Thursday 27 October, 10:00 AM BST (Thomson Financial): Asian markets ended
mostly lower, in line with falls in U.S. markets. Japan's market
outperformed the region on expectations of continued economic improvement,
while Hong Kong's market fell on futures related activity. The Korean
bourse was lower as institutional investors sold stocks, while Taiwan's
market closed down on continued worries over avian flu. Finally, the
market in Australia closed down on profit taking.
Tokyo's Nikkei-225 Index edged up 22.06 points or 0.16% to 13417.08, while
Hong Kong's Hang Seng Stock Index slipped 77.08 points or 0.53% to
14381.06. Korea's Kospi Index fell 12.64 points or 1.07% to 1166.36, while
Taiwan's Weighted Index dropped 39.54 points or 0.69% to 5661.18.
Australia's All Ordinaries Index eased 11.40 points or 0.26% to 4389.20.
Japan's market closed marginally higher led by stocks in domestic demand
related sectors, such as construction and banking, while weakness in the
technology sector tempered the performance of the market as investors
awaited key economic releases tomorrow.
In the construction sector stocks benefited from positive sentiment, with
Kumagai Gumi rising, and with Shimuzu and Taisei also performing well.
Banks, in particular regional lenders, surged as Bank of Yokohama and
Chiba Bank posted sterling gains, while Resona was the best performer of
the majors.
However, the technology sector was weak owing to negative earnings
releases, Advantest plummeted after its net profit for the six months to
September plunged 47.5% year-on-year to 22.66 billion yen, while NEC
dropped after reporting that its first half net profit fell by 35% on the
same period last year to 16.42 billion yen. Fujitsu lost ground, despite
its announcement just before market close that it had returned a first
half net profit, for the first time in five years, of 7.67 billion yen,
reversing a year ago loss of 8.16 billion yen.
Hong Kong's market closed lower on selling linked to futures related
activities amid concerns over a possible spread of bird flu in China.
Property stocks were lower with Henderson Land, Cheung Kong Holdings, Hang
Lung Properties and Wharf Holdings all ending the day in negative
territory, while banking stocks were flat to lower with HSBC Holdings
unchanged but BOC Hong Kong and Hang Seng Bank ended down.
In Korea, the key share index ended lower on institutional selling,
despite the release of positive current account data. In the technology
sector, Samsung Electronics ebbed lower, while Hynix Semiconductor
continued its fall after it announced that its stake sale by creditors had
been completed. On a brighter note Hyundai Motor gained after announcing
that net profit increased by 27.1% year-on-year to 534.9 billion won and a
positive fourth quarter outlook.
Meanwhile, Taiwan's market fell in light trade amid continued concerns
over bird flu and political uncertainty ahead of elections in December. In
the technology sector, UMC fell after reporting a net profit of 2.17
billion won, which was in line with expectations but down on the previous
year. TSMC closed lower before it released a third quarter net profit in
line with expectations of 24.49 billion won, compared to 27.93 billion won
in the same period last year.
Finally, the market in Australia closed marginally lower as investors took
profits following the previous day's gains. Resources majors Rio Tinto and
BHP Billiton both limited the market falls, rising after BHP said it
achieved record quarterly copper and nickel production in the first
quarter of its June fiscal year, while Newcrest Mining slumped after
reporting at its annual general meeting that construction and operating
costs were rising at a faster rate than revenues. Elsewhere, financial
stocks Macquarie and Babcock & Brown fell following recent strong gains.
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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