Wall Street delivered a bad lead to Asian market today. US stocks plunged overnight as financials tumbled after President Barack Obama proposed stricter limits on financial institutions' risk-taking. Obama's plan will prevent financial institutions that own banks from investing in, owning or sponsoring a hedge fund or private equity fund.
The Australian sharemarket closed slightly higher on Wednesday. Most of the early gains boosted by BHP Billiton's report of strong half-year production were offset by the losses after news that some Chinese banks have received verbal orders to stop lending for the rest of this month. At the close, the benchmark S&P/ASX200 index added 7 points, or 0.1 per cent, at 4868.2, while the broader All Ordinaries index gained 5.5 points, or 0.1 per cent, to 4895.1.
Wall Street rebounded on Tuesday to close at new 15-month highs. Health care sector rallied as investors bet that the outcome of a Senate race in Massachusetts might make it harder for President Barack Obama's health-insurance reforms.
US market was closed yesterday for public holiday. European shares gained on the back of higher commodity prices overnight. Asian markets ended mixed on Monday while traders are awaiting US corporate earnings. Japan's Nikkei 225 fell 1.2%, Hong Kong's Hang Seng Index dropped 0.9%, China's Shanghai Composite rose 0.4%, South Korea's Kospi gained 0.6% and Taiwan's Taiex slipped 0.2%.
US stocks fell on Friday led by financial sector as JPMorgan Chase reported heavy fourth-quarter losses on mortgage and credit card loans. Shares in Intel also declined despite it reported a biggest gross profit margin in its history, as investors grew fearful that the stock may be near its peak. For the week, Dow index fell 8.54 points, or 0.08%.
The Australian shares closed with little change on Friday. The market rebounded from early losses as a surprise guidance upgrade by Commonwealth Bank pushed the financial sector higher in late trade. The benchmark S&P/ASX200 index gained 1.6 points to 4899.6, while the broader All Ordinaries index added 0.1 point to 4929.5.
Overnight US shares was lower on the disappointing Alcoa fourth-quarter report and profit warning from Chevron and Electronic Arts. Financial sector also fell as investors feared that a potential government levy might hurt bank profits.
