Wednesday 11 January, 10:00 AM GMT (Thomson Financial): Asian markets
ended mostly higher, shrugging off overnight weakness on Wall Street. Japan's
market bounced back strongly from the sharp drop the previous day, while Hong
Kong's market closed higher on the positive local outlook. Meanwhile, the
Korean bourse ended marginally lower on concern over won strength, while a
late rally in Taiwan's market offset early losses. Finally, the market in
Australia closed higher on strength in financial stocks.
Tokyo's Nikkei-225 Index surged 239.24 points or 1.48% to 16363.59, while
Hong Kong's Hang Seng Stock Index rose 80.97 points or 0.52% to 15650.88.
Korea's Kospi Index eased 2.20 points or 0.16% to 1394.09, while Taiwan's
Weighted Index gained 28.49 points or 0.42% to 6735.89. Australia's All
Ordinaries Index advanced 19.40 points or 0.41% to 4781.10.
Japan's market rebounded strongly from heavy falls the previous day as
investors saw Tuesday's falls as an opportunity to seek out bargains. Domestic
demand related stocks were in focus, with banks and real estate companies
rising, while technology stocks also supported gains in the market.
Financial stocks rose on optimism for the outlook for the economy, amid
signs that the recovery is likely to accelerate, with Resona Holdings and
Mizuho Financial Group posting strong gains, while Mitsubishi UFJ Financial
Group also ended higher. The real estate sector was also underpinned by the
economic outlook, with Sumitomo Realty and Heiwa Real Estate the top
performers, while Mitsubishi Estate and Mitsui Fudosan made solid gains.
In the technology sector, consumer electronics stocks rose, with Sony and
Sanyo Electric both surging, while Matsushita rose sharply following the
announcement that it will build a new factory to make plasma televisions. High
technology stocks also advanced, with Tokyo Electron jumping on a report that
it expects a 17% rise in quarter-on-quarter orders for its chip making
equipment, while chip makers Elpida Memory and Fujitsu enjoyed sterling gains.
Hong Kong's market closed higher on the strong outlook for the market and
expectations for an upturn in the Japanese and Chinese economies. Heavyweight
China Mobile lent support to gains, with a steady rise, while CNOOC remained
in focus in the wake of it taking a stake in a Nigerian oil field, and ended
sharply higher. Property stocks were mixed, with Hang Lung Properties
advancing strongly but Cheung Kong Holdings slipping.
In Korea, the key share index ended fractionally lower as investors
continued to fret about the strength of the won against the U.S. dollar and
were cautious ahead of earnings releases. Heavyweight technology stocks,
Samsung Electronics and Hynix Semiconductor both retreated from recent gains,
while banks remained under pressure in the wake of news that brokerages will
be allowed provide certain banking services, with Kookmin Bank, Hana Financial
and Woori Financial all ending lower.
Meanwhile, Taiwan's market closed higher as a late rally offset early
profit taking stemming from the weak showing on Wall Street. In the technology
sector, flat panel makers led the way, with AU Optronics and Chi Mei
Optoelectronics both surging, while memory chip makers Nanya Technology and
Powerchip Semiconductor both advanced on strength in chip prices. Elsewhere,
Cathay Financial rose, despite reporting a fourth quarter net loss, with First
Financial rising, although its fourth quarter net profit fell, while
Chinatrust Financial slipped after reporting a fall in net profit.
Finally, the market in Australia closed at a record high, with financial
stocks the main focus for investors. Major banks underpinned gains in the
market, with Commonwealth Bank rising after a leading broker reiterated its
"outperform" rating and other major banks followed the stock upwards. However,
Macquarie Bank was a notable loser after the London Stock Exchange again
rejected its bid for the U.K. bourse. Elsewhere, insurance stocks performed
well, with IAG jumping on expectations for a special dividend, while Promina
and AMP also ended higher.
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
back to top
