Monday 24 October, 10:00 AM BST (Thomson Financial): Asian markets fell as
a lack of positive news left investors with few incentives to buy. Japan's
market fell, ahead of earnings results from major companies this week,
while Hong Kong's market dropped on a lack of new leads. Meanwhile, the
Korean bourse was little changed, despite an upgrade on debt from a
ratings agency, while in Taiwan the market closed down on bird flu fears.
Finally, the market in Australia closed lower on concerns about rising
interest rates.
Tokyo's Nikkei-225 Index fell by 93.77 points or 0.71% to 13,106.18, while
Hong Kong's Hang Seng Stock Index lost 85.50 points or 0.59% to 14,402.35.
Korea's Kospi Index inched up by 1.12 points or 0.09% to 1184.60, while
Taiwan's Weighted Index slipped by 21.48 points or 0.37% to 5717.28.
Australia's All Ordinaries Index eased by 7.90 points or 0.18% to 4317.30.
Japan's market lost ground as investors awaited results from major
companies this week and amid negative sentiment following the sluggish
performance of U.S. markets last week. Steel and shipping stocks fell,
while the high technology sector also came under selling pressure.
The steel sector fell victim to profit taking following recent strong
performance. JFE Holdings fell heavily, with Kobe Steel and Nippon Steel
also posting losses, while shipping stocks were also sold to lock in
profits from the previous week. Mitsui OSK dropped, with Kawasaki Kisen
and Nippon Yusen also slipping.
The high technology sector could not avoid falls, Tokyo Electron posting
heavy losses, along with Nikon and Canon. Elsewhere, farm equipment maker
Kubota dropped, while construction machinery maker Komatsu plunged.
Kong Kong's market closed lower in the absence of new leads and continued
fears of interest rate rises. Property stocks fell, with Wharf Holdings
posting the largest losses in the sector, with Henderson Land and Hang
Lung Properties ending lower. Meanwhile in the banking sector, HSBC
Holdings slipped and BOC Hong Kong lost ground.
In Korea, the key share index closed flat as a rating upgrade of the
country's sovereign debt failed to inspire investors. Ratings agency Fitch
raised its sovereign debt rating to "A+" from "A" owing to a more stable
outlook due to the perceived easing of geopolitical risks following the
latest multilateral pact to shut down North Korea's nuclear weapons
program. In the technology sector, Samsung Electronics strengthened,
while Hynix Semiconductor rose, despite a decision by Japan to levy a duty
on its DRAM chips.
Meanwhile, Taiwan's market closed slightly down in light trade as concerns
over avian flu and a weakening of the local currency against the U.S.
dollar undermined investor sentiment. UMC and Chi Mei Optoelectronics
ended lower, however TSMC gained weight on expectations of strong earning
results this week and a recommendation upgrade from a leading broker,
while AU Optronics also ended higher ahead of its third quarter results on
Tuesday.
Finally, the market in Australia closed marginally lower, led by resources
stocks amid concerns about the prospect of rising interest rates in the
U.S. and locally. BHP Billiton and Rio Tinto fell following falls in their
London listings on Friday and the easing of base metals prices, though
banks performed better, with ANZ rising ahead of its full year profit
report on Tuesday, while Commonwealth Bank and National Australia Bank
also rose.
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
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SOURCE Thomson Financial Corporate Group
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