Asian markets ends mixed

Nikkei, NZX 50 ends higher while Shanghai, Seoul finish lower

Stock market in Asian region finished on fluctuating note on Friday 16 October 2009, as a weakening yen that boosted the outlook for Japan’s exporters offset a decline among financial shares.

On Wall Street, the major averages rose into the close Thursday with the Dow staying atop the psychological 10,000 levels as increases in energy stocks helped to balance selling in financials.

After a mostly lower session, the Dow Jones Industrial Average ultimately rose 47.08 points, or 0.5%, to 10,062.94, while the S&P 500 added 4.54 points, or 0.4%, to 1,096.56. The Nasdaq also advanced 1.06 points, or 0.05%, to 2,173.29.

In the commodity market, crude oil was little changed after rising to a one-year high above $78 a barrel, helped by a larger drop in U.S. gasoline stockpiles than analysts had forecast.

Crude oil for November delivery traded for $77.43 a barrel, 15 cents lower in electronic trading on the New York Mercantile Exchange as of 10:20 a.m. London time.

Brent crude oil for December settlement fell as much as 56 cents, or 0.7%, to $75.67 a barrel on the London-based ICE Futures Europe exchange. The contract was at $75.79 a barrel at 9:55 a.m. in London.

Gold climbed, rebounding after its biggest decline in three weeks, as the dollar’s five-day slide boosted investor demand for the precious metal. Gold for immediate delivery rose as much as 0.4% to $1,053.88 an ounce and traded at $1,053.05 at 10:10 a.m. in Singapore.

In the currency market, Japanese yen tumbled sharply overnight as DOW manages to extend recent rally and closed above 10000 mark for the second consecutive day at 10062.9.

The Japanese yen softened against their major counterparts as a gain in stocks on improving corporate earnings reduced demand for safe-haven currencies. The Japanese yen was quoted at 90.80 against greenback.

The Hong Kong dollar was trading at HK$ 7.7500 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 was flat on Friday, as investors cooled their heels following a heady week of trade which saw the unit gain more than 2 US cents to jump above $US0.9200. At the local close, the dollar was trading at $US0.9224, hardly changed from Thursday’s close of $US0.9223.

During the domestic session, the local currency moved between a low of $US0.9204 and a high of $US0.9270, the latter the Australian dollar’s highest point since it reached $US0.9300 in early August last year. The unit started the week at $US0.9034.

In Wellington trade, the New Zealand dollar pushed right up against the US75c figure today on ongoing demand for high yielding currencies then eased back. A pattern evident this week of the NZ dollar rising in its domestic session after slipping overnight was again a feature as was strength in the Australian dollar. Firm equity markets also helped sentiment. The NZ dollar was US74.62c at 5pm, having risen to US74.96c during the session, a new 15 month high. It was US74.30c at the open from US74.63c at 5pm yesterday.

The South Korean won finished at 1,164.50 won to the greenback, down 1155.10 from Thursday's close.

In the Asian markets, many investors in Asian stock markets took to the sidelines Friday as they waited for U.S. corporate earnings, with major indexes ending mixed in a narrow range. In the foreign-exchange market, the Australian dollar continued its recent rally.

In Japan, shares market finished the session in diverse terrain, endured gains for second consecutive day. Major banks and financials stocks dragged down the market as some US bank earnings disappointed investors. Manufacturers and oil-dependent industries were weighed down by worries of higher production costs due to the oil price surge. Some of the investors indulging in profit taking after the benchmark indices posted a strong rally this week.

At the closing bell, the Nikkei 225 Stock Average index rose 18.91 points or 0.18%, to 10,257.56, while the broader Topix slid 3.16 points, or 0.35% to 900.95.

The Nikkei 225 Stock Average index added 241.17 points or 2.41%, while the broader Topix index has gained 3.12 points or 0.35%, for the week ended Friday, 16 October 2009.

On the economic front, the Ministry of Finance said Japanese investors purchased a net 34.5 billion yen in foreign stocks during the week ended 10 October 2009. Japan residents also sold a net 256.2 billion yen in foreign bonds and notes last week.

