Tuesday 13 September, 10:00 AM BST (Thomson Financial): Asian markets were
barely changed overall after Wall Street's mixed performance overnight.
Japan's market was flat after recovering from early weakness, while Hong
Kong's market fell. The Korean market ended barely lower, supported by solid
gains by Samsung Electronics, while Taiwan's market inched higher. Finally,
the Australian share index gained weight, supported by resources heavyweights.
Tokyo's Nikkei-225 Index crept up by 5.52 points or 0.04% to 12,901.95,
while Hong Kong's Hang Seng Stock Index fell by 129.23 points or 0.85% to
15,070.56. Korea's Kospi Index was barely lower, by 0.24 points or 0.02% to
1158.12, while Taiwan's Weighted Index inched up by 4.10 points or 0.07% to
6169.08. Australia's All Ordinaries Index ended up by 18.80 points or 0.42% to
4456.30.
The Japanese equity market inched higher, consolidating Monday's gains
that were inspired by the government's landslide election victory and the
upward revision to economic growth data. Early profit taking pulled the market
lower, but the losses were recouped, with gains among brokerages and real
estate firms, while car manufacturers also gained, benefiting from a slight
currency weakening, which boosts the value of overseas earnings.
Shares in brokerage group Nikko Cordial jumped after the company said it
expected its half-year net profit to reach 41 billion yen, compared to 27.74
billion yen in the same period last year. Elsewhere, real estate firms -which
are expected to benefit from a stronger economy- were higher, with Sumitomo
Realty and Mitsui Fudosan posting solid gains. Car manufacturers were also
higher, with major players Honda, Nissan and Toyota all rising, but on a
weaker note, the banking sector was mixed.
Hong Kong's market underperformed, as early losses were exacerbated by a
late sell-off. Investors consolidated recent gains ahead of a land auction
later in the month and the U.S. Federal Reserve's rate setting meeting next
week and the release of key U.S. economic data. Properties stocks were under
pressure, as was the financial sector, while elsewhere, Esprit Holdings fell
ahead of its earnings results.
Meanwhile, the Korean market's recent run of gains came to an end, with
the market ending flat as profit taking dragged the share index off its recent
record high, although most of the downside was mitigated by strong gains by
heavyweight technology play Samsung Electronics. The company was boosted by
solid sales guidance, but elsewhere in the sector, stocks were under pressure.
Similarly, Taiwan's key share index was little changed after a quiet day's
trade as some stayed on the sidelines ahead of a central bank meeting later in
the week. Heavyweight technology stocks outperformed on hopes of an increase
in sales, with both TSMC and UMC ending higher, while display makers such as
AU Optronics and Chi Mei Optoelectronics were under pressure. In the banking
sector, Taiwan Business Bank fell further, adding to Monday's losses.
Finally, the Australian market gained weight, with resources stocks
remaining in focus. Heavyweight sector stocks BHP Billiton and Rio Tinto both
ended higher, boosted by higher metals prices, while gold stocks such as Lihir
Gold also ended the session higher. Elsewhere, telecom operator Telstra
climbed, but there was some weakness among oil stocks, with Woodside
Petroleum, Santos and Oil Search ending lower.
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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