Friday 18 November, 10:00 AM GMT (Thomson Financial): Asian markets ended
the day higher, benefiting from Wall Street's overnight rise. The Japanese
market was stronger, with gains in the technology and the financial sectors,
and Hong Kong's market also climbed, with the properties sector leading, while
the Korean market hit a new record high. Taiwan's market rose, inspired by
better than expected economic growth data, while the Australian market gained,
supported by resources stocks.
Tokyo's Nikkei-225 Index rose by 211.33 points or 1.47% to 14,623.12,
while Hong Kong's Hang Seng Stock Index was up by 95.34 points or 0.64% to
14,883.32. Korea's Kospi Index added 2.90 points or 0.23% to 1272.25, while
Taiwan's Weighted Index climbed by 85.80 points or 1.43% to 6106.74.
Australia's All Ordinaries Index gained 40.50 points or 0.89% to 4610.60.
The Japanese market jumped, edging closer to a five-year high, as stocks
drew support from Wall Street's overnight rise. There were gains in the
technology sector, which was boosted by overnight rises by U.S. peers, while a
press report that five domestic chipmakers had decided to develop and produce
next generation microchips added to the positive sentiment. Hitachi, Toshiba
and NEC Electronics, which were all named in the report, all rose strongly.
Car manufacturers also climbed, benefiting from the recent weakening of
the yen -- which increases the value of overseas earnings. Moreover, a report
in the Nihon Keizai Shimbun indicated that six domestic manufacturers planned
to invest a total of 220 billion yen in China in the next five years.
Elsewhere, in the banking sector, Mitsubishi UFJ rose after lifting its first
half net profit forecast to 300 billion yen from the 230 billion yen it had
previously expected; Sumitomo Mitsui also gained, but Resona Holdings and
Mizuho slipped.
Similarly, Hong Kong's market climbed, supported by Wall Street's rise.
Gains were driven by the properties sector, with Sun Hung Kai Properties and
Hang Lung Properties among sector stocks ending the session higher, while the
financial sector also gained, with BOC Hong Kong and HSBC Holdings stronger.
The Korean market was also stronger, with the share index hitting a new
record high, boosted by Wall Street's overnight gains. Samsung Electronics
ended higher, as did LG Electronics, but Hynix Semiconductor was dragged down
by profit taking. Meanwhile, there were also gains in the banking sector, with
Kookmin Bank and Hana Bank -- which are both seeking to take over Korea
Exchange Bank-gaining.
Meanwhile, there were strong gains in Taiwan, as sentiment was boosted by
data showing the economy had grown by a more rapid than expected 4.38% annual
rate in the third quarter. The technology sector was strong, with heavyweight
chipmakers TSMC and UMC both gaining, while flat panel markers were also in
favour. Elsewhere, the financial sector also traded higher, spurred on by news
that the government had approved the merger of the Bank of Taiwan and the
Central Trust of China.
Finally, the Australian market also gained, supported by a strong showing
by resources stocks. Majors BHP Billiton and Rio Tinto both climbed, while
gold stocks were also in demand, with Newcrest Mining and Lihir Gold higher
after prices rose further overnight. Elsewhere, airline Qantas gained,
benefiting from falling crude prices, while Telstra was higher.
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 Corporate Group
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