Friday 7 October, 10:00 AM BST (Thomson Financial): Asian markets closed
down amid continued negative sentiment from the U.S. and a lack of local
positive leads. Japan's market followed Wall Street lower, while Hong Kong's
market was stable. Meanwhile, the Korean bourse ended the day slightly lower
as foreign investors sold shares, while Taiwan's market was flat. Finally, the
market in Australia was barely changed as it lacked new leads.
Tokyo's Nikkei-225 Index dropped 131.77 points or 0.99% to 13,227.74,
while Hong Kong's Hang Seng Stock Index inched up 8.49 points or 0.06% to
14,847.79. Korea's Kospi Index slipped 1.48 points or 0.12% to 1201.01, while
Taiwan's Weighted Index eased 13.97 points or 0.23% to 6081.84. Australia's
All Ordinaries Index lost 1.90 points or 0.04% to 4399.90.
Japan's market ended lower as continued weakness on Wall Street spurred
selling as investors awaited the release of U.S. employment data to give the
market some direction. The high technology sector suffered, with automakers
also weaker, while shipbuilders rose.
High technology exporters suffered from worries over the U.S. economy as
Kyocera fell heavily, with Tokyo Electron following suit, while in the
automobiles sector Fuji Heavy Industries, the maker of Subaru brand cars,
dropped sharply, along with Suzuki and Mazda, which both ending down.
Shipbuilders outperformed the market, with Ishikawajima-Harima soaring
higher, while Mitsubishi Heavy Industries and Kawasaki Heavy Industries also
posted sterling gains. Elsewhere, Sumitomo Trust & Banking leapt after raising
its first half net profit forecast to 50 billion yen from 37 billion yen
before.
Hong Kong shares were little changed as modest gains made in the morning
were eroded in late trade as interest rate worries reappeared. The heavyweight
banking and property sectors were mixed with rises from BOC Hong Kong and Bank
of East Asia offsetting falls from HSBC Holdings and Hang Seng Bank, while
Wharf Holdings' gain was countered by falls from Henderson Land and Cheng Kong
Holdings.
In Korea, the key share index ended marginally lower on continued weakness
in the U.S. and large sell offs from foreign investors amid some caution ahead
of the Bank of Korea's interest rate decision and the corporate earnings
season. Electronics bellwether Samsung ebbed lower, along with Hynix, while in
the banking sector Kookmin Bank, Woori and Shinhan all ended lower, though on
a more positive note Hana Bank inched up.
Meanwhile, Taiwan's market closed lower in thin trade following further
losses on Wall Street due to interest rate fears. The heavily weighted
technology sector was down, with UMC slipping, along with Nanya Technology,
though TSMC edged up. In the financial sector Chinatrust Financial and Taishin
Financial both fell on a continued sell off by foreign investors.
Finally, the market in Australia was flat as investors stepped back to
assess its future direction, amid negative sentiment coming from the U.S. In
the resources sector, BHP Billiton ended down but Rio Tinto rose, while
banking stocks were weak, with Macquarie Bank and ANZ both losing ground,
however, Babcock & Brown managed to halt its recent losses by closing higher.
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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