Thursday 25 August, 10:00 AM BST (Thomson Financial): Asian markets ended
mixed, with downside pressure coming from overnight losses on Wall Street and
rising oil prices. The Japanese market fell, retreating from its four-year
highs, as banking stocks were sold off, while Hong Kong ended slightly higher.
Meanwhile, the Korean market outperformed the region, with telecom and banking
plays rising, but Taiwan's market ended slightly lower, owing to uncertainty
over corporate results. Finally, the Australian market declined, dragged down
by weak resources stocks.
Tokyo's Nikkei-225 Index fell by 97.10 points or 0.78% to 12,405.16, while
Hong Kong's Hang Seng Stock Index crept up by 15.25 points or 0.10% to
14,889.10. Korea's Kospi Index was up by 3.08 points or 0.28% to 1097.29,
while Taiwan's Weighted Index declined by 17.58 points or 0.29% to 6109.66.
Australia's All Ordinaries Index dropped by 20.40 points or 0.46% to 4403.80.
The Japanese market ended the day lower, coming off its four-year highs,
dragged down by overnight falls on Wall Street and a rise in oil prices.
Banking stocks fell heavily, as investors locked in profits from the sector's
recent strong gains, while steel stocks also fell and technology stocks were
mostly lower. On the economic side, the country's trade surplus narrowed by
22.6% year-on-year to 873.6 billion yen in July, although this was still
better than expected. Imports rose by 11.6%, mainly driven by rising oil
prices, while exports were up by 4.3%.
Banking stocks retreated, dragged down by profit-taking, after recent
strong gains, with major lenders such as Mitsubishi Financial Group, Sumitomo
Mitsui and Resona Holdings all sustaining heavy losses. Meanwhile, the
downside was exacerbated by losses among steel groups, with Kobe Steel, Nippon
Steel and JFE Holdings among sector plays ending lower. Also, technology
stocks were mostly lower, with Advantest and Tokyo Electron declining.
Meanwhile, Hong Kong's market ended modestly higher ahead of the release
of key corporate results. Oil group CNOOC posted strong gains, underpinned by
rising crude prices, while Hutchison Whampoa ended higher, ahead of the
release of its half-year results. Shares in Cheung Kong gained weight, with
the company also due to release its interim results after the market close.
However, the financial sector slipped, with heavyweight HSBC Holdings ending
lower.
The Korean market posted modest gains, recovering from recent losses, as
investors picked up bargains. Telecom stocks rose, with SK Telecom and KT
among sector stocks ending higher, while there were also gains in the banking
sector, with Hana Bank and Korea Exchange Bank higher, although Kookmin Bank
was lower. Elsewhere, technology stocks were mostly weaker, with market
heavyweight Samsung Electronics and Hynix Semiconductor lower.
Taiwan's market ended slightly lower, as Wall Street fell overnight and
crude prices gained, while uncertainty over corporate results remained.
Transportation issues were under particular pressure, given the high oil
prices, with stocks such as Yang Ming Marine and China Airlines weaker. In the
technology sector, chip foundry UMC declined, but TSMC outperformed, ending
the day higher.
Finally, the Australian market fell, dragged down by resources
heavyweights. BHP Billiton posted an 89% jump in full year net profits to
US$6.398 billion, primarily due to higher commodity prices and record
production, but its shares dropped on disappointment at its muted outlook and
dividend. The news dragged down other sector stocks, with Rio Tinto also
ending sharply lower. On a stronger note, oil stocks benefited from rising
crude prices, 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
back to top
