Tuesday 20 September, 10:00 AM BST (Thomson Financial): Asian markets
ended the day higher, with gains being posted across the board as investors
ignored overnight losses on Wall Street and a renewed rise in oil prices. The
Japanese market hit a new four-year high, with financial and export-reliant
firms in focus, while Hong Kong also rose. Meanwhile, the Korean market
reached a new record high, after North Korea gave up its nuclear program,
while Taiwan's market climbed, supported by flat panel makers. Finally, the
Australian market also ended higher amid broad based gains.
Tokyo's Nikkei-225 Index rose by 189.89 points or 1.47% to 13,148.57,
while Hong Kong's Hang Seng Stock Index gained 258.66 points or 1.73% to
15,241.86. Korea's Kospi Index added 16.80 points or 1.43% to 1190.93, while
Taiwan's Weighted Index ended up by 69.76 points or 1.16% to 6105.35.
Australia's All Ordinaries Index climbed by 27.60 points or 0.61% to 4527.20.
The Japanese market climbed, with the key share index hitting a new four-
year high, brushing aside overnight weakness on Wall Street. Gains were broad
based, with financial and resources plays ending higher, while there was some
strength among technology groups, while export-reliant stocks also edged
higher, supported by a weaker yen.
The financial sector gained, with sector stocks such as Sumitomo Mitsui
and Mizuho both posting sterling gains, while amongst resources firms, steel
groups were in focus, with Kobe Steel and Nippon steel ending strongly higher.
Export-reliant firms such as car manufacturers also ended higher, with
heavyweights Honda, Nissan and Toyota all rising, while Mitsubishi Electric
jumped after the company lifted its full-year group net profit to 83 billion
yen from a previous forecast of 75 billion yen.
Hong Kong's market also gained, tracking regional bourses higher amid
positive corporate news. Shares in China Mobile jumped after the company added
a further 3.643 million new customers in August, compared to the 3.581 million
new users it added in July, while Lenovo surged on reports the company is
seeking to grow aggressively and after a leading brokerage recently lifted its
share price target on the stock. Elsewhere, the properties sector also rose as
the government's land auction approached.
In Korea, stocks gained and reached a new record high, drawing support
from North Korea's decision to give up its nuclear program. Moreover, ratings
agency Fitch said it was placing the country's currency ratings on "rating
watch positive," citing the agreement with North Korea. Construction and bank
stocks were higher, but electronics stocks failed to benefit from the market
gains, with Samsung Electronics flat and Hynix Semiconductor closing lower.
Meanwhile, Taiwan's market shook off its early losses and ended solidly
higher, driven by the technology sector, as flat panel makers recovered from
recent weakness. Chi Mei Optoelectronics and AU Optronics were among sector
stocks posting strong gains, while elsewhere, heavyweight chipmaker TSMC
gained, while UMC ended the day flat. Steel stocks and the financial sector
also supported market gains.
The Australian market also rose, with the key share index hitting a new
record high amid broad-based gains. Heavyweight resources stocks such as BHP
Billiton and Rio Tinto both climbed, while gold mining groups also posted
solid gains, while higher crude prices boosted oil stocks such as Oil Search
and Woodside Petroleum. Finally, banking stocks gained, providing further
support to the overall market.
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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