Friday 9 December, 10:00 AM GMT (Thomson Financial): Asian markets brushed
aside overnight weakness on Wall Street and ended mostly higher. The
Japanese bourse climbed, despite economic growth being revised down, while
Hong Kong recovered from Thursday's losses. On a weaker note, the Korean
market declined, giving up some of its recent gains, while Taiwan ended
higher, as financial stocks gained, while the Australian market also
gained weight, supported by resources stocks.
Tokyo's Nikkei-225 Index rose by 220.69 points or 1.45% to 15,404.05,
while Hong Kong's Hang Seng Stock Index ended up by 31.35 points or 0.21%
to 14,910.51. Korea's Kospi Index fell by 6.78 points or 0.51% to 1317.42,
while Taiwan's Weighted Index gained by 15.17 points or 0.24% to 6264.36.
Australia's All Ordinaries Index crept up by 3.20 points or 0.07% to
4534.80.
The Japanese market shrugged off overnight weakness on Wall Street and
disappointment at revised domestic economic growth figures and ended the
session higher, recovering some of the loss posted the previous day.
Banking stocks performed strongly, with real estate stocks also gaining,
while technology stocks were mostly higher, even though U.S. chip titan
Intel lowered the top end of its sales guidance overnight.
There was some early disappointment after revised data from the Cabinet
office indicated that the economy had grown by 0.2% in the July-September
quarter, compared to the initial estimate of a 0.4% quarterly growth rate.
However, sentiment improved during the session, especially after the
uncertainty about Thursday's trading error in J-Com shares was lifted.
Banking stocks gained, with Resona Holdings, Sumitomo Mitsui and
Mitsubishi UFJ among banks ending higher, while Mizuho also gained,
although its unlisted Mizuho Securities unit said it had placed erroneous
orders for J-Com shares on Thursday. Securities firms also climbed, while
technology groups were mostly stronger, with Advantest, Fujitsu and
Toshiba among sector stocks ending lower, although shares in Pioneer
dropped after the company widened its full-year net loss forecast on
Thursday.
Hong Kong's market also ended higher, recovering from Thursday's falls,
although gains were not on the same scale as those in Japan. The upside
was limited by uncertainty over next week's U.S. Federal Reserve rate
setting meeting and the World Trade Organisation meeting, which Hong Kong
is hosting. The banking sector was only marginally higher, with HSBC
Holdings inching up, while elsewhere, the properties sector gained, with
Henderson Land and Sino Land ending higher.
On a weaker note, Korea's market weakened, following recent strong gains,
as Thursday's rate hike by the Bank of Korea prompted investors to lock in
some profits. Technology shares were under pressure from Intel's lower
sales forecast, with Samsung Electronics, LG Electronics and Hynix
Semiconductor all ending lower. Elsewhere, there was some weakness among
banking stocks, with Kookmin Bank and Korea Exchange Bank both lower,
while airline Korean Air also dropped, hit by rising crude prices and
industrial action.
Meanwhile, Taiwan's market gained weight, supported by a strong showing by
the financial sector after a newspaper reported that Parliament might
delay a bill capping credit card and consumer loan interest rates.
Chinatrust Financial Holding and Taishin Financial both posted solid
gains, but elsewhere, technology heavyweights TSMC and UMC both dropped
after U.S. peer Intel lowered the top end of its sales guidance.
Finally, the Australian market also ended higher, albeit by a modest
amount. The resources sector outperformed, as metals and crude prices
rose, sending majors BHP Billiton and Rio Tinto higher, while oil groups
Oil Search and Woodside Petroleum also climbed. On a weaker note, banking
stocks were mostly lower, with ANZ Bank and National Australia Bank among
sector stocks ending lower, while elsewhere, airline Qantas also dropped,
hit by the rising oil prices.
Olivier.Masson@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
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SOURCE Thomson Financial Corporate Group
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