Wednesday, May 15, 2013 11:02 pm
Asia stocks mixed as Wall St. ignores euro gloom
By PAMELA SAMPSONAP Business Writer
The European Union statistics office said Wednesday that nine of the 17 countries that use the euro are in recession, including France. The combined economy of the 17 countries shrank by 0.2 percent in the first three months of 2013 compared to the prior quarter.
Meanwhile, the economy of Germany, whose growth supports lesser economies in the region, expanded by a slight 0.1 percent in the first quarter of the year, undershooting expectations of a 0.3 percent rise.
"The Eurozone has registered six straight quarters of contraction and any recovery is likely to be limited in the months ahead," said analysts at Credit Agricole CIB in Hong Kong in a market commentary.
Hong Kong's Hang Seng rose 0.2 percent to 23,083.31. South Korea's Kospi added 0.9 percent to 1,988.99. Japan's Nikkei lost 1.1 percent at 14,932.95. Australia's S&P/ASX 200 shed 0.1 percent to 5,186.90.
Gains were registered even though U.S. manufacturers cut back on production in April, government data showed Wednesday. The Federal Reserve said factory output dropped 0.4 percent in April, the third decline in four months, as auto companies cranked out fewer cars and factories made fewer consumer goods.
Still, the news wasn't enough to slow things down on Wall Street, which has been fueled by strong corporate earnings. Google's stock topped $900 for the first time Wednesday after the company announced several upgrades to its Android software for smartphones. Quarterly earnings reached a record in the first quarter, according to S&P Capital IQ, rising 5 percent from the year before.
The Dow Jones industrial average rose 0.4 percent, to close at 15,275.69. The Standard & Poor's 500 index gained 0.5 percent to 1,658.78. Both closed at all-time highs. The Nasdaq composite index rose 0.3 percent to 3,471.62.
Benchmark oil for June delivery was down 26 cents to $94.04 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 9 cents to close at $94.30 a barrel on the Nymex on Wednesday.
In currencies, the euro slipped to $1.2872 from $1.2875 late Wednesday in New York. The dollar fell to 102.13 yen from102.32 yen.
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