Asian Market recoups yesterday's losses

Sensex, Shanghai registers gains while Indonesia and Philippines registers losses

Stock markets in the Asian region closed higher on Wednesday 14 January 2009, despite the mixed cues overnight from Wall Street. On Wall Street, the Dow fell for the fifth straight day as investors fretted over what many expect will be a gloomy earnings season, overshadowing a boost in financials on bets US authorities will take toxic assets off banks' balance sheets.

The Dow Jones industrial average was down 25.41 points, or 0.30 percent, at 8,448.56. The Standard & Poor's 500 Index rose 1.53 points, or 0.18 percent, to 871.79. The Nasdaq Composite Index was up 7.67 points, or 0.50 percent, at 1,546.46.

However, investors remained cautious as the corporate earnings season gets underway this week.

The Japanese market broke its three-day losing streak by ending the session higher, while the Taiwan market pared early gains and closed lower. The markets in Hong Kong, Singapore and Australia recouped yesterday losses, while the markets in Philippines and Indonesia closed lower.

In the commodity market, crude oil rose for a second day in New York after OPEC leaders said they might deepen output cuts to bolster prices. Oil ministers from the Organization of Petroleum Exporting Countries agreed in Oran, Algeria, to cut supply by 9% to 24.845 million barrels a day starting 1 January 2009. Crude oil for February delivery rose as much as $1.41, or 3.73%, to $39.19 at 8:55 a.m. London time. Yesterday, futures rose 0.5%, recovering from a five-day 23% decline.

Brent crude oil for February settlement gained as much as 34 cents, or 0.76%, to $45.17 a barrel on London's ICE Futures Europe exchange. It rose 4.5% to settle at $44.83 a barrel yesterday. The contract expires tomorrow. The more active March future was at $47.50 a barrel, up 6 cents, at 12:15 p.m. Singapore time.

In the currency market, the Japanese yen was quoted at 88.26 against the US dollar today, up from Tuesday's close of 89.37-38 yen in Tokyo.

The Hong Kong dollar was trading at HK$ 7.7559 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.

The Australian dollar edged down against its US counterpart. The Aussie reached 0.6734 against the US dollar, compared to 0.6644 hit in the early morning trade.

The New Zealand dollar was trading at US55.95c down from US55.30c as registered yesterday.

The South Korean won was trading at 1,347.40 won to the U.S. dollar on Wednesday, down by 5.60 won from Tuesday's close of 1,353 won.

The Taiwan dollar strengthened against the US dollar as it was trading at NT$ 33.229 in the afternoon trade against the Tuesday closing of NT$ 33.161

The Singapore dollar finished at 1.4872 against the previous close of 1.4880 while the Malaysian Ringgit closed Wednesday's deals at 3.5725.

The Philippines peso strengthened against the dollar touching two day high. Currently, the dollar-peso pair is worth 47.47, compared to 47.11 hit in the early trade.

Coming back in equities, the Japanese market snapped three days of losing streak to finish the session higher, with gains in banks and financials, exporters and technology after a sharp sell-off the previous day and the yen leveled off after recent steep gains against the dollar. The Nikkei 225 Stock Average index gained 24.54 points, or 0.29%, to 8,438.45 while the broader Topix index of all First Section issues was up 5.27 points, or 0.7%, to 819.

On economic front, the Finance Ministry said in a report that the nonresident investors turned into net sellers of Japanese equities by unloading a net 7.38 trillion yen in 2008.

In Mainland China, the stock markets clawed back from yesterday's fall to finish the session sharply higher, with gain in banks and financials, properties, and metal and resources after a sharp sell-off the previous day and rebound in commodity prices. The benchmark Shanghai Composite Index surged 65.50 points, or 3.5%, to 1,928.69.

On the economic front, China revised its gross-domestic- product-growth rate upward for 2007 to 13%, indicating it may have overtaken Germany as the world's third-largest economy.

