Friday 11 November, 10:00 AM GMT (Thomson Financial): Asian markets ended
the day higher, underpinned by overnight gains on Wall Street and a slide in
oil prices. The Japanese marker also benefited from better-than-expected
economic growth data, while in Hong Kong the market enjoyed broad-based gains.
Meanwhile, Korea's market reached a record high, while in shares in Taiwan
also climbed. The Australian market was ended higher, supported by stronger
resources majors and banking stocks.
Tokyo's Nikkei-225 Index rose by 74.18 points or 0.53% to 14,155.06, while
Hong Kong's Hang Seng Stock Index climbed by 107.27 points or 0.73% to
14,740.60. Korea's Kospi Index ended up by 21.69 points or 1.76% to 1256.12,
while Taiwan's Weighted Index gained by 86.89 points or 1.45% to 6075.26.
Australia's All Ordinaries Index added 24.50 points or 0.55% to 4516.80.
The Japanese equity market ended the day at a new four-year high,
supported by growth data that underlined the continuing economic recovery.
Although the economy grew more slowly in the September quarter than in the
June quarter, this was still better than had been expected. Moreover,
industrial output data for September was revised upward, underlining the
country's economic recovery.
Banking stocks performed strongly, with Mizuho Financial Group gaining
after it upped its half-year group net profit forecast to 330 billion yen from
the 270 billion yen it had previously expected. Elsewhere in the sector,
Sumitomo Mitsui Financial Group and Resona Holdings also both climbed.
Meanwhile, real estate stocks were higher, with Mitsui Fudosan and Mitsubishi
Estate.
Retail stocks also benefited from the market's strength, with shares in
Seiyu surging, while fast retailing also posted solid gains. However,
technology stocks had a mixed session, with Advantest and Kyocera weakening,
although Canon and Nikon rose strongly.
Shares in Hong Kong also rose amid broad based gains as Wall Street rose
overnight and crude prices softened. The properties sector was stronger, with
Henderson Land and Sun Hung Kai properties posting solid gains, while
financial stocks also climbed. Elsewhere, airline Cathay Pacific ended higher,
benefiting from the fall in crude prices, but oil groups such as CNOOC and
Petrochina weakened.
Meanwhile, the Korean market posted sterling gains and reached a record
high. Heavyweight technology group Samsung Electronics rose strongly after two
brokerages upped their price targets on the firm, while elsewhere, airline
Korean Air jumped after posting a 58.6% rise in third quarter net profit.
Shipbuilders were also higher, recovering from recent weakness, with Hyundai
Heavy Industries and Daewoo Shipbuilding and Marine Engineering both posting
strong gains.
Similarly, there were strong gains for Taiwan's market, which drew some
encouragement from overnight gains on Wall Street. Key chipmakers TSMC and UMC
both posted healthy gains, while computer manufacturer Hon Hai gained after
its parent sales rose to 78.08 billion Taiwan dollars in October, compared to
45.11 billion dollars last year. The financial sector also performed strongly,
with shares in China Development Financial Holding Corp. sharply higher after
a press report claimed Chinatrust Group was planning to invest an additional
5-6 billion dollars in the company.
Finally, the Australian market ended higher, supported by overnight gains
on Wall Street. There was strength among major resources stocks, with BHP
Billiton and Rio Tinto tracking gains in their London-listed stocks, while
steel group Bluescope also rose strongly after announcing that it would buy
back 25 million of its shares. The banking sector was also strong on hopes of
earnings growth. However on a weaker note, oil stocks dropped after crude
prices weakened.
Olivier.Masson@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
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http://www.thomsonfinancial.com.
SOURCE Thomson Financial
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