Thursday 22 December, 10:00 AM GMT (Thomson Financial): Asian markets
ended lower on profit taking following healthy gains yesterday. Japan's
market closed slightly lower on profit taking, in the wake of the surge
yesterday, while shares in Hong Kong also endured profit taking.
Meanwhile, the Korean bourse slipped as investors locked in recent gains,
while Taiwan's market suffered the same fate. Finally, the market in
Australia ended lower in mixed trade.
Tokyo's Nikkei-225 Index eased 16.20 points or 0.10% to 15941.37, while
Hong Kong's Hang Seng Stock Index weakened 38.89 points or 0.26% to
15182.53. Korea's Kospi Index slipped 3.29 points or 0.24% to 1350.87,
while Taiwan's Weighted Index dropped 54.69 points or 0.85% to 6417.20.
Australia's All Ordinaries Index softened 7.90 points or 0.17% to 4652.00.
Japan's market closed fractionally lower as investors sought to lock in
profits following the recent strong run and ahead of the year-end and the
national holiday tomorrow owing to the emperor's birthday. The technology
sector was mixed, providing some strong gainers and heavy fallers, while
real estate stocks and retailers slipped.
In the technology sector, TDK and Alps plunged on news that U.S. based
Seagate Technology entered into a definitive agreement to acquire Maxtor,
a major client of both companies, while ratings downgrades from leading
brokers added to selling pressure on TDK. On a brighter note in the
sector, Sony jumped on a report that a Saudi investor wants to invest in
the world's second largest consumer electronics company, while Sanyo
rallied after it said it will place new preferred shares to aid in its
restructuring.
Real estate stocks were subjected to profit taking following strong gains
coming in the wake of the sale of a large real estate development in
central Tokyo, with Mitsubishi Real Estate dropping and Heiwa Real Estate
slipping. Meanwhile, retailers came under pressure in the wake of recent
strength, with Aeon and Isetan falling.
Hong Kong's market closed lower on profit taking and on political concerns
following legislators' rejection of the government's proposed electoral
reforms. Property stocks were lower, with Henderson Land dropping sharply
as Cheung Kong Holdings and Wharf Holdings also slipped, while in the
financial sector HSBC Holdings weakened, with BOC Hong Kong lower but Bank
of East Asia remaining unchanged. Elsewhere, computer maker Lenovo fell
heavily, although CNOOC gained on rising oil prices.
In Korea, the key share index ended lower on profit taking, although
strength in the technology sector limited the falls. Financial stocks were
weaker, with Shinhan, Woori and Korea Exchange Bank all falling, while in
the automobiles sector Hyundai Motor and Kia Motors closed sharply lower.
However, the technology sector provided some support to the market, with
Samsung Electronics, Hynix Semiconductor and LG Electronics posting
excellent gains on expectations of a strong earnings outlook for the
companies.
Meanwhile, Taiwan's market fell on profit taking following its 20-month
high in the previous session. In the technology sector, TSMC and UMC fell,
while recent strong performer Advanced Semiconductor Engineering dipped as
did Siliconware Precision Industry. Meanwhile, in the financial sector,
Fubon Financial Holding dropped after its unit that runs the state
computer lottery was outbid for the next license, while Chinatrust
Financial fell, despite having won the bid.
Finally, the market in Australia closed fractionally lower. Financial
stocks retreated following recent strength, with National Australia Bank,
Commonwealth Bank and ANZ all falling, while resources heavyweights were
mixed, with BHP Billiton softer but Rio Tinto firmer. Gold miners rose as
selling pressure on the gold price waned, with Newcrest Mining and Lihir
Gold jumping, while elsewhere, Wattyl surged after private equity group
Allco made a hostile bid for the paint maker.
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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