Wednesday 28 December, 10:00 AM GMT (Thomson Financial): Asian markets
ended mixed in the wake of falls in U.S. markets. Japan's market surged on the
outlook for the domestic economy, while Hong Kong's market fell, in line with
Wall Street. Meanwhile, the Korean bourse fell on foreign selling, while
Taiwan's market closed little changed. Finally, the market in Australia rose
on strength in gold miners and banking stocks.
Tokyo's Nikkei-225 Index surged by 225.21 points or 1.41% to 16,194.61,
while Hong Kong's Hang Seng Stock Index weakened by 82.04 points or 0.54% to
15,101.54. Korea's Kospi Index lost 5.39 points or 0.39% to 1368.16, while
Taiwan's Weighted Index eased by 7.19 points or 0.11% to 6524.40. Australia's
All Ordinaries Index gained 26.50 points or 0.57% to 4697.30.
Japan's market closed at a new five year high on strong economic data as
investors bought blue chip stocks across the sectors. Industrial output rose a
seasonally adjusted 1.4% compared to the previous month, but while this was
below expectations, it still represented the fourth continuous rise.
Technology stocks, construction companies and retailers all rose strongly.
Technology stocks were strong gainers, with consumer electronics giant
Sony leading the gainers as NEC Electronics rose and Toshiba inched higher,
while Rohm, Advantest and Tokyo Seimitsu all advanced strongly.
Construction companies gained on the strong outlook for the domestic
economy, with Shimizu, Obayashi and Kajima all posting sterling gains, while
among retailers, Takashimaya rose sharply after announcing solid nine-month
earnings on cost-cuts and a come back in store sales. Elsewhere, car
manufacturers rose, with Honda, Toyota and Suzuki all posting solid gains.
Hong Kong's market ended in negative territory, following losses on Wall
Street amid cautious trading ahead of the new year holiday. Property stocks
were flat to lower, with Cheung Kong Holdings and Sun Hung Kai Properties
falling, although Hang Lung Properties and Henderson Land remained flat, while
banking stocks were mixed, with HSBC Holdings falling but Bank of East Asia
rising.
In Korea, the key share index closed lower, tracking the heavy losses on
Wall Street. Technology stocks were mixed, with heavyweight Samsung
Electronics ending lower, although Hynix Semiconductor rose, while banking
stocks were mostly lower, with Kookmin Bank, Korea Exchange Bank and Shinhan
Financial all weakening. Elsewhere, car manufacturers lost ground, with
Hyundai Motor and Kia Motors ending in negative territory on profit taking.
Meanwhile, Taiwan's market ended fractionally lower as concerns that
technology heavyweight UMC may delist from the bourse weighed on sentiment.
UMC's Chairman said that the fine imposed on it by the Taiwan Stock Exchange
following its financial restatement was unreasonable and that they may
consider delisting from the Taiwan Stock Exchange. With UMC falling heavily,
rival TSMC also slipped. Meanwhile, mobile phone makers helped to support the
market, with Compal Communications and Arima Communication both rising on
expectations of strong first quarter demand.
Finally, the market in Australia closed at a new record high on strength
in gold miners and banking stocks. Gold stocks rallied on hopes of
consolidation in the sector and continued strength in the price of the
precious metal, with Newcrest Mining, Oxiana and Lihir Gold all posting strong
gains, while banking stocks also rose, with Commonwealth Bank, National
Australia Bank and Westpac advancing. Elsewhere, the expected heavy sell off
in PBL shares failed to materialise following the death of Kerry Packer,
although the stock did end lower.
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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