Wednesday 12 October, 10:00 AM BST (Thomson Financial): Asian markets
ended mostly lower on local factors and caution about U.S. earnings releases.
Japan's market ended lower on profit taking, while Hong Kong's market lost
ground following recent gains. Meanwhile, the Korean bourse was pulled down by
electronics stocks, while Taiwan's market also fell. Finally, the market in
Australia outperformed the market on a positive economic outlook and strength
in commodity prices.
Tokyo's Nikkei-225 Index fell 92.97 points or 0.69% to 13463.74, while
Hong Kong's Hang Seng Stock Index plummeted 323.75 points or 2.17% to
14575.02. Korea's Kospi Index lost 10.12 points or 0.82% to 1217.06, while
Taiwan's Weighted Index dropped 79.19 points or 1.31% to 5987.40. Australia's
All Ordinaries Index slipped 37.10 points or 0.84% to 4429.40.
Japan's market lost ground on profit taking following strong gains
yesterday as caution ahead of September quarter earnings reports in the U.S.
helped to offset optimism about the local economy. Although the dollar's
advance to a 16-month high against the yen was supportive, exporters were
pressured by the outlook for Japan's key export market. Exporters such as
automakers and technology stocks suffered as did steel makers.
Car makers Toyota and Honda both eased, with Fuji Heavy Industries, the
maker of Subaru brand cars, also ending down, while technology stocks to drop
back were Advantest, TDK and Kyocera. Among steel makers, Nippon Steel fell,
along with Sumitomo Metal Industries and Kobe Steel who also dropped back.
Meanwhile, in Hong Kong share prices closed lower as the market went
through a consolidation phase following recent gains, with Chief Executive
Donald Tsang's first policy speech providing no strong leads. Blue chip stock
led the declines, with banks and property stocks leading the way, with BOC
Hong Kong and HSBC Holdings falling heavily, while Henderson Land and Cheung
Kong Holdings also posted heavy losses.
In Korea, the key share index ended lower due to a sell off by foreign
investors owing to a cautious outlook for flat panel prices for the fourth
quarter on top of heavy program selling ahead of the expiry of options
contracts tomorrow. In response to yesterday's LG Philips quarterly results, a
number of analysts warned of a supply glut dragging flat panel prices lower,
which pulled LG Philips LCD and Samsung Electronics lower. Elsewhere, Kia
Motors and Hyundai Motor lost ground as did steel maker Posco.
Meanwhile, Taiwan's market closed down as makers of thin film transistor
LCD panels, led by AU Optronics and Chi Mei Optoelectronics, fell on
disappointment after Korean, LG Philips LCD said that the average selling
prices of flat panels at the end of the fourth quarter will be flat to
slightly down from the end of the third quarter, because of weaker prices of
panels used in monitors. Chipmakers TSMC and UMC pulled the market down
further in-line with overnight losses in the American Depositary Receipts.
Finally, the market in Australia bucked the regional trend by gaining
weight following a hawkish speech by the deputy governor of the Reserve Bank
of Australia, which put forward a neutral inflation outlook. This sent
investors into local banks and resources stocks, which have been moving in
unison, as ANZ, National Australia Bank and Westpac all rose, while resources
stocks were also boosted by record highs in copper and zinc on the London
Metal Exchange overnight, BHP Billiton and Rio Tinto both gaining ground.
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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