Wednesday 4 January, 10:00 AM GMT (Thomson Financial): Asian markets ended
higher following the strong gains on Wall Street in the wake of less hawkish
comments from the U.S. Federal Reserve. Japan's market surged on positive
sentiment from the U.S., while Hong Kong's market jumped on the interest rate
outlook. Meanwhile, the Korean bourse extended recent gains, while Taiwan's
market tracked the U.S. higher. Finally, the Australian market closed higher
on strength in resources stocks.
Tokyo's Nikkei-225 Index surged 250.11 points or 1.55% to 16361.54, while
Hong Kong's Hang Seng Stock Index soared 255.29 points or 1.71% to 15200.06.
Korea's Kospi Index gained 7.24 points or 0.52% to 1402.11, while Taiwan's
Weighted Index firmed 24.67 points or 0.37% to 6616.44. Australia's All
Ordinaries Index rose 44.00 points or 0.93% to 4765.10.
Japan's market closed strongly higher following the gains on Wall Street
owing to the release of the U.S. Federal Reserve's minutes, which indicated
that the interest rate hike cycle may be near to its end. Shipbuilders, steel
makers and retail stocks led a broad based market rally.
The star performers of the day were shipbuilders, which steamed ahead on
the strong demand outlook, with Mitsui Engineering & Shipbuilding,
Ishikawajima-Harima Heavy and Hitachi Zosen all posting double digit gains.
Steel makers jumped following a report that they planned to expand production
of high grade steel used in car making and in the energy sector, with Sumitomo
Metal Industries, Nippon Steel and JFE Holdings all advancing strongly.
Retailers were in focus in the wake of strong retail sales over the
holiday season, with Takashimaya, Isetan and Mitsukoshi all posting sterling
gains, while in the financial sector Mitsubishi UFJ Financial rose following
reports that its main banking unit was in talks to take a stake in Bank of
China. Elsewhere, the weakness of the U.S. dollar following less hawkish
comments from the Fed put selling pressure on exporting automakers, with
Toyota and Nissan both losing ground.
Hong Kong's market soared higher in the wake of strong gains in U.S.
equities. The release of the minutes of the U.S. Federal Reserve's policy
committee, which stated that the "number of additional firming steps required
would not be large", boosted the local market, which tracks U.S. interest
rates. Property stocks performed particularly well, with Cheung Kong Holdings,
Henderson Land and Hang Lung Properties all making excellent gains, while
financial stocks also rose, with HSBC Holding ending higher and Bank of East
Asia strengthening after announcing its purchase of NABancorp of San
Francisco.
In Korea, the key share index closed at a fresh all time high and broke
the 1,400 level as strength in Samsung Electronics helped to drive the market
higher. Heavily weighted Samsung surged on expectations of strong earnings,
although Hynix Semiconductor fell heavily on profit taking following its
recent strength, with LG Electronics also dipping. Telecom stocks saw gains,
with SK Telecom and KT both rising, while banking stocks were mixed, with
Shinhan and Hana both up but Korea Exchange Bank falling.
Meanwhile, Taiwan's market closed higher, tracking the overnight rally on
Wall Street. Heavyweight chip maker TSMC rose, with Hon Hai Precision Industry
surging and Asutek Computer rising sharply, though on a weaker note, recent
outperforming flat panel makers suffered selling pressure, with AU Optronics
and Chi Mei Optoelectronics dropping heavily. Elsewhere, financial stocks
gained weight, with Cathay Financial Holding and Mega Financial posting solid
gains.
Finally, the market in Australia ended higher on strength in resources
stocks and positive sentiment from the rise in Wall Street. Heavyweights BHP
Billiton and Rio Tinto both posted sterling gains, with the rise in the price
of gold providing fresh impetus to gold miners, with Newcrest Mining and Lihir
Gold both ending higher. Elsewhere, financial stocks also gained but not at
the breakneck pace of resources stocks, with Westpac, National Australia Bank
and Commonwealth Bank all ending in positive territory.
Ian.Littlewood@thomson.com; Thomson Financial
This is Thomson Financial Corporate Services Asia Market Commentary. The
information herein is believed to be true and accurate. If you have any
questions please e-mail James Sang at James.Sang@tfn.com. We take no
responsibility for inaccurate information and reserve the right to update our
reports. For more information about Thomson Financial visit us on-line at
http://www.thomsonfinancial.com.
SOURCE Thomson Financial Corporate Group
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