Monday 16 January, 10:00 AM GMT (Thomson Financial): Asian markets ended
mixed, ahead of the holiday on Wall Street. Japan's market fell on profit
taking, while Hong Kong's market ended flat. Meanwhile, the Korean bourse
rose, led by Samsung Electronics, while Taiwan's market closed higher on
strength in technology stocks. Finally, the market in Australia closed
little changed in mixed trade.
Tokyo's Nikkei-225 Index fell by 186.92 points or 1.14% to 16268.03, while
Hong Kong's Hang Seng Stock Index eased by 10.25 points or 0.06% to
15777.72. Korea's Kospi Index firmed by 5.51 points or 0.39% to 1421.79,
while Taiwan's Weighted Index rose by 41.83 points or 0.63% to 6724.18.
Australia's All Ordinaries Index crept up by 1.60 points or 0.03% to
4785.90.
Japan's market fell for only the second time this year as investors
elected to take profits in technology stocks following recent gains in the
sector. Auto makers were also lower, weighed down by yen strength,
although construction companies bucked negative sentiment to post sterling
gains.
In the technology sector, investors were cautious ahead of the earnings
releases of major U.S. technology companies, with chip makers Oki
Electric, Fujitsu and Toshiba all tumbling, while consumer electronics
shares were also subject to selling pressure, with Matsushita Electric,
Sony and Sanyo Electric ending sharply lower.
Car makers were squeezed by the strength of the yen against the U.S.
dollar, which reduces the value of their overseas earnings, with Honda,
Nissan and Toyota suffering heavy losses. On a brighter note, as investors
sold technology stocks they shifted their focus into domestic demand
related stocks, with construction companies Shimizu, Kajima and Obayashi
posting sterling gains.
Hong Kong's market was hardly changed, although slightly lower, as
strength in china related stocks offset weakness elsewhere. Among China
shares, China Resources posted a strong rise, with China Mobile and CNOOC
both ending higher, although on a weaker note, property companies were
lower, with banks also mostly down, despite the strong rise from Standard
Chartered on bid speculation.
In Korea, the key share index closed at a new all time high. Technology
bellwether Samsung Electronics led the gains, with a strong rise following
its strong fourth quarter results and positive outlook announced last
week, while LG Philips LCD jumped in the wake of its strong fourth quarter
earnings. Shipbuilders were able to shake off negative sentiment from won
strength as investors decided that this was now priced in, with Hyundai
Heavy Industries and Daewoo Shipbuilding both steaming ahead.
Meanwhile, Taiwan's market ended higher on strength in technology stocks.
Hon Hai Precision Industry, the world's largest contract electronics
manufacturer by revenue, surged on expectations of increased profitability
this year, while mobile phone makers Compal Communications and Arima
Communication both jumped. Elsewhere, flat panel makers were in focus,
with AU Optronics and Chi Mei Optoelectronics both rising sharply.
Finally, the Australian market finished the trading session little changed
as gains in resources stocks offset falls in the banking sector.
Heavyweights BHP Billiton and Rio Tinto edged higher as gold stocks
tracked the continued strength in the price of the precious metal, with
Lihir Gold and Newcrest Mining both gaining. On a weaker note, banking
stocks turned lower, with National Australia Bank, ANZ and Commonwealth
Bank all ending in negative 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
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SOURCE Thomson Financial Corporate Group
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