Tuesday 20 December, 10:00 AM GMT (Thomson Financial): Asian markets ended
mixed in the wake of the weak showing in U.S. markets. Japan's market surged
higher on the improving economic outlook, while Hong Kong's market closed
flat. Meanwhile, the Korean bourse edged higher on institutional buying, while
Taiwan's market took the lead from Wall Street to end lower. Finally, the
market in Australia gained on strength in resources majors and financial
stocks.
Tokyo's Nikkei-225 Index soared 249.78 points or 1.62% to 15641.26, while
Hong Kong's Hang Seng Stock Index softened 13.72 points or 0.09% to 15169.17.
Korea's Kospi Index inched up 1.60 points or 0.12% to 1341.00, while Taiwan's
Weighted Index eased 3.58 points or 0.06% to 6427.84. Australia's All
Ordinaries Index firmed 15.90 points or 0.35% to 4616.70.
Japan's market rose strongly as investor hopes of an improving economy
were buoyed by a government report with an upbeat outlook for the country. The
government said it expects Japan's gross domestic product deflator, which
widely reflects consumer prices, to rise 0.1% next fiscal year, while the
overall consumer price index is seen to rise by 0.5% in the year to March
2007. Property stocks, retailers and banks led the market higher.
Property stocks were boosted by the strong outlook and further buoyed by
news that unlisted real estate developer Mori Trust was in talks with U.S.
company AIG over the sale of a massive redevelopment property in central
Tokyo, with Mitsubishi Estate, Mitsui Fudosan and Sumitomo Realty soaring.
Banks were also in focus, with Mitsubishi UFJ Financial, Sumitomo Mitsui
Financial and Mizuho Financial all rising sharply.
Retailers responded strongly to the expected improvement in the economic
situation, with Marui, Seven & I Holdings and Fast Retailing advancing
strongly, while elsewhere, Toyota rose after it said that it aims to lift
group vehicle output, which would see the company become the world's largest
car maker, with Honda also gaining.
Hong Kong's market closed little changed in range bound trade, amid a lack
of fresh leads. Property stocks were mixed, with Henderson Land and Cheung
Kong Holdings falling but Hang Lung Properties and Sun Hung Kai Properties
rising, while financial stocks were flat to lower, with HSBC Holdings and BOC
Hong Kong falling, though Bank of East Asia remained unchanged.
In Korea, the key share index closed marginally higher as local
institutional buying was offset by selling from foreign investors. In the
technology sector, Samsung Electronics rose, though Hynix Semiconductor
dipped, while brokerage houses jumped on expectations of a year-end rally,
with Hyundai Securities and Daewoo Securities rising. Elsewhere, Hyundai
Merchant Marine surged ahead on expectations of increased business for oil
carriers, while Hanjin Shipping also gained.
Meanwhile, Taiwan's market closed fractionally lower, led by technology
stocks and following the poor showing on Wall Street overnight. Heavyweight
TSMC slipped, though UMC rose on bargain hunting in the wake of falls owing to
its financial restatements, while flat panel maker AU Optronics dropped
sharply as rival Chi Mei Optoelectronics softened. On a brighter note, shares
in steel markers traded higher on rotational buying, with China Steel closing
higher.
Finally, the market in Australia closed higher, shrugging off weakness on
Wall Street and instead focussing on strength in resources stocks and banks.
BHP Billiton rose, with Rio Tinto closing sharply higher, while Newcrest
Mining gained after the gold price stabilised above US$500. Among banking
stocks, ANZ was boosted by a leading broker rating the stock as a top sector
pick, while National Australia Bank and Commonwealth Bank also ended higher.
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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