BU S INE S SWEDNESDAY, APRIL 13, 2016

LONDON: A downbeat first batch of corporateresults prodded European stock markets loweryesterday while oil prices held above $40ahead of a meeting of major producers to dis-cuss freezing output. The mood amonginvestors in Europe and the United States hasbeen subdued in the run-up to the secondquarter earnings season, and sales numbersfrom France-based luxury goods producerLVMH were poor, helping push European mar-kets 0.3 percent lower in early trade.

While analysts greeted Italy’s plans for a $5billion resolution fund to deal with billowingbad debts, that was also not enough to gener-

ate much optimism about European banks asthey launch another round of restructuring.

Metals company Alcoa reported lower prof-its. “LVMH’s numbers were not that good, andthe problem with the Italian bank fund is thatit is not big enough and it risks compromisingthe banks that are already in a much bettershape,” said Francois Savary, chief investmentofficer at Geneva-based investment and con-sultancy firm Prime Partners.

Asian markets had done better. Japan’sNikkei rose more than 1 percent after a rally inthe yen against the dollar stalled on Mondayfollowing three weeks of consistent gains. The

more robust performance of oil helped com-modities-linked currencies like the Australianand New Zealand dollars, both up around halfa percent against their US equivalent.

A fall in the yen pushed Japan’s stock mar-ket higher yesterday, helping it lead a broadAsia-wide advance, although analysts saidworries about the world economy and earn-ings would temper any rally. World marketshave been unable to maintain momentumafter their progress in March, with concerngrowing that central banks may be runningout of tools to kick-start growth and inflation.

Tokyo’s Nikkei, which has been among the

worst performers this year, enjoyed arare rally yesterday to add 1.1 percent,thanks to a dip in the yen, which sup-ports exporters.

The dol lar rose to 108.25 yen inJapanese trade, from 107.94 yen inNew York, after Japan’s finance minis-ter reiterated that officials could stillintervene in forex markets to stem theyen’s steep rise.

Taro Aso said authorities were readyto take action as needed if there wereextreme movements in the foreignexchange market, Bloomberg Newsreported. The comments follow similarannouncements last week from himselfand the government’s top spokesman.However, the greenback is still downabout five percent from the start of themonth as growing uneasiness seestraders shift into assets such as the yenwhich are considered a safe bet.

Dealers are also awaiting the upcom-ing corporate earnings season with trepi-dation. Mitsuo Shimizu, an equity strate-gist at Japan Asia Securities Group, toldBloomberg News: “Once we get badearnings results it’s possible that we’ll seemore disappointment.”

Wall of worry The gains in Tokyo were followed

across most of the region, with HongKong ending up 0.3 percent and Sydney0.9 percent higher. Seoul, Singapore andTaipei were also in positive territory.

However, Shanghai ended 0.3 percentlower after Monday’s climb, which wasfuelled by upbeat inflation data thatraised hopes China’s struggling economymay have turned a corner. John Stoltzfus,chief market strategist at Oppenheimer &Co. in New York, said there was littlemomentum to drive any meaningful ral-ly. “The market lacks enough convictionto move stocks in any one direction forany one amount of time long enough forinvestors to sink their teeth into and rackup performance,” he said.

“There is an increased amount of scep-ticism and concern, mostly around earn-ings season. It boils down to a marketthat has to climb a wall of worry and hasto earn its gains.”

Regional energy firms edged higherafter more gains in the price of oil onMonday, with expectations that a meet-ing of key producers on Sunday will see adeal to limit output.

Hong Kong-listed CNOOC was up 0.6percent and PetroChina was 1.2 percenthigher, while in Tokyo Inpex was up 2.2percent and JX Holdings 1.3 percenthigher. In Sydney, Rio Tinto and BHPBilliton each climbed more than two per-cent. The US dollar index, which meas-ures its strength against a basket of cur-rencies, fell 0.2 percent to 93.754. Theeuro was trading back above $1.14,touching a six-month high on a batch ofsales of the dollar in early trade inLondon. — Agencies

Gloomy start to results season hits shares