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Market Update

Asian Markets Lower; Shanghai, Sensex Up

Asian markets were trading mostly lower Friday on caution after Greece bagged the much-awaited bailout deal but EU leaders refused to endorse it, demanding parliamentary approval of the reforms.

The Nikkei was down 0.3% as of 1:36 pm in Tokyo. The Shanghai Composite bucked the trend and was up 0.4%. The Hang Seng was down 0.6%. The Sensex was also up 0.2%. The S&P/ASX All Ordinaries gave up 0.5%.

Greek political leaders secured a deal Thursday on economic reforms needed for fresh bailout funds, but European finance ministers demanded a parliamentary approval of the austerity undertakings and economic reforms before providing the aid.  The ministers would be meeting next Wednesday and are likely to approve the bailout if Greece implements the necessary steps.

Stocks on the move
In Tokyo, financials and auto manufacturers were trading lower amidst Greek uncertainty. 

Mitsubishi UFJ Financial was down 2.5% while Sumitomo Mitsui Financial Group fell almost 2%. 

Toyota Motor and Honda Motor skidded nearly 2% each. 

Video-game console manufacturer, Nitendo Co. dropped 1.6%; Europe accounts for 34% of its sales. 

Among other losers, Daikin Industries lost 2% after the company slashed its annual profit outlook. 

Japan Tobacco erased 4.4% as investors booked profit after the company recently upgraded its dividend outlook. 

On the plus side, Yamada Denki soared 9.4% after analysts said the home-electronics retailer maintained a high recurring profit margin despite a drop in its third-quarter sales. 

Toshiba Corp. added 1.2% after Southern Co.’s plans to build and operate two nuclear power reactors through Toshiba’s Westinghouse unit was approved by the U.S. nuclear regulatory agency. 

Shipping companies gained ground with Nippon Yusen KK gaining 1.8% after JP Morgan Chase & Co. upgraded its investment rating. Close rival, Mitsui O.S.K. Lines also enhanced 1.2% on better prospects,  while Kawasaki Kisen Kaisha edged up 0.6%. 

In Hong Kong, financials were in the red. ICBC erased 1.3% while Agricultural Bank of China dropped 3.6%. China Citic also gave up 1.8%. 

In Mumbai, market extended gains led by Tata Steel, which jumped 4%. Shares of the steelmaker reversed early losses after posting a quarterly loss, first time in more than two years. 

Other gainers included Tata Power which added nearly 2%. Jindal Steel was up 1.2%, while L&T also gained 1.2%.

Auto majors, Bajaj Auto, Tata Motors and Mahindra& Mahindra added between 1.0%-1.2%. 

In Sydney, resources weighed on with mining giants, Rio Tinto and BHP Billiton dragging overall sentiment.

Rio Tinto was down 2.3% after reporting a 59% decline in net profits to $5.8 billion. 

BHP Billiton also erased 2.1% and Fortescue Metals gave up 2.4%. 

Gold miner, Newcrest Mining brightened 2.8% after it reported a 50% increase in first-half net profit. 

Among banks, Westpac and ANZ were down 0.8% each. Commonwealth Bank of Australia drifted lower 0.6% while NAB edged up 0.4%