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Asian Markets End Mixed On Jitters About Recovery
The major Asian markets ended mixed on Thursday following weak closing in Wall Street where the major averages ended weaker following a drop in commodity prices. The markets in Asia such as Australia, Hong Kong, South Korea, Singapore and Taiwan ended in negative territory, while the markets in Japan, India, China and Indonesia ended in positive territory with marginal gains.
In Japan, the benchmark Nikkei 225 Index ended at 10,544, representing a gain of 173.68 points, or 1.67%, while the broader Topix index of all first section stocks was up 10.76 points, or 1.15%, to 950.
On the economic front, the Ministry of Finance said that the merchandise trade surplus for August was 185.7 billion yen, following a revised 377.9 billion yen surplus in the previous month. Analysts expected a trade surplus of 157 billion yen for the month. The report revealed that exports declined 36% an an annual basis while imports were down 41.3% over the same month last year.
In a separate statement, the Ministry of Economy, Trade and Industry revealed that all-industry activity index rose 0.5% month-on-month in July, faster than a revised 0.2% increase recorded in the previous month.
Stocks in the chemicals, precision equipments and metals advanced on hopes of increased demand and better outlook for the near future.
Among the precision instruments, Terumo Corp. gained 2.64%, Nikon Corp. advanced 2.79%, Olympus Corp. rose 1.81% and Konica Minolta Holdings surged up 4.35%.
In chemicals space, Shin-Etsu Chemicals surged up 4.17%, Kao Corp soared up 7.35% and Nissan Chemical Industries advanced 1.94%.
Among the non-ferrous metal stocks, SUMCO Corp. surged up 5.20%, Sumitomo Metal Mining added 1.29%, and Mitsui Mining and Smelting Co., added 0.80%.
Major banks ended in negative territory on concerns about consumer finance companies after Aiful revealed that it would reduce the work force by as much as 44% and projected a yearly loss. Sumitomo Mitsui Financial declined 3.79%, Mizuho Financial slumped 4.64% an Resona Holdings edged down 0.08%.
In Australia, the benchmark S&P/ASX200 Index lost 0.69% or 32.90 points to close at 4,701, while the All-Ordinaries Index ended at 4,708, representing a loss of 33.00 points, or 0.70%.
On the economic front, a report released by the Housing Industry Association revealed that the sale of new homes in the country surged 11% in August compared to the previous month, marking the biggest spike in sales in more than three years. The report further stated that the number of detached houses sold during the month rose 11.8%, while the number of apartments sold increased 7.5%.
Releasing the 72-page semi-annual Financial Stability Review, Reserve Bank of Australia noted that the Australian financial system had remained resilient throughout the crisis period owing to a combination of factors, such as the mild nature of the overall economic slowdown in Australia, the lack of large-scale exposure to structured securities, and conservative lending practices, particularly in the case of housing. The central bank also noted that though the conditions in the global financial system have "improved significantly" since the last 6 months, the situation still remains challenging.
Metals and mining stocks declined following softness in the commodity prices in the international market. BHP Billiton declined 1.64%, Rio Tinto lost 1.33%, Fortescue Metals fell 2.65%, Gindalbie Metals slumped 3.19%, Iluka Resources dropped 2.19% and Mincor Resources decreased 1.72%.
Oil stocks also ended lower following sharp drop in crude oil prices. Woodside Petroleum fell 2.64%, Santos edged down 0.26% and Oil Search slipped 0.92%.
Gold stocks also ended in negative territory after bullion prices declined in the bullion market. Lihir Gold lost 2.27%, Newcrest Mining fell 2.18% and Sino Gold Mining shed 1.39%.
Retail stocks also ended weaker. David Jones slumped 3.89%, Harvey Norman slipped 0.48%, Wesfarmers declined 1.16% and Woolworths edged down 0.21%.
Mixed trading was witnessed among the banking stocks. Commonwealth Bank of Australia remained unchanged from previous close and Westpac Banking Corp. advanced 1.03%. However, ANZ Bank slipped 0.38% and National Australia Bank declined 1.39%.
In Hong Kong, the Hang Seng Index ended sharply lower with a loss of 544.79 points, or 2.52%, at 21,052, following cues from Wall Street where the major averages drifted lower in late selling after Fed Reserve left interest rates unchanged and reiterated the positive outlook for the economy. Softening of the commodity prices also impacted market sentiment. Traders preferred to take profits following recent gains. All the components in the index, except one, ended in the negative territory..
In South Korea, the benchmark KOSPI Index ended below the psychological 1,700-mark with a loss of 17.59 points, or 1.03%, at 1,694, as traders preferred to lock-in gains following the recent rally, taking cues from Wall Street where the major indices ended lower in late selling despite positive comments from the Federal Reserve. Foreign institutional investors also turned net sellers and opted for profit taking.
After trading in negative territory for most of the day, the Indian market ended with modest gains on Thursday, helped by short covering on the expiry day of current month F&O contracts. The BSE Sensex ended at 16,781, up 62 points or 0.37% from its previous close, and the S&P CNX Nifty rose 17 points or 0.33% to 4,987.
Among the other major markets in the region, China's Shanghai Composite Index gained 10.83 points or 0.38% to close at 2,854 and Indonesia's Jakarta Composite Index ended at 2,469, representing a gain of 11.92 points, or 0.48%. However, Singapore's Strait Times Index slipped 0.69% or 18.51 points, to close at 2,667 and Taiwan's Weighted Index declined 52.54 points, or 0.71% to close at 7,324. |