Wednesday 19 October, 10:00 AM BST (Thomson Financial): Asian markets took
the negative lead from U.S. markets, suffering heavy losses. Japan's market
tracked Wall Street lower, while Hong Kong's market also closed down on U.S.
falls. Meanwhile, the Korean bourse fell on selling from foreign investors,
while Taiwan's market also fell. Finally, the market in Australia ended lower
as investors sold resources stocks.
Tokyo's Nikkei-225 Index dropped 222.75 points or 1.67% to 13,129.49,
while Hong Kong's Hang Seng Stock Index fell 224.64 points or 1.54% to
14,372.76. Korea's Kospi Index plunged 33.09 points or 2.79% to 1153.13, while
Taiwan's Weighted Index plummeted 136.63 points or 2.34% to 5694.16.
Australia's All Ordinaries Index dived by 76.60 points or 1.73% to 4345.90.
Japan's market tracked Wall Street lower in the largest fall for a
fortnight as Intel's disappointing third quarter earnings results further
weighed on the market. Intel's net income for the three months to October 1
rose to 32 U.S. cents per share, from 30 cents in the same period last year
but this did not satisfy the market, which was expecting earnings per share to
be higher. This put pressure on technology stocks, with ship builders also
declining, while automakers also ended the session lower.
Advantest, the world's largest maker of semiconductor testers, slipped,
with Tokyo Electron and Kyocera also weaker, while ship builders were major
losers, Mitsubishi Heavy Industries headed south, with Sumitomo Heavy
Industries and Kawasaki Heavy Industries also closing lower.
In the automobiles sector, Mazda posted heavy losses, along with Nissan
and Toyota, which also ended down, while elsewhere computer maker Fujitsu rose
after the company said that it now expects to post a net profit rather than a
loss in the first half to September.
Hong Kong's market finished lower as the release of high U.S. inflation
data fuelled fears of higher interest rates, which would then feed through to
the local market, which tracks U.S. rates. Almost all stocks were down, with
heavyweight property and banking sectors falling. Wharf Holdings and Henderson
Land suffered heavy losses, while HSBC Holdings and BOC Hong Kong also came
under pressure.
In Korea, the market fell heavily as foreign investors continued to sell
local shares and sentiment was hit by weakness in the U.S. markets overnight
and disappointing results from Intel. Samsung Electronics slipped, with LG
Electronics also coming under downward pressure, while auto makers Hyundai
Motor and Kia Motors both skidded. In the financial sector Kookmin Bank
finished lower, with Woori and Hana Bank also ending the day in negative
territory.
Meanwhile, Taiwan's market closed sharply lower as investors took the lead
from overnight falls on Wall Street and the extended decline in the won
against the U.S. dollar, while avian flu fears and futures related selling
compounded downward pressure. The technology sector led the market lower with
Chi Mei Optoelectronics posting heavy losses, while TSMC and UMC both closed
down.
Finally, the market in Australia followed U.S. markets lower as investors
sold resources shares on fears that rising inflation in the U.S might effect
demand for raw materials, with falls in base metals prices adding to negative
sentiment. BHP Billiton and Rio Tinto lost ground, despite Rio having
announced a solid production outcome in its third quarter activity review.
Gold miner Newcrest Mining closed sharply lower after announcing that first
half profits will be below expectations as a result of lower-than-expected
production at its Telfer mine in north-west Australia.
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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