Friday 26 August, 10:00 AM BST (Thomson Financial): Most Asian markets
ended higher, although the overall scale of the gains was slight. Japanese
stocks gained, although the upside was limited by oil price concerns and
profit taking in the banking sector. Shares in Hong Kong also gained,
driven by the properties sector, but on a weaker note Korea ended lower,
adding to the market's recent losses. In Taiwan, shares rose, encouraged
by overnight gains on Wall Street, while the Australian market gained,
driven by banking stocks and resources heavyweights.
Tokyo's Nikkei-225 Index rose by 34.32 points or 0.28% to 12,439.48, while
Hong Kong's Hang Seng Stock Index was up by 93.79 points or 0.63% to
14,982.89. On a weaker note, Korea's Kospi Index fell by 10.74 points or
0.98% to 1086.55, but Taiwan's Weighted Index added 26.89 points or 0.44%
to 6136.55. Australia's All Ordinaries Index climbed by 15.30 points or
0.35% to 4419.10.
The Japanese equity market came off its early highs, but the key share
index still ended above the flat line, although the upside was capped by
concerns over the continually high oil prices, while investors locked in
profits from banking stocks, following recent strong gains in the sector.
Moreover, consumer prices data showed that the country remained in
deflation, with the CPI declining by 0.3% year-on-year in July, while the
core CPI was down by 0.2%.
There was some strength in the technology sector, with Advantest, Hitachi
and Sony ending higher, while gains in the steel sector boosted the market
further, as Kobe Steel, JFE Holdings and Nippon Steel all rose. On a
weaker note, car manufacturers were little changed overall, while the
profit taking in the banking sector limited the share index's overall
gains, as UFJ Holdings and Sumitomo Mitsui both declined.
Meanwhile, Hong Kong's market ended higher after a late rally. Gains were
driven by the properties sector, with Cheung Kong Holdings rising strongly
after its first half net profit rose by 51.6% to 10.37 billion dollars,
even though revenues fell to 6.38 billion dollars from 8.91 billion
dollars last year. Meanwhile, Hutchison Whampoa also gained after its
half-year net profit rose by 10% to 11.82 billion Hong Kong dollars, as
revenues climbed to 109.18 billion dollars from 82.2 billion dollars last
year.
The Korean market fell in light trade, adding to recent losses.
Heavyweight technology group Samsung Electronics declined, while flat
panel makers LG Philips LCD and Samsung SDI were also weaker. Elsewhere,
car manufacturer Hyundai Motor ended lower as partial strikes continued at
the firm, while banking stocks were mostly under pressure, with Kookmin
Bank and Woori Financial among lenders ending lower.
On a stronger note, Taiwan's market rose, with stocks encouraged by
overnight gains on Wall Street, although there was also some caution ahead
of the release of corporate results. Heavyweight chip foundries TSMC and
UMC both ended the day higher, tracking gains in their American Depositary
Receipts overnight, while display makers were mixed, with Chi Mei
Optoelectronics and Chunghwa Picture Tubes lower.
Finally, the Australian market ended higher, driven by gains in banking
stocks and resources plays. The banking sector was in focus, with
Commonwealth Bank and National Australia Bank driving the sector higher,
while among resources plays, Rio Tinto posted solid gains, while shares in
BHP Billiton jumped, recovering from their recent losses after the company
posted indifferent results. Elsewhere, oil groups were higher, with Santos
soaring, while Woodside Petroleum was also stronger.
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
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SOURCE Thomson Financial Corporate Group
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