Thursday 12 January, 10:00 AM GMT (Thomson Financial): Asian markets ended
mostly higher, with sentiment supported by overnight gains on Wall Street.
Japan's market rose as investors rotated into technology stocks, while Hong
Kong's market continued to rise on strength in blue chip shares. Meanwhile,
the Korean bourse broke its three day losing streak, while Taiwan's market
fell on profit taking. Finally, the Australian market closed flat in mixed
trade.
Tokyo's Nikkei-225 Index gained 81.60 points or 0.50% to 16445.19, while
Hong Kong's Hang Seng Stock Index firmed 68.49 points or 0.44% to 15719.37.
Korea's Kospi Index rose by 8.49 points or 0.61% to 1402.58, while Taiwan's
Weighted Index eased by 10.28 points or 0.15% to 6725.61. Australia's All
Ordinaries Index crept up by 0.60 points or 0.01% to 4781.70.
Japan's market ended higher to post a fresh five year high, with sentiment
helped by gains on Wall Street overnight. The technology sector led the gains
on news of investment in the sector, with real estate stocks and retailers
also supporting the rise in the market.
The technology sector was boosted by news that Sharp will increase capital
spending as part of its aim to sell 6 million LCD televisions in the new
fiscal year, with the stock soaring as a result, while Matsushita Electric and
Sony both closed sharply higher. Chip makers also rose, in line with the rise
of the Nasdaq, with Mitsubishi Electric, Oki Electric and Hitachi advancing
strongly.
Real Estate stocks extended recent gains, with Mitsubishi Estate and
Sumitomo Realty climbing sharply higher, while retailers also rose, with
Mitsukoshi jumping on reports it was in the final stages of talks with Japan
Post over a tie up in gift deliveries and further supported by news that
Morgan Stanley had taken a stake in the company. However, on a weaker note,
banks suffered as investors rotated out of them and into technology shares,
with Mitsubishi UFJ Financial, Mizuho Financial and Resona falling, while
strength in the yen exerted downward pressure on car makers.
Hong Kong's market closed higher as investors' appetite for blue chip
stocks remained intact. Financial stocks were mostly up, with HSBC Holdings
edging higher as Bank of East Asia and Hang Seng Bank rose, while property
stocks strengthened, with Sun Hung Kai Properties, Cheung Kong Holdings and
New World Development all gaining. Elsewhere, CNOOC continued its rise
following its purchase of a stake in an oil field in Nigeria; China Resources
jumped, while Lingbao Gold was in focus on its trading debut, with a sharp
rise.
In Korea, the key share index halted three days of falls to climb back
above the 1,400 level, aided by data showing falling unemployment. The Bank of
Korea's decision to leave the call target rate at 3.75% had little impact on
the market, although further strengthening of the won against the U.S. dollar
limited the upside to gains. Samsung Electronics ebbed up as LG Electronics
jumped and Hynix Semiconductor advanced, while LG Philips LCD ended higher
ahead of its earnings report. Elsewhere, Korea Electric Power Company extended
recent gains as the strength in the local currency makes its debt servicing
cheaper.
Meanwhile, Taiwan's market closed fractionally lower on profit taking in
recent gainers. Heavyweight chip makers TSMC and UMC both ended lower, with
flat panel makers AU Optoelectronics and Chi Mei Optoelectronics dropping
sharply on profit taking following recent strength. On a brighter note, Hon
Hai Precision Industry soared on price target upgrades from leading brokers,
while the financial sector also gained as investors rotated funds away from
technology stocks.
Finally, the market in Australia closed little changed in mixed trade,
with weaker-than-expected jobs growth not helping sentiment. In the resources
sector, BHP Billiton slipped but Rio Tinto gained following an analyst
upgrade, while Zinifex rallied in the wake of higher zinc prices, although
Newcrest Mining fell amid rumours of problems at its Telfer Mine, although the
company denied any difficulties. Financial stocks also highlighted the mixed
nature of trading, with Commonwealth Bank and Macquarie Bank rising but
National Australia Bank and ANZ slipping.
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
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