Friday 4 November, 10:00 AM BST (Thomson Financial): Asian markets ended
mostly higher as investors consolidated a week of strong gains. Japan's
market continued an excellent week on a positive economic outlook, while
Hong Kong's market closed marginally lower as investors finally considered
interest rate rises. Meanwhile, the Korean bourse closed slightly higher,
while Taiwan's market rose on strong interest in technology stocks.
Finally, the market in Australia closed slightly higher as investors took
stock of the recent strength.
Tokyo's Nikkei-225 Index rose 181.18 points or 1.30% to 14075.96, while
Hong Kong's Hang Seng Stock Index dipped 15.80 points or 0.11% to
14585.79. Korea's Kospi Index inched up 4.01 points or 0.33% to 1221.98,
while Taiwan's Weighted Index gained 53.73 points or 0.92% to 5911.74.
Australia's All Ordinaries Index edged up 7.40 points or 0.17% to 4468.30.
Japan's market made strong gains, with the benchmark stock index reaching
a four-year high and breaching the 14,000 mark as the economic outlook and
the weakness of the yen against the U.S. dollar buoyed investors. Sectors
in focus were those that would benefit from strength in the local economy,
such as banks and machinery makers, while the yen's fall boosted
technology stocks, which export a large proportion of their goods.
In the banking sector, Mitsubishi UFJ Financial rose strongly, with Resona
Holdings making sterling gains and Mizuho Financial Group posting a solid
rise. In the machinery sector, Kubota jumped after lifting its full year
profit outlook, while Minebea continued its strong run with another
excellent gain and Komatsu followed stocks in the sector higher.
The weakness of the yen helped exporters, such as technology stocks, to
make sterling gains, Elpida Memory and Toshiba leading the way, closely
tracked by excellent performances from Oki Electric, Fujitsu and NEC.
Elsewhere, tyre maker Bridgestone rose strongly after reporting net profit
for the nine months to September of 159.36 billion yen, up from 80.5
billion yen in the same period last year.
Hong Kong's market eased slightly as concerns about higher interest rates
finally began to bite, with the rise in oil prices also dampening investor
spirits. Property stocks were mixed with Cheung Kong Holdings posting
heavy losses but Hang Lung Properties rising, with banks following a
similar pattern, BOC Hong Kong falling, though HSBC Holdings rose.
Elsewhere, airline Cathay Pacific nosedived on the oil price rise, though
oil company, CNOOC gained on the news.
In Korea, the key share index rose for the fifth straight day, led by
technology heavyweights, amid strong buying from overseas investors.
Samsung Electronics closed sharply higher after its recent positive
guidance, with Hynix surging ahead following previous weakness, while LG
Philips LCD and Samsung SDI both gained. However, on a weaker note,
financial stocks ended lower on profit taking, following recent
outperformance, with Kookmin Bank, Woori and Hana Bank all finishing down
on the day.
Meanwhile, Taiwan's market rose following the rise on Wall Street
overnight with technology stocks leading the market upwards. Chi Mei
Optoelectronics surged after it reported fourth quarter shipments were
likely to rise by 15% to 20% from the third quarter, with TSMC and AU
Optronics gaining, while UMC rose on bargain hunting.
Finally, the market in Australia closed marginally higher as investors
decided to step back from the market after a week of solid gains.
Resources majors, BHP Billiton and Rio Tinto both rose, while oil stocks
benefited from the rise in oil prices overnight, with Woodside Petroleum,
Santos and Oil Search all rising. However, strength in the market was
tempered by a sell-off in the steel sector, triggered by a profit warning
from Bluescope, which dragged Smorgan and OneSteel lower.
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
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SOURCE Thomson Financial Corporate Group
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