Wednesday 28 September, 10:00 AM BST (Thomson Financial): Asian markets
end mixed with local factors driving markets. Japan's market ended at a
new four year high on optimism over economic prospects, while Hong Kong's
market also gained, driven by the property sector. Meanwhile, the Korean
bourse ended at another record high, with banks posting solid gains, while
on a weaker note, the market in Taiwan ended lower as the market looked
for direction. Finally, the Australian bourse eased lower as investors
took profits.
Tokyo's Nikkei-225 Index rose by 125.87 points or 0.95% to 13,435.91,
while Hong Kong's Hang Seng Stock Index inched up by 31.58 points or 0.21%
to 15,221.46. Korea's Kospi Index surged by 18.94 points or 1.57% to
1228.57, while Taiwan's Weighted Index fell by 13.67 points or 0.23% to
5931.38. Australia's All Ordinaries Index eased by 1.5 points or 0.03% to
4575.20.
Japan's market rebounded from the previous day's fall to reach a four year
high on a weak yen and an upbeat view of the economy, with the Tankan
business survey to be released Monday expected to be positive. Exporters
were in focus, with car makers posting solid gains as did ship builders,
while banks also performed well.
Toyota was up after announcing an increase in global production and
exports, with Mitsubishi also rising on production increases, while Isuzu
Motors gained after a newspaper reported that it expected its profits to
rise due to strong truck sales.
Japan's largest engineering and shipbuilding firm, Mitsubishi Heavy
Industries surged after forecasting a net profit of 9 billion yen for the
first half to September, compared to a net loss of 21.5 billion yen a year
earlier, thanks to a brisk flow of new orders. Ishikawajima-Harima Heavy
Industries and Mitsui Engineering also rose on strength in the sector.
Mitsubishi Tokyo Financial Group surged after its merger partner UFJ
announced plans to pay back some public funds to the government, while
Resona posted sterling gains after it also said it would pay back money
owed to the government.
The market in Hong Kong was marginally up on a rebound in property stocks,
after sharp falls the previous day as investors assessed the outcome of
the government land auction. Cheung Kong Holdings and Hang Lung Properties
jumped, though Henderson Land was lower as investors awaited full year
results to be announced after the market close.
In Korea, the market's strong recent growth continued with another record
close, with the banking sector in particular benefiting from S&P upgrading
its rating on five major banks, including Kookmin Bank and Woori Bank, to
"A-" from "BBB+", with both rising on the news. Other stocks in focus were
Samsung Electronics, up on news that it would invest more its LCD joint
venture with Sony, though on a more negative note, Hynix fell on some
profit taking and as it emerged that creditors will sell shares in the
company.
Meanwhile, Taiwan's market slipped as investors maintained their cautious
approach to the market due to a lack of economic and industry direction.
The steel sector led the falls on profit taking and concerns about
oversupply, with China Steel and Yieh Phui both suffering, while
elsewhere, TSMC tracked its American Depositary Receipts lower and AU
Optromics ended down.
Finally, the Australian market ended slightly lower after four continued
days of rises caused investors to take profits, though the downside was
limited by strength in banking stocks. Resources heavyweights BHP Billiton
and Rio Tinto both fell as investors locked in profits following recent
gains, while banks supported the market, with Macquarie Bank continuing
its strong gains following its bullish earnings outlook on Monday.
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
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SOURCE Thomson Financial Corporate Group
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