Tuesday 13 December, 10:00 AM GMT (Thomson Financial): Asian markets ended
mixed ahead of the U.S. interest rate decision. Japan's market closed at a new
five year high on expectations of strong Tankan survey results, while Hong
Kong's market ebbed lower as investors awaited the outcome of the U.S. Fed
meeting. Meanwhile, the Korean bourse inched higher in cautious trade, while
Taiwan's market closed flat. Finally, the market in Australia ended lower on
profit taking.
Tokyo's Nikkei-225 Index firmed 40.16 points or 0.26% to 15778.86, while
Hong Kong's Hang Seng Stock Index softened 41.78 points or 0.28% to 14942.62.
Korea's Kospi Index edged up 3.25 points or 0.24% to 1336.48, while Taiwan's
Weighted Index eased 5.11 points or 0.08% to 6261.18. Australia's All
Ordinaries Index slipped 23.50 points or 0.52% to 4538.70.
Japan's market closed marginally up to a fresh five year high as investors
remained confident of strong numbers in the quarterly Tankan survey and
optimistic on the outlook for the economy in general. Steel makers, oil
companies and commodity related stocks all supported the market.
Investors rotated their stocks into domestic demand related stocks ahead
of the Tankan, with steel stocks rising sharply as Sumitomo Metal Industries,
Kobe Steel and Nippon Mining all posted sterling gains, while oil companies
also advanced, with Teikoku Oil and Showa Shell Sekiyu rising strongly.
Metal companies benefited from strength in commodity prices, with Nippon
Light Metal posting a double digit rise, while Toho Zinc and Mitsui Mining &
Smelt all enjoyed a healthy gain. Elsewhere, Fujitsu dropped sharply on fears
that as the developer of the stock exchange settlement system it may have to
bear some of the costs related to the trading error in J-Com shares when a
system malfunction prevented Mizuho from quickly cancelling the erroneous sell
order.
Hong Kong's market ended lower as investors await the outcome of the U.S.
Federal Open Markets Committee and the ongoing World Trade Organisation
summit. Property stocks were mixed, with Cheung Kong Holdings and Sun Hung Kai
Properties rising, but Hang Lung Properties and Henderson Land falling, while
banking stocks finished mostly lower, with BOC Hong and Bank of East Asia
leading the falls, though HSBC Holdings remained flat.
In Korea, the key share index closed slightly higher to a new record as
many investors stayed on the sidelines ahead of the U.S. Fed meeting.
Automakers gained, with Hyundai Motor racing ahead on positive broker
comments, with Kia Motors also advancing, while the technology sector was
mixed, with Hynix Semiconductor up, Samsung Electronics flat and Samsung SDI
down. The banking sector was mostly down, although the one bright spot was
Korea Exchange Bank, which surged ahead.
Meanwhile, Taiwan's market closed flat in mixed trade as investors
remained cautious ahead of the U.S. decision on interest rates. Technology
stocks were up slightly, with flat panel makers rising on concerns of a supply
shortage as AU Optronics and Chi Mei Optoelectronics rose, while TSMC firmed
on news of an agreement with Nasdaq listed Silicon Storage on flash
technology. On a weaker note, tourism related stocks were down as the
government is yet to announce further details of a relaxation of rules to
allow increased Chinese tourism to the island.
Finally, the market in Australia ended lower as investors took profits
ahead of the interest rate decision in the U.S. Resources stocks fell, with
heavyweights BHP Billiton and Rio Tinto both weakening, while Lihir Gold and
Newcrest Mining slipped after the gold price receded. Banks also came under
pressure, with National Australia Bank, Commonwealth Bank 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
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