Monday 26 September, 10:00 AM BST (Thomson Financial): Asian markets ended
higher as the impact of hurricane Rita was not as bad as expected. Japan's
market hit its highest level for four years on lower oil prices and a
weakening of the yen against the U.S. dollar, while Hong Kong's market also
gained on futures related activity. Meanwhile the Korean bourse hit record
highs on lower oil prices and a weak won, while Taiwan's market ended slight
higher. Finally, the Australian market closed at a record high as blue chips
gained.
Tokyo's Nikkei-225 Index rose by 233.27 points or 1.77% to 13,392.63,
while Hong Kong's Hang Seng Stock Index was up 130.34 points or 0.86% to
15,274.31. Korea's Kospi Index surged by 30.53 points or 2.60% to 1206.41,
while Taiwan's Weighted Index inched up by 4.66 points or 0.08% to 5930.20.
Australia's All Ordinaries Index strengthened by 51.30 points or 1.14% to
4565.30.
Japan's market rose strongly to its highest level since June 2001 as lower
oil prices and a stronger U.S. dollar buoyed investor sentiment. There were
broad based market gains, particularly in the automobiles, steel, technology
and securities sectors.
Strong gainers in the automobiles sector included Daihatsu and Mazda,
while in the steel sector Nippon Steel, Sumitomo Metal Industries and Kobe
Steel all rose strongly. Chipmakers also advanced, with Mitsubishi Electric
and Fuji Electric Holdings higher, while in the securities sector, Mitsubishi
Securities shot up over 10 % with UFJ Tsubasa Securities also posting strong
gains.
On a weaker note, investors reacted to ratings agency Moody's placing Sony
on review for possible downgrade, resulting in a fall for the electronics
heavyweight. Moody's said the rating action reflected its concern over whether
Sony can regain the strong profit and cash flow generation seen in the past,
following the restructuring plan unveiled on Thursday that includes a cut in
workers, reduction in production bases and a cut in the number of product
models.
In Economic news, The Ministry of Economy, Trade and Industry's all
industries index fell to 103.2 in July from 104.1 in June, with the tertiary
index falling to a seasonally adjusted 105.5 from 106.4 in the previous month.
In Hong Kong, shares ended higher on futures related activity ahead of the
settlement of futures contract later this week. Property stocks were in focus
ahead of the government land auction, with Cheung Kong Holdings, Sung Hung Kai
Properties and Wharf Holding all ending higher. Elsewhere, banking stocks were
up, with HSBC and Hang Seng Bank both gaining.
In Korea, the key share index hit record highs as easing oil price
concerns helped boost local investor confidence and the positive corporate
earnings outlook outweighed selling from foreign investors. Exporters gained
from the continued weakness of the won against the U.S. dollar with Samsung
Electronics and Hynix Semiconductor both rising strongly, while in the
automobiles sector, Hyundai Motor and Kia Motor both rose.
Meanwhile, Taiwan's market edged marginally higher as investors remained
cautious following recent losses. The technology sector was up with AU
Optronics and Asutek Computer both rising, although heavyweight TSMC dropped
back, while UMC remained unchanged. Other stocks in focus were China Trust
Financial Holding and Evergreen Marine Corp, which both ended down.
Finally, the Australian market closed at a new record high, driven by
enthusiasm for blue chip stocks. Resources majors BHP Billiton and Rio Tinto
both closed at record highs, while the banking sector also gained, with
Macquarie Bank rising to a record high after reporting that it would at least
match last year's record profit of 823 million Australian dollars.
Ian.Littlewood@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 Corporate Group
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