Most Asian markets end higher
Friday, 1 August 2008
HONG KONG, July 31 (AP): Most Asian stock markets rose Thursday, as optimism about US jobs and a Federal Reserve move to help investment banks offset a spike in oil prices.
The Japanese Nikkei 225 index inched almost 0.10 per cent higher to 13,376.81. Markets in South Korea, Australia, Hong Kong and Singapore also gained.
Investors got some reassurance about US financials after the country's central bank acted to expand its lending programme to Wall Street firms that have been hurt by the yearlong tightening in credit markets. Bank and brokerage stocks climbed on the news, helping lift the Dow Jones index more than 1.60 per cent.
A surprisingly strong reading on US jobs also gave traders some encouragement. The measure, showing private sector employment rose by 9,000 in July after falling in recent months, was a good sign for the world's largest economy. It also raised hopes that the US Labor Department's take on the job market, to be released Friday, would beat expectations.
After oil shot up more than US$4.0 overnight, though, many investors were holding out for more insight on the US economy and the direction of world commodity prices before any big buys, analysts said.
"It's somewhat of a mixed picture here," said Alex Tang, head of research at Core Pacific-Yamaichi in Hong Kong. "Investors are not quite convinced that the worst is over ... but there's not much selling pressure either. So the markets could move sideways for now."
By evening in Singapore, light, sweet crude for September delivery was changing hands around $126 a barrel in electronic trading on the New York Mercantile Exchange. The contract soared $4.58 overnight after an unexpected drop in US gasoline supplies.
Japan's modest gain was partly the result of technical buying, with some investors cautious over Japanese corporate earnings prospects.
"With high oil prices and fears over a slowdown in the global economy, investors were worried that Japanese companies, mainly exporters, might not do well for the upcoming quarters," said Masatoshi Sato, market analyst at Mizuho Investors Securities Company Limited.
Japan's top automaker, Toyota Motor Corporation, fell 2.30 per cent. Honda Motor Company shed 0.30 per cent.
Nintendo Company dropped 8.70 per cent after the maker of Super Mario and Pokemon video games Wednesday kept its profit forecast for the fiscal year through March 2009.
Sony Corporation rose 0.70 per cent. Its rival Matsushita Electrical Industrial Company, which sells products under its Panasonic brand, added 0.40 per cent.
In Hong Kong, the blue-chip Hang Seng Index pared some of its gains to end about 0.20 per cent higher at 22,731.10 points in thin trading.
Upstream oil producer CNOOC was among the day's best performers, up 3.70 per cent thanks to higher crude prices. Refiner China Petroleum & Chemical Corporation, or Sinopec, lost 1.80 per cent.
Shipping firm China Cosco Holdings also was higher. Its shares surged 5.50 per cent on an upgrade from analysts at JPMorgan Chase & Company and speculation it might be added to the Hang Seng Index.
In financials, HSBC rose 0.30 per cent. The bank is due to report its results Monday.
Mainland China shares, meanwhile, extended losses as investors shrugged off calls by the market regulator to keep prices stable ahead of the Beijing Olympic games.
The benchmark Shanghai Composite Index fell 2.20 per cent to 2,775.72. The Shenzhen Composite Index dropped 2.90 per cent to 827.59.
Comments by China Securities Regulatory Commission chairman urging securities funds to help keep the markets stable, carried in state-run newspapers, appeared to do little to boost sentiment.
"Buying sentiment is weak on disappointment over the lack of any actual moves taken by government. I'm afraid that most investors are still waiting for a real chance to trade, not this so-called Olympics market," said Zhang Yang, an analyst for Oriental Securities in Shanghai.
Heavyweight airlines and refiners led the decline on oil's rebound. Air China dropped 5.50 per cent and China Eastern Airlines sank 4.30 per cent.
Property shares also declined, with Poly Real Estate Group losing 7.40 per cent.
Elsewhere, markets in Taiwan and the Philippines also fell.
The Japanese Nikkei 225 index inched almost 0.10 per cent higher to 13,376.81. Markets in South Korea, Australia, Hong Kong and Singapore also gained.
Investors got some reassurance about US financials after the country's central bank acted to expand its lending programme to Wall Street firms that have been hurt by the yearlong tightening in credit markets. Bank and brokerage stocks climbed on the news, helping lift the Dow Jones index more than 1.60 per cent.
A surprisingly strong reading on US jobs also gave traders some encouragement. The measure, showing private sector employment rose by 9,000 in July after falling in recent months, was a good sign for the world's largest economy. It also raised hopes that the US Labor Department's take on the job market, to be released Friday, would beat expectations.
After oil shot up more than US$4.0 overnight, though, many investors were holding out for more insight on the US economy and the direction of world commodity prices before any big buys, analysts said.
"It's somewhat of a mixed picture here," said Alex Tang, head of research at Core Pacific-Yamaichi in Hong Kong. "Investors are not quite convinced that the worst is over ... but there's not much selling pressure either. So the markets could move sideways for now."
By evening in Singapore, light, sweet crude for September delivery was changing hands around $126 a barrel in electronic trading on the New York Mercantile Exchange. The contract soared $4.58 overnight after an unexpected drop in US gasoline supplies.
Japan's modest gain was partly the result of technical buying, with some investors cautious over Japanese corporate earnings prospects.
"With high oil prices and fears over a slowdown in the global economy, investors were worried that Japanese companies, mainly exporters, might not do well for the upcoming quarters," said Masatoshi Sato, market analyst at Mizuho Investors Securities Company Limited.
Japan's top automaker, Toyota Motor Corporation, fell 2.30 per cent. Honda Motor Company shed 0.30 per cent.
Nintendo Company dropped 8.70 per cent after the maker of Super Mario and Pokemon video games Wednesday kept its profit forecast for the fiscal year through March 2009.
Sony Corporation rose 0.70 per cent. Its rival Matsushita Electrical Industrial Company, which sells products under its Panasonic brand, added 0.40 per cent.
In Hong Kong, the blue-chip Hang Seng Index pared some of its gains to end about 0.20 per cent higher at 22,731.10 points in thin trading.
Upstream oil producer CNOOC was among the day's best performers, up 3.70 per cent thanks to higher crude prices. Refiner China Petroleum & Chemical Corporation, or Sinopec, lost 1.80 per cent.
Shipping firm China Cosco Holdings also was higher. Its shares surged 5.50 per cent on an upgrade from analysts at JPMorgan Chase & Company and speculation it might be added to the Hang Seng Index.
In financials, HSBC rose 0.30 per cent. The bank is due to report its results Monday.
Mainland China shares, meanwhile, extended losses as investors shrugged off calls by the market regulator to keep prices stable ahead of the Beijing Olympic games.
The benchmark Shanghai Composite Index fell 2.20 per cent to 2,775.72. The Shenzhen Composite Index dropped 2.90 per cent to 827.59.
Comments by China Securities Regulatory Commission chairman urging securities funds to help keep the markets stable, carried in state-run newspapers, appeared to do little to boost sentiment.
"Buying sentiment is weak on disappointment over the lack of any actual moves taken by government. I'm afraid that most investors are still waiting for a real chance to trade, not this so-called Olympics market," said Zhang Yang, an analyst for Oriental Securities in Shanghai.
Heavyweight airlines and refiners led the decline on oil's rebound. Air China dropped 5.50 per cent and China Eastern Airlines sank 4.30 per cent.
Property shares also declined, with Poly Real Estate Group losing 7.40 per cent.
Elsewhere, markets in Taiwan and the Philippines also fell.