Asian markets mixed after US stock rally
Sunday, 9 December 2007
BANGKOK (Thailand), Dec 8 (AP): Asian markets were mixed Friday as caution crept back into some bourses despite another strong showing on Wall Street on the US government's plan for dealing with the country's credit crisis.
Benchmark indices in Hong Kong, Indonesia, Malaysia, South Korea and Thailand lost ground as investors took the view that an expected cut in Federal Reserve interest rates next week had already been factored into their markets.
Japan's benchmark Nikkei 225 average, though, hit a one-month high as Japanese investors were heartened by the renewed confidence in the United States, a key market for Japanese goods.
The Nikkei added 0.5 per cent to close at 15,956.4 points, marking its highest finish since Nov. 7.
The Dow rose 1.3 per cent Thursday on the view that companies hurt by the housing crisis will benefit from the US government plan to help financially stretched homeowners.
Investors also widely expect the US economy to get additional relief from a rate cut when Fed policymakers meet Tuesday.
"Japanese stocks have been left relatively undervalued. They should keep rallying back toward the end of the year," said Shigeharu Shiraishi, managing director of Societe Generale Asset Management.
Toyota Motor Corp. added 1.6 per cent. Steelmaker JFE Holdings added 4.5 per cent.
Home builders also rose on a report of housing tax breaks. Mitsubishi Estate Co. climbed 2.1 per cent.
Decliners included Mitsubishi Financial Group, down 2.2 per cent, and Mizuho Financial Group, off 1.7 per cent. Sony Corp. also fell, losing 1.5 per cent.
Meanwhile, Hong Kong's benchmark index tumbled 2.4 per cent to 28,842.5 as investors sold property developers boosted recently by the expectations of a US rate cut.
In Tokyo currencies, the dollar was trading at 111.26 yen at 4:50 p.m. (0750 GMT) Friday, down from 111.40 yen late Thursday in New York. The euro fell to US$1.4614 from US$1.4633.
Elsewhere:
BANGKOK: Thailand's main stock index fell 0.5 per cent to 841.4 ahead of a long weekend. Thai financial markets will be closed Monday.
JAKARTA: Indonesian shares fell as profit-taking reversed gains chalked up in the morning session. The benchmark stock measure fell 0.6 per cent to 2,778.9.
KUALA LUMPUR: Malay-sia's Kuala Lumpur Composite Index fell 0.4 per cent to 1,434.0 in thin volume.
MANILA: Philippine shares climbed on hopes the central bank will cut interest rates next week. Gains were limited as some investors began pocketing gains from a seven-day rally. The Philippine Stock Exchange Index rose 0.3 per cent to 3,745.4 in a volatile session.
SEOUL: South Korean shares retreated as investors grew cautious over recent sharp gains despite continuing upward trends in the US and other Asian markets. The Korea Composite Stock Price Index, or Kospi, fell 1 per cent to close at 1,934.3.
SHANGHAI: Chinese stocks rose as expectations of stronger demand boosted buying of steelmakers, though trading remained thin ahead of major initial public offerings. The benchmark Shanghai Composite Index gained 1.1 per cent to finish at 5,091.8. The Shenzhen Composite Index rose 1.6 per cent to 1,318.6.
SINGAPORE: Singapore shares rose, but most of their earlier gains were wiped out as investors remained cautious ahead of the release of US November non-farm payroll data. The Straits Times Index finished 0.2 per cent higher at 3558.0. It hit 3,621.8 during the session.
SYDNEY: Australia's benchmark stock index hit a four-week high, buoyed by short-term optimism as traders await the US non-farm payroll data and the expected rate cut from the US Fed. The benchmark S&P/ASX 200 index gained 0.8 per cent to close at 6,654.7.
TAIPEI: Taiwan's stock index rose to a 3-week high on the overnight Wall Street rally. The Weighted Price Index of the Taiwan Stock Exchange rose 0.32 per cent to 8,722.38, its highest close since Nov.16.
