Friday 25 November, 10:00 AM GMT (Thomson Financial): Asian bourses ended
little changed, with the markets lacking clear drivers while Wall Street was
closed. Japan's market crept to a new five year high, while Hong Kong' s
market was flat owing to the U.S. holiday. Meanwhile, the Korean bourse ended
slightly higher in mixed trade, while Taiwan's market edged cautiously higher.
Finally, the market in Australia closed flat in directionless trade.
Tokyo's Nikkei-225 Index edged up 41.71 points or 0.28% to 14784.29, while
Hong Kong's Hang Seng Stock Index shed 2.92 points or 0.02% to 15081.47.
Korea's Kospi Index crept up 1.51 points or 0.12% to 1293.22, while Taiwan 's
Weighted Index inched up 16.31 points or 0.27% to 6128.20. Australia's All
Ordinaries Index eased 2.40 points or 0.05% to 4592.50.
Japan's market ended at a new five year high to record a seventh
consecutive rise, despite a weak start to trading as domestic demand related
stocks made solid gains. In economic news, inflation data for October was
released, with core CPI flat on the year, although the headline figure was
down 0.7% year-on-year. However, both figures were up by 0.1% compared to
September. Banks and Steel makers led the rise in the index, although
technology stocks restrained the overall market.
The banking sector saw a raft of half year results this week, with
Mitsubishi UFJ rising sharply after releasing strong pre-merger results, while
projecting a full year post-merger net profit of 930 billion yen. Resona
Holdings advanced strongly after lifting its full year profit outlook, with
Mizuho and Sumitomo Mitsui Financial also enjoyed strong gains in the wake of
solid half year results.
Steel makers were in focus, with Sumitomo Metal Industries, Nippon Steel
and Tokyo Steel Manufacturing all posting strong rises, while on a weaker
note, high technology stocks retreated, following recent heady gains, with
Advantest, Tokyo Seimetsu and Tokyo Electron all shedding weight.
Hong Kong's market closed flat after moving in a tight trading range as
investors focussed on the IPO of the government's Link Real Estate Investment
Trust (REIT). The Link REIT made a strong debut with a double digit rise,
though the property sector was mixed as Cheung Kong Holdings rose, Sun Hung
Kai Properties remained unchanged and Hang Lung Properties fell. The banking
sector lacked strength, with HSBC Holdings, BOC Hong Kong and Hang Seng Bank
all slipping.
In Korea, the key share index ended fractionally up, to another record
high in thin trade led by insurance stocks. Rating agency Standard & Poor' s
raised its insurer financial strength and long term counterparty credit rating
on three insurers by one level and stocks in the sector rose accordingly, with
Hyundai Marine & Fire Insurance and LG Insurance rising sharply. On a weaker
note, chip makers Samsung Electronics and Hynix Semiconductor dropped on
profit taking, while construction makers also slipped as investors locked in
profits from strong gains the previous day, with Hyundai Engineering &
Construction and Daewoo Engineering & Construction both easing.
Meanwhile, Taiwan's market closed slightly higher, led by selected
technology stocks, although investors remain cautious ahead of local
elections. Flat panel makers were in focus on prospects of healthy sales in
the Christmas trading season, with AU Optronics and Chi Mei Optoelectronics
posting sterling gains, while of the chip makers UMC gained, though TSMC
slipped following recent strength. Elsewhere, China Steel rose after
announcing largely expected price cuts for its products in the first quarter
of 2006.
Finally, the market in Australia closed little changed as the market
lacked direction due to the Thanksgiving holiday in the United States.
Resources stocks were lifted in the wake of higher base metal prices, with BHP
Billiton posting a modest gain after the group expressed a preference for
investing in development rather than increasing dividends, with Rio Tinto
closing higher. Iron ore miner Ausquest leapt after announcing a deal with Rio
to develop a deposit in the Pilbara region of Australia. However, the market
was tempered by weakness in banking stocks, with National Australia Bank,
Commonwealth Bank and ANZ slipping, though St George Bank continued gains made
the previous day on reports that U.K. bank HBOS is interested in the company.
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
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SOURCE Thomson Financial Corporate Group
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