Monday 12 December, 10:00 AM GMT (Thomson Financial): Asian markets ended
higher as positive sentiment from Japan spread throughout the region. Japan's
market soared higher on hopes for upbeat Tankan figures, while Hong Kong's
market rose on positive sentiment from Japan. Meanwhile, the Korean bourse
rose on strength in financial stocks, while Taiwan's market closed flat.
Finally, the market in Australia was inspired by strength in Japan to close
higher.
Tokyo's Nikkei-225 Index surged 334.65 points or 2.17% to 15738.70, while
Hong Kong's Hang Seng Stock Index rose 73.89 points or 0.50% to 14984.40.
Korea's Kospi Index jumped 15.81 points or 1.20% to 1333.23, while Taiwan's
Weighted Index inched up 1.93 points or 0.03% to 6266.29. Australia's All
Ordinaries Index gained 27.40 points or 0.60% to 4562.20.
Japan's market surged to a new five year high in its largest one-day point
gain for three years on investor hopes of an upbeat Tankan survey. The market
continued its rise following the heavy fall last Thursday owing to a large
trading error. Banks led the gains, supported by technology stocks and
shipbuilders.
Banking stocks came into focus after the release of an upbeat report on
the sector from a leading broker, with Mizuho Financial recovering from sharp
losses made in the wake of its trading error on an upgrade from the same
broker. The bank also benefited after the Tokyo Stock Exchange (TSE) said a
malfunction in its trading system stopped the botched order being cancelled
quickly, suggesting that the TSE might foot some of the losses incurred by
Mizuho. Other banks to gain included Resona Holdings, Mitsubishi UFJ and
Sumitomo Mitsui.
High technology stocks made strong gains, with Rohm posting an excellent
rise, while TDK and Advantest also performed admirably. It was full steam
ahead for shipbuilders, with Hitachi Zosen and Ishikawajima-Harima posting
double digit rises, while Mitsubishi Heavy and Kawasaki Heavy ended the day
higher. Elsewhere, auto makers rose, with Daihatsu closing at a life time
high, while Suzuki and Mazda closed up over the session.
Hong Kong's market closed higher as positive sentiment from Japan spread
to the local bourse, although investors remained cautious ahead of the U.S.
Federal Reserve meeting and fears of protests at the World Trade Organisation
meeting, which starts tomorrow. Property stocks rose, with Cheung Kong
Holdings, Hang Lung Properties and Henderson Land leading the gains, while
banking shares also rose, with HSBC Holdings and Bank of East Asia closing
higher.
In Korea, the key share index closed at a new record high on heavy
institutional and program buying, with banks and technology stocks supporting
the gains. Hana Financial Group surged on its debut as the holding company of
Hana Bank, with Kookmin, Woori Financial and Shinhan all rising. In the
technology sector, LG Electronics and LG Philips LCD rose, with Hynix
Semiconductor gaining although Samsung Electronics fell on profit taking.
Meanwhile, Taiwan's market closed flat as news of an increase in corporate
taxes offset sentiment stemming from gains on Wall Street Friday. Technology
stocks ended lower, with flat panel makers suffering from news that Dell has
reduced orders for TFT monitors, with AU Optronics and Chi Mei Optoelectronics
falling, while UMC slipped, though TSMC edged higher. Financial stocks ended
in positive territory after lawmakers put on hold a bill that would cap
interest rates on Friday, with Taishin Financial and Chinatrust Financial
gaining.
Finally, the market in Australia ended higher as strength in Japan's
market inspired local buying, with banks in particular benefiting. Westpac,
ANZ and Commonwealth Bank all posted sterling gains following recent weakness
and ahead of large dividends this week, while resources stocks also aided
strength in the market as BHP Billiton and Rio Tinto edged higher, with gold
miners Lihir Gold and Newcrest Mining also rising.
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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