Thursday 29 September, 10:00 AM BST (Thomson Financial): Asian markets
ended higher on a positive economic outlook. Japan's market ended at a new
four year high as investors expect good results from the Tankan survey, while
Hong Kong's market also gained on futures related activity. Meanwhile, the
Korean bourse closed at a new record high as investors shrugged off weak
economic data, while Taiwan's market closed higher, helped by government
support and currency strength. Finally, the Australian bourse gained on high
copper and oil prices.
Tokyo's Nikkei-225 Index surged 181.33 points or 1.35% to 13,617.24, while
Hong Kong's Hang Seng Stock Index jumped 209.79 points or 1.38% to 15,431.25.
Korea's Kospi Index edged up 2.65 points or 0.22% to 1231.22, while Taiwan's
Weighted Index gained 78.61 points or 1.33% to 6009.99. Australia's All
Ordinaries Index rose 42.20 points or 0.92% to 4617.40.
Japan's market hit fresh four year highs on optimism about the economic
outlook in the run up to the release of the Tankan survey next week. Many
stocks reached record highs, with banks making ground as did auto stocks,
steel makers and ship builders, in what was the second largest trading volume
ever recorded in a day.
Mitsubishi Tokyo Financial Group continued to rise and hit an all-time
high in the run up to its merger with UFJ Holdings, which will create the
world's largest bank by assets, while Resona Holdings also reached a record
high. Automaker Honda advanced to close at a record level, while Honda, Toyota
and Daihatsu all rose.
In the steel sector, Sumitomo Metal Industries performed particularly
well, along with Nippon Steel, Kobe Steel and JFE Holdings, which all closed
up. Shipbuilders gained, with Mitsubishi Heavy Industries still rising on its
profit forecast, with Ishikawajima-Harima, Kawasaki Heavy Industries and
Sumitomo Heavy Industries all gaining. The notable absentees from market gains
were technology and electronics stocks, although, the star performer of the
day was internet company SoftBank, which rocketed by 16.2%.
Meanwhile, in Hong Kong, shares closed sharply higher on futures related
activity as the September Hang Seng futures contracts were settled today, with
major sectors including property and banking both gaining. Henderson Land rose
after announcing that its year to June net profit had risen by 76% to 10.85
billion Hong Kong dollars including 6.75 billion from the revaluation of
properties, while in the banking sector, HSBC Holdings and Hang Seng Bank both
closed up.
In Korea, the key share index closed at yet another record high as
investors shrugged off weak production figures, owing to strikes at
automakers, and current account data, which was caused by a surge in overseas
tourism. Instead the market focussed on the prospect of an economic recovery
as automakers performed well, with Hyundai Motors and Kia Motors both rising,
while elsewhere, Woori Bank was up, though Kookmin Bank finished lower.
Meanwhile, Taiwan's market posted solid gains, driven by strength in the
local currency, which boosted sentiment. Chip maker UMC led the gains, after
it sold 381.4 million U.S. dollars worth of overseas convertible bonds at a
17% premium to its American Depositary Receipts, while TSMC and AU Optronics
also rose strongly. On a weaker note, steel stocks lost ground on continued
concerns about lower steel prices, with China Steel ending down.
Finally, the Australian market reached a new record high on overnight
strength in commodity prices. Copper prices reached a record, while crude oil
futures surged as U.S. government data showed a larger than expected draw down
of reserves, leading to resources heavyweights BHP Billiton and Rio Tinto
posting excellent gains. In the oil sector, Woodside Petroleum and Santos both
increased, while in the banking sector Macquarie Bank continued its recent
strong run.
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
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http://www.thomsonfinancial.com.
SOURCE Thomson Financial
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