Thursday 13 October, 10:00 AM BST (Thomson Financial): Asian markets ended
mostly lower as local markets followed Wall Street south. Japan's market
closed flat as negative sentiment from the U.S. was offset by strength in
banking stocks, while Hong Kong's market outperformed the region, rising
slightly. In Korea, technology stocks continued to drag the market lower,
while in Taiwan, technology stocks pulled the market down as well. Finally,
the market in Australia tracked U.S. falls.
Tokyo's Nikkei-225 Index eased 14.50 points or 0.11% to 13449.24, while
Hong Kong's Hang Seng Stock Index rose 46.81 points or 0.32% to 14621.83.
Korea's Kospi Index plunged 23.62 points or 1.94% to 1193.44, while Taiwan's
Weighted Index slipped 27.29 points or 0.46% to 5960.11. Australia's All
Ordinaries Index fell 34.50 points or 0.78% to 4394.90.
Japan's market was mixed as futures related buying offset negative
sentiment stemming from falls on Wall Street overnight in relatively light
trading. Technology blue chips continued to come under pressure following
falls in their counterparts in the U.S., with steel makers also down, though
banks performed well.
Technology stocks ended lower, in line with falls from the Wall Street
technology sector, with NEC Electronics falling heavily, with Mitsubishi
Electric and Kyocera dropping back. In the steel sector, Tokyo Steel
Manufacturing suffered heavy losses, with Kobe Steel slipping and Kyocera
ending lower.
Banks benefited from a slight improvement in bank lending in September,
with Mizuho rising, while Mitsubishi UFJ Financial Group and Sumitomo Mitsui
Financial also gained. Elsewhere, department store operator Mitsukoshi fell
after issuing a profit warning due to sluggish sales.
Hong Kong's shares gained marginally as strength in some stocks was offset
by weakness in others as investors remain cautious about interest rate rises.
In the banking sector, HSBC Holdings rose as did Bank of East Asia, though BOC
Hong Kong eased, while in the property sector, Cheung Kong Holdings rose,
along with Sun Hung Kai Properties but Hang Lung Properties and Wharf Holdings
fell.
In Korea, the market ended sharply lower on heavy foreign selling, spurred
by overnight falls on Wall Street and program selling due to the expiry of
options contracts as positions are closed out. Technology stocks came under
continued pressure following a downgrade on U.S. processor maker Intel and the
previous day's downbeat quarterly sales from Apple, with Samsung Electronics
posting heavy losses and LG Philips LCD also falling, while on a more positive
note, Hynix rose after reporting operating profits ahead of market
expectations for the quarter. Elsewhere, steel maker Posco dropped, while
financial stocks Kookmin Bank and Woori also fell.
Meanwhile, Taiwan's market closed lower in thin trade as bargain hunting
in financial stocks offset continued weakness in technology stocks. The
downward pressure on technology stocks remained a feature of the market on
concerns over a supply glut of LCD panels next year, with AU Optronics, Chi
Mei Optoelectronics and TSMC all lower, while on a more positive note,
financial stocks came into focus following a recent sell off, Chinatrust
Financial and Taishin Financial both gaining.
Finally, the market in Australia fell after weaker-than-expected jobs data
and investors followed the fall in U.S. markets overnight. BHP Billiton added
to downward momentum, falling after it released a negative oil and gas
production outlook from its Gulf of Mexico operations in the wake of hurricane
disruptions, with Rio Tinto also closing lower. Meanwhile, banking stocks were
down, with National Australia Bank and ANZ both falling, while investment
banks Macquarie and Babcock & Brown also finished down.
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
back to top
