Thursday 6 October, 10:00 AM BST (Thomson Financial): Asian markets closed
sharply lower, taking the lead from Wall Street falls owing to inflationary
fears. Japan's market closed down heavily on Wall Street weakness and profit
taking, while Hong Kong's market also fell heavily on interest rate fears.
Meanwhile, Korea's bourse dropped on concerns that the market has risen too
sharply recently, while Taiwan's market outperformed in a sense, by not
falling to the extent of other markets. Finally, the Australian market slipped
on U.S. worries and an easing of commodity prices.
Tokyo's Nikkei-225 Index plummeted 330.38 points or 2.41% to 13,359.51,
while Hong Kong's Hang Seng Stock Index slumped 321.73 points or 2.12% to
14,839.30. Korea's Kospi Index plunged 24.91 points or 2.03% to 1202.49, while
Taiwan's Weighted Index fell 39.20 points or 0.64% to 6095.81. Australia's All
Ordinaries Index tumbled 95.00 points or 2.11% to 4401.80.
Japan's market suffered heavy losses, the benchmark index marking its
second biggest fall this year as the market was concerned that rate hikes in
the U.S. may weaken demand in Japan's key export market, prompting widespread
profit taking. The financial sector was hit hard, while oil companies and
chipmakers also fell heavily.
Major banks bore the brunt of losses in the banking sector, with the newly
formed Mitsubishi UFJ Financial Group falling heavily, while the second
largest bank in Japan, Mizuho dropped sharply. The easing oil price caused
stocks in the sector to lose ground, with Showa Shell Sekiyu KK sustaining
heavy losses, while Nippon Oil and Cosmo Oil also ended lower.
In the chip sector, Hitachi closed down, as did Fujitsu and Mitsubishi
Electric, while on a more positive note, Fuji Heavy Industries jumped by 19%
after Toyota agreed to purchase an 8.7% stake in the company from General
Motors, though this pushed Toyota lower.
The market in Hong Kong ended with heavy losses as the prospect of higher
interest rates weighed on the market, with property stocks hit particularly
hard. Wharf Holdings fell the furthest in the properties sector, while Sun
Hung Kai Properties and Cheung Kong Holdings were not far behind. Elsewhere,
the fall in oil prices pushed CNOOC into one of the biggest falls of the day.
In Korea, shares closed sharply lower, extending the view that the market
has risen too quickly, amid negative sentiment coming from the U.S., while
there was also some nervousness ahead of the Bank of Korea's interest rate
decision. In the electronics sector, Samsung Electronics lost ground as did
Hynix, while in the automobiles sector, Hyundai Motor and Kia Motors both
skidded. Elsewhere, the financial sector didn't avoid losses, with Kookmin
Bank, Hana Bank and Woori Bank all suffering.
Meanwhile, Taiwan's market ended in negative territory following declines
on Wall Street and weakness in Asia as a whole. The two sectors with the
biggest weights within the index, financials and electronics, led the falls
with China Financial Holdings, the country's largest credit card issuer,
slipping on concerns over the their deteriorating consumer loans, while
electronics heavyweights UMC and TSMC both retreated. In the steel sector,
China Steel fell for the fourth consecutive session on worries of overcapacity
in China, which could weigh on prices next year.
Finally, the market in Australia fell heavily as all sectors were hit by
profit taking, while inflationary fears in the U.S. continued to cause concern
in the market. Resources heavyweights BHP Billiton and Rio Tinto both fell,
hit by softer metals prices, while oil stocks suffered from easing oil prices.
News that BHP Billiton would withdraw from an agreement to take gas from Oil
Search's project in Papua New Guinea, added to downward pressure on the stock.
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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