In Hong Kong, the benchmark index registered its first close in positive territory in seven sessions. The Hang Seng index closed up 36.56 points or 0.27% at 13,704.61. The Hang Seng China Enterprises index jumped 138.51 points or 1.96% at 7,219.04.

The Australian stock market snapped two days of losing streak to finish the session higher in choppy trade following mixed signals from Wall Street overnight, with the information technology and energy sectors led the market. The benchmark S&P/ASX200 added 32.4 points, or 0.89%, to 3,687, while the broader All Ordinaries rose by 30.4 points, or 0.85%, to 3,624.3.

On the economic front, the Australian Bureau of Statistics reported Wednesday that the number of housing loans approved in November increased a seasonally adjusted 1.3 % compared to October.

In New Zealand, the share market rose marginally ahead of corporate reporting season. The benchmark NZX-50 index closed up 12.14 points, or 0.44 at 2786.784.

Stock markets in South Korea gained for the second consecutive day, as some banks and exporters advanced while a stronger South Korean Won profited airline and tourism stocks. The Korea Composite Stock Price Index ended up by 14.97 points or 1.28% at 1,182.68 points, down from the session high of 1,184.52.

In Philippines, the stock market bucking the regional indices as investors were cashed in on recent gains. The benchmark index PSEi tumbled 0.55% or 11.12 points to 1,984.92, while the All-share index lost 0.54% or 6.84 points to 1,255.59. The mining & oil index tumbled 3.43%.

Stock markets in Taiwan ended lower, as financial and semiconductor sector led the sectoral losses accompanied by consecutive fall in industry heavyweights like Taiwan Semiconductor Manufacturing Company and United Microelectronics weighted the benchmark index down. The main TAIEX share index ended down 10.89 points or 0.24% at 4,521.47.

On the economic front, the Legislative Yuan ratified the "Special Statute for Stimulating Economy via Expanding Infrastructural Investment", aiming to bolster the slumping economy with the infusion of NT$500 billion for investment in infrastructural projects in a four-year period starting this year. The CEPD forecasts that the infusion of NT$500 billion for public investments will create 168,000 job vacancies during the four-year period of 2009-2012.

In Thailand, the Thai Stock exchange gained 5.70 points or 1.31% to 439.31 as its central bank slashed the key interest rates taking it to the lowest level since 2004. The Monetary Policy Committee of Bank of Thailand has announced today to lower the policy interest rate by 0.75% i.e., from 2.75 p% to 2.00 %, effective immediately.

In the accompanying statement the central bank discussed impact of current slowdown on the domestic economy, which had a marked impact on exports of regional economies and led to a contraction in Thai exports. In addition, domestic demand continued to soften, both in consumption and investment, partly as a result of fragile sentiment.

In Singapore, share market snapped five days of losing streak to finish the session marginal higher, as investors chased bargains in recently battered stocks after the market plunged for five consecutive days. The benchmark Straits Times Index jumped 2.9 points, or 0.16%, to 1,764.72.

In India, frenzied buying in index heavyweight Reliance Industries propelled key benchmark indices to day's high in fag end of the day's trade. The BSE 30-share Sensex jumped points, or 1.89% as per provisional closing.

The BSE 30-share Sensex surged 331.97 points, or 3.66%, to 9,403.33, as per provisional closing. The Sensex opened 151.80 points higher at 9,223.16. The S&P CNX Nifty gained 107.70 points, or 3.92%, to 2,852.65

Elsewhere, Malaysia's Kula Lumpur Composite index was down 0.03% or 0.24 points to 913.46, while Indonesia's Jakarta composite decreased by 12.83 points or 0.92% to 1386.91.

In the other regional markets, European shares edged lower, putting it on course for a sixth drop in a row, with worries about the health of the banking sector weighing for a second day after Morgan Stanley said banking giant HSBC Holdings needs to raise capital and slash its dividend. On a national level, the U.K. FTSE 100 index fell 0.9% to 4,357.65. The German DAX 30 index traded flat at 4,639.21, while the French CAC-40 index advanced 0.1% to 3,199.69.