Asian markets finish 2009 on fabulous note

Hang Seng, Shanghai, Taiex, Sensex, Sydeny, Seoul edge higher as Nikkei, Kospi remain close

Stock market in Asian region finished 2009 on higher side on Thursday, 31 December 2009, as a jump in US consumer confidence reinforced views that the world's largest economy is gradually recovering. The key benchmark indices in China, Hong Kong, Singapore and Taiwan rose by between 0.45% - o 1.75%. Markets in Japan, South Korea, Thailand, Indonesia and the Philippines were closed. Most markets in the world will be closed on Friday for the New Year day holiday.

On Wall Street, stocks danced around the flat line Wednesday despite promising business activity in the Midwest and strong demand for the government's final bond auction of the year. The Dow Jones Industrial Average closed slightly ahead, adding 3.1 points to 10,548.5. The S&P 500 was up by less than a point at 1126.4 and the Nasdaq was up by 2.9 points, or 0.1%, at 2291.3.

On the economic front, the Institute of Supply Management-Chicago purchasing manager's index hit 60, its highest level in nearly four years. The PMI figure was well above November's level of 56.1. In other news, the Energy Information Administration said crude oil inventories declined by 1.5 million barrels, which was better than the 1.7 million-barrel build reported by the American Petroleum Institute late Tuesday.

In the commodity market, crude oil rose for a seventh day as colder weather in the U.S. increased demand for heating fuels. Prices are poised for the biggest annual gain since 1999 on optimism consumption will rebound as the global economy recovers.

Crude oil for February delivery rose as much as 57 cents, or 0.7%, to $79.85 a barrel in electronic trading on the New York Mercantile Exchange. The contract was at $79.68 at 3:20 p.m. Singapore time.

Brent crude oil for February settlement climbed as much as 71 cents, or 0.9%, to $78.74 a barrel on the London-based ICE Futures Europe exchange. It was at $78.58 at 3:19 p.m. Singapore time.

Gold rose in London, heading for a ninth straight annual gain, on speculation climbing commodity prices and a weaker dollar will spur demand for the metal as a hedge against inflation. Bullion for immediate delivery jumped $12.10, or 1.1%, to $1,105.01 an ounce at 9:19 a.m. London time. Gold futures for February delivery climbed 1.2% to $1,105.40 an ounce on the New York Mercantile Exchange's Comex unit.

In the currency market, the major pairs traded in very tight ranges on subdued volumes.

The Hong Kong dollar was trading at HK$ 7.7546 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 higher today as moves on bulk commodities markets lifted the currency towards 90 US cents in quiet trading. At midday, the Australian dollar was trading at 89.72 US cents, up from yesterday's close of 89.07 US cents. It was also buying 82.95 yen, 62.46 euro cents and 55.77 pence. During the morning, the local unit moved between 89.25 and 89.73 US cents.

In Wellington trade, the New Zealand dollar's rapid rise on year-end positioning gave exporters little to cheer about going into the New Year holiday weekend. The kiwi peaked at US72.68c in today's domestic trading session before easing to US72.57c at 5pm - more than US1c higher than its US71.50c level 24 hours earlier.

The Taiwan dollar strengthened against the greenback. The Taiwan dollar was trading higher against the US dollar at NT$ 32.0550, 0.1830 up from Wednesday's close of NT$32.2380.

In equities, Asian stock markets were mostly higher, but investors were finishing the year with more of a whimper than a bang, as activity was thin with shortened trading sessions. Stock markets in Japan, South Korea, Thailand, Philippines, Indonesia were closed for holiday.

In Mainland China, the share finished the seesaw session up in the last trading day of a year, with outstanding performances from financials, technology, and other major heavyweights on expectation government would maintain a moderately loose monetary policy in 2010 to sustain the economic rebound.

At the closing bell, the Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, spurted 14.54 points, or 0.45%, to 3,277.14, while the Shenzhen Component Index on the smaller Shenzhen Stock Exchange soared up 0.41% or 55.50 points, to 13,699.97. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, grew 0.47%, to 3,575.68.

