Tuesday 29 November, 10:00 AM GMT (Thomson Financial): Asian markets ended
lower, in line with falls on Wall Street. Japan's market followed U.S. markets
lower, led down by technology stocks, while Hong Kong's market fell on
weakness in property plays. Meanwhile, the Korean bourse was a heavy faller in
the wake of recent strong gains, while Taiwan's market mirrored weakness in
the region. Finally, the market in Australia suffered a broad based sell off.
Tokyo's Nikkei-225 Index softened by 59.24 points or 0.40% to 14927.70,
while Hong Kong's Hang Seng Stock Index eased by 71.24 points or 0.47% to
15028.76. Korea's Kospi Index plunged 14.36 points or 1.11% to 1279.38, while
Taiwan's Weighted Index dropped 64.33 points or 1.04% to 6139.51. Australia's
All Ordinaries Index fell by 24.90 points or 0.54% to 4585.30.
Japan's market ended lower for the first time in eight trading sessions as
the retreat on Wall Street overnight and caution over the pace at which
certain technology plays have risen recently, weighed on investors. High
technology stocks came under pressure, with car makers also sold, while ship
makers provided some relief, with strong gains.
The market failed to respond to industrial production data showing a 0.6%
increase in October compared to the previous month as this was slightly lower
than expectations and instead stocks took their lead from U.S. markets. In the
high technology sector, previous star performers this month suffered a
correction, with Advantest, Tokyo Electron and Nikon all falling heavily.
Car makers were sold off, following previous gains owing to the weak yen,
with Honda, Toyota Motors and Mazda slipping. On a more positive note,
shipbuilders steamed ahead, with Mitsubishi Heavy and Sumitomo Heavy rising,
while gold miner Sumitomo Metal Mining sparkled on strength in prices of the
precious metal.
Hong Kong's market ended lower, led down by the property sector as
investors chose to lock in profits as Wall Street's dip and futures-related
selling added to investor caution. Henderson Land, Wharf Holdings and Sun Hung
Kai Properties were notable fallers among property companies, while banking
stocks were mostly lower, with heavyweight HSBC Holdings softer, though on a
brighter note, computer maker Lenovo Group posted a strong rise.
In Korea, the key share index fell heavily following recent strength, on
program selling in blue chips that was triggered by caution over economic data
and falls in U.S. markets. Industrial production in October rose by 8% year-
on-year, however, once the chip and handset markets are stripped out, monthly
output expanded by only 0.3%. Technology stocks fell, with Samsung Electronics
and Hynix Semiconductor lower, while financial stocks were largely down, with
Kookmin Bank and Woori slipping.
Meanwhile, Taiwan's market closed lower, triggered by falls on Wall Street
and selling related to the settlement of futures and amid some caution ahead
of local elections Saturday. Chip makers TSMC and UMC both tracked their
American Depositary Receipts lower, with flat panel makers Chi Mei
Optoelectronics and AU Optronics giving up gains made the previous day, while
in the financial sector, Taishin Financial eased after it warned that it might
not meet earnings forecasts for the year.
Finally, the market in Australia fell in a broad based sell off, with the
heavily-weighted resources and banking sectors leading the falls.
Heavyweights, BHP Billiton and Rio Tinto slipped, while in the financial
sector National Australia Bank softened, with Commonwealth Bank and ANZ
both closing the session in negative territory. On a more positive note,
Brambles surged after announcing restructuring measures, including plans
to return cash to shareholders.
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
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SOURCE Thomson Financial Corporate Group
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