Asian markets mixed after US rate cut
Friday, 2 November 2007
BANGKOK, Nov 1 (AP): Asian markets mixed lower Thursday as investors digested the widely expected US rate cut overnight and turned their attention to domestic earnings reports and other local matters.
Japanese stocks rose for the second straight session as investors bought major exporters like Toyota and Sony after the US Federal Reserve lowered its key interest rate a quarter point Wednesday. The Nikkei index rose 0.80 per cent to 16,870.40 points.
"The US has shown its determination to keep the subprime loan problem from getting worse and the question is what's next for Japan. What will be positive for Japan is corporate earnings," said Hiroichi Nishi, equity manager with Nikko Cordial Securities.
A slight weakening in the yen also boosted demand for exporters. Toyota Motor Corporation climbed 2.70 per cent and Nissan Motor Company gained 4.10 per cent. Sony Corporation added 3.40 per cent.
In Hong Kong, shares rose, led by Chinese oil refiner Sinopec, after a hike in mainland fuel prices. Property companies, though, continued to fall after big gains in recent weeks.
The Hang Seng Index rose 140.30 points, or 0.50 per cent, to 31,492.9.
Analysts said valuations are rich and investors should brace themselves for a correction of up to 4,000 points despite ample liquidity.
"We believe the market is significantly ahead of its fundamentals, and an expensive market is a vulnerable market," Andrew Look, strategist with UBS Securities Asia Ltd., said in a research report. He maintained his year-end forecast of 28,000 for the benchmark index.
Chinese oil refiners rose after Beijing raised the prices of gasoline, diesel oil and aviation kerosene by about 10 per cent to narrow the gap between high global crude prices and domestic retail prices.
Sinopec, China's largest refiner by capacity, rose nearly 10 per cent to HK$12.76. Smaller peer PetroChina advanced 2.60 per cent to HK$19.9.
In contrast, property companies extended their losses after recent strong gains. UBS issued a report recommending investors take profit on Hong Kong real-estate firms, and cut its rating on local developers to marketweight from overweight.
"Property counters have surged quite rapidly over the past weeks and some developers have capitalised on the gains. There's word others may do the same," said YK Chan, fund manager with Phillip Securities.
MUMBAI: Indian shares ended lower Thursday after hitting an all-time high in intraday trading as investors took profits in blue-chip stocks. The Bombay Stock Exchange's benchmark index, the Sensex, hit an all-time high of 20,157 points as trading opened but the index fell sharply in afternoon trading to close at 19,724 points, down 0.60 per cent from Wednesday.
BANGKOK: Thailand's main stock index fell 0.50 per cent to 902.7 after failing to sustain an early rally. Energy stocks, which have been main driver of recent gains, now look overstretched, traders said.
JAKARTA: Indonesian shares rose to a record high, lifted by the overnight gains in the US after the Fed cut in its benchmark interest rate. The Jakarta Stock Exchange Composite index rose 2.30 per cent to 2,704.7.
KUALA LUMPUR: Malaysia's Kuala Lumpur composite index fell 0.30 per cent to 1,409.2. Plantation stocks bucked the trend on a bullish outlook for crude palm oil prices.
MANILA: Philippine financial markets are closed Thursday and Friday for All Saints Day. Trading will resume Monday, November 5.
SEOUL: South Korean shares edged lower as gains in airline shares were offset by declines in automaker stocks. The Korea Composite Stock Price Index, or Kospi, fell 0.10 per cent to 2,063.1, just below a record high of 2,085.5.
SINGAPORE: Singapore shares fell slightly as weak performances from banks and property companies offset gains in blue chips on the US rate cut. The Straits Times Index dropped 0.06 per cent to 3,803.6.
TAIPEI: Taiwan shares fell, their third straight session to decline after hitting a seven-year high at the beginning of the week. The Weighted Price Index of the Taiwan Stock Exchange dropped 1.20 per cent to 9,598.2.
Japanese stocks rose for the second straight session as investors bought major exporters like Toyota and Sony after the US Federal Reserve lowered its key interest rate a quarter point Wednesday. The Nikkei index rose 0.80 per cent to 16,870.40 points.
"The US has shown its determination to keep the subprime loan problem from getting worse and the question is what's next for Japan. What will be positive for Japan is corporate earnings," said Hiroichi Nishi, equity manager with Nikko Cordial Securities.
A slight weakening in the yen also boosted demand for exporters. Toyota Motor Corporation climbed 2.70 per cent and Nissan Motor Company gained 4.10 per cent. Sony Corporation added 3.40 per cent.
In Hong Kong, shares rose, led by Chinese oil refiner Sinopec, after a hike in mainland fuel prices. Property companies, though, continued to fall after big gains in recent weeks.
The Hang Seng Index rose 140.30 points, or 0.50 per cent, to 31,492.9.
Analysts said valuations are rich and investors should brace themselves for a correction of up to 4,000 points despite ample liquidity.
"We believe the market is significantly ahead of its fundamentals, and an expensive market is a vulnerable market," Andrew Look, strategist with UBS Securities Asia Ltd., said in a research report. He maintained his year-end forecast of 28,000 for the benchmark index.
Chinese oil refiners rose after Beijing raised the prices of gasoline, diesel oil and aviation kerosene by about 10 per cent to narrow the gap between high global crude prices and domestic retail prices.
Sinopec, China's largest refiner by capacity, rose nearly 10 per cent to HK$12.76. Smaller peer PetroChina advanced 2.60 per cent to HK$19.9.
In contrast, property companies extended their losses after recent strong gains. UBS issued a report recommending investors take profit on Hong Kong real-estate firms, and cut its rating on local developers to marketweight from overweight.
"Property counters have surged quite rapidly over the past weeks and some developers have capitalised on the gains. There's word others may do the same," said YK Chan, fund manager with Phillip Securities.
MUMBAI: Indian shares ended lower Thursday after hitting an all-time high in intraday trading as investors took profits in blue-chip stocks. The Bombay Stock Exchange's benchmark index, the Sensex, hit an all-time high of 20,157 points as trading opened but the index fell sharply in afternoon trading to close at 19,724 points, down 0.60 per cent from Wednesday.
BANGKOK: Thailand's main stock index fell 0.50 per cent to 902.7 after failing to sustain an early rally. Energy stocks, which have been main driver of recent gains, now look overstretched, traders said.
JAKARTA: Indonesian shares rose to a record high, lifted by the overnight gains in the US after the Fed cut in its benchmark interest rate. The Jakarta Stock Exchange Composite index rose 2.30 per cent to 2,704.7.
KUALA LUMPUR: Malaysia's Kuala Lumpur composite index fell 0.30 per cent to 1,409.2. Plantation stocks bucked the trend on a bullish outlook for crude palm oil prices.
MANILA: Philippine financial markets are closed Thursday and Friday for All Saints Day. Trading will resume Monday, November 5.
SEOUL: South Korean shares edged lower as gains in airline shares were offset by declines in automaker stocks. The Korea Composite Stock Price Index, or Kospi, fell 0.10 per cent to 2,063.1, just below a record high of 2,085.5.
SINGAPORE: Singapore shares fell slightly as weak performances from banks and property companies offset gains in blue chips on the US rate cut. The Straits Times Index dropped 0.06 per cent to 3,803.6.
TAIPEI: Taiwan shares fell, their third straight session to decline after hitting a seven-year high at the beginning of the week. The Weighted Price Index of the Taiwan Stock Exchange dropped 1.20 per cent to 9,598.2.