The Indonesia stock market on Tuesday halted the three-day slide in which it had given away more than 90 points or 2.3 percent. The Jakarta Composite Index settled just below the 4,010-point plateau, although now investors are bracing for renewed consolidation when the market opens on Wednesday.
The global forecast for the Asian markets is inconclusive, with disturbing corporate news offset by rare good news from Europe. The technology sector in particular likely will be troubled by chip maker Advanced Micro Devices (AMD) slashing its Q2 sales guidance, while semiconductor equipment maker Applied Materials (AMAT) lowered its fiscal year business outlook. On the other hand, Eurozone finance ministers agreed to provide the Spanish banking sector with up to 30 billion euros. The European markets were higher and the U.S. bourses were lower, and the Asian markets are tipped to split the difference.
The JCI finished modestly higher on Tuesday following gains from the resource stocks.
For the day, the index collected 24.63 points or 0.62 percent to finish at 4,009.68 after trading between 3,977.61 and 4,010.48 on volume of 1.977 billion shares.
The lead from Wall Street is negative as stocks moved sharply lower on Tuesday after failing to sustain an early upward move. The downturn came as disappointing corporate guidance overshadowed positive news out of Europe.
The early strength followed a report showing an unexpected increase in U.K. manufacturing output as the Office for National Statistics showed that manufacturing output rose 1.2 percent in May following a 0.8 percent drop for April. Analysts had expected a 0.1 percent loss.
News that Eurozone finance ministers agreed to provide the Spanish banking sector with up to 30 billion euros by the end of the month also generated some positive sentiment, with Spain given an extra year to achieve its deficit reduction target.
The subsequent pullback was partly due to troubling news out of the tech sector, as chip maker Advanced Micro Devices (AMD) slashing its second quarter sales guidance. Applied Materials (AMAT) also downwardly revised its fiscal year 2012 business outlook due to weaker than expected near-term demand.
Additionally, shares of Alcoa (AA) turned lower even though the aluminum giant reported better than expected quarterly results after the bell on Monday.
The major averages regained some ground going into the close but still ended the day firmly in the red. The Dow fell 83.17 points or 0.7 percent to finish at 12,653.12, while the NASDAQ tumbled 29.44 points or 1 percent to end at 2,902.33 and the S&P 500 slid 10.99 points or 0.8 percent to 1,341.47.
by RTT Staff Writer
For comments and feedback: firstname.lastname@example.org