Friday 16 December, 10:00 AM GMT (Thomson Financial): Asian markets ended
mixed as investors remained cautious ahead of the year-end. Japan's market
fell as the local currency continued its recent strength, while Hong
Kong's market ended lower. Meanwhile, the Korean bourse closed sharply
lower on news of faked stem cell research, while Taiwan's market surged on
strength on technology stocks. Finally, the market in Australia closed
higher, supported by banking stocks.
Tokyo's Nikkei-225 Index slipped 81.37 points or 0.53% to 15173.07, while
Hong Kong's Hang Seng Stock Index softened 29.21 points or 0.19% to
15029.81. Korea's Kospi Index dropped 16.64 points or 1.24% to 1321.04,
while Taiwan's Weighted Index surged 92.22 points or 1.47% to 6350.69.
Australia's All Ordinaries Index gained 15.50 points or 0.34% to 4590.90.
Japan's market ended lower, to record a third successive fall as the
market remained under pressure from the maintained strength of the yen
against the U.S. dollar. In the absence of major trading incentives, such
as economic releases next week, investors chose to lock in profits ahead
of the year-end. Technology stocks remained under pressure, with retailing
stocks and paper and pulp companies also enduring a sell off.
The strength of the yen continued to weigh on the share prices of
technology stocks, with Matsushita Electric Industrial, NEC and TDK
falling, while consumer electronics giant Sony slipped and chip testing
equipment maker Advantest fell. Retailing stocks didn't find any positive
in the Bank of Japan's decision to leave interest rates on hold, with
Takashimaya, Mitsukoshi and Isetan all ending lower.
In the paper and pulp sector, share prices crumpled, with Mitsubishi
Paper, Oji Paper and Nippon Paper all closing in negative territory, while
glass maker Nippon Sheet Glass fell heavily after U.K. glass maker
Pilkington rejected its raised offer for the company. On a brighter note,
banking stocks bucked the broader trend in the market as Mitsubishi UFJ,
Sumitomo Mitsui Financial and Mizuho all rose.
Hong Kong's market closed slightly down following the lacklustre
performance of Wall Street overnight as investors remained cautious ahead
of the year-end. Property stocks were lower on the whole, with Hang Lung
Properties and Wharf Holdings lower, although the debut of Cheung Kong
Holding's Real Estate Investment Trust limited falls in the market with a
large rise from its IPO price. Banking stocks were also lower, with
heavyweight HSBC Holdings easing and BOC Hong Kong ending down.
In Korea, the key share index closed sharply lower to halt its recent run
after news that a high profile stem cell research project had fabricated
results, which hit shares in the sector and sentiment in general. In the
biotechnology sector, LG Life Sciences was very sickly, with RNL Bio
plunging, while technology stocks fell on concerns that the rise of the
won may affect foreign earnings of major players Samsung Electronics,
Hynix Semiconductor and LG Electronics, which all ended lower.
Meanwhile, Taiwan's market surged to a four month high in heavy trade as
investors snapped up technology shares on expectations of strong demand
next year. Flat panel maker AU Optronics jumped after reports that it was
expecting 2006 to be an "unquestionably" good year, with rival Chi Mei
Optoelectronics surging. Heavyweight chipmaker TSMC rose, with UMC
gaining, while mobile phone maker High Tech Computer continued its sharp
rise from yesterday and Compal Communications jumped.
Finally, the market in Australia closed higher on strength in banking
stocks in largely directionless trade. The fifth largest bank in
Australia, St George led the sector gains after reaffirming earnings
guidance and announcing a share buy-back programme, with ANZ and
Commonwealth Bank also gaining, though resources heavyweights slipped,
with BHP Billiton and Rio Tinto ending lower. Diversified industrial
Ansell surged after announcing its exit from South Pacific Tyres and that
it would spend the proceeds on a share buy-back.
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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