Friday 21 October, 10:00 AM BST (Thomson Financial): Asian markets closed
the day mixed as markets struggled to find direction. Japan's market closed
little changed as early falls from Wall Street were offset by gains triggered
by positive earnings from Toshiba, while Hong Kong's market closed higher on
bargain hunting. Meanwhile, the Korean bourse rose strongly on weaker oil
prices and positive earnings expectations, while Taiwan's market closed
marginally lower as government plans for stimulus packages tempered falls
coming from Wall Street. Finally, the market in Australia slipped, tracking
falls in U.S. markets.
Tokyo's Nikkei-225 Index inched up 9.49 points or 0.07% to 13,199.95,
while Hong Kong's Hang Seng Stock Index gained 78.91 points or 0.55% to
14,487.85. Korea's Kospi Index surged 21.25 points or 1.83% to 1183.48, while
Taiwan's Weighted Index eased 9.24 points or 0.16% to 5738.76. Australia's All
Ordinaries Index slipped by 19.90 points or 0.46% to 4325.20.
Japan's market closed flat as early losses overhanging from Wall Street
were offset after Toshiba raised its forecast for net profit in the first
half, which triggered hopes that other companies may report upbeat results
next week. Technology stocks were mixed, while machinery makers rose, however,
oil stocks fell.
Toshiba rose after it raised its net profit estimate for the fiscal first
half ending September to 14.6 billion yen from its previous forecast of merely
breaking even, citing better-than-expected earnings from electronic devices
and other products. However, this positive news failed to carry over to
Mitsubishi Electric and Hitachi, which both closed lower.
Machinery maker Kubota rose strongly after announcing a rise in its
non-consolidated net profit forecast for the first half to September to
21.0 billion yen from 14.5 billion yen before, while construction machinery
maker Komatsu also gained weight. Elsewhere, oil stocks retreated following
falls in the oil price, with Showa Shell Sekiyu and Nippon Oil both falling
heavily.
Hong Kong's key share index strengthened in late trading as investors
sought out bargains. Property stocks were in focus, with Henderson Land,
Cheung Kong Holdings and Henderson Land all rising, although Hang Lung
Properties slipped, while computer maker Lenovo, rose strongly after upbeat
shipment data showed it increasing its market share in Asia.
In Korea, the market extended gains made the previous day, with weaker oil
prices and expectations of positive economic releases next week adding to
sentiment. In the technology sector, Samsung Electronics rose, with Hynix
Semiconductor also gaining, while in the banking sector Kookmin Bank, Woori
and Korea Exchange Bank all closed higher.
Meanwhile, Taiwan's market closed marginally lower as government plans for
stock market stimulus packages offset weakness stemming from overnight losses
on Wall Street. The government's plans include the relaxation of buy back
regulations and to make it easier for insurance companies to invest in
equities. Makers of LCD panels, AU Optronics and Chi Mei Optoelectronics both
gained, though TSMC and UMC both closed lower.
Finally, in the Australian market shares closed slightly lower as they
followed overnight falls in U.S. markets. Concerns that commodities demand
growth may not be sustainable in the face of higher interest rates weighed on
the resources sector, with BHP Billion flat and Rio Tinto slipping, while oil
stocks suffered from falls in oil prices as Woodside Petroleum, Santos and Oil
search all ended the day in negative territory.
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
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http://www.thomsonfinancial.com.
SOURCE Thomson Financial Corporate Group
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