Asian markets manages mix closing

Shanghai, Sensex, Hang Seng, Taiex finish lower while Sydney, Strait times close higher

Stock market in Asian region closed mixed on Wednesday, 23 September 2009, with Wall Street's rise and buoyant commodity prices supporting some markets though others were weighed by a lackluster performance by China shares.

On Wall Street, commodities staged a comeback and stocks tread softly higher, as Wall Street guessed at what news may come out of the Federal Reserve's two-day policy-making meeting. Led by industrials and financials, the Dow Jones Industrial Average climbed 51.01 points, or 0.5%, to 9829.87. The S&P 500 advanced 7 points, or 0.7%, to 1071.66, and the Nasdaq Composite added 8.26 points, or 0.4%, to 2146.30.

In the commodity market, crude oil was little changed in New York before a report forecast to show that U.S. inventories of heating oil and other distillate fuels rose from their highest in 26 years.

Crude oil for November delivery traded at $71.40 a barrel, down 36 cents, in electronic trading on the New York Mercantile Exchange at 11:08 a.m. London time, after falling as low as $71.13 a barrel. The contract for October expired yesterday, settling at $71.55 a barrel, up $1.84.

Brent crude oil for November settlement dropped as much as 63 cents, or 0.9%, to $69.90 a barrel on the London-based ICE Futures Europe exchange. The contract traded at $70.24, down 29 cents, at 10:50 a.m. London time.

Gold advanced as a weakness in the dollar bolstered the precious metal’s appeal as an alternative investment. Gold for immediate delivery gained as much as 0.5% to $1,019.03 an ounce and traded at $1,014.90 at 2:45 a.m. in Singapore.

In the currency market, the U.S. dollar tumbled across the board in Asia on Wednesday, hitting fresh annual lows against the euro, the New Zealand dollar and the Australian dollar ahead of the latest update on monetary policy by the U.S. Federal Reserve expected later in the day.

After a shaky start to the day, the greenback regained lost ground as Asian stocks went into negative territory, but remains weaker overall. This has been sustained by the widely held view that U.S. rates will remain at ultra-low levels for a sustained period, minimizing the appeal of U.S.-dollar holdings.

The Japanese yen weakened against US Dollar. The Japanese yen was quoted at 91.2200 against the US dollar.

The Hong Kong dollar was trading at HK$ 7.7505 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.

In Sydney trade, the Australian dollar thrusted to a 13-month high against a slumping US dollar, riding on the coat-tails of positive sentiment across the Tasman where new data showed the New Zealand economy grew unexpectedly in the second quarter. At the local close, the dollar was trading at $US0.8740, after having climbed as high as $US0.8790, up nearly a cent from yesterday’s close of $US0.8719.

In Wellington trade, the New Zealand dollar reached multi-month highs against major currencies overnight as the greenback weakened further. Basking in good economic news, the kiwi went above US72c for the first time in 13 months, peaking at US72.43c overnight.

The South Korean currency rose to the 1,100-won level against the U.S. dollar for the first time in about a year on Wednesday as foreign investors bought Seoul shares amid recovery hopes. The local currency closed at 1,194.4 won to the greenback, up 9.4 won or 0.79 percent from the previous session. It was the first time that the Korean unit has broken through the 1,200-won level to the dollar since 1 October 2008.

The Taiwan dollar strengthened against the greenback. The Taiwan dollar was trading higher against the US dollar at NT$ 32.3430, 0.0440 up from Tuesday’s close of NT$32.3860.

Coming back in equities, Asian share markets were mixed with Wall Street's rise and buoyant commodity prices supporting some markets though others were weighed by a lackluster performance by China shares.

Stock markets in Japan were closed for Autumnal Equinox Day, while those in Indonesia and Pakistan remain shut for religious holidays.

In Mainland China, share market tanked, as heavy selling pressure in the afternoon trading on persistent worries about liquidity squeeze in a market following dozen of IPO approval by Chinese regulator. Significant selling pressures in Energy stocks weighed down the energy sector most, meanwhile materials also dragged the market with steel makers leading declines on concerns over inventory levels and stock overvaluation.

The Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, stumbled 54.83 points, or 1.89%, to 2,842.72, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, stumbled 2.27%, to 3,060.07.

In Hong Kong, the stock market weighed down by financials and properties on a report Standard Chartered stopped offering discounts to mortgage customers. Meanwhile, lackluster performance by China shares fueling the declines. The Hang Seng Index stumbled 105.62 points, or 0.49%, to 21,595.52, while the Hang Seng China Enterprise slid 79.74 points, or 0.64%, to 12,431.81.

