Thursday 29 December, 10:00 AM GMT (Thomson Financial): Asian markets
ended mostly higher on year end window dressing. Japan's market rose on
optimism about the economic recovery, while Hong Kong's market slipped on
futures related activity. Meanwhile, the Korean bourse closed higher on
strong economic news, while Taiwan's market rose as investors bought flat
panel makers. Finally, the market in Australia rose on strength in
resources stocks.
Tokyo's Nikkei-225 Index jumped 149.59 points or 0.92% to 16344.20, while
Hong Kong's Hang Seng Stock Index slipped 55.95 points or 0.37% to 15045.59.
Korea's Kospi Index gained 11.21 points or 0.82% to 1379.37, while Taiwan's
Weighted Index rose 51.13 points or 0.78% to 6575.53. Australia's All
Ordinaries Index firmed 17.90 points or 0.38% to 4715.20.
Japan's market rose to a new five year high amid investor optimism that
the economy will continue its recovery, while exporters were supported by the
view that the yen seems to be stabilising against the U.S. dollar. Retailers
and technology stocks led the market higher.
Retailers came into focus on expectations of continued improvement in the
domestic economy, with Seven & I Holdings surging in the wake of news earlier
this week of its merger with Millennium Retailing, while Mitsukoshi and
Takashimaya both posted strong gains.
In the technology sector, many stocks benefited from the stabilisation of
the yen against the greenback, with high technology stocks Kyocera and
Advantest rising strongly, while NEC Electronics advanced and consumer
electronics giant Sony enjoyed a strong gain. Softbank recovered losses from
Wednesday after it went ex dividend, with Yahoo Japan also rising sharply.
Hong Kong's market ended the day lower, retracing gains made in the
morning session on futures related activity. Property stocks ended in negative
territory, with Cheung Kong Holdings, Sun Hung Kai Properties and Sino Land
all falling, while banks were mixed, with HSBC Holdings and Hang Seng Bank
losing out but BOC Hong Kong gaining.
In Korea, the key share index closed at a new all time high on year end
window dressing from investors and strong economic news as data showed that
industrial production rose by 12.2% year-on-year on robust exports and a
recovery in domestic consumption. Securities houses rose sharply after the
government said it plans to allow brokers to deal with certain banking
services as part of financial reforms, with Samsung Securities and Hyundai
Securities both soaring. Elsewhere, technology heavyweight Samsung Electronics
slipped, although Hynix Semiconductor surged.
Meanwhile, Taiwan's market rose to a 20 month high in increased turnover
as investors bought flat panel makers. Chi Mei Optoelectronics, Taiwan's
second largest flat panel maker by revenue surged on the outlook for LCD
televisions, with rival AU Optronics also rising, while mobile phone makers
were in focus, with Compal Communications advancing. Heavyweight chip maker
TSMC fell after Royal Philips Electronics bought 1.928 billion of its shares
from its Philips Electronics Industries Taiwan, while UMC edged higher.
Finally, the market in Australia closed higher on strength in resources
stocks in light trade. Heavyweights BHP Billiton and Rio Tinto both gained,
with gold miners rising on an increase in the price of the precious metal,
while Newcrest Mining and Lihir Gold both rose. Oil stocks also came into
focus after oil prices firmed, with Santos and Woodside Petroleum advancing,
while PBL recovered some of its losses made Wednesday following the death of
chairman Kerry Packer.
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
back to top
