Wednesday 21 December, 10:00 AM GMT (Thomson Financial): Asian markets
ended higher, shrugging off the lacklustre performance on Wall Street. Japan's
market surged on strength in property stocks, while the strong showing in
Tokyo helped to support Hong Kong's market. Meanwhile, the Korean bourse
gained on strength in heavyweight stocks, while Taiwan's market closed higher
on year-end window dressing and gains in the steel sector. Finally, the market
in Australia rose on strength in resources stocks after a rise in the oil
price.
Tokyo's Nikkei-225 Index soared 316.31 points or 2.02% to 15957.57, while
Hong Kong's Hang Seng Stock Index firmed 52.25 points or 0.34% to 15221.42.
Korea's Kospi Index rose 13.16 points or 0.98% to 1354.16, while Taiwan's
Weighted Index gained 44.05 points or 0.69% to 6471.89. Australia's All
Ordinaries Index advanced 43.20 points or 0.94% to 4659.90.
Japan's market surged to a new five year high and broke the 16,000 level
in intraday trade as bullish sentiment towards the property sector spread
throughout the market, while shares were supported by strong interest from
overseas investors. Real estate companies, non-life insurers and construction
companies were in focus during the trading session.
Real estate shares remain in focus following the news that Mori Trust is
in talks to sell a large development in Tokyo, with Mitsubishi Estate and
Heiwa Real Estate jumping, while NTT Urban Development soared to an all time
high. Non-life insurance companies, which have large holdings of real estate,
gained, with Mitsui Sumitomo Insurance, Millea Holdings and Sompo Japan all
surging.
Construction companies also benefited from optimism surrounding property
and land, with Shimizu, Kajima and Obayashi all posting sterling gains.
Automakers advanced after the yen softened against the greenback, with Toyota
and Honda accelerating ahead, while high technology stocks were also supported
by yen weakness, with Advantest and Tokyo Electron both rising.
Hong Kong's market closed slightly higher on window dressing by
institutional investors and supported by strength on the Tokyo bourse.
Property stocks were supported by the strong debut of Guangzhou Real Estate
Investment Trust, which advanced strongly from its IPO price, with Henderson
Land, Wharf Holdings and Sun Hung Kai Properties among the best performers.
Meanwhile, banking stocks were flat to higher, with HSBC Holdings edging
higher but Bank of East Asia remaining unchanged.
In Korea, the key share index rose to a new all time high on strength in
large capitalisation stocks and positive regional sentiment. In the technology
sector, Samsung Electronics rose for the third straight day, with Hynix
Semiconductor also advancing, while banks also gained, with Kookmin surging on
strong institutional support owing to moves by the bank to strengthen internal
controls. POSCO rose after saying that it will cut steel prices, while Hyundai
Motor and Kia Motors jumped on expectations that they will benefit from falls
in the price of steel.
Meanwhile, Taiwan's market closed higher led by China Steel and amid year-
end window dressing activity. China Steel surged after announcing a share buy-
back program, with other steel stocks following suit, while in the banking
sector Chinatrust Financial Holding and Fubon Financial Honding ended higher.
In the technology sector, TSMC and UMC advanced, while chip packaging and
testing companies Advanced Semiconductor Engineering and Silliconware
Precision Engineering both soared.
Finally, the market in Australia ended at an all time closing high on
strength in resources stocks and banks. BHP Billiton and Rio Tinto closed
sharply higher, while oil stocks benefited from the rise in the oil price,
with Santos and Woodside Petroleum up, although shares in gold miners slipped,
reflecting a fall in the price of the precious metal. Elsewhere, Multiplex
continued its fall after acknowledging "material risk" that U.K.'s Wembley
Stadium will not be completed on schedule.
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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