In Australia, the shares market raised first time in four sessions, boosted by Strong Wall Street overnight with higher metals and oil prices and on signs New Zealand is emerging from recession territory. Stronger metals prices lifted shares of Anglo-Australian miners BHP Billiton and Rio Tinto, while sharp rebound in crude oil prices buoyed up Woodside Petroleum and Origin Energy. Banks and retailers were benefited amid optimism that an economic recovery would spur demand.

At the closing bell, the benchmark S&P/ASX200 index surged 70.4 points, or 1.51%, to 4,734.1, meanwhile the broader All Ordinaries spurted 69.9 points, or 1.5%, to 4,741.

On the economic front, the Department of Employment and Workforce Relations said that Job vacancies for skilled workers in Australia climbed 1.2% in September compared to the previous month. On an annual basis, skilled vacancies remain down 50.4%.

In New Zealand, stock market gained after sliding for two days in a row. The shares were mostly optimistic after the country’s GDP registered growth, putting an end to its 15-month recession. The NZX50 moved forward 0.16% or 5.04 points to 3147.91. The NZX 15 however, was up 0.27% or 15.54 points to close at 5764.22.

On the economic front, New Zealand's gross domestic produce increased by 0.1 percent during the three months through June 2009. The economy grew slightly in the second quarter of 2009, ending a 15-month recession, statistics New Zealand reported on Wednesday. Although the economy grew by the barest of margins, up just 0.1% in the June quarter according to official figures, the figures were better than expected with most expecting another quarter of contraction.

In South Korea, stocks closed lower as institutions indulged in profit taking following the previous session's strong gains. The benchmark Korea Composite Stock Price Index (KOSPI) fell 7.41 points to 1,711.47. Institutional investors continued their net selling for a fifth session while foreigners snapped up local shares for a 14th day.

In Singapore, stock market finished the subdued session flat, as gains from commodities and palm oil related stocks offset by losses among financials and properties after Singapore’s consumer prices fell for a fifth straight month in August. Chinese origin stocks tumbled on worries about stocks valuation and market liquidity. The blue chip Straits Times Index was ended at 2,685.94, added 0.31 point, or 0.01%.

On the economic front, the Department of Statistics said in a statement today the consumer price index declined 0.3% in August from a year earlier, after falling 0.5% in July.

In Taiwan, stock market woe losses on Wednesday, ending the day at a one-week closing low, as investors stayed cautious ahead of the central bank's board meeting scheduled to be held on Thursday, with financial shares leading losses after a recent rally.

Taiwan’s central bank will hold a rate-setting meeting on tomorrow. It’s benchmark discount rate at a record low of 1.25% and expected to the same for near future. Investors generally hold an optimistic view about the economy, but a rising jobless rate tells a different story. Taiwan’s seasonally adjusted jobless rate rose to a record of 6.07% in August from 6.01% in July.

The benchmark Taiex share index continued shift lower in the third session of the third week of September as it finishing lour by 92.27 points or 1.24% in a day, closing the day at 7376.76, weakest closing since 15 September 2009. The daily change was worst since 18 August 2009 when market gave up 142.03 points.

In Philippines, the stock market closed higher, as investor’s sentiment were propped up by the positive economic projection, which in turn boosted the investors to buy the key heavy weight stocks. Economic activity in the Philippines will pick up in the second half of 2009, and reach modest growth rates in 2010, supported by the Government's fiscal stimulus measures and the gradual global recovery, the Asian Development Bank (ADB) said in a report yesterday. The benchmark index PSEi escalated 2.07% or 57.73 points to 2,842.51, while the All Shares index rose 34.25 points or 1.91% to 1,823.83.

In India, the key benchmark indices slumped in the last one-hour of trade on fears a glut in share sales may suck liquidity from the secondary market. Profit taking emerged after a strong rally this month took the market to a 16-month high on yesterday. Volatility was the order of the day as traders rolled over derivatives contracts from September 2009 series to October 2009 series ahead of the expiry of September 2009 contracts on Thursday, 24 September 2009.

The BSE 30-share Sensex was down 166.93 points or 0.99% to 16719.50. The Sensex rose 19.07 points at the day's high of 16,905.58 in early trade. The barometer index fell 202.65 points at the day's low of 16,683.78 in late trade. The S&P CNX Nifty was down 50.25 points or 1% to 4969.25.

Elsewhere, Malaysia's Kula Lumpur Composite index went down 0.17% or 2.13 points to 1219.07.

In other regional markets, Europe stocks rose on Wednesday as a bevy of companies hit shareholders for cash to rebuild recession-battered balance sheets. The German DAX rose 0.26% or 14.63 points to 5,724, the U.K. FTSE 100 added 0.36% or 18.46 points to 5,161 and the French CAC 40 rose 0.22% or 8.27 points to 3,832.