Monday 22 August, 10:00 AM BST (Thomson Financial): Asian markets ended
the day higher across the board, ending recent losses. The Japanese market
climbed, boosted by strong gains among financial plays, while stocks in Hong
Kong also rose. Meanwhile, the Korean market surged, recouping recent losses,
while gains in Taiwan ended a run of market losses. Finally, the Australian
market rose to a new record high, boosted by M&A activity and strong resources
stocks.
Tokyo's Nikkei-225 Index rose by 160.78 points or 1.31% to 12,452.51,
while Hong Kong's Hang Seng Stock Index added 180.02 points or 1.20% to
15,218.63. Korea's Kospi Index surged by 26.80 points or 2.46% to 1116.68,
while Taiwan's Weighted Index was up by 47.71 points or 0.77% to 6206.65.
Australia's All Ordinaries Index gained 32.80 points or 0.74% to 4462.70.
The Japanese market rose strongly despite a lackluster session on Wall
Street last Friday. Financial stocks surged, with major banking groups such as
Sumitomo Mitsui and Mizuho Financial Group soaring, while brokerage houses
such as Daiwa and Nomura tracked banks higher. There was also some strength in
the insurance sector, with Sompo Japan surging.
Elsewhere, steel stocks also gained, with Kobe Steel and Nippon Steel
ending the day higher, but on a weaker note technology stocks were mixed, with
Advantest and Hitachi lower, while Nikon and Toshiba gained. Also, car
manufacturers failed to benefit fully from the market upswing, with Honda
weaker, Nissan flat but Toyota solidly higher.
Hong Kong's market also posted healthy gains, tracking regional markets
higher, with blue chips rising on hopes of strong results. Mobile telecom
operator China Mobile outperformed after saying it had added 3.581 million new
subscribers in July, compared to 3.276 million in the previous month; rival
China Unicom ended flat. Elsewhere, property stocks posted modest gains, while
the financial sector ended higher.
Meanwhile, the Korean market surged ahead on program buying, recouping
recent losses. Heavyweight technology group Samsung Electronics posted strong
gains, while Hynix Semiconductor climbed with reports indicating major
creditors were seeking to sell a 24% stake in the firm. Elsewhere, display
makers Samsung SDI and LG Philips LCD gained weight, while banking stocks
climbed.
Taiwan's market also ended the day higher, ending the share index's recent
run of losses. In light trading, the construction and transport sectors both
rose, while the key electronics sector also gained weight. Chipmakers TSMC and
UMC both ended higher, while electronic screen makers also climbed, with AU
Optronics and Chi Mei Optoelectronics both ending the day in positive
territory.
Finally, the Australian market rose to a new record high, tracking
regional gains. Additional upside came from news that Toll Holdings had tabled
a 4.6 billion Australian dollars offer for Patrick Holdings, although the
offer was rejected. Elsewhere, major resources stocks gained ahead of BHP
Billiton's full-year results announcement on Wednesday, while banking stocks
were mostly higher.
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
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