Asian markets trace Wall Street gains

Sensex, Sydney, Seoul edge higher while Shanghai looses some of its value

Stock market in Asian region edged higher on Tuesday, 22 December 2009, following the overnight rally on Wall Street. The bargain-hunting occurred after recent losses buoying up stock prices to a significant extent. The mood across the region remained fairly bullish as stocks in most of the markets come off their higher levels due to profit taking in select stocks.

On Wall Street, stocks closed solidly higher, buoyed by blue-chip upgrades, deal news and a surging health care sector. The Dow Jones Industrial Average finished up 85 points, or 0.8%, to 10,414. The S&P 500 rose 12 points, or 1.1%, to 1114, while the Nasdaq added 26 points, or 1.2%, to 2238.

In the commodity market, crude oil traded little changed before the Organization of Petroleum Exporting Countries meets today in Angola, where the group is expected to maintain production targets.

Crude oil for February delivery was at $73.85, up 13 cents, in electronic trading on the New York Mercantile Exchange at 3:13 p.m. Singapore time. The January contract, which expired yesterday, fell 89 cents, or 1.2%, to $72.47 a barrel.

Brent crude oil for February settlement traded at $73.04 a barrel, up 5 cents, on the London-based ICE Futures Europe exchange at 3:13 p.m. Singapore time. Yesterday, the contract lost 76 cents, or 1%, to settle at $72.99 a barrel.

Gold, little changed in London today, may gain as a weaker dollar prompts investors to buy bullion after the metal's decline to the lowest level in more than six weeks. Gold for immediate delivery added $2.60, or 0.2%, to $1,096 an ounce at 8:49 a.m. London time. Bullion futures for February delivery on the New York Mercantile Exchange's Comex unit were little changed at $1,096.40 an ounce.

In the currency market, US dollar remains firm in a quite trading as traders are looking for the Christmas holiday long weekend.

The Japanese yen softened against the major currencies after Bank of Japan Governor Masaaki Shirakawa said he would persistently keep policy rates at virtually zero and the yield spread of US debt over Japanese bonds reached the widest in more than a year. Japan's currency was quoted at 91.41 yen per dollar, from yesterday's close of 91.17 yen.

The Hong Kong dollar was trading at HK$ 7.7561 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 hit fresh 11-week lows against a broadly firmer US dollar today as US yields jumped to four-month highs, crimping the local currency's interest rate advantage. At the local close, the dollar was trading at 87.96 US cents, down from 88.57 US cents yesterday, having earlier touched a trough of 87.64 US cents. It has now lost over 5 cents from the months' high of $US0.9326.

In Wellington trade, the New Zealand dollar came under pressure from a rising US dollar today and did not get much of a lift from better-than-expected current account data for the September quarter. By 5pm the NZ dollar was at US70.32c from US70.65c at 8am and US71.04c at 5pm yesterday. It traded as low as US70.28c, a level not seen since late November.

The South Korean won ended at 1,179.90 won against the greenback, up 3.80 won from Monday's close, as foreign investors snapped up stocks.

The Taiwan dollar strengthened against the greenback. The Taiwan dollar was trading higher against the US dollar at NT$ 32.3550, 0.0290 up from Monday's close of NT$32.3840.

In equities, Asian markets finished mostly higher as technology stocks tracked gains in their U.S. counterparts and a weaker Japanese yen helped pull exporters higher in Tokyo, lifting the Nikkei 225 to its highest closing level in three months.

In Japan, the shares market finished the session higher, lifted by gains in Wall Street overnight, positive Asia-Pacific bourses, and softening yen against greenback, with benchmark Nikkei hits three month closing high on the back of strong bid for exporters and high-tech stocks. Mining stocks hold early gains, as base metal prices were generally higher on the London Metal Exchange on Monday.

At the closing bell, the Nikkei 225 Stock Average index was at 10,378.03, grew 194.56 points or 1.91% from its previous close, while the broader Topix of all First Section issues on the Tokyo Stock Exchange rose 11.58 points, or 1.3%, to 903.06.

In Mainland China, the share market plummeted with steep losses across the board as market participants consolidate gains following strong rally this year and also due capital outflow to flood of new shares from existing equities. Banks and financials and properties plummeted amid persistent fears that the government measures to curb its red-hot real estate market might damp economic growth, while materials, industrials, and energy stumbled after remarks by the central bank governor triggered worries of monetary-policy tightening next year.

At the closing bell, the Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, plummeted 72.45 points, or 2.32%, to 3,050.52, meanwhile the Shenzhen Component Index on the smaller Shenzhen Stock Exchange dropped 2.79% or 363.64 points, to 12,647.51. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, succumbed 2.68%, to 3,305.54.

