Friday 14 October, 10:00 AM BST (Thomson Financial): Asian markets ended
mostly lower, ahead of the release of economic data in the U.S. The Japanese
market ended slightly down as investors were nervous ahead of the latest U.S.
macroeconomic data, while Hong Kong's market was down on interest rate fears.
Meanwhile, the Korean bourse fell, despite strong results from Samsung, while
Taiwan's market outperformed the region on strength in financials. Finally,
the market in Australia ended the day down on overnight falls in commodity
prices.
Tokyo's Nikkei-225 Index edged down 28.70 points or 0.21% to 13420.54,
while Hong Kong's Hang Seng Stock Index fell 135.95 points or 0.93% to
14485.88. Korea's Kospi Index eased 3.27 points or 0.27% to 1190.17, while
Taiwan's Weighted Index rose 8.96 points or 0.15% to 5969.07. Australia's All
Ordinaries Index inched lower 23.60 points or 0.54% to 4371.30.
Japan's market ended the day slightly lower on profit taking amid investor
caution ahead of the release of U.S. inflation data and concern about earnings
reports of major U.S. companies due next week. Banks and steel makers posted
heavy losses, however there was some support to the market from exporters.
The financial sector retreated, with Sumitomo Mitsui taking heavy losses
as did Resona, Japan's fifth largest lender, while the largest lender in
Japan, Mitsubishi UFJ Financial Group also fell sharply. Steel makers were
rather sickly, JFE Holdings tumbling lower, while Sumitomo Metal Industries
and Kobe Steel also fell heavily.
The strength of the U.S. Dollar against the yen provided some support to
the market, bringing blue chip exporters into focus, Sony gaining, while Fuji
Photo Film and Tokyo Electron also performed well. Elsewhere, Tokyo
Broadcasting continued its rise from yesterday after online shopping mall
operator Rakuten, proposed that they merge their operations.
Hong Kong's shares fell as investors continued to worry about the
likelihood and extent of further U.S. interest rate rises, which would be
followed by local banks, while there was also concern about the large Initial
Public Offering by China Construction Bank, which it was feared would pull a
lot of liquidity from the market. Interest rate sensitive property stocks fell
back, with Henderson Land and Cheung Kong Holdings posting the largest losses
in the sector, while banking stocks also fell, with HSBC Holdings and BOC Hong
Kong slipping.
In Korea, the key share index closed marginally lower, with strong third
quarter results and positive future guidance from Samsung Electronics
providing only limited support, ending the session flat. Samsung Electronics
said its operating profit increased 29% quarter-on-quarter to 2.13 trillion
won in the third quarter, helped by strong demand and improved productivity in
chips and LCD panels. Elsewhere, car makers Hyundai Motor and Kia Motors both
skidded, while financial stocks, Woori and Kookin Bank both slipped.
Meanwhile, Taiwan's market was flat in thin trade as gains in financial
stocks were offset by continued weakness in technology stocks. Taiwan Business
Bank and Farmers Bank of China were substantially higher after the President
of Taiwan endorsed financial reform and promoted consolidation among state
controlled financial companies, however, technology heavyweights remained
under selling pressure, with TSMC and AU Optronics both down.
Finally, the market in Australia lost ground as an easing of commodity
prices exerted downward pressure on the resources heavy market. Heavyweights
BHP Billiton and Rio Tinto suffered heavy losses, while the easing of Nymex
crude overnight dragged oil stocks Woodside Petroleum and Santos lower.
Meanwhile, financials were not immune from falls as Macquarie Bank, Westpac
and ANZ all ended the day lower.
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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