SYDNEY:Asian stocks were subdued on Tuesday as Wall Street turned cautious ahead of the corporate reporting season and earnings guidance from regional tech heavyweight Samsung came in well short of forecasts.
Investors could also be forgiven for feeling a touch of altitude sickness after many indexes recently hit all-time or multi-year peaks.
MSCI’s broadest index of Asia-Pacific shares outside Japan was a fraction lower in thin trade. It briefly struck a three-year high at 502.00 but shied away from tough resistance at the 2011 top of 512.12.
Samsung Electronics Co Ltd said its operatingprofit probably fell 24.5 percent in April-June to 7.2 trillionwon ($7.12 billion), under the 8.3 trillion mean estimate from38 analysts polled by Thomson Reuters.
Its shares, however, still managed to bounce 0.6 percent,perhaps because they have been falling for most of the pastmonth as the market priced in a poor result.
Japan’s Nikkei followed Wall Street’s lead and fell0.5 percent, so failing to sustain last week’s six-month high.The Dow had lost 0.3 percent on Monday, while the S&P 500 shed 0.4 percent and the Nasdaq 0.8 percent.
Cyclical stocks tied to the pace of economic growth ranked among the weakest of the day. The S&P industrial sector index fell 0.7 percent.
Wall Street hit a number of milestones last week, with the Dow topping 17,000 for the first time and the S&P 500 closing at a record high after a strong June jobs report.
The earnings season kicks off with Alcoa later onTuesday and dozens of major companies are scheduled to report next week, including numerous Dow components.
Source : APP