Thursday 8 September, 10:00 AM BST (Thomson Financial): Asian markets
ended the day mixed, despite overnight gains on Wall Street. The Japanese
market fell, as investors sold stocks ahead of key events, while Hong Kong's
market also ended lower. On a stronger note, the Korean market edged to a new
record high, while Taiwan's market also rose. Finally, the Australian market
fell despite strong jobs data.
Tokyo's Nikkei-225 Index ended down by 73.70 points or 0.58% to 12,533.89,
while Hong Kong's Hang Seng Stock Index slipped by 58.40 points or 0.38% to
15,166.17. Korea's Kospi Index rose by 2.27 points or 0.20% to 1145.26, while
Taiwan's Weighted Index added 8.74 points or 0.14% to 6149.88. Australia's All
Ordinaries Index fell by 16.50 points or 0.37% to 4439.80.
The Japanese market fell, as investors elected to take profits ahead of
key market developments such as U.S. chipmaking giant Intel's update, the
expiry of derivatives contracts and the weekend's general election. Meanwhile
there was some positive news on the economy, with machinery orders falling by
a lower than expected 4.3% in July, although this was still 10% above last
year. At the same time, bank lending rose for the first time since records
began in October 1998.
Despite some earnings upgrades in the sector, steel stocks still ended the
day lower, with Kobe Steel, Nippon Steel and JFE Holdings all weaker. Car
manufacturers ended mixed, with Nissan higher, Toyota flat and Honda lower,
while there were also mixed performances in the technology sector, as
Advantest and Toshiba fell, while Nikon, Hitachi and Advantest all gained.
Shares in Hong Kong also fell amid concerns that the U.S. Federal Reserve
might keep on hiking interest rates despite the effects of hurricane Katrina.
As a result, the properties sector came under pressure, with Henderson Land
and Cheung Kong Holdings among sector stocks ending lower. Elsewhere, banking
stocks were mixed, while among utilities groups, Hong Kong & China Gas rose
after its half-year net profit jumped by 57% to 3.13 billion Hong Kong
dollars.
On a stronger note the Korean market ended at a new record high, although
most of the share index's early gains evaporated. The Bank of Korea left rates
unchanged at their record low of 3.25%, while the consumer sentiment index
slipped to 94.8 in August, from 95.2 in July. Solid gains by heavyweight
Samsung Electronics supported the market, while Hynix Semiconductor and LG
Philips LCD both declined. Elsewhere, brokerages were higher, but banking
stocks were mostly lower.
Meanwhile in Taiwan, the market gave up its early gains by still ended
slightly higher. In the technology sector, UMC rose after its parent sales for
August rose to 8.01 billion Taiwan dollars, from 7.07 billion dollars in July.
Meanwhile, Chunghwa Picture Tubes also gained after a report in the Economic
Daily News claimed the firm's largest shareholder will decide within a month
whether to sell its stake, with Hon Hai and Quanta reported to be interested.
Shares in Hon Hai and Quanta both rose, the latter supported by an increase in
its parent sales to 34.68 billion Taiwan dollars in August, from 32.29 billion
dollars in July and 25.29 billion dollars in August last year.
Finally, the Australian market slipped despite posting early gains on the
back of Wall Street's overnight rise, while strong employment data showing
that 32,600 new jobs had been created in August only served to heighten
interest rate fears. Heavyweight resources groups BHP Billiton and Rio Tinto
both fell, while shares in Patrick Corp. also fell on concerns that a takeover
offer might be blocked. Meanwhile, banks ended slightly 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
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SOURCE Thomson Financial Corporate Group
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