Friday 9 September, 10:00 AM BST (Thomson Financial): Asian markets ended
the day mixed, as Wall Street's overnight fall was balanced by strong
guidance from U.S. technology peer Texas Instruments after the U.S.
markets closed. The Japanese market climbed, with technology plays higher,
while Hong Kong's market was flat. The Korean market ended at a new record
high, as economic sentiment remained positive, but Taiwan's market slipped
and the Australian market fell, with banking and energy stocks weaker.
Tokyo's Nikkei-225 Index gained 158.15 points or 1.26% to 12,692.04, while
Hong Kong's Hang Seng Stock Index was effectively flat, losing only 0.40
points to 15,166.77. Korea's Kospi Index rose by 7.24 points or 0.63% to
1152.50, but Taiwan's Weighted Index fell by 30.82 points or 0.50% to
6119.06. Australia's All Ordinaries Index slipped by 7.10 points or 0.16%
to 4432.70.
The Japanese equity market ended the day solidly higher, boosted by a
strong performance by technology stocks on the back of U.S. peer Texas
Instruments' upgraded guidance and Wall Street's overnight gains. The U.S.
group lifted its third quarter sales forecast to US$3.48-US$3.62 billion
from US$3.29-US$3.56 billion before and lifted its earnings per share
forecast to 36-38 cents from 31-35 cents before.
The news galvanised local technology stocks with the likes of Hitachi, NEC
and Toshiba posting strong gains. Elsewhere, oil stocks tracked the market
higher, with Cosmo Oil and Nippon oil higher, while steel stocks were also
positive, with Kobe Steel and Nippon Steel ending higher. Also supporting
the market's gains were major banks, with lenders such as Mitsubishi
Financial Group and UFJ Holdings rising strongly.
Meanwhile, Hong Kong's market came off its early lows and ended
effectively flat. Early losses were negated by an afternoon rally in
property stocks, and in the commerce & industry sector. The properties
index was supported by Cheung Kong Holdings, which posted solid gains
after releasing strong apartment sales data, while Wharf (Holdings) also
gained solidly. On a weaker note, banking stocks were under pressure, with
HSBC Holdings and BOC Hong Kong among sector stocks ending lower.
In Korea, the market rose to a new record high, underpinned by positive
economic sentiment, although overall trade was light and the key share
index spent some time in negative territory. Banking stocks were mostly
higher, with Kookmin Bank and Woori Financial gaining, while telecom
stocks also strengthened. Meanwhile technology heavyweight Samsung
Electronics climbed and Hynix rose, but to the downside, display maker LG
Philips LCD fell.
On a weaker note, Taiwan's market fell in thin trade, dragged down by Wall
Street's overnight losses. There was some weakness in the technology
sector, with heavyweight chipmaker UMC lower, while TSMC also declined,
even though its parent sales rose to 23.18 billion Taiwan dollars in
August, compared to 20.85 billion dollars in July. Elsewhere, display
makers were also under pressure, with AU Optronics and Chi Mei
Optoelectronics also weaker.
In Australia, the market slipped, with banking and energy stocks dragging
down the overall market. Lenders such as Commonwealth Bank and St George
Bank ended slightly lower, while oil stocks such as Oil Search and
Woodside Petroleum also declined, with Santos flat. Elsewhere, the share
index received some support from heavyweight resources stocks BHP Billiton
and Rio Tinto, which both ended higher, despite early losses.
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
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SOURCE Thomson Financial Corporate Group
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