Tuesday 6 September, 10:00 AM BST (Thomson Financial): Asian markets ended
mixed, with the Japanese market giving up some of its recent gains, while
Hong Kong's market also fell. On a stronger note, Korean equities rose
despite some uncertainty ahead of a central bank rate setting meeting,
while Taiwan's market also climbed, driven by the construction sector.
Finally, the Australian market also gained, as higher banking shares
outweighed weak resources majors.
Tokyo's Nikkei-225 Index fell by 35.45 points or 0.28% to 12,599.43, while
Hong Kong's Hang Seng Stock Index declined by 67.05 points or 0.44% to
15,160.78. Korea's Kospi Index rose by 8.15 points or 0.73% to 1122.65,
while Taiwan's Weighted Index was up by 41.36 points or 0.68% to 6140.14.
Australia's All Ordinaries Index edged up by 5.10 points or 0.12% to
4422.30.
The Japanese market gave up its early gains and eventually ended the
session weaker, as investor took profits following three successive days
of gains. Steel stocks fell, giving up some of Monday's gains, while there
was also some weakness among technology stocks. Car manufacturers were
mostly lower and banking stocks were also under pressure.
Steel stocks such as Nippon Steel and Kobe Steel declined, giving some of
the gains posted on Monday after a press report hinted at higher profits,
while technology stocks also came under pressure, with Kyocera and Toshiba
falling. Banking stocks also fell, with major lenders such as Mizuho
Financial and UFJ among sector stocks ending lower.
Meanwhile in Hong Kong, early gains proved to be unsustainable and a late
fall dragged the share index lower. Wall Street's closure on Monday meant
there were few leads for the market and trade was cautious, but banking
stocks slipped, with HSBC Holdings weaker, while BOC Hong Kong was also
among sector stocks ending lower. There was also some profit taking in the
properties sector, with Cheung Kong Holdings and Hang Lung Properties
falling.
On a stronger note, the Korean market gained in active trade, although the
share index ended below its intraday highs amid some uncertainty ahead of
a central bank rate setting meeting and triple witching later in the week.
Heavyweight technology group Samsung Electronics was higher, as was LG
Electronics and LG Philips LCD. Banking shares also posted solid gains,
with Kookmin Bank and Korea Exchange Bank rising. Elsewhere, KEPCO gained,
while steel group POSCO also ended higher.
Taiwan's market also ended higher, driven by gains in the construction
sector, while among technology plays, display makers performed strongly.
The construction sector surged following a report in the Commercial Times
newspaper claiming the government would encourage private firms to invest
in urban renewal. Elsewhere, display makers were in focus after AU
Optronics' parent sales in August reached 20.14 billion Taiwan dollars,
from 11.19 billion dollars last year. Chi Mei Optoelectronics and Chunghwa
Picture Tubes also ended higher.
Finally, the Australian market also gained weight, with rising banking
stocks offsetting weakness among heavyweight resources plays. Both BHP
Billiton and Rio Tinto fell, following a broker downgrade, while telecom
operator Telstra fell further, remaining under pressure after it issued a
profit warning on Monday. As a result, investors moved into more defensive
shares, such as banks, sending ANZ Bank and St George Bank higher.
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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