst Ric Spooner.
"Given this market context, traders will focus on ... [Fed
meeting minutes, due out Wednesday] for any clearer signs on the
probability of a Fed move," Spooner said.
Steel makers and some automobile stocks dropped in Tokyo on
Monday, even as the yen weakened a little after data showing the
country's trade deficit widened sharply in July from the year-ago
period.
Suzuki Motor Corp. (SZKMY) dropped 1.2%, and JFE Holdings Inc.
(5411.TO) retreated 1.8%.
However, shares of Kawasaki Heavy Industries Ltd. (KWHIY) rose
0.8% after the Nikkei newspaper reported the company will team up
with Rolls-Royce Holdings PLC (RYCEY) to develop a new aircraft
engine that is more fuel-efficient.
The market in Sydney suffered a drag from shares of Commonwealth
Bank of Australia (CBAUY), which dropped 2.8%, and
telecommunications major Telstra Corp. (TLSYY), which declined
3.1%, as both stocks traded without rights to a dividend.
BlueScope Steel Ltd. (BLSFY) sank 12.8% after it said it doesn't
expect a better outcome for the first half of 2014 than it had in
the second-half of 2013. BlueScope's annual loss narrowed to 84.1
million Australian dollars ($77.3 million).
On the upside in Asia, however, energy producers gained after
oil prices rose Friday in the U.S.
In Tokyo, Japan Petroleum Exploration Corp. climbed 0.6%, and
Inpex Corp. (IPXHF) added 0.8%, while Woodside Petroleum Ltd.
(WOPEY) gained 1.3% in Sydney.
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