Asian stocks advance, Japanese market rebounds
Wednesday, 12 March 2008
BANGKOK, March 11 (AP): Asian markets advanced Tuesday as Hong Kong's key index rose for a second day and Japanese stocks rebounded from a two and a half-year low.
Malaysian stocks staged a mild recovery after the main index there plunged 9.5 per cent Monday in reaction the ruling coalition's electoral losses over the weekend.
However, analysts said the market's rebound may be short-lived due to prevailing political uncertainty and a slew of stock downgrades by brokerages after the ruling coalition Barisan Nasional emerged weaker from Saturday's election. The benchmark Kuala Lumpur Composite Index rose 2.8 per cent to 1,206.54.
Markets in South Korea, India and China rose. Down under, markets in Australia and New Zealand declined.
In Tokyo, investors bought shares in beaten-down sectors such as steel and real estate. The Nikkei 225 index rose 126.15 points, or 1.01 per cent, to 12,658.28. The index on Monday slumped nearly 2 per cent to its lowest level since September 1, 2005.
"The current level is showing that shares in Japan are being oversold," said Toshio Sumitani, senior strategist at Tokai Tokyo Research Centre.
Stocks could face turbulence ahead, with Japanese exporters expected to release their outlook for the next fiscal year along with their earnings reports in April. The Nikkei could fall below the 12,000-mark in the coming months depending on those earnings outlooks and how far U.S. stocks decline on worries over the US economy, said Hidenao Miyajima, chief strategist at Lehman Brothers.
Shares of steel producers and mining companies, which have tumbled recently, were Tuesday's notable gainers. JFE Holdings rose 5.3 per cent while Sumitomo Metal Mining climbed 5.3 per cent.
Real estate stocks were also higher. Mitsubishi Estate rose 5.6 per cent.
Hong Kong's market recovered from early losses as traders bought bank HSBC and PetroChina. The blue-chip Hang Seng Index rose 290.30 points, or 1.3 per cent, to 22,995.35.
The rebound indicates the Hang Seng Index has firm support around 22,000 points, some traders said, but trading will likely remain choppy in the near term on concerns of a slowing US economy.
"We see no sign that the market has already bottomed out. Investors have become more bearish on the US stock market and we expect economic data to remain weak," said Castor Pang, a strategist at Sun Hung Kai Financial.
Malaysian stocks staged a mild recovery after the main index there plunged 9.5 per cent Monday in reaction the ruling coalition's electoral losses over the weekend.
However, analysts said the market's rebound may be short-lived due to prevailing political uncertainty and a slew of stock downgrades by brokerages after the ruling coalition Barisan Nasional emerged weaker from Saturday's election. The benchmark Kuala Lumpur Composite Index rose 2.8 per cent to 1,206.54.
Markets in South Korea, India and China rose. Down under, markets in Australia and New Zealand declined.
In Tokyo, investors bought shares in beaten-down sectors such as steel and real estate. The Nikkei 225 index rose 126.15 points, or 1.01 per cent, to 12,658.28. The index on Monday slumped nearly 2 per cent to its lowest level since September 1, 2005.
"The current level is showing that shares in Japan are being oversold," said Toshio Sumitani, senior strategist at Tokai Tokyo Research Centre.
Stocks could face turbulence ahead, with Japanese exporters expected to release their outlook for the next fiscal year along with their earnings reports in April. The Nikkei could fall below the 12,000-mark in the coming months depending on those earnings outlooks and how far U.S. stocks decline on worries over the US economy, said Hidenao Miyajima, chief strategist at Lehman Brothers.
Shares of steel producers and mining companies, which have tumbled recently, were Tuesday's notable gainers. JFE Holdings rose 5.3 per cent while Sumitomo Metal Mining climbed 5.3 per cent.
Real estate stocks were also higher. Mitsubishi Estate rose 5.6 per cent.
Hong Kong's market recovered from early losses as traders bought bank HSBC and PetroChina. The blue-chip Hang Seng Index rose 290.30 points, or 1.3 per cent, to 22,995.35.
The rebound indicates the Hang Seng Index has firm support around 22,000 points, some traders said, but trading will likely remain choppy in the near term on concerns of a slowing US economy.
"We see no sign that the market has already bottomed out. Investors have become more bearish on the US stock market and we expect economic data to remain weak," said Castor Pang, a strategist at Sun Hung Kai Financial.