Tuesday 30 August, 10:00 AM BST (Thomson Financial): Asian markets ended
the day mostly higher, benefiting from overnight gains on Wall Street, while
oil prices fell back from their recent record highs. The Japanese market
climbed, with banks and steel plays in focus, while Hong Kong's market also
gained. The Korean bourse gained weight, boosted by strong industrial
production data, but on a weaker note, Taiwan's market slipped. Finally, the
Australian market gained in light trade, with resources plays in favour.
Tokyo's Nikkei-225 Index rose by 143.31 points or 1.16% to 12,453.14,
while Hong Kong's Hang Seng Stock Index gained 82.25 points or 0.57% to
14,922.22. Korea's Kospi Index added 9.45 points or 0.89% to 1072.61, but
Taiwan's Weighted Index dropped by 17.32 points or 0.29% to 6032.12.
Australia's All Ordinaries Index climbed by 38.80 points or 0.89% to 4407.40.
The Japanese equity market ended the day higher, recovering from Monday's
losses, as oil prices came down from their recent record highs. Banking stocks
surged ahead after they fell on Monday, while steel stocks soared after a
leading brokerage hiked its share price targets; also, export-reliant stocks
such as car manufacturers posted strong gains after the yen weakened against
the U.S. dollar.
Steel stocks jumped, with Kobe Steel and Nippon Steel soaring after a
leading broker lifted its share price targets on sector stocks and lifted its
full-year earnings forecasts because of margin growth and higher than expected
prices rises. Meanwhile, car manufacturers were strong, with Toyota Motor
posting sterling gains, while Nissan and Honda also rose.
Elsewhere, banking stocks surged, recovering from the losses sustained on
Monday. Among major lenders, Mizuho Financial Group and Sumitomo Mitsui
Financial group both soared, while UFJ Holdings also gained strongly. Among
technology plays, Toshiba and Fujitsu posted solid gains.
Meanwhile, Hong Kong's market ended higher, tracking regional rises and
overnight gains on Wall Street as crude prices came off their recent record
highs. The financial sector was modestly higher, thanks to HSBC Holdings'
gains, while the properties sector also rose, with Henderson Land and Hand
Lung Properties higher. Elsewhere, airline Cathay Pacific also gained weight,
as crude prices dropped.
The Korean market also ended the day higher, boosted by strong industrial
production data, although there was some caution in the market, ahead of the
government's property policy announcement. Industrial output jumped by 7.0%
year-on-year in July, the highest rate in six months, compared to a 4.1% rise
in June. Heavyweight Samsung Electronics ended higher, as did Hynix
Semiconductor, while KEPCO and steel group POSCO also climbed.
On a weaker note, Taiwan's market weakened, weighed down by high oil
prices. The technology sector was under pressure, with heavyweight chip
foundries TSMC and UMC both lower, while display makers such as AU Optronics
and Chi Mei Optoelectronics ended lower. On a stronger note, the
petrochemicals sector ended higher, while steel stocks were also stronger.
Finally, the Australian market gained as investors picked up stocks after
Monday's fall, although trading was light. Resources stocks gained, with Rio
Tinto higher, while BHP Billiton posted strong gains after saying Monday it
would extend its share buyback programme. Energy stocks were under pressure,
as oil prices fell back from their recent highs, with Santos and Woodside
Petroleum ending lower.
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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