Asia Session Mixed After Fed Minutes Signal Concern

Samsung Electronics shares rise after forecasting a 17.4% increase in operating profit for the April to June period due to strong sales of smartphones.
By Lisa Botter ,

Asian markets ended the day mixed as Brexit concerns still unfold. In Toyko, the Nikkei lost 0.67% on Thursday to close at 15,276.24. The Topix was also down, losing 0.66% to close at 1,226.09.

However, in Hong Kong, the Hang Seng was up 0.76% to end the session at 20,661.49.

On mainland China, the CSI 300 down 0.06% at 3,215.03.

South Korea's benchmark index the Kopsi saw the most gains, rising 1.07% to close at 1,974.08.

In Seoul, Samsung Electronic (SSNLF) rose 2% after it forecast its best quarterly profit in more than two years. The world's largest smartphone maker estimated operating profit for the April to June period would be Won8.1 trillion ($7 billion), 17.4% higher than last year, and beating analyst consensus of Won7.8 trillion.

The strong estimate is due to robust sales of the companies S7 smartphones.

The pound has gained slightly against the dollar in Asian session and was recently at $1.2976 still hovering at a 31-year low.

Minutes from the Federal Reserve's June meeting released yesterday showed concerns of a slowdown in the U.S. labor market. The minutes also voiced concerns about risks to the U.S. economy and global markets from the U.K.'s referendum, which hadn't taken place at that point.

However, positive economic data out of the U.S. released yesterday slightly boosted the markets. Service-sector activity saw an increased in new orders and employment, according to data from the Institute for Supply Management. The institute's nonmanufacturing purchasing managers index rose the highest level since November to 56.5 in June from 52.9 in May.

The yen gained 0.49% against the dollar and was recently at ¥100.82 per dollar.

S&P mini futures were recently down 0.02% as were Down Jones Industrial futures.

FTSE 100 futures were up 0.92% as European markets prepared to open.

In Sydney, the S&P/ASX 200 was up 0.59% at 5,227.92. Rating agency S&P downgraded its outlook on Australia's debt to negative. The government debt is still AAA rated from the major credit agencies but S&P said it could downgrade its rating due to the country's deadlocked election on July 2. S&P said "fiscal consolidation may be further postponed."

Loading ...