WELLINGTON: New Zealand stocks rose as blue chips rallied, tracking Wall Street and other offshore markets. The benchmark NZX-50 advanced 1.2 per cent to 4,092.9.
Benchmark indices in Hong Kong, Indonesia, Malaysia, South Korea and Thailand lost ground as investors took the view that an expected cut in Federal Reserve interest rates next week had already been factored into their markets.
Japan's benchmark Nikkei 225 average, though, hit a one-month high as Japanese investors were heartened by the renewed confidence in the United States, a key market for Japanese goods.
The Nikkei added 0.5 per cent to close at 15,956.4 points, marking its highest finish since Nov. 7.
The Dow rose 1.3 per cent Thursday on the view that companies hurt by the housing crisis will benefit from the US government plan to help financially stretched homeowners.
Investors also widely expect the US economy to get additional relief from a rate cut when Fed policymakers meet Tuesday.
"Japanese stocks have been left relatively undervalued. They should keep rallying back toward the end of the year," said Shigeharu Shiraishi, managing director of Societe Generale Asset Management.
Toyota Motor Corp. added 1.6 per cent. Steelmaker JFE Holdings added 4.5 per cent.
Home builders also rose on a report of housing tax breaks. Mitsubishi Estate Co. climbed 2.1 per cent.
Decliners included Mitsubishi Financial Group, down 2.2 per cent, and Mizuho Financial Group, off 1.7 per cent. Sony Corp. also fell, losing 1.5 per cent.
Meanwhile, Hong Kong's benchmark index tumbled 2.4 per cent to 28,842.5 as investors sold property developers boosted recently by the expectations of a US rate cut.
In Tokyo currencies, the dollar was trading at 111.26 yen at 4:50 p.m. (0750 GMT) Friday, down from 111.40 yen late Thursday in New York. The euro fell to US$1.4614 from US$1.4633.
Elsewhere:
BANGKOK: Thailand's main stock index fell 0.5 per cent to 841.4 ahead of a long weekend. Thai financial markets will be closed Monday.
JAKARTA: Indonesian shares fell as profit-taking reversed gains chalked up in the morning session. The benchmark stock measure fell 0.6 per cent to 2,778.9.
KUALA LUMPUR: Malay-sia's Kuala Lumpur Composite Index fell 0.4 per cent to 1,434.0 in thin volume.
MANILA: Philippine shares climbed on hopes the central bank will cut interest rates next week. Gains were limited as some investors began pocketing gains from a seven-day rally. The Philippine Stock Exchange Index rose 0.3 per cent to 3,745.4 in a volatile session.
SEOUL: South Korean shares retreated as investors grew cautious over recent sharp gains despite continuing upward trends in the US and other Asian markets. The Korea Composite Stock Price Index, or Kospi, fell 1 per cent to close at 1,934.3.
SHANGHAI: Chinese stocks rose as expectations of stronger demand boosted buying of steelmakers, though trading remained thin ahead of major initial public offerings. The benchmark Shanghai Composite Index gained 1.1 per cent to finish at 5,091.8. The Shenzhen Composite Index rose 1.6 per cent to 1,318.6.
SINGAPORE: Singapore shares rose, but most of their earlier gains were wiped out as investors remained cautious ahead of the release of US November non-farm payroll data. The Straits Times Index finished 0.2 per cent higher at 3558.0. It hit 3,621.8 during the session.
SYDNEY: Australia's benchmark stock index hit a four-week high, buoyed by short-term optimism as traders await the US non-farm payroll data and the expected rate cut from the US Fed. The benchmark S&P/ASX 200 index gained 0.8 per cent to close at 6,654.7.
TAIPEI: Taiwan's stock index rose to a 3-week high on the overnight Wall Street rally. The Weighted Price Index of the Taiwan Stock Exchange rose 0.32 per cent to 8,722.38, its highest close since Nov.16.
WELLINGTON: New Zealand stocks rose as blue chips rallied, tracking Wall Street and other offshore markets. The benchmark NZX-50 advanced 1.2 per cent to 4,092.9.