In Hong Kong, share market ended higher in the last trading session of the year, as all sectors advanced in thin trading, supported by optimism over the prospects for 2010. Trading was shortened due to the New Year holidays. Financial markets in Hong Kong will be closed Friday and reopen Monday. Compared with the final trading day of 2008, the Hang Seng Index was up 7,485.02 points, or 52%.

At the closing bell, the Hang Seng Index shot up 375.88 points, or 1.75%, to 21,872.50, meanwhile the Hang Seng China Enterprise, which tracks the overall performance of 43 mainland Chinese state-owned enterprises on the Hong Kong Stock Exchange, grew 263.36 points, or 2.1%, to 12,794.13.

In Australia, the market hit their highest levels this year in the last trading day of 2009, with benchmark All Ordinaries surged 0.8% in thin volume, as many people stepped away from the market on shortened trading day ahead of tomorrow's New Year's Day holiday.

At closing bell, the benchmark S&P/ASX200 index spurted 37.30 points, or 0.77%, to 4,870.60, meanwhile the broader All Ordinaries surged 35.70 points, or 0.74%, to 4,882.70. The benchmark All Ordinaries index has gained 1,223.4 points, or 33.4% in 2009, meanwhile All Ordinaries added 167.2 points or 3.5% in December 2009.

In New Zealand, equities ended the last trading day of the year 2009 in the positive terrain gaining almost 17% through the year. The domestic share market that had started to drop down since October 2008 on account of the global financial turmoil that affected equity markets worldwide gained to its years high by October 2009.

After dipping down to its lows of less than 2500 levels early 2009, NZX gained more than 34% by the end of the year. The benchmark index is currently hovering above the 3200 level mark for the fifth session in a row, a level last seen in early October 2008.

NZX closed an hour early for the New Year holiday with the benchmark NZX-50 index up 9.23 points, or 0.29 percent, to 3230.14 and 19 percent higher than it finished 2008. This year's peak was 3257.54 and low was 2411.16. Meanwhile, the NZX 15 gained 0.09% or 5.04 points to close at 5865.04.

In Singapore, the share market surged in the final shortened session on 2009, ahead of tomorrow's New Year's Day holiday, with standout performance from major blue chips, financials, and commodity stocks on brightened prospects for emerging stock market strengthened typical year-end “window-dressing”. Export related shares benefited as a jump in US consumer confidence reinforced views that the world's largest economy was gradually recovering. Market gains were also supported by optimism over the prospects for 2010. At the closing bell, the blue chip Straits Times Index was at 2,897.62, climbed up 17.86 points or 0.62%, off an intraday low of 2,863.46.

On the economic front, the central bank of Singapore said today that total bank lending in rose 1.01% to S$278.2 billion in November from S$275.4 billion in October. Housing loans to consumers rose almost 2% to S$90.86 billion from S$89.1 billion in October.

In Taiwan, stock markets finished year 2009 at nineteen month high, posting a yearly gain of 78%. All sectoral indices posted gains on the last trading day of the year, indicating a solid start for the year 2010.

The benchmark Taiex share index attained a new nineteen month high, by ending the day higher by 75.83 points or 0.93% at 8188.11 - the highest closing since 18 June 2008 when market finished the day at 8217.58.

In India, volatility ruled the roost in late trade as traders rolled over positions in the derivatives segment, to January 2010 series from the near-month December 2009 series. The December 2009 derivatives contracts expired today, 31 December 2009.

The BSE 30-share Sensex was up 120.99 points or 0.70% to 17,464.81. The S&P CNX Nifty was up 31.60 points or 0.61% at 5201.05. It hit a high of 5221.85 it's highest since 5 May 2008.

Elsewhere, Malaysia's Kula Lumpur Composite index finished slightly higher at 1272.78.

In other regional market, European shares climbed Thursday in a shortened final trading session of 2009 as the region prepared to wrap up its best trading year in a decade. The French CAC 40 index rose 0.4% to 3,950.13 Thursday. The U.K.'s FTSE 100 index on Thursday rose 0.4% to 5,417.77.