Asian markets marks Monday higher

Hang Seng, Shanghai, Sydney advance while Sensex, Seoul edge lower

Stock market in Asian region marked Monday higher on 11 January 2010, with higher commodity prices and a positive close on Wall Street last Friday prompting investors to go in for stocks cutting across various sectors. Though gains were modest in some of the markets, the mood across the region is quite bullish so far.

On Wall Street, stocks ended the first week of 2010 with good gains. The week that ended on Friday, 08 January, 2010 did not have any important catalyst but still indices struck new fifty-two week highs. Stocks also digested a worse than expected labor market report.

At the end of the day on Friday, 08 January, 2010, the Dow Jones Industrial Average ended higher by 11.33 points at 10,618.19. Nasdaq ended higher by 17.12 points at 2317.17. S&P 500 ended higher by 3.29 points at 1144.98. Dow was down by 32 points earlier during the day. A late rally helped stocks end in the green.

For the week, Dow ended higher by 190.14 points (1.8%) at 10,618.19. Nasdaq ended higher by 48.02 points (2.1%) at 2317.17. S&P500 gained 29.88 points (2.7%) at 1144.98.

In the commodity market, crude oil rose to a 15-month high on speculation fuel demand will increase as energy and economic data indicate the global recovery may be sustained amid freezing temperatures in the Northern Hemisphere.

Crude oil for February delivery rose as much as 92 cents, or 1.1 percent, to $83.67 a barrel in electronic trading on the New York Mercantile Exchange. That’s the highest since 14 October 2008. It was at $83.47 a barrel at 3:53 p.m. Singapore time.

Brent crude oil for February settlement rose as much as 85 cents, or 1 percent, to $82.22 a barrel on the London-based ICE Futures Europe exchange. It was at $82.02 a barrel at 3:53 p.m. Singapore time.

Gold rose to a one-month high in London as a weaker dollar increased demand for the precious metal as an alternative investment. Gold for immediate delivery gained as much as $20.15, or 1.8%, to $1,158.40 an ounce, the highest price since 8 December 2008. The metal traded at $1,157.15 at 9:16 a.m. London time. Gold for February delivery rose 1.6% to $1,157.20 an ounce on the New York Mercantile Exchange’s Comex division.

In the currency market, the US dollar lost more ground against the major Asian currencies on Monday following last week's disappointing U.S. jobs data.

The US dollar slid to 92.4570 Japanese yen from 92.6400 yen.

The Hong Kong dollar was trading at HK$ 7.7545 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 1.8 US cents higher on Monday as a weaker-than-expected jobs report in the US pared back expectations of a US rate hike. At the local close, the dollar was trading at $US0.9312, up 1.9% from Friday’s close of $US0.9135. It was the highest close in the local session since 18 November 2009.

In Wellington trade, the New Zealand dollar rose above US74c today as the Australian dollar soared on strong economic data and the United States dollar weakened on poor economic data. The NZ dollar was buying US74.02c by 5pm from US73.72c at 8am and US73.11c at 5pm on Friday. It remained below the US74.29c level seen last week. While the Australian dollar rose to US93.14c at 5pm from US91.53c at the same time on Friday.

The South Korean won closed at 1,119.90 won to the greenback, up 10.60 won from Friday's close, as China's record imports in December boosted South Korea's exports outlook.

The Taiwan dollar strengthened further against the greenback. The Taiwan dollar was trading higher against the US dollar at NT$ 31.7410, 0.1390 up from Friday’s close of NT$31.8800.

In equities, Asian stock markets ended mostly higher Monday, with Shanghai equities lifted by brokerages after China's cabinet approved market-reform measures such as the launch of index futures and short-selling.

Most other regional markets also gained, with a sharp increase in commodity prices spurring resource stocks. Investors also looked past weaker-than-expected U.S. nonfarm payrolls data.

Stock markets in Japan were closed for holiday

In Mainland China, the stock market closed higher with materials and industrials stocks showed strength, supported by strong gains in commodities prices after a Chinese government report showed exports climbed for the first time in 14 months and imports reached record highs. Gains were also fueled by China’s Finance Minister pledge to spend the full amount of planned stimulus in 2010, despite improvements in its economy and efforts to control bank lending.

At the closing bell, the Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, rose 0.52%, to 3,212.75, while the Shenzhen Component Index on the smaller Shenzhen Stock Exchange slid 0.8% to 13,161.09. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, edged up 0.06%, to 3,482.05.

