Market Report – Asia Slips on Earnings Prospects News
In today’s market report… Asian stocks slipped as investors became cautious about companies‘ earnings prospects.
Resource stocks were hit by a fall in the price of gold, and banks lost ground after international regulators proposed tough new capital protection rules that would start 2012.
In Australia, the country’s biggest brewer, Foster’s, warned the strong Aussie dollar and weak U.S. demand would cut profits in its wine business.
The Australian dollar has surged 40 percent this year, worrying exporters.
Two of Asia’s major low-cost airlines, Malaysia’s AirAsia and Qantas-owned Jetstar, are in talks to form a joint venture. It’s a sign that budget carriers are under pressure to drive costs even lower.
Qantas has emerged from the global recession in relatively strong shape. And it’s now seen as more of a predator than prey—with a keen interest in Asia to exploit Australia’s growing ties with the region. Qantas said a joint venture could cut costs, as airlines around the world grapple with falling demand, higher funding costs and volatile fuel prices.