Wednesday 31 August, 10:00 AM BST (Thomson Financial): Asian markets ended
the day mixed, as stocks on Wall Street dropped overnight and oil prices
remained high. The Japanese market fell, with additional downside pressure
coming from disappointing industrial production data, while Hong Kong ended
slightly lower, despite a late rally. Meanwhile, the Korean market climbed
after the government unveiled measures to curb surging property prices, while
Taiwan's market was barely changed. Finally, the Australian market ended
slightly higher in rotational buying.
Tokyo's Nikkei-225 Index fell by 39.54 points or 0.32% to 12,413.60, while
Hong Kong's Hang Seng Stock Index declined by 16.87 points or 0.13% to
14,903.55. Korea's Kospi Index rose by 10.72 points or 1.00% to 1083.33, while
Taiwan's Weighted Index inched up by 1.35 points or 0.02% to 6033.47.
Australia's All Ordinaries Index was up by 6.10 points or 0.14% to 4413.50.
The Japanese equity market ended lower, dragged down by high oil prices,
overnight falls on Wall Street and disappointing industrial production data.
The Ministry of Economy, Trade and Industry said industrial production fell by
1.1% in July, a far larger decline than had been expected. The news hit
stocks, with banking shares declining, following recent strong gains, while
technology plays were also under pressure. Car manufacturers, which had risen
on Tuesday, declined despite a weakening of the yen against the U.S. dollar.
Banking stocks came under pressure, giving up some of Tuesday's strong
gains. Among major lenders, UFJ Holdings and Mizuho Financial Group both
declined, although Mitsubishi Financial group ended flat, while Sumitomo
Mitsui ended moderately higher. Among car manufacturers, Mitsubishi Motors,
Nissan and Toyota all declined, although Honda ended higher, there was also
some weakness among technology plays, with Advantest, Kyocera and Toshiba all
weaker.
Hong Kong's market also ended the day lower, despite a late rally, as
overnight falls on Wall Street and high oil prices weighed on sentiment.
Shares in oil group CNOOC were under pressure after its rise in half year net
profits to 11.83 billion yuan still fell short of expectations, but on a
stronger note, Wharf (Holdings) ended higher after a revaluation of its
property portfolio boosted its first half net profit to 9.035 billion Hong
Kong dollars, from 1.668 billion dollars last year. As a result, the
properties sector outperformed, but elsewhere, the financial sector was flat.
On a stronger note, Korea's market climbed, with some uncertainty lifting
after the government unveiled measures to control property prices, while data
released on Tuesday showed that industrial output had risen at its highest
rate in six months, boosting hopes of an economic recovery. Heavyweight stock
Samsung Electronics climbed, while Hynix Semiconductor also posted solid
gains.
Meanwhile in Taiwan, the market was barely changed after a late rally
hauled the key share index off its intraday lows. Heavyweight chip foundry
TSMC ended sharply higher after a late surge, while rival UMC was unchanged.
Elsewhere, Chunghwa Telecom also gained, but display makers Chi Mei
Optoelectronics and Chunghwa Picture Tubes both weakened.
Finally, the Australian market ended slightly higher, with banking shares
in focus, while resources stocks had an uninspiring session. Among lenders, St
George Bank and Westpac Banking both posted healthy gains, while National
Australia Bank also gained. Elsewhere, resource major Rio Tinto fell, while
BHP Billiton ended slightly lower, with oil plays Oil Search and Woodside
Petroleum both ending flat.
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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