Monday 21 November, 10:00 AM GMT (Thomson Financial): Asian markets ended
mixed as markets lacked specific drivers. Japan's market rose on strength in
blue chips, while Hong Kong's market ended flat. Meanwhile, the Korean bourse
ended lower on institutional selling, while Taiwan's market closed little
changed. Finally, the market in Australia closed lower on profit taking.
Tokyo's Nikkei-225 Index gained 57.31 points or 0.39% to 14680.43, while
Hong Kong's Hang Seng Stock Index inched up 2.25 points or 0.02% to 14885.57.
Korea's Kospi Index slipped by 3.45 points or 0.27% to 1268.80, while Taiwan's
Weighted Index eased by 3.32 points or 0.05% to 6103.42. Australia's All
Ordinaries Index lost 12.40 points or 0.27% to 4598.20.
Japan's market hit a new five year high, supported by strength in major
blue chip stocks and weakness in the yen, although gains in the market were
tempered as investors await the release of half year results from banks this
week. Technology stocks were in focus, supported by the yen's weakness, while
banking stocks fell heavily ahead of results announcements.
In the technology sector, Pioneer surged following a report in the Nihon
Keizai Shimbun that it will reduce its workforce and cut wages as part of a
restructuring plan, while an hour before trading closed, Tamihiko Sudo was
appointed as its new president. NEC Corporation and Sony both made sterling
gains following the announcement last week that they are to set up and DVD and
CD drive joint venture, while Toshiba posted an excellent rise.
The banking sector declined ahead of results announcements this week for
the first half to September. Sumitomo Mitsui Financial Group fell heavily,
while Mitsubishi UFJ Financial Group dropped and Mizuho Financial Group also
lost weight.
Hong Kong's market closed flat as the market went into consolidation mode
following gains made last week. Property stocks fell, with Henderson Land and
Hang Lung Properties suffering heavy losses and Cheung Kong Holdings falling,
though Sun Hung Kai Properties managed to post a gain. Banking stocks finished
mostly higher, with HSBC Holdings and Hang Seng Bank rising but BOC Hong Kong
fell.
In Korea, the key share index ended slightly lower on profit taking as
institutional selling weighed on the market. Financial and technology stocks
suffered following recent strength, with Kookmin Bank, Woori Financial and
Hana Bank all falling, while technology bellwether Samsung Electronics ended
lower despite hitting a fresh high for the year in early trade.
Meanwhile, Taiwan's market ended flat as the market sought to consolidate
strong gains made Friday. Tourism and airline stocks gained on hopes that
Taiwan will ease travel restrictions on Chinese Tourists to the island, with
Ambassador Hotel and Leofoo Development rising, while China Airlines and EVA
Airways took off. On a weaker note, financial stocks came under pressure after
bank union members threatened to strike in protest over the government's
planned consolidation of the sector, with Mega Financial and First Financial
both dropping.
Finally, the market in Australia closed lower on profit taking in the wake
of recent excellent performance. Banking stocks suffered, with National
Australia Bank and Macquarie Bank coming under pressure after going ex-
dividend, while resources majors BHP Billiton and Rio Tinto both fell.
Elsewhere, sentiment towards Telstra remained negative owing to last week' s
profit downgrade.
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 Corporate Group
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