Asian markets finish firm

Shanghai, Seoul, Hang Seng advance further while Sensex miss it marginally

Stock market in Asian region finished firm on Thursday, 15 October 2009, following the overnight rally on Wall Street on the back of some better-than-expected quarterly results and economic data aiding sentiment to a marked extent. A slew of encouraging economic and corporate reports from the region are also seen contributing to the firm trend. Though some of the regional markets pared a portion of their early gains due to profit booking, the mood remained fairly positive in the region.

On Wall Street, stocks ended with strong gains as positive mood checked in since Intel reported better than expected earnings. That was taken further ahead by another earning surprise in the financial sector. With the Dollar Index down once again to fourteen month low, the same also pushed stocks higher in broad-based fashion. The Dow closed above 10,000, for the first time in one year.

The Dow Jones Industrial Average ended higher by 144.8 points at 10,015.86. The Nasdaq Composite Index, ended higher by 32.34 points at 2,172.23. S&P 500 ended higher by 18.83 points at 1092.02.

On the economic front, retail sales data for September has also provided a boon to stocks. According to the advance retail sales report, sales fell 1.5% last month, but that wasn't as bad as the 2.1% decline. Excluding autos, retail sales were up 0.5% in September.

In the commodity market, crude oil was little changed near a one-year high in New York before a report forecast to show that U.S. crude inventories rose.

Crude oil for November delivery traded 10 cents higher at $75.28 a barrel in electronic trading on the New York Mercantile Exchange as of 11:21 a.m. London time. Crude oil earlier climbed to $75.96 a barrel; it’s highest since October 2008.

Brent crude oil for November settlement rose as much as 76 cents, or 1 percent, to $73.86 a barrel on the London-based ICE Futures Europe exchange. The contract, which expires today, was unchanged at $73.10 a barrel at 11:04 a.m. local time.

Gold declined for a second day in London as the metal’s rally to a record-prompted sale by some investors to lock in gains. Immediate-delivery bullion lost as much as $11.43, or 1.1%, to $1,050.98 an ounce and was at $1,053.72 at 11:05 a.m. local time.

In the currency market, US dollar further extends recent decline on the back of strong risk appetite in the markets.

The Japanese yen plummeted 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 89.67 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 closed above $US0.9200 for the first time in more than a year, after investors latched on to hawkish interest rate comments from the Reserve Bank of Australia. At the local close, the dollar was trading at $US0.9223, up from Wednesday’s close of $US0.9140. It was a fresh 14-month high for the unit since it touched $US0.9300 on August 5, 2008.

In Wellington trade, the New Zealand dollar rose to its highest level since July 2008 after higher-than-expected inflation data caused investors to bring forward expectations for New Zealand's first official interest rate hike. At the local close, the NZ dollar was at US74.63c, up from US73.81c at 8am and US73.99c at 5pm. It rose as high as US74.89c today.

The South Korean currency rose to the 1,150-won level against the U.S. dollar for the first time in about a year on Thursday as foreign investors showed a greater appetite for risky assets. The South Korean won closed at 1,155.10 won to the greenback, up 9.7 won or 0.84% from the previous session and marking the highest level since 24 September 2008. It climbed to as high as 1,155 won to the dollar at one point.

The Taiwan dollar strengthened against the greenback. The Taiwan dollar was trading higher against the US dollar at NT$ 32.2180, 0.0240 up from Wednesday’s close of NT$32.2420.

In the Asian equity market, stock markets finished mostly higher today following the positive lead from the Wall Street after US dollar fell as investors sought higher-yielding assets.

In Japan, shares market boosted by a positive lead from Wall Street where the Dow Jones Index rose above the 10,000-point level for the first time this year. Export related stocks led the rally as halt in yen appreciation prompted investors to test the upside, meanwhile robust US company results and retail sales data fueling the rally on strengthening confidence the global recovery gaining traction. At the closing bell, the Nikkei 225 Stock Average index spurted 178.44 points or 1.77%, to 10,238.65, while the broader Topix was up 9.77 points, or 1.09% to 904.11.

On the economic front, as per the latest Monthly Report of Recent Economic and Financial Developments, the Bank of Japan upgraded its economic assessment for the second consecutive month. The Bank of Japan said the Japan economy has started to pick up compared to its last month’s view that economic conditions are showing signs of recovery.

In Mainland China, share market finished the session up, with strong gains from financials and commodities on growing confidence about the pace of the global economic recovery after strong earnings from US investment bank JP Morgan and Intel Corp. But gains were limited amid worries about heavy shares supplies.

The Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, spurted 9.26 points, or 0.31%, to 2,979.79, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, added 0.38%, to 3,239.64.

On the economic front, China's M2, a broad measure of its money supply, was 58.54 trillion Yuan at the end of September, up 29.31% compared with a year ago, according to statistics released by the People's Bank of China yesterday. The year-on-year growth in September was 0.78%age points higher than the August figure. M1, which includes deposits in withdrawal-on-demand accounts and cash in circulation, rose 29.51% year on year to 20.17 trillion Yuan in September. The growth was 1.79%age points faster than in August. M0, or cash in circulation, increased 15.96% from a year earlier to 3.68 trillion Yuan in September.

The Commerce Ministry reported Thursday that foreign direct investment in China continued to recover in September, rising 19% from a year earlier to $7.9 billion. The foreign direct investment for the first nine months of the year totaled $63.8 billion, a 14% decline from the same period of 2008, commerce ministry said.

In Hong Kong, the stock market buoyed by optimism the global recovery is gathering strength after gains on the US market and other Asian markets. The Hang Seng Index advanced 112.60 points, or 0.51%, to 21,999.08, while the Hang Seng China Enterprise increased 81.97 points, or 0.64%, to 12,859.71.

