Monday 19 December, 10:00 AM GMT (Thomson Financial): Asian markets ended
higher ahead of the close of the year. Japan's market bounced back from
last week's falls on bargain hunting, while Hong Kong's market gained on
year-end window dressing. Meanwhile, the Korean bourse rebounded on
strength in technology and insurance stocks, while Taiwan's market gained
on the outlook for technology companies. Finally, the market in Australia
edged higher on interest in banks and resources shares.
Tokyo's Nikkei-225 Index surged 218.41 points or 1.44% to 15391.48, while
Hong Kong's Hang Seng Stock Index gained 153.08 points or 1.02% to
15182.89. Korea's Kospi Index jumped 18.36 points or 1.39% to 1339.40,
while Taiwan's Weighted Index advanced 80.73 points or 1.27% to 6431.42.
Australia's All Ordinaries Index inched up 9.90 points or 0.22% to
4600.80.
Japan's market closed sharply higher on bargain hunting following heavy
falls last week, with investors focussing on domestic demand related
stocks, while exporters were supported by the yen stabilising against the
dollar in the wake of its recent slide. Real estate companies, food and
beverage makers and technology stocks underpinned the rise in the market.
In the real estate sector, stocks rose sharply, with Mitsui Fudosan,
Sumitomo Realty and Mitsubishi Estate all enjoying strong gains, while
food and beverage shares rose on the improving outlook for the domestic
economy, with Morinaga and Meiji Seika gaining as Asahi Breweries and
Kirin advanced.
High technology stocks were also winners, with TDK, Kyocera and Rohm all
enjoying a strong rise, while chipmakers Elpida Memory and NEC Electronics
closed in positive territory. Yahoo Japan and Softbank gained after the
two companies said they have agreed to set up a joint venture to operate
online content services.
Hong Kong's market closed higher on year-end window dressing, while the
market was also supported by the relatively peaceful end to the World
Trade Organisation summit. Property stocks rose, with Cheung Kong Holdings
and Hang Lung Property leading the gains, while in the banking sector,
heavyweight HSBC Holdings firmed as BOC Hong Kong surged ahead. China
related stocks also enjoyed gains, with China Mobile and China Resource
both soaring higher.
In Korea, the key share index rebounded from falls last Friday following
claims that pioneering stem cell research were fabricated as technology
and insurance stocks surged upwards. In the technology sector, LG
Electronics jumped on hopes for an upbeat earnings outlook, with chip
maker Hynix Semiconductor also soaring on expectations of a bright outlook
for NAND chips, while Samsung Electronics also gained. Non-life insurance
companies made excellent gains on hopes for increased premiums, with
Hyundai Marine & Fire and Samsung Fire & Marine rising sharply.
Meanwhile, Taiwan's market rose to a four month high as technology shares
extended their recent run on expectations of a strong outlook for the
first quarter of 2006. Heavyweight chipmakers TSMC and UMC posted strong
gains, while Advanced Semiconductor Engineering, the world's largest chip
packaging and testing company by revenue also rose strongly. In the
financial sector, Taiwan Business Bank advanced after Mega Financial
Holding said its board approved a plan to buy up to 26% of the former
within a year, though Mega fell on uncertainties surrounding the plan.
Finally, the market in Australia closed slightly higher on interest in
banks and resources stocks. The banking sector was buoyed by Westpac,
which rose after it said it would increase its share buy-back program
after strong demand, with ANZ and National Australia Bank also rising,
while resources heavyweights BHP Billiton and Rio Tinto also supported the
market. In other news, food group Goodman Fielder made a positive debut,
with a strong rise from its IPO price.
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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