Monday 14 November, 10:00 AM GMT (Thomson Financial): Asian markets ended
the day mixed, despite stocks rising on Wall Street last Friday. The
Japanese market gave up some of its recent gains, with financial and steel
stocks under pressure, while Hong Kong's market declined. On a stronger
note, Korea's market edged up to a new record high, supported by the
technology sector, while Taiwan's market also crept higher amid gains in
the technology and the tourism sectors. The Australian market also rose,
supported by resources majors.
Tokyo's Nikkei-225 Index fell by 39.02 points or 0.28% to 14,116.04, while
Hong Kong's Hang Seng Stock Index weakened by 111.11 points or 0.75% to
14,629.49. Korea's Kospi Index inched up by 1.51 points or 0.12% to
1257.63, while Taiwan's Weighted Index edged up by 8.36 points or 0.14% to
6083.62. Australia's All Ordinaries Index rose by 31.00 points or 0.69% to
4547.80.
The Japanese market ended the day lower after a late sell-off, giving up
some of the gains made in recent days. Investors sold financial and steel
stocks, although there were some gains in the technology sector. Banking
stocks weakened, giving up recent gains, with heavyweight Mitsubishi UFJ
Financial Group falling, with an article in the Nihon Keizai Shimbun
claiming the lender was considering the issue of new preferred
subscription shares in order repay public funds with the proceeds.
Elsewhere, Resona Holdings also ended the day lower.
Meanwhile, the steel sector was also under pressure, with Nippon Steel and
JFE Holdings among sector plays weakening. Elsewhere, there was also some
weakness among car manufacturers, with Honda, Nissan and Toyota all ending
lower, but shares in Mitsubishi Motors dived after a top investment bank
sold a large stake in the firm a matter of days after buying the holding
from DaimlerChrysler.
On a stronger note, the technology sector showed some resilience to the
market sell-off. Advantest ended higher, while Nikon and consumer
electronics group Sony also gained. However, TDK and Hitachi were among
sector plays ending the day lower.
Hong Kong's market also weakened amid a lack of market-moving news and
uncertainty linked to the launch of the government's real estate
investment trust flotation. Shares in Hutchison Whampoa fell amid fears
that the listing of its Italian wireless telecom unit H3G Italia might be
delayed. The properties sector weakened, with Cheung Kong Holdings and Sun
Hung Kai Properties among sector players ending lower, while banking
stocks were mostly lower, although heavyweight HSBC Holdings was flat.
Meanwhile in Korea, the market rose slightly, but still ended at a new
record high. Technology plays rose, benefiting from a fall in crude
prices, with heavyweight Samsung Electronics posting a healthy gain, while
Hynix Semiconductor jumped on hopes of strong fourth quarter earnings.
Elsewhere, LG Card rose on news that its main creditor had named a lead
manager for the sale of the company. However, banks had a mixed session,
hit by profit taking.
Taiwan's market also ended slightly higher amid gains in the technology
sector and the tourism sector, while steel and financial stocks were under
pressure. Memory chipmakers Nanya Technology and Powerchip both climbed,
while chip foundry TSMC was flat and rival TSMC weakened. The tourism
sector benefited from hopes of improved travel arrangements with mainland
China, but fears of lower prices hit steel stocks.
Finally, the Australian market climbed, supported by gains in the
resources sector after metals prices rose. Heavyweights BHP Billiton and
Rio Tinto both ended higher, as did Newcrest mining. Meanwhile, steel
group Bluescope also climbed, after announcing a share buyback last
Friday, while airline Qantas rose as oil prices weakened. Elsewhere,
Macquarie Bank slipped ahead of the release of its half-year results,
while Telstra edged higher ahead of the release of its strategic review
findings.
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
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SOURCE Thomson Financial Corporate Group
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