Friday 28 October, 10:00 AM BST (Thomson Financial): Asian markets ended
lower as negative sentiment from falls in U.S. markets dragged shares
lower. Japan's market fell following the release of weaker-than-expected
economic data, while Hong Kong's market followed Wall Street lower.
Meanwhile, the Korean bourse fell heavily on poor economic data, while
Taiwan's market took the lead from Wall Street to end down. Finally, the
market in Australia fell on profit taking, triggered by losses in U.S.
markets.
Tokyo's Nikkei-225 Index fell 70.54 points or 0.53% to 13346.54, while
Hong Kong's Hang Seng Stock Index sank 165.23 points or 1.15% to 14215.83.
Korea's Kospi Index plummeted 25.64 points or 2.20% to 1140.72, while
Taiwan's Weighted Index dropped 28.21 points or 0.50% to 5632.97.
Australia's All Ordinaries Index plunged 48.70 points or 1.11% to 4340.50.
Japan's market slipped, ending three consecutive days of gains after
worse-than-expected industrial production data triggered profit taking.
The Ministry of Economy, Trade and Industry reported that industrial
output rose by a lower-than-expected seasonally adjusted 0.2% in September
compared to the previous month, while the consumer price index fell,
suggesting the fight with deflation is yet to be won. Ship builders were
lower, while technology stocks came under pressure, with carmakers also
down.
Ship builders retreated on profit taking following recent gains, with
Kawasaki Heavy Industry falling, Ishikawajima-Harima also lower. However,
Mitsubishi Heavy Industries gained after reporting first half net profit
of 14.9 billion yen, compared to a loss in the same period last year.
Technology stocks suffered from negative sentiment after heavyweight Sony
reported that its net profit had fallen by 72% to 21.2 billion yen, while
Oki Electric was down following a widening of its first half net loss to
3.86 billion yen, with Elpida Memory also down.
In the car sector, Honda fell despite reporting record first half net
profit of 244.37 billion yen, up 1.2% on the same period last year as
investors were concerned that the weak yen contributed to the figures,
while Daihatsu fell, despite recording an increase in net profit to 10.96
billion yen, with Fuji Heavy Industries was also lower.
Hong Kong's market fell as it tracked Wall Street lower amid futures
related selling and negative sentiment owing to fears of the spread of
bird flu in China. Property stocks were weak, with Wharf Holdings, Sun
Hung Kai Properties and Henderson Land all lower, along with financial
stocks such as HSBC Holdings and BOC Hong Kong, which both fell.
In Korea, the key share index fell heavily as sentiment was hit by losses
in the U.S., with the market also concerned by low plant investment data.
In the technology sector, Samsung Electronics ended sharply lower, with
Hynix Semiconductor also falling, while banks were lower, with Korea
Exchange Bank losing out, despite announcing a record third quarter net
profit. Elsewhere, Kia Motors was down after posting a third quarter
operating loss, while Hyundai Motors was also lower.
Meanwhile, Taiwan's market closed lower, taking a lead from losses on Wall
Street and amid concerns over political bickering and avian flu. The
heavily weighted technology sector was mixed as investors responded
positively to TSMC's results, with the stock rising strongly; however, UMC
suffered heavy selling, extending recent losses. Elsewhere, financial
stocks were lower, with Fubon Financial Holdings and Chinatrust Financial
both falling.
Finally, the market in Australia ended down as investors reacted to a
negative lead from Wall Street as investors took profits from a volatile
week of trading. Resources majors BHP Billiton and Rio Tinto both dropped
after falls in base metals prices overnight, while financial stocks lost
ground, with Macquarie and Babcock & Brown ending lower, while
Commonwealth Bank fell only slightly as its announcement of a share
buy-back defended it from broader market sentiment.
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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