Thursday 22 September, 10:00 AM BST (Thomson Financial): Asian markets
ended the day mixed as Wall Street dropped overnight and crude prices edged
higher as another hurricane threatened Gulf of Mexico oil installations. The
Japanese market came off its recent four-year highs as banking and technology
stocks declined, while the market in Hong Kong also ended lower. Meanwhile,
the Korean market came off its early lows and ended at a new record high on
hopes of an economic improvement, but Taiwan's market was hit by Wall Street's
overnight falls. Finally, the Australian market edged higher, supported by
resources stocks.
Tokyo's Nikkei-225 Index fell by 37.21 points or 0.28% to 13,159.36, while
Hong Kong's Hang Seng Stock Index dropped by 43.67 points or 0.29% to
15,179.95. Korea's Kospi Index edged up by 3.30 points or 0.28% to 1199.97,
but Taiwan's Weighted Index ended down by 95.28 points or 1.57% to 5972.06.
Australia's All Ordinaries Index rose by 9.80 points or 0.22% to 4511.60.
The Japanese market weakened as sentiment was soured by falls on Wall
Street and rising oil prices. Crude prices edged higher as fears grew that
Hurricane Rita could threaten Gulf of Mexico oil installations. Financial
sector stocks wee under pressure, while there was also some weakness among
technology plays. However, on a stronger note, oil stocks benefited from the
rise in crude prices while steel stocks also gained, recovering from recent
losses.
Major banking stocks fell, giving up some of their recent gains, with
Sumitomo Mitsui and UFJ among lenders ending lower, while insurers such as
Millea Holdings and Sompo Japan were also under pressure. Among technology
stocks, Advantest and Fujitsu dropped, but gains among steel stocks prevented
further market losses, with Kobe Steel and JFE Holdings posting solid gains,
while oil groups Nippon Oil and Showa Shell also rose strongly.
Hong Kong's market also ended lower, as local banks lifted their lending
rates after The U.S. Federal Reserve and the Hong Kong Monetary Authority
lifted interest rates, while higher oil prices also weighed on local
sentiment. China Mobile edged higher after ratings agency Moody's upgraded its
senior unsecured rating to "A2" from "A3", citing growth of the firm's
operating and financial profiles. The properties, financial and utilities
sector all ended lower.
On a stronger note, the Korean market came off its early intraday lows and
closed higher as hopes of an economic improvement outweighed Wall Street's
overnight fall. Samsung Electronics ended slightly lower, but Samsung SDI rose
strongly after saying it would close its CRT plant in Berlin at the end of the
year. Hynix Semiconductor also rose, but elsewhere, Posco fell after saying it
would lower some prices.
Meanwhile, Taiwan's market dropped, under pressure from Wall Street's
overnight falls and fears that foreign investors might start selling.
Technology stocks were lower, while the financial sector also came under
pressure. Heavyweight chipmakers TSMC and UMC both fell heavily, while display
maker AU Optronics and memory chipmaker Powerchip Semiconductor also ended the
day lower.
Finally, the Australian market ended higher as resources stocks edged up,
supporting the overall market. Heavyweights BHP Billiton and Rio Tinto both
rose, while oil groups such as Oil Search and Woodside Petroleum rose in line
with crude prices as fears grew that Hurricane Rita might disrupt Gulf of
Mexico production. Gold Stocks also climbed, with Newcrest and Lihir Gold
ending 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
reports. For more information about Thomson Financial visit us on-line at
http://www.thomsonfinancial.com.
SOURCE Thomson Financial
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