In Australia, the share market surged with broad based gain across the sector after a strong lead from US and European market and sharp rebound in commodity prices. Financials and property trusts led the rally after JPMorgan Chase & Co.’s earnings topped estimates, boosting confidence in the economic recovery. Energy stocks spurted as the price of crude hit fresh $76 a barrel in Asian trade on fuel demand optimism. Resource-related shares outperformed after base metal prices rose in London metal exchange. Retailers were continuing their gains, with JB Hi-Fi was at an all-time high on broker upgrades.

At closing bell, the benchmark S&P/ASX200 index jumped 28.8 points, or 0.6%, to 4,859.9, meanwhile the broader All Ordinaries has gained 28.5 points, or 0.59%, to 4,862.5.

On the economic front, as per survey from the Melbourne Institute, Australia’s consumer inflationary expectations remained unchanged at 3.5% in October2009.

In New Zealand, stock market started the day strong in line with most of the Asian markets after a sturdy performance on the Wall Street overnight. The domestic benchmark index however gave up the initial strong gains to end Thursday marginally up registering the second consecutive day in the positive region. Meanwhile a number of positive economic data on the domestic front also helped the share market from dipping into the negative region. The NZX50 inched up 0.15% or 4.81 points to 3191.29. The NZX 15 edged down 0.08% or 4.80 points to close at 5764.68.

On the economic front, New Zealand ‘s manufacturing sector expanded last month for the first time since April 2008, according to the BNZ Capital - Business NZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for September stood at 51.7 indicating the sector is generally expanding.

Meanwhile, New Zealand’s inflation increased 1.7 percent from the September 2008 quarter to the September 2009 quarter, Statistics New Zealand said on Thursday. This annual increase is the lowest in five-and-a-half years. In the year to September 2009 quarter, food prices increased 5.4%, accounting for well over half of the CPI annual increase of 1.7%. Electricity prices rose 4.5% and local authority rates rose 6.6 percent. The annual increase in the CPI included a rise of 1.3% for the September 2009 quarter.

Food prices in New Zealand decreased 0.7% in the September 2009 month. The Food Price Index (FPI) also fell in August, by 0.9%. Both falls were influenced by lower fruit and vegetable prices. For the year to September 2009, food prices rose 3.3 percent, which is the smallest annual increase since a rise of 3.0 percent in the year to June 2007.

In South Korea, stocks finished higher as bullish earnings outlooks boosted steel makers and financial shares. The benchmark Korea Composite Stock Price Index (KOSPI) gained 9.9 points to end at 1,658.99.

In Singapore, stock market finished the session positive note, buoyed by growing optimism for the global economy after strong gains in other Asian bourses and Wall Street overnight. Commerce sector rose after commodities prices gained raised yesterday on optimism the global recovery is gathering strength. Shares of the oilrig builders advanced after crude oil prices rose to a one-year high. The blue chip Straits Times Index was ended session at 2,712.15, gained 3.67 points or 0.14%.

On the economic front, the Department of Statistics said that retail sales in Singapore dropped 5,2% year-on-year in August, slower than a 9.8% fall in July. Excluding motor vehicles, sales declined 3% from the previous year. Month-on-month, the seasonally adjusted retail sales grew 5.2%, after falling a revised 1.3% in the previous month.

In Taiwan, stock market consolidated itself at sixteen month high, as it extended its winning streak in second straight session, following the strong closing on Wall Street. Foreign buyers continued remain as the main driver for the upsurge. The benchmark Taiex share index extended its winning streak in second session by finishing the day higher by 14.65 points or 0.19% in a day, closing the day at 7710.40, another highest closing since 26 June 2009 when market closed the day at 7811.50.

In Philippines, growing optimism about the economic prospects assisted the Philippines stocks to scale up. The benchmark index PSEi escalated 0.41% or 12.09 points to 2,942.79, while the All Shares index increased 0.43% or 8.05 points to 1,857.38.

In India, stock-specific buying continued even as the key benchmark indices edged lower in what was a choppy trading session. The BSE 30-share Sensex was provisionally down 22.82 points or 0.13%, off close to 145 points from the day's high and up close to 115 points from the days low. The BSE Sensex and S&P CNX Nifty hit their highest level in nearly 17 months at the onset of the trading session today.

The BSE 30-share Sensex was down 35.91 points or 0.21% to 17,195.20. The Sensex rose 119.28 points at the day's high of 17,350.39 in early trade, its highest level since 20 May 2008. The S&P CNX Nifty was down 6.85 points or 0.13% to 5,111.35. It hit a high of 5152.25 in early trade, its highest level since 20 May 2008.

On the economic front, inflation based on the wholesale price index (WPI) rose 0.92% in 12 months to 3 October 2009, slightly above previous week's annual rise of 0.7%, data released by the government at 12:00 IST today showed. Within the WPI, the food articles index rose 13.34%. Meanwhile, the government revised upwards inflation for the year through 8 August 2009 to a much smaller decline of 0.37% from an estimated fall of 1.53%.

Elsewhere, Malaysia's Kula Lumpur Composite index closed flat at 1246.86 while stock markets in Indonesia’s Jakarta Composite index ended the day higher at 2515.38.

In other regional market, European shares rose modestly to record another fresh annual high on Thursday, as investors picked up on optimism from across the Atlantic after the Dow Jones Industrial Average closed over 10,000 for the first time in a year. On a regional level, the German DAX index was trading lower by 0.28% at 5,838, the French CAC-40 index was also flat at 3,885 while the U.K. FTSE 100 index lost 0.3% at 5,242 amid some pressure for mining firms.