Monday 3 September, 10:00 AM BST (Thomson Financial): Asian markets ended
mostly lower on profit taking. Japan's market ended lower on weak economic
news, while Hong Kong's market closed lower on profit taking. Meanwhile, the
Korean bourse was closed due to a national holiday, while the market in Taiwan
ended flat on profit taking. Finally, the Australian market ended flat, due to
few market leads.
Tokyo's Nikkei-225 Index fell 49.02 points or 0.36% to 13525.28, while
Hong Kong's Hang Seng Stock Index slipped 34.13 points or 0.22% to 15394.39.
Taiwan's Weighted Index inched up 5.31 points or 0.09% to 6123.92. Australia's
All Ordinaries Index edged up 0.6 points or 0.01% to 4593.20.
Japan's market ended slightly lower after the results of the Tankan survey
of business confidence turned out to be weaker-than-expected. The business
condition diffusion index for large manufacturers rose 1 point in September to
19 from 18 in June, marking the highest point since last December, however,
the number was slightly lower than the 20 reading that the market was
forecasting. Automakers outperformed the market, while steel makers closed
higher, though construction companies and banks declined.
Automakers gained strongly as the Japanese Yen / U.S. dollar exchange rate
advanced above the 114 level for the first time since May 2004, increasing the
value of overseas earnings, with Toyota, Honda and Nissan both gaining. Steel
makers closed higher, recouping morning losses as Sumitomo Metal Industries
posted strong gains, while JFE Holdings and Kobe Steel both rose.
Construction companies declined, with Obayashi falling, as did Kajima and
Shimizu, which both dropped. In the banking sector, Mitsubishi UFJ Financial
Group, which was created on Saturday through the merger of Mitsubishi Tokyo
Financial Group and UFJ Holdings closed down compared to the closing price of
Mitsubishi Tokyo Financial Group on Friday.
In Kong Kong, shares closed lower on profit taking, following gains last
week, in cautious trading as the Chinese markets remain closed for a week long
holiday. Banking stocks were lower, with BOC Hong Kong and HSBC Holdings both
falling, though property stocks were mostly up, following the government land
auction last week, with Hang Lung Properties, Henderson Land and Sun Hung Kai
Properties all ending higher, though Wharf Holdings dropped back.
Meanwhile, Taiwan's market ended flat in thin trade as investors took
profits from last weeks rises and amid a lack of fresh leads to give the
market direction. UMC extended its strong run, helped by the buy back program
which is now underway, however, in contrast TSMC closed down as investors sold
down their holdings to take advantage of last week's gains. Makers of LCD
panels fell on continuing concerns about over supply in the market with AU
Optronics and Chi Mei Optoelectronics both falling.
Finally, the Australian market was flat in thin trading because of public
holidays in some states, which meant Sydney traders were not active. Resources
stocks were mixed as BHP Billiton ended up, while Rio Tinto slipped,
meanwhile, Gold miners suffered from lower gold prices with Newcrest, Lihir
Gold and Oxiana all ending down. Elsewhere, Macquarie Bank dropped back,
retreating from all time highs last week, while Commonwealth Bank also eased
lower, however, National Australia Bank and ANZ both advanced.
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
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