Monday 5 September, 10:00 AM BST (Thomson Financial): Asian markets ended
the day mixed, as Wall Street fell last Friday and amid concerns over the
potential effects hurricane Katrina could have on the U.S. economy. The
Japanese market outperformed, as solid corporate data underpinned hopes of an
economic improvement, while Hong Kong's market ended flat. Elsewhere, The
Korean market was unable to sustain its early momentum and ended slightly
lower amid caution ahead of a central bank rate setting meeting later in the
week, while in Taiwan, shares fell in light trade. Finally, the Australian
market fell, dragged down by a profit warning and shares going ex-dividend.
Tokyo's Nikkei-225 Index rose by 34.88 points or 0.28% to 12,634.88, while
Hong Kong's Hang Seng Stock Index inched up by 5.94 points or 0.04% to
15,227.83. Korea's Kospi Index slipped by 1.33 points or 0.12% to 1114.50,
while Taiwan's Weighted Index fell by 17.27 points or 0.28% to 6098.78.
Australia's All Ordinaries Index ended down by 18.70 points or 0.42% to
4417.20.
The Japanese market ended the day higher, boosted by hopes of an economic
improvement, while data showed capital investment in the April-June quarter
had been strong, lifting the share index to a new four-year high. Steel stocks
posted strong gains, while major banking stocks also ended the session higher.
Also boosting the market were major car manufacturers, while technology stocks
were mostly higher.
Steel stocks ended solidly higher, boosted by a report in the Nihon Keizai
Shimbun newspaper, which stated that Nippon Steel's half-year group pre-tax
profit was likely to have soared by 80% from last year, while JFE's interim
group pre-tax results would likely jump by 30%. As a result, shares in both
Nippon Steel and JFE rose strongly, while Sumitomo Metal Industries and Kobe
Steel both posted solid gains.
Meanwhile, the overall market was boosted by data released by the Ministry
of Finance, which showed that corporate capital investment had risen by an
annual 7.3% in the April-June quarter, while current profits were up by 12.9%
in the same period. Elsewhere, major banking stocks had a strong session, with
Sumitomo Mitsui and Mizuho Financial posting solid gains, while large car
manufacturers such as Honda and Toyota also gained.
In Hong Kong, the share index ended flat in cautious trade, as the market
paused after recent gains. Trade was cautious following Wall Street's falls
last Friday and uncertainty over the potential impact of hurricane Katrina on
the U.S. economy. The properties sector underperformed, with Cheung Kong
Holdings and Sino Land lower, while the financial sector rose, supported by
banking heavyweight HSBC Holdings.
The Korean market ended slightly lower, giving up its early gains, in
cautious trade ahead of the Bank of Korea's rate-setting meeting later in the
week. Moreover, there were concerns of what effect hurricane Katrina might
have on the global economy. Heavyweight technology play Samsung Electronics
rose, as did Hynix Semiconductor, but financial stocks were mostly weaker,
with Kookmin Bank and Woori Financial falling.
Meanwhile, Taiwan's market was also unable to hold onto its early gains
and ended lower, weighed down by last Friday's losses on Wall Street and
concerns over what impact hurricane Katrina might have on the global economy.
In light trade, major chipmakers such as TSMC and UMC both fell, dragging down
the technology sector, while the financial sector also slipped. On a stronger
note, the transport sector edged higher, with airlines China Airlines and EVA
Airways rising.
Finally, the Australian market fell, with weakness coming from several key
stocks trading ex-dividend, while additional downside came from Telstra's
profit warning. Major plays such as John Fairfax and Fosters went ex-dividend,
as did heavyweight resources stock BHP Billiton, with all three ending lower
and weighing on the share index. Meanwhile, telecom operator Telstra dropped
heavily after saying it expected full-year earnings before interest and tax to
fall by 7-10%.
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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