Thursday 1 December, 10:00 AM GMT (Thomson Financial): Asian markets ended
mixed, with most markets overlooking falls on Wall Street. Japan's market
closed sharply higher on the strength of the local economy, while Hong
Kong's market tracked Japan higher amid bargain hunting following falls
the previous day. Meanwhile, the Korean bourse closed at a new record high
and finally ended above the 1,300 level, while Taiwan's market slipped as
investors awaited the outcome of local elections this weekend. Finally,
the market in Australia tracked Wall Street lower and was dragged down by
options related selling.
Tokyo's Nikkei-225 Index surged by 258.35 points or 1.74% to 15130.50,
while Hong Kong's Hang Seng Stock Index rose by 130.89 points or 0.88% to
15068.03. Korea's Kospi Index gained 8.54 points or 0.66% to 1305.98,
while Taiwan's Weighted Index slipped by 23.65 points or 0.38% to 6179.82.
Australia's All Ordinaries Index dropped by 51.30 points or 1.12% to
4532.30.
Japan's market surged to its highest level since December 2000 as
investors shrugged off weakness on Wall Street and instead chose to focus
on the positive outlook for the domestic economy and corporate earnings.
Construction and banking stocks all advanced strongly, with technology
shares also posting large rises.
In the construction sector, Japan's second largest construction
contractor, Kajima surged on the domestic outlook, with Shimizu and
Obayashi posting strong gains, while in the banking sector, Mitsubishi UFJ
Financial climbed sharply, with Mizuho Financial Group and Resona Holdings
also recording large rises.
Technology stocks were boosted by the strong third quarter GDP figures
released in the key U.S. export market, with chip makers Fuji Electric,
Mitsubishi Electric and Elpida Memory jumping higher, while in the high
technology sector, Advantest soared, with Canon and Hitachi closing
strongly.
Hong Kong's market closed higher as strong gains in Japan triggered buying
in property and China related stocks. The property sector rebounded from
falls the previous day, with Hang Lung Properties, Henderson Land and
Cheung Kong Holdings all climbing as did banking stocks, while telecom
rivals China Unicom and China Mobile both posted strong rises.
In Korea, the key share index closed at a new record high and,
significantly, hit the psychologically important 1,300 mark, led higher by
large capitalisation technology stocks. Samsung Electronics and LG
Electronics surged after announcing a plan to cut prices of their LCD
televisions, while in the auto sector, Hyundai Motor rose on record
monthly car sales, although Kia Motors slipped on profit taking following
a strong run in November.
Meanwhile, Taiwan's market ended lower on caution ahead of local elections
on Saturday and following the lacklustre showing on Wall Street. The steel
sector was hardest hit on fears of oversupply and pricing pressures, with
China Steel leading the falls, while the heavily weighted technology
sector ebbed lower, with AU Optronics and Chi Mei Optoelectronics,
slipping as TSMC eased, although UMC managed a modest rise.
Finally, the market in Australia closed lower following falls on Wall
Street overnight, with options related activity adding to selling
pressure. Resources stocks were major losers, with BHP Billiton and Rio
Tinto falling, while Lihir Gold plummeted after Rio sold its 14.46% stake
in the miner, with gold miners in general falling after the precious metal
's price came off recent highs. Elsewhere, banks were weaker, while a
bright spot in the market was the rise of James Hardie on relief after
finally signing a compensation deal for victims of products the building
products group once made.
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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