On the economic front, the General Administration of Customs of China report showed country's crude oil import were 17.12 million tons or 4.2 million barrel per day in November, up 28% year on year. In the period from January to November, crude oil imports rose 11% year on year to 182.5 million tons.

In Hong Kong, the share market traded firmly in the green with benchmark Hang Seng Index climbed up, snapped five days of losing streak as positive Wall Street and Asia-Pacific bourses and firmer base metal prices helped push up the local financials, properties, and resources sectors.

At the closing bell, the Hang Seng Index spurted 143.94 points, or 0.69%, to 21,092.04, meanwhile the Hang Seng China Enterprise, which tracks the overall performance of 43 mainland Chinese state-owned enterprises on the Hong Kong Stock Exchange, climbed up 146.69 points, or 1.2%, to 12,349.86.

In Australia, the market spurted on broad based gains across the sector as investors rode a wave of positive sentiment out of Wall Street overnight and other overseas markets, cheered by expectations that global economic recovery would accelerate and continue into next year. At the closing bell, the benchmark S&P/ASX200 index climbed up 69.1 points, or 1.49%, to 4,704.20, meanwhile the broader All Ordinaries rose 64.90 points, or 1.39%, to 4,724.4.

On the economic front, the Conference Board reported today that the leading index declined 0.3% month-on-month in October. The private sector group also said that its coincident index, which measures current activity advanced 0.1% compared to the previous month in October.

In New Zealand, stocks gained after inching down yesterday. The share market started the day strong after sharp rises on stock exchanges in the United States and Europe. The NZX50 increased further by 0.9% or 29.38 points to 3179.18. The NZX 15 rose 0.99% or 57.38 points to close at 5779.14.

On the economic front, New Zealand's September 2009 quarter surplus was $340 million, compared with a deficit of $4.0 billion for the September 2008 quarter, driven by falls in the investment income deficit and imports of goods. A surplus in the current account means that New Zealand's earnings abroad are greater than its expenditures.

Meanwhile, the current account deficit was $5.7 billion (3.1 percent of GDP) for the year ended September 2009 and the smallest as a percentage of GDP since March 2002. The deficit has fallen from 8.4 percent a year ago, when the current account deficit was $15.4 billion.

In South Korea, stocks finished higher as foreign and institutional investors scooped up shares after Wall Street gains. The benchmark Korea Composite Stock Price Index (KOSPI) jumped 11.31 points to close at 1,655.54, breaking a four-session losing streak.

In Singapore, the share market spurted followed a strong lead from Wall Street overnight and other Asia-Pacific bourses. Banks, properties, and resource stocks led gains on optimism about the sustainability of global economic recovery. At the closing bell, the blue chip Straits Times Index was at 2,823.82, added 37.01 points or 1.33%.

In Taiwan, stock market attained its highest close in 1-½ years as United Microelectronics Corporation and other chip shares leading the way on growing optimism over technology demand for 2010. The shares also got a boost from a 2.27% rise on the U.S. Philidelphia semiconductor sub-index boosting local semiconductor sector stocks. The benchmark Taiex share index extended gains for the third straight session, by finishing the day higher by 68.73 points or 0.88% at 7856, the highest closing since 23 June 2008 when market finished the day at 7876.49.

In Philippines, the stock market closed marginally lower bucking the trend in Asian equities. However, deficit concerns dragged the composite index lower. Moreover, flat movement was seen as most investors are already in a holiday mood. Investors are either picking on certain issues to position for next year or cashing in their gains to stay liquid during the holidays. The market stayed in the negative territory for most of the trading session. At the final bell, the benchmark index PSEi lost 0.14% or 4.40 points to 3,016.16, while the Al Shares index went down 0.13% or 2.60 points to 1,888.93.

In India, the key benchmark indices edged higher, snapping last three days' losses, as global stocks rose. Higher advance tax payment by India Inc also underpinned sentiment. The BSE Sensex was up 90.80 points or 0.55% to 16692. The Sensex opened with an upward gap of 32.61 points at 16,633.81 which was also the day's low. The S&P CNX Nifty was up 33.25 points or 0.67% to 4,985.85. It hit a high of 4997.30.

Elsewhere, Malaysia's Kula Lumpur Composite index finished slightly higher at 1260.42 while stock markets in Indonesia's Jakarta Composite index jumped 36.25 points ending the day lower at 2467.64.

In other regional market, Shares in Europe advanced modestly on Tuesday, helped by further gains for oil and gas producers and as technology stocks followed Asian peers higher. On a regional level, the U.K. FTSE 100 index rose 1% or 50.62 points to 5,345, the German DAX index climbed 0.4% or 24.53 points to 5,955 and the French CAC-40 index advanced 0.7% or 26.97 points to 3,899.