Most Asian Markets Advance; Nikkei Ends Down Off Lows The major markets across the Asia-Pacific region, excluding Japan, advanced on Tuesday, led by financials and commodities despite the weaker closing of the U.S markets overnight.
Crude oil rallied sharply on Monday amid expectations the Organization of Petroleum Exporting Countries, or OPEC, will lower output again at its next meeting. Light sweet crude for April delivery closed at a 2-month closing high of $47.07 on the New York Mercantile Exchange, up $1.55 from the previous session. In the Asian session Tuesday, crude was up $0.26 at $47.33 a barrel in electronic trading.
HSBC Holdings, listed in the Hong Kong Stock Exchange, triggered the positive trend, rising more than 14% during the trading session after declining by over 24% on Monday. Higher oil prices and speculation that the Organization of Petroleum Exporting Countries will further reduce production levels at the meeting in Vienna helped oil stocks post gains.
Oversold conditions in many stocks across the region also helped the indices to rally; however, the markets are unlikely to sustain the momentum for want of additional data that could infuse confidence among the investors.
The stock market in Australia ended in positive territory on Tuesday, led by banks and oil stocks.
The benchmark S&P/ASX 200 Index gained 0.95% or 30 points to close at 3,184.50, while the broader All Ordinaries Index gained 0.69% or 21.50 points to close at 3143.20. However, volume was relatively thin, as most investors preferred to adopt a wait-and-watch approach amid a gloomy outlook for the global economy.
The Australian stocks, which opened weaker, staged a recovery in the afternoon, propelled by bank stocks. National Australia Bank gained 1.56%, and Commonwealth Bank surged up more than 4%. Westpac Banking gained 3.46%, and ANZ Bank advanced 1.68%.
Among energy stocks, Woodside Petroleum gained 3.29% and Santos was up 4%. Mining companies BHP Billiton and Rio Tinto also ended in the green, with gains of 0.55% and 1.68% respectively.
Mixed trading was witnessed among media stocks. While Consolidated Media gained 0.26%, Fairfax and News Corp. ended in negative territory.
Gold-related stocks declined following a drop in the price of bullion in the local market. The price of Gold in Sydney declined US$22.60 an ounce to US$914.40 per ounce, compared to its previous close at US$937.60.
Newcrest Mining as well as Newmont Mining shed 2% each, while Lihir Gold slipped 3.07%.
The stock market in Tokyo declined for the third consecutive day on concerns about the global economy. Concerns about rising oil prices and a drop in global demand impacting corporate profits outweighed the positive sentiment generated by a recovery in financial stocks, leading the indices to close in the red amid volatile trading.
The benchmark Nikkei 225 index closed at a fresh 26-year low of 7054.38, down 31.05 points or 0.4%, while the broader TOPIX Index declined 1% or 7.03 points to close at 703.50.
Utility companies and drug makers were the major losers in the market. However, banking stocks, real estate firms and insurance companies advanced.
Drug maker Astellas Pharma shed 5.30% and Takeda Pharmaceutical extended sharp losses from Monday by another 3.92% amid worries about the companies' competitiveness following Merck's deal to acquire Schering-Plough.
Utility companies such as Tokyo Electric and Tokyo Gas firm declined 3.6% each on concerns that rising oil prices might impact the profits.
Banks gained, helping to partially offset the slide in the markets and helped the benchmark Index close much above the psychological 7,000-mark. Mitsubishi UFJ Financial gained 3.67% and Mizuho Financial advanced 2.34% during the trading session. Sumitomo Mitsui Financial was up 1.7%.
The Hang Seng Index in Hong Kong gained 3.08%, or 349.47 points, to close at 11,694.05.
HSBC Holdings led the rally with a gain of about 14%. The stock declined sharply by more than 20% on Monday on concerns about its ability to raise funds in the market and weaker earnings results. News that the Hong Kong's Securities and Trading Commission will investigate into the sharp drop on Monday helped the stock to open stronger and rally in the session.
Hang Seng Bank also advanced during the trading session. CNOOC gained more than 6% on higher oil prices.
The benchmark KOSPI index in South Korea gained 2% to close at 1092.20, led by financial stocks. Woori Finance gained as much as 15% while other financial stocks such as KB Financial, the holding firm of Kookmin Bank, and Shinhan Financial also advanced.
The markets in India and Malaysia are closed for public holiday Among other markets in the region, China' Shanghai Composite Index gained 1.88% or 39.82 points to close at 2,158.57; Singapore's Strait Times Index was up 1.98% or 28.80 points to close at 1,485.75; and Taiwan's Index advanced about 1% or 43 points to close at 4671.02. |