Wednesday 30 November, 10:00 AM GMT (Thomson Financial): Asian markets
ended mixed as profit taking hit some markets, while other markets rose on the
positive economic outlook. Japan's market fell on profit taking, while Hong
Kong's market dropped on interest rate worries. Meanwhile, the Korean bourse
surged to a new record high on strength in the financial and construction
sectors, while Taiwan's market gained on the announcement of economic measures
and strong foreign buying. Finally, the market in Australia closed flat as
profit taking hit early gains.
Tokyo's Nikkei-225 Index eased 55.55 points or 0.37% to 14872.15, while
Hong Kong's Hang Seng Stock Index fell by 91.62 points or 0.61% to 14937.14.
Korea's Kospi Index surged by 18.06 points or 1.41% to 1297.44, while Taiwan's
Weighted Index jumped by 63.96 points or 1.04% to 6203.47. Australia's All
Ordinaries Index eased 1.70 points or 0.04% to 4583.60.
Japan's market fell for the second day running, although the key index hit
the key 15,000 mark in early trade, as investors elected to take profits
following strong gains through the month. However, losses were restricted as
dip buying supported the market, while the lack of volume indicates the
absence of selling pressure. Technology stocks and banks ended lower, although
strength in retailers and shipbuilders limited falls.
Technology shares, and chip related stocks in particular, suffered from
profit taking in the wake of recent out-performance, with Advantest, NEC
Electronics and Hitachi falling, while in the banking sector, Mitsubishi UFJ
Financial Group, Mizuho and Sumitomo Mitsui Financial Group all fell back.
On a stronger note, retailers helped to restrict market falls, with Seiyu,
Mitsukoshi and Daiei all posting strong rises, while shipbuilders continued
full steam ahead as Ishikawajima-Harima Heavy Industries, Mitsui Engineering &
Construction and Mitsubishi Heavy Industries all posted sterling gains.
Hong Kong's market closed lower as property stocks were hit by renewed
concerns over interest rate rises, combined with weak apartment sales and
upcoming real estate investment trust listings, which could drain liquidity.
Cheung Kong Holdings, Henderson Land and Sun Hung Kai Properties all fell
heavily, with banking stocks also ending in negative territory. Elsewhere,
China Resources provided the bright spot in the market, with a large rise
following its recent quarterly profit announcement.
In Korea, the key share index surged to a new record high and briefly hit
the psychologically important 1,300 mark in intraday trade, led by gains in
financial and construction shares. Kookmin Bank rose strongly, with Woori
Financial and Shinhan both gaining, along with many securities companies,
while construction stocks tracked market gains, with Hyundai Engineering &
Construction rising sharply and Daewoo Engineering & Construction also closing
strongly.
Meanwhile, Taiwan's market closed sharply higher on a government
announcement of economic measures and transport links with China, as well as
strong buying by foreign investors of large capitalisation technology stocks.
The tourism and transport sectors surged on the news of easing of tourist
restrictions on arrivals of Chinese tourists, while economic measures
announced included tax cuts to boost private consumption. Foreign investors
piled into heavyweight chipmakers TSMC and UMC, which both climbed, while AU
Optronics and Chi Mei Optoelectronics both bounced back from falls the
previous day.
Finally, the market in Australia ended flat as profit taking late in the
session hit intraday gains. Banking stocks reflected the mixed market, with
ANZ and Westpac advancing but Commonwealth Bank and National Australia Bank
retreating, while gold miners fell after the gold price failed to hold above
the US$500 level, with Newcrest Mining slipping. BHP Billiton and Rio Tinto
both closed higher, preventing the market from a greater falls.
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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