Foreign investors bought a net 391.9 billion yen in Japanese stocks, the data showed, and they sold a net 300.8 billion yen in Japanese bonds and notes.

The Japanese government has terminated 2.926 trillion yen worth of programs that had been incorporated into the 14.7-trillion-yen extra budget for fiscal 2009, a move taken to free up funds for other uses. Among the canceled schemes were public works overseen by the Land Ministry, a multi-year aid program for farmers coordinated by the Agriculture Ministry, and a child-support program run by the Welfare Ministry. Certain allocations to local municipalities were also frozen. The Democratic Party of Japan government needs about 7.1 trillion yen to finance its campaign pledges, including cash handouts to families with children.

In Mainland China, share market finished the session little changed, with financial stocks led the losses. The banks and property stocks drifted lower in quiet trade, while profit taking continued to hit the gold majors. Higher oil prices sent energy share prices higher, while manufacturers and oil-dependent industries were weighed down by worries of higher production costs due to the oil price surge. Trade was subdued before the weekend and amid signs of some fatigue in the market and worries about heavy shares supplies.

The Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, slipped 3.15 points, or 0.11%, to 2,976.63, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, rose 0.06%, to 3,241.71.

The Shanghai Composite index surged 64.91 points, or 2.23%, while the CSI 300 Index has gained 78 points or 2.47%, for the week ended Friday, 16 October 2009.

In Hong Kong, stock market ended in negative territory, snapped three days of winning streak, as profit booking across the sector following strong performance this week and worries about share supplies and China’s comments highlighting a time limit to China's easy monetary policy.

The Hang Seng Index declined 69.18 points, or 0.31%, to 21,929.90, while the Hang Seng China Enterprise plunged 108.25 points, or 0.84%, to 12,751.46.

The Hong Kong benchmark Hang Seng Index spurted 4430.46 points or 2%, while Hang Seng China Enterprises Index surged 255.4 points or 2.04%, in the week ended Friday, 16 October 2009.

In Australia, the share market stumbled, as market participants banked in profit following strong rally this week and ahead of the weekend. The banks and property stocks drifting lower in quiet trade after Citigroup’s results failed to live up to expectations overnight, while profit taking continued to hit the gold majors.

At the closing bell, the benchmark S&P/ASX200 index tumbled 23.5 points, or 0.48%, to 4,836.40, while the broader All Ordinaries retreated 19.90 points, or 0.41%, to 4,842.60.

The benchmark S&P/ASX200 index spurted 83.50 points, or 1.76% in the week ended 16 October 2009, meanwhile the Broader All Ordinaries gained 88 points or 1.85%, during same period.

In New Zealand, the share market managed to finish ahead but off its best levels. The benchmark NZSX-50 index closed up 4.806 points, or 0.151 percent, at 3191.29, after initially being up 18.72 points.

In South Korea, stocks finished lower as a strengthening local currency plunged exporting companies. The benchmark Korea Composite Stock Price Index (KOSPI) declined 18.63 points to end at 1,640.36, reversing two-day gains.

In Philippines, equities slipped ahead of the weekends as the traders continued to unwind their positions amid mixed Asian markets and lackluster cues from the US futures markets. The growth in money sent home by overseas Filipino workers (OFWs) in August was just 2.80% slower than the 9.3% recorded in July, when remittances strengthened despite the usually slow month, and was the slowest pace since April, which had recorded a 2.2% rate. This curbed the little exuberance generated by the official statements yesterday that remittances will allow the country to meet its 0.8%-1.8% growth target for this year. The benchmark index PSEi lost 0.67% or 19.97 points to 2,922.82, while the All Shares index fell 0.55% or 10.32 points to 1,847.06.

In India, banking, realty stocks and index heavyweight Reliance Industries (RIL) led the rally on the bourses as strong response to the initial public offer of Indiabulls Power, sustained buying by foreign funds and higher global stocks boosted sentiment.

The BSE 30-share Sensex was up 127.51 points or 0.74% to 17,322.71. The Sensex rose 152.65 points at the day's high of 17,347.85 in afternoon trade. The S&P CNX Nifty was up 34.60 points or 0.68% to 5,143.45. It hit a high of 5,149.65.