Wednesday 7 September, 10:00 AM BST (Thomson Financial): Asian markets
ended the day higher, although this masked mixed performances. Despite
overnight gains on Wall Street, the Japanese market ended only slightly
higher, as gains in select stocks balanced profit taking elsewhere. Hong
Kong's market ended higher and the Korean market jumped, ending at a new
record high. Meanwhile, Taiwan's market was effectively flat after giving up
its early gains and the Australian market climbed, boosted by strong economic
growth data and strong resources majors.
Tokyo's Nikkei-225 Index inched up by 8.16 points or 0.06% to 12,607.59,
while Hong Kong's Hang Seng Stock Index added 63.79 points or 0.42% to
15,224.57. Korea's Kospi Index was up by 20.34 points or 1.81% to 1142.99,
while Taiwan's Weighted Index was barely higher, by 1.00 point or 0.02% to
6141.14. Australia's All Ordinaries Index rose by 34.00 points or 0.77% to
4456.30.
The Japanese market rose only slightly after early gains caused some
profit taking. An overnight rally on Wall Street helped the market to a solid
start, but investors rapidly started selling off stocks in the banking sector
and steel groups. However, there was some strength among select technology
plays, with consumer electronics firm Sony posting solid gains and NEC also
higher.
The banking sector was under pressure, with major lenders such as Mizuho
Financial and Mitsubishi Tokyo Financial ending lower, while there was some
weakness among steel groups, with Nippon Steel and JFE Holdings falling,
although Kobe Steel gained. Meanwhile, the drop in crude prices weighed on oil
stocks such as Cosmo Oil and Nippon Oil. On a stronger note, there was some
strength in the technology sector, with Sony and NEC posting solid gains.
In Hong Kong, the market rose, boosted by Wall Street's overnight rise and
data showing that retail sales had risen by a better-than-expected 7.0% to
17.4 billion Hong Kong dollars in July, compared to a revised 6.1% rise in
June, while the increase reached 5.6% once adjusted for price changes. The
properties sector underperformed after a late sell-off, with Cheung Kong
Holdings and Sun Hung Kai Properties lower, while the banking sector climbed,
with HSBC Holdings ending higher.
The Korean market posted solid gains and ended at a new record high, as
sentiment was lifted by the overnight rally on Wall Street and the fall in
crude prices, while uncertainty ahead of triple witching and the Bank of
Korea's rate setting meeting was ignored. Heavyweight technology group Samsung
Electronic ended the day higher, while car manufacturer Hyundai Motor surged
and banking stocks added to recent gains.
Meanwhile, Taiwan's market was unable to hold on to its early gains and
eventually ended the session flat. The electronics sector was slightly higher,
but the construction sector gave up Tuesday's strong gains. Heavyweight
chipmaker UMC ended higher ahead of the release of its August sales figures,
while TSMC dropped. Elsewhere, Nanya Technology was flat although its August
parent sales rose to 5 billion Taiwan dollars, from 4.43 billion dollars in
July.
Finally, the Australian market climbed, supported by positive economic
growth data. The domestic economy grew by a stronger than expected 1.3% in the
second quarter of the year -equivalent to a 2.6% annual rate- boosted by the
resources sector. As a result, heavyweight resources plays BHP Billiton and
Rio Tinto both gained, while bank stocks were also strong, supported by the
Reserve Bank of Australia's decision to leave rates on hold at 5.50%.
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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