On the economy front, China's import and export value increased 32.7% year on year or 16.7% month on month to $243.02 billion in December, according to statistics released by the General Administration of Customs on its website today.

The export value was $130.73 billion, up 17.7% from a year earlier. The value of imports was $112.29 billion in November, up 55.9% year on year or 18.8% month on month.

In 2009, the import and export value dropped 13.9% year on year to $2.21 trillion. Exports fell 16% to $1.20 trillion, while imports slid 11.2% to $1 trillion. The trade surplus was $196.07 last year, 34.2% less than in the previous year.

In Hong Kong, most of morning gains bolstered by strong Chinese trade figures and Beijing's approval of the launch of stock index futures were eroded due to speculative profit taking amid worries over China monetary tightening.

At the closing bell, the Hang Seng Index surged 114.77 points, or 0.51%, to 22,411.52, while 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 83.94 points, or 0.64%, to 13,119.03.

In Australia, the shares surged on the first day of week with benchmark index All Ordinaries hit fresh 15-month closing high, on strong gains in market heavyweights, supported by firmer commodities prices after stronger Chinese trade figures and a surprise lift in job advertisements. At the closing bell, the benchmark S&P/ASX200 index spurted 38.6 points, or 0.79%, to 4,950.70, meanwhile the broader All Ordinaries surged 39 points, or 0.79%, to 4,981.20.

In New Zealand, equities ended in the negative terrain registering the first session in the red for the benchmark index in the year 2010. Early today, the NZX50 index was down 6.55 points to 3303.68, falling from its 15-month closing high of 3310.2 on Friday when the index gained 25.4 points. The domestic share market ended its five-day winning streak. At the closing bell, the NZX50 ended down 6.5 points or 0.20% to 3303.75. The NZX 15 lost 27.73 points or 0.46% to close at 6008.90.

In South Korea, stocks closed lower as auto and technology exporters lost ground, with the Korean won’s steep appreciation against the U.S. dollar stoking concerns about their profits overseas. Reversing earlier gains, the Korea Composite Stock Price Index (KOSPI) shed 1.14 points to 1,694.12.

In Singapore, the share market benchmark index added on the first day of a week, on tracking strong cues form Asian market and strong trade data from China and positive US index futures. Singapore small-caps stock outpaced blue chips, big-cap players. Investors favored to many of these penny stocks as volume strong, driven by lower valuations, hopes over companies seeking dual listing abroad. At the closing bell, the blue chip Straits Times Index was at 2,933.53, surged 10.77 points or 0.37%.

In Taiwan, stock market extended gains for second straight session, led by gains in UMC and Taishin Financial as their solid financial results raised investor hopes for a global economic recovery in 2010. Investors also cheered the news showing a green signal for China-based qualified domestic institutional investors (QDIIs) for the investment in Taiwan’s stock market. The benchmark Taiex share index extended gains over weekend, by finishing the first trading day of the week higher by 42.92 points or 0.52% at 8323.82.

In Philippines, the stock market closed flat largely due to the absence of fresh local leads. Its moderate upside, however, was due to investors’ aggressive buying of consumer issues. Investors reasoned that consumer and consumer-related stocks would benefit from a boost in consumer spending during this election year. However, investors are in a wait and watch position for further developments in order to make better decisions of which stocks to buy. At the final bell, the benchmark index PSEi escalated 0.33% or 10.17 points to 3,087.35, while the All the shares index increased 0.40% or 7.89 points to 1,944.95.

In India, losses in index heavyweight Reliance Industries (RIL) pulled the barometer index BSE Sensex sharply off the day's high. RIL lost ground after the company sold a large quantum of its treasury shares. Banking pivotals fell. But, IT, auto, realty and metal stocks gained. The BSE 30-share Sensex was down 13.58 points or 0.08% at 17,526.71. The S&P CNX Nifty was up 4.65 points or 0.09% at 5249.40.

Elsewhere, Malaysia’s Kula Lumpur Composite index finished slightly higher at 1294.51 while stock markets in Indonesia’s Jakarta Composite index added 17.83 points ending the day higher at 2632.20.

In other regional market, European shares extended 2010’s gains on Monday, with miners boosted by more signs of strength in the Chinese economy while deal news helped companies to gain across a range of sectors. On a regional level, the U.K. FTSE 100 index rose 1% or 53.77 points to 5,588, the German DAX index climbed 0.8% or 47.16 points to 6,085 and the French CAC-40 index rose 1% or 37.40 points to 4.083.