Asian markets retreat on North Korea concerns 6.00pm 02 June 2009

Asian markets fell in Tuesday trade after temperatures in North East Asia rose following news that North Korea may have moved equipment for a long-range missile test, thereby risking an escalation of hostilities. This comes after a nuclear test and the firing of six short-range missiles last month.
World stocks edged lower on June 2 after a buoyant session the day earlier and the dollar climbed off its lows against major currencies. The dollar steadied after hitting its lowest this year versus a basket of currencies on Monday. Commodity-linked currencies such as the Australian dollar, which hit an eight-month peak against the U.S. dollar, also eased.

The dollar index was up 0.2% at 79.351 after hitting its lowest since mid-December at 78.586 the previous day. The euro was down 0.3% at US$1.4121, having rallied to US$1.4246 on trading platform EBS on June 1, its strongest since late December. On euro zone bond markets, the 10-year Bund yielded 3.661%, down 1 basis point

The Nikkei 225 managed to close 0.27% up at 9,704.31, which was a reversal of a strong 1.63% close yesterday. Hong Kong’s Hang Seng Index fell 2.64% to 18,389.08 after yesterday’s 3.95% gain.

The KLCI added 0.17% to close at 1,063.62 following Monday’s 1.69% advance. At Bursa Malaysia, there were 350 gainers, 326 losers while 225 counters were traded unchanged. There were 2.11 billion shares done with a total value of RM1.92 billion.

Among bank stocks, Maybank gained 20 sen to RM5.50, Hong Leong Bank added 10 sen to RM5.75, Public Bank and its foreign tranche were up 5 sen and 10 sen to RM8.65 and RM8.80 respectively. BCHB lost 10 sen to RM8.65.

Plantation stocks IOI added 6 sen to RM4.64, KL Kepong rose 20 sen to RM11.90 and Sime dropped 10 sen to RM7. Genting rose 10 sen to RM5.70, UMW added 10 sen to RM5.80, TNB lost 20 sen to RM7.70 and Axiata was 3 sen lower at RM2.36 while Boustead fell 14 sen to RM4.28.

Nymex crude oil dropped 51 cents to US$68.07 per barrel.

Crude palm oil 3rd- month futures lost RM37 to RM2,588 per tonne.

The ringgit was quoted at 3.491 to the US dollar.