Morning Market Overview Nov 27

Asian markets ended lower Thursday, with the strong yen hurting exporters in Tokyo while capital-raising worries and a disappointing Hong Kong debut for China Minsheng Banking Corp. hurt Chinese banks. The Nikkei 225 Average fell 0.6% to 9,383.24, China's Shanghai Composite tumbled 3.6% to 3,170.98 and Hong Kong's Hang Seng Index shed 1.8% to 22,210.41. South Korea's Kospi lost 0.8% and Taiwan's Taiex dropped 0.2%. In Tokyo, auto and technology stocks fell after the U.S. dollar dropped to a 14-year low against the yen. Shares of Toyota Motor fell 1.2%, Canon Inc. declined 2.1% and Sony shed 1.9%.

News of Dubai asking for a creditor standstill at Dubai World and Vietnam's currency devaluation increased investors' aversion to risk. Chinese stocks fell sharply during the session, with banks again taking some harsh treatment amid worries regulators may beef up capital requirements, forcing banks to sell shares to raise funds. Bank of China fell 2.9%, China Construction Bank dropped 3.6% and China Citic Bank Corp. gave up 1.7% in Hong Kong, extending a two-session losing streak; in Shanghai, the stocks fell 3.5%, 3.4% and 3.3%, respectively.

Base metals closed near the day's lows Thursday, ending on a weak note as the euro dropped below $1.50 against the dollar and European bourses suffered their biggest rout since April. Real estate and property conglomerate Dubai World's request for a standstill on its $60 billion in debt prompted a rush to take profits in risk assets like metals and seek havens like the dollar. Copper closed the day 2.3% lower, and down from the 2009 high it reached overnight at $7,060/ton. Zinc and nickel dropped 2% apiece, while aluminum and lead saw smaller losses. Despite the heavy selling in European equity markets, volumes on the exchange were subdued because of the U.S. Thanksgiving holiday, said a London-based trader. Thursday's retreat did little to reverse the near-term uptrend for most metals, although the reaction in U.S. markets Friday after resuming trade will likely decide whether markets bounce back or continue to correct.

Trading on the Comex also was closed for Thanksgiving. On Wednesday, gold futures reached another record high on renewed weakness in the US dollar and inflation concerns. In New York trade, gold for December delivery settled up $US21.20 at $US1,187.00 per fine ounce.  December silver gained 31.3 cents to $18.768 an ounce, and December copper futures added 5.15 cents to $US3.165 a pound.