Thursday 18 August, 10:00 AM BST (Thomson Financial): Asian markets ended
the day mostly lower as investors continued to take profits from the region.
The Japanese market outperformed, as a weakening of the yen encouraged buying
of export-reliant stocks, while Hong Kong's market fell heavily. Korea's
market also dropped sharply, while shares in Taiwan declined amid some caution
ahead of the release of economic growth data. Finally, the Australian market
fell, with resources plays declining.
Tokyo's Nikkei-225 Index rose by 34.25 points or 0.28% to 12,307.37, while
Hong Kong's Hang Seng Stock Index declined by 301.49 points or 1.95% to
15,148.09. Korea's Kospi Index dropped 20.54 points or 1.85% to 1092.71, while
Taiwan's Weighted Index fell by 36.83 points or 0.59% to 6205.09. Australia's
All Ordinaries Index ended lower, by 19.70 points or 0.44% to 4410.20.
The Japanese equity market rose, with investors switching out of domestic-
demand sensitive shares and moved into technology and export-reliant plays, as
the yen weakened slightly against the U.S. dollar. Meanwhile, a fall in crude
prices added further impetus to the market's gains, with steel stocks rising,
although domestic oil firms ended lower as a result.
Technology stocks were in favour, with Advantest, Canon and Fujitsu all
ending the session higher, while the weaker yen also provided some support to
export-reliant stocks as a fall in the domestic currency boosts earnings from
overseas. Car manufacturers were mostly higher, while Nissan and Toyota
gaining, although shares in Honda slipped.
Elsewhere, steel stocks were also higher, with Kobe Steel and Nippon Steel
among sector plays rising, while the fall in crude prices had a negative
effect on domestic oil groups, with Cosmo Oil, Nippon Oil and Showa Shell all
ending lower.
Shares in Hong Kong fell heavily after recent solid gains encouraged
investors to take profits. Stocks fell across the board, with the financial
sector under pressure; shares in Bank of China Hong Kong fell as some
expressed disappointment at the slight increase in its dividend after the
lender's first half net profit rose to 6.52 billion Hong Kong dollars.
Elsewhere, the properties sector was under pressure, with Cheung Kong Holdings
and Henderson Land among sector plays ending lower.
Meanwhile, the Korean market sustained heavy losses as large caps suffered
intense selling pressure. Heavyweight technology play Samsung Electronics
ended sharply lower, while Hynix Semiconductor fell and flat panel makers
declined. Elsewhere, financial stocks also ended the day lower, while car
manufacturers weakened. Steel group POSCO declined, but on a stronger note,
KEPCO was stronger.
Taiwan's market gave up its early gains and ended the day lower amid some
caution ahead of the release of second quarter economic growth data.
Technology plays were weaker, with heavyweight chipmakers TSMC and UMC both
declining, but on a stronger note, flat panel makers such as AU Optronics and
Chi Mei Optoelectronics climbed. Elsewhere, China Airlines declined after it
lowered its full-year earnings per share forecasts due to high oil prices,
while financial stocks were also weaker.
Finally, the Australian market also ended lower, with resources stocks
under pressure. Both BHP Billiton and Rio Tinto ended the day lower, while oil
groups such as Oil Search, Santos and Woodside Petroleum dropped. On a
stronger note, QBE rose, adding to Wednesday's gains in the wake of its
stronger half-year net profit, while AMP posted solid gains after its half
year net profit rose by 22% to 393 million Australian dollars.
Olivier.Masson@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
back to top
