Wednesday 2 November, 10:00 AM BST (Thomson Financial): Asian markets
ended mostly higher as investors brushed off U.S. weakness owing to interest
rate rises. Japan's market rose on renewed optimism that deflation may be over
and that the economy is picking up, while Hong Kong's market rose slightly as
the market struggled for direction. Meanwhile, the Korean bourse surged ahead
as sentiment from the previous day's gains continued unabated, while Taiwan's
market gained weight on bargain hunting in technology blue chips. Finally, the
market in Australia fell after a terrorist warning.
Tokyo's Nikkei-225 Index inched up 26.92 points or 0.19% to 13894.78,
while Hong Kong's Hang Seng Stock Index edged up 25.22 points or 0.17% to
14597.48. Korea's Kospi Index surged 19.43 points or 1.63% to 1208.38, while
Taiwan's Weighted Index rose 71.96 points or 1.24% to 5870.37. Australia's All
Ordinaries Index slipped by 16.20 points or 0.37% to 4408.80.
Japan's market ended higher, with the benchmark index reaching a new four
year high on positive sentiment stemming from strong corporate earnings and a
positive economic outlook, while yen weakness against the U.S. dollar also
supported shares. In a day of heavy trading, banking stocks, steel makers and
the machinery sector led the rises.
In the banking sector, Mizuho Financial soared, with Mitsubishi UFJ
Financial Group and Resona Holdings performing admirably. Meanwhile in the
steel sector Kobe Steel was the star performer as Sumitomo Metal Industries
and Tokyo Steel Manufacturing made sterling gains.
Machinery stocks benefited from strong first half results released by
Komatsu, which reported a first half net profit of 59.80 billion yen, compared
to 26.02 billion yen in the same period last year, while Kubota rose and
Minebea gained after reporting a rise in its net profit. Elsewhere, Nippon
Sheet Glass fell heavily following its bid to acquire Pilkington Glass, while
car maker Mazda, dropped after reducing its full year revenue estimate.
Hong Kong's market closed marginally higher after the Hong Kong Monetary
Authority raised the base rate for its discount window by 25 basis points to
5.50%, following the rise in U.S. rates overnight. Banking stocks were up on
the rate hike with HSBC Holdings and BOC Hong Kong gaining, though Hang Seng
Bank remained flat, while property stocks were mixed with Wharf Holdings up,
Hang Lung Properties flat and Henderson Land down.
In Korea, the key share index made strong gains as investors shrugged off
the interest rate rise in the U.S. and instead focussed on the resilience of
the U.S. and local economies. Banks continued their strong performance from
the previous session, with Kookmin Bank, Woori Financial and Shinhan Financial
all up on the day, while in the technology sector, Samsung Electronics closed
sharply higher. Elsewhere, Kia Motor and Hyundai Motors both rose after
Standard & Poor's raised its corporate credit rating on the car makers.
Meanwhile, Taiwan's market closed higher on bargain hunting in technology
stocks as foreign investors returned to the market in force. Technology
bellwethers pushed the market upwards, with TSMC and UMC ending higher, Nanya
Technology also performing well, while Chi Mei Optoelectronics and AU
Optronics both gained.
Finally, the market in Australia eased after the Prime Minister reported
that the country has received a specific terrorist threat, without giving any
more details. In the banking sector, shares in Westpac were suspended after it
inadvertently sent information relating to its annual report to analysts, with
the company later reporting an increase in full year net profits to 2.818
billion Australian dollars compared to 2.183 billion dollars last time. Other
banks were down at market close, with National Australia Bank and ANZ both
losing ground, while resources majors were mixed, with BHP Billiton rising but
Rio Tinto falling.
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
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