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Asian Market Commentary

Asian Markets Exhibit Mixed Trend Amid Cautious Trades

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2/2/2012 10:57 PM ET
(RTTNews) - Asian stock markets are exhibiting a mixed trend on Friday with investors mostly treading cautiously ahead of the release of the crucial U.S. jobs report. The overnight flat close on Wall Street and concerns about Greece's debt crisis too are contributing to the subdued trend in most of the markets in the region.

After a marginal upmove, the Australian stock market is trading slightly weak amid lackluster moves with investors treading cautiously and indulging in stock specific activity.

Bank, mining and energy stocks are exhibiting a mixed trend. Consumer staples and consumer discretionary stocks are trading weak, while information technology stocks are finding some support.

The benchmark S&P/ASX 200 index, which advanced to 4,275.5 in early trades, is currently down 12.3 points or 0.3 percent at 4,255.5. The broader All Ordinaries index is down 9.6 points or 0.2 percent at 4,323.6, off the day's high of 4,340.8.

Among bank stocks, Commonwealth Bank of Australia, National Australia Bank and Westpac are up 0.3 to 0.5 percent, while ANZ Bank is trading lower by about 0.4 percent. Bendigo & Adelaide Bank and Bank of Queensland are down marginally.

Among top miners, BHP Billiton is up marginally and Rio Tinto is down 0.2 percent. Fortescue Metals and Newcrest Mining are trading stronger by 1.8 percent and 1.6 percent, respectively.

In the energy sector, Woodside Petroleum and Oil Search are down marginally and Caltex Australia is down nearly 2 percent, while Santos and Origin Energy are trading in positive territory, gaining 0.3 percent and 1.3 percent, respectively.

Lynas Corporation is down more than 6.5 percent. Bluescope Steel and David Jones are trading lower by over 3 percent.

Echo Entertainment Group, Amcor, Whitehaven Coal, APA Group, Dexus Property Group, Challenger, Iluka Resources, CSL, AGL Energy, Graincorp and Fairfax Media are down 1.5 to 2.5 percent.

Boart Longyear is gaining almost 4 percent. QBE Insurance Group, Crown and Aquarius Platinum are trading higher by 2.5 to 3 percent, while Campbell Brother is up with a gain of 1.7 percent.

On the economic front, activity in the Australian services sector expanded for the first time in four months, a private survey revealed. The Australian Industry Group/Commonwealth Bank Australian Performance of Services Index rose 2.9 points to 51.9 points in January.

In the currency market, the Australian dollar opened slightly weak and was quoting at US$1.0709 in early trades, down from Thursday's close of US$1.0717.

After a weak start and a subsequent rebound, the Japanese market drifted lower again amid cautious trades.

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