Friday 2 September, 10:00 AM BST (Thomson Financial): Asian markets ended
mostly higher, shrugging off high oil prices and some overnight weakness on
Wall Street. Japan's market ended at a new four-year high on optimism over
economic prospects, while Hong Kong's market also gained, driven by the
properties sector. Meanwhile, the Korean bourse rose, buoyed by recent strong
economic data, while Taiwan's market also climbed, with steel stocks posting
solid gains. Finally, the Australian bourse underperformed, ending lower as
resources majors and banks slipped.
Tokyo's Nikkei-225 Index rose by 93.03 points or 0.74% to 12,600, while
Hong Kong's Hang Seng Stock Index was up by 78.14 points or 0.52% to
15,221.89. Korea's Kospi Index climbed by 9.46 points or 0.86% to 1115.83,
while Taiwan's Weighted Index gained 82.58 points or 1.37% to 6116.05.
Australia's All Ordinaries Index fell by 24.20 points or 0.54% to 4435.90.
Japan's market ended the day higher, lifting the key share index to a new
four-year high, as investors remained optimistic over the country's economic
prospects. Healthcare groups were in focus, while there was some strength
among car manufacturers. However on a weaker note, banking stocks came under
further pressure, following the sector's recent strength.
Pharmaceutical groups Chugai and Takeda both posted solid gains, while
elsewhere, car manufacturers Honda and Toyota also both climbed, although
Nissan slipped. Meanwhile, shares in Seven & I, which started trading on
Thursday, jumped after saying it would acquire the shares in U.S. group Seven
Eleven that it does not already own.
The persistently high oil prices lifted oil groups, with Cosmo Oil, Showa
Shell and Nippon Oil all ending higher. In the technology sector, stocks were
mixed, with Toshiba and Hitachi lower, while Kyocera and Nikon rose, while
Elpida Memory jumped following a broker upgrade. Elsewhere, banking stocks
came off their recent highs, with Sumitomo Mitsui Financial Group and Mizuho
Financial Group both ending the day lower.
Meanwhile in Hong Kong shares ended higher, driven by gains in the
properties sector on hopes of a strong government land auction later in the
month, with sector plays such as Cheung Kong Holdings and Sun Hung Kai
Properties both posted solid gains. Elsewhere, the finance sector gained, with
Bank of East Asia and heavyweight HSBC Holdings both ending higher.
In Korea, the key share index rose strongly, adding to its recent gains,
as sentiment was boosted by recent strong economic data. Heavyweight
technology group Samsung Electronics climbed while Hynix Semiconductor also
gained. Elsewhere, display makers Samsung SDI and LG Philips LCD also rose and
telecom firms SK Telecom and KT ended higher. Among banking stocks, Kookmin
Bank and Woori Financial dropped.
Meanwhile, Taiwan's market posted solid gains, with technology plays and
steel stocks rising strongly on hopes of higher prices. In the technology
sector, chip foundry UMC posted sterling gains, but TSMC slipped, giving up
some of its recent strong gains. Hon Hai Precision jumped, while memory
chipmakers Nanya Technology and Powerchip were also higher after a positive
broker note. Elsewhere, steel plays were higher with China Steel and Yieh Phui
Enterprise both rose strongly.
Finally, the Australian market was unable to hold on to its early gains
and ended lower, underperforming regional bourses. Resources majors BHP
Billiton and Rio Tinto were both lower, although energy groups such as Oil
Search and Woodside Petroleum gained weight. There was some weakness among
banks, with ANZ Bank and National Australia Bank among lenders 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
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http://www.thomsonfinancial.com.
SOURCE Thomson Financial
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