Tuesday 23 August, 10:00 AM BST (Thomson Financial): Asian markets ended
mostly lower, despite overnight gains on Wall Street. The Japanese market was
off its intraday highs but still posted moderate gains, while shares in Hong
Kong fell, underperforming the region. In Korea, the key share index closed
slightly lower, while stocks in Taiwan were also moderately lower. Finally,
the Australian market fell, as investors took profits after the share index
recently reached a record high.
Tokyo's Nikkei-225 Index was up by 20.42 points or 0.16% to 12,472.93,
while Hong Kong's Hang Seng Stock Index dropped by 244.74 points or 1.61% to
14,973.89. Korea's Kospi Index slipped by 0.84 points or 0.08% to 1115.84,
while Taiwan's Weighted Index declined by 11.47 points or 0.18% to 6195.18.
Australia's All Ordinaries Index fell by 11.10 points or 0.25% to 4451.60.
The Japanese equity market came off its intraday highs and closed with
modest overall gains, lifting the key share index to a four-year peak, as Wall
Street gained overnight. Shares were supported by upbeat economic data, with
the tertiary activity index -which measures services sector activity- rising
by 1% in June to 106.5, while the broader all industries index was up by 1.3%
to 104.1.
There was some strength in the technology sector, with Hitachi and Kyocera
among sector plays ending higher, while retailers also gained weight, with
stocks such as Ito Yokado posting solid gains, while Daiei surged. On a weaker
note, banking stocks sustained heavy losses as investors locked in recent
gains, sending the likes of Sumitomo Mitsui and UFJ Holdings sharply lower.
Meanwhile in Hong Kong stocks fell, underperforming the region after a
late sell-off dragged the share index lower. Property stocks were under
pressure, with Cheung Kong Holdings falling heavily, while Sun Hung Kai
Properties and Henderson Land also fell. Elsewhere, mobile telecom operators
China Unicom and China Mobile were both weaker, the latter giving up recent
subscriber data inspired gains. Shares in Hutchison Whampoa also came under
pressure ahead of the company's results announcement later in the week.
The Korean market ended only slightly lower after surging ahead on Monday,
with shares in LG Corp falling heavily and LG Electronics also ending lower
after a key shareholder sold its entire stakes in both companies. Meanwhile,
Samsung Electronics also ended lower, while electronic display makers Samsung
SDI and LG Philips LCD both slipped. There were mixed fortunes in the banking
sector, with Kookmin Bank higher, while Korea Exchange Bank declined.
Taiwan's market was unable to hold on to its early gains and a late sell-
off left the share index with modest losses by the time trading ended.
Chipmaker UMC ended the session higher, while TSMC was flat, but there was
weakness among memory chipmakers, as DRAM prices fell. Nanya Technology fell
heavily, while Powerchip also ended sharply lower. However, the downside was
limited by a solid performance by the steel sector, with China Steel posting
healthy gains.
Finally, the Australian market declined, coming off its recent record
highs. Resources heavyweights gave back recent gains, with shares in both BHP
Billiton and Rio Tinto declining. Meanwhile, Woodside Petroleum fell after a
disappointing drilling report, while Bluescope Steel fell heavily after
warning that its 2006 full-year profit would likely not match the 1.007
billion Australian dollars result it posted in 2005. The banking sector was
also under pressure after ANZ warned of margin difficulties in New Zealand.
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
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