Monday 5 December, 10:00 AM GMT (Thomson Financial): Asian markets ended
mostly higher as positive sentiment continued. Japan's market gained after the
release of strong economic data, while Hong Kong's market fell on profit
taking. Meanwhile, the Korean bourse rose on strong foreign interest, while
Taiwan's market surged following the local elections over the weekend.
Finally, the market in Australia closed flat amid a lack of fresh leads.
Tokyo's Nikkei-225 Index rose by 129.71 points or 0.84% to 15551.31, while
Hong Kong's Hang Seng Stock Index eased by 41.56 points or 0.27% to
15158.82. Korea's Kospi Index firmed by 5.03 points or 0.38% to 1315.15,
while Taiwan's Weighted Index soared by 119.36 points or 1.92% to 6348.31.
Australia's All Ordinaries Index inched up by 3.00 points or 0.07% to
4576.80.
Japan's market rose to a fresh five year high as strong third quarter
capital expenditure data and further weakness of the yen combined to boost
investor confidence. According to the Ministry of Finance, third quarter
capital expenditure grew by 9.6% compared to the same period last year, which
was up on the previous quarter and raised hopes that third quarter GDP will be
revised upwards when figures are released Friday. Sectors to gain were
machinery makers, car makers and financial stocks.
Machinery makers advanced on the strong capital expenditure figures, with
Minebea, Komatsu and Sumitomo Heavy Industries all posting strong gains, while
car makers were boosted by the yen further weakening against the U.S. dollar,
with Mitsubishi Motors, Honda and Mazda all rising.
In the financial sector, banks and securities houses gained on the outlook
for the economy, with Mitsubishi UFJ Financial, Mizuho and Resona Holdings
among notable stocks to post a strong rise. Elsewhere, Fast Retailing, owner
of the Uniqlo clothing brand, posted a double digit rise after reporting a
12.8% rise in same store sales in November.
Hong Kong's market fell on profit taking following a mixed performance on
Wall Street on Friday. Investors sought to consolidate gains rather than push
the market higher as property stocks suffered, with Cheung Kong Holdings, Sun
Hung Kai Properties and Wharf Holdings all ending lower, while banking stocks
also fell, with HSBC Holdings and BOC Hong Kong closing weaker.
In Korea, the key share index gained weight to close at another record
high as interest in major technology stocks helped the market to extend recent
gains. Heavyweight Samsung Electronics made a strong rise as did Hynix
Semiconductor, while shipbuilders advanced on an increase in global ship
prices, which in turn has been fuelled in part by high oil prices, with
Samsung Heavy Industries and Hyundai Heavy Industries steaming ahead.
Construction companies restrained larger gains in the market on reports that
companies had received fewer orders this year, with Daewoo Engineering &
Construction falling.
Meanwhile, Taiwan's market surged to a four month high in increased
turnover as investors welcomed the easing of uncertainties following the local
elections over the weekend. The opposition party won a majority of
constituencies and it is now thought that the ruling government will be forced
to take a more conciliatory approach towards China. Tourism stocks benefited
from the prospect of increased tourism from China, with Leofoo Development and
Hotel Holiday Garden surging, while construction firms rose as a more stable
relationship with China should increase confidence and housing sales ought to
increase accordingly. Elsewhere, technology stocks rose, with TSMC and UMC
both posting large rises.
Finally, the market in Australia closed little changed as a lack of fresh
drivers left the market without direction. The resources sector was the only
bright spot in a broadly weak market, with heavyweights BHP Billiton and Rio
Tinto both rising, with oil stocks also gaining on the strengthening oil price
as Woodside Petroleum and Santos both gained. Banking stocks helped to limit
any upswing, with National Australia Bank, ANZ and Westpac all ending in
negative territory.
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
back to top
