Wednesday 24 August, 10:00 AM BST (Thomson Financial): Asian markets ended
the day mostly lower, as U.S. stocks declined overnight. The Japanese market
outperformed, with the share index benefiting from investor bargain hunting,
but in Hong Kong the market slipped, with the properties sector under
pressure. The Korean market underperformed, with additional concerns coming
from interest rate prospects, while shares fell in Taiwan, with some
disappointing economic data weighing on sentiment. Finally, the Australian
bourse weakened, with investors taking profits from the market's recent highs.
Tokyo's Nikkei-225 Index rose by 29.33 points or 0.24% to 12,502.26, while
Hong Kong's Hang Seng Stock Index weakened by 100.04 points or 0.67% to
14,873.85. Korea's Kospi Index dropped by 21.63 points or 1.94% to 1094.21,
while Taiwan's Weighted Index fell by 79.41 points or 1.28% to 6127.24.
Australia's All Ordinaries Index declined by 27.40 points or 0.62% to 4424.20.
The Japanese equity market rose, outperforming the region again, with the
share index remaining at four-year highs. The share index started the session
in negative territory, but bargain hunting by investors helped push the market
back into positive territory. Banking stocks were in favour, with major
lenders posting strong gains, while elsewhere, car manufacturers rose,
although technology plays were mixed.
There were strong gains among banking stocks, with Mitsubishi Financial
and UFJ surging ahead, while Mizuho Financial also soared after saying on
Tuesday that it would pay back some 693 billion yen in public funds later in
the month, adding that it was planning to pay back the remaining 850 billion
yen by March 2007. Elsewhere, car manufacturers tracked the broad market
higher, while technology stocks had a mixed session.
On a weaker note, Hong Kong's market weakened, dragged down by profits
taking, with the properties sector under particular pressure. Cheung Kong
Holdings dropped, with Henderson Land and Sun Hung Kai Properties also ending
lower. Elsewhere, banking stocks were mostly lower, while motile telecom
operators remained under pressure. On a stronger note, Hutchison Whampoa was
slightly higher ahead of the release of its interim results, while CLP
Holdings gained after its half-year net profit rose by 10.6% to 4.58 billion
Hong Kong dollars.
Meanwhile, the Korean market weakened, underperforming the region amid
heavy program selling. Sentiment was also soured by concerns over the future
path of interest rates after minutes from the central bank's latest meeting
showed that one member had argued for a 25 basis points rate hike in order to
cool the domestic property market. Blue chip stocks were under pressure, with
Samsung Electronics declining, while Steel maker POSCO was also lower.
Taiwan's market fell, dragged down by overnight losses on Wall Street and
disappointing economic data. Figures from the Ministry of Economic Affairs
showed that industrial output fell by 1.13% in July, while export orders in
July were up by 8.71% to US$20.15 billion -although this was below June's
growth. Technology stocks remained under pressure, with heavyweight chipmakers
TSMC and UMC declining, while memory chipmakers also weakened.
Finally, the Australian market fell but still closed off its intraday
lows, with investors taking profits after the index reached a record high.
Shares in heavyweight resource play BHP Billiton fell ahead of the release of
its full-year results, while Rio Tinto and oil stocks were also weaker.
Elsewhere, Amcor fell after its full-year net profit fell to 173.2 million
from 345.7 million dollars last year, without issuing earnings guidance.
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
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http://www.thomsonfinancial.com.
SOURCE Thomson Financial Corporate Group
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