Consumer sentiment on the rise in the US, falling in Australia
Asia Pacific airline shares have been riding the waves of consumer sentiment lately, gaining in Asia on rising optimism in the US and falling heavily in Australia on sagging local conditions.
- Asia Pacific airline shares have been influenced by consumer sentiment, with gains in Asia and heavy falls in Australia.
- Asian stock markets were boosted by reports of rising consumer sentiment in the US.
- Asiana Airlines, ANA, and Korean Air experienced share price increases.
- Australian consumer sentiment has sharply declined, reflecting concerns raised by Virgin Blue.
- The Westpac-Melbourne Institute Consumer Sentiment Survey indicates a shift towards a more somber mood among Australian consumers.
- Shares in Qantas and Virgin Blue did not trade due to a public holiday.
Asian stock markets were buoyed on Friday's reports a private index on US consumer sentiment rose to the highest level in more than two years in Jun-2010. Earlier, The Conference Board noted that its US Consumer Confidence Index posted a third consecutive monthly gain in May-2010, noting that although the reading is still weak by historical levels, sentiment "appears to be gaining some traction". All eyes will be on the Jun-2010 numbers.
Asiana Airlines rose 2.7% on Friday, ANA rose 2.5%, while Korean Air gained 0.1%.
Australian consumer sentiment falls sharply
The picture in Australia is much different. The Jun-2010 Westpac-Melbourne Institute Consumer Sentiment Survey released showed a "marked shift" in consumer confidence - reflecting concerns raised last month by Virgin Blue in its latest profit warning.
Westpac noted the "widespread optimism apparent at the start of the year has evaporated, giving way to a much more sombre mood", adding "consumer sentiment has provided critical early warning signs in the past. Most recently, it was the first indicator to show a decisive weakening in 2008".
Shares in Qantas and Virgin Blue did not trade yesterday, due to a public holiday.
Asia Pacific selected airlines daily share price movements (% change): 14-Jun-2010
Source: Centre for Asia Pacific Aviation & Reuters
*Shanghai and Sydney stock exchanges closed due to public holiday on 14-Jun-2010