Asian markets wrap up Wednesday higher

Sensex, Sydney, Seoul, Shanghai continues to finish up while Hang Seng bucks regional trend

Stock markets in Asian region windup Wednesday 3 March 2010, on a positive note for a fourth straight session as investors held out hope for a bailout package for debt-ridden Greece. Though gains are not much pronounced in most of the markets in the region, the mood remains quite positive following fairly impressive quarterly results from frontline companies from across various sectors.

On Wall Street, the major market averages edged higher, weighed by blue-chip technology stocks, after investors digested auto sales figures and commodities made sharp gains. The Dow Jones Industrial Average closed higher by 2 points, or 0.02%, to 10,406. The S&P 500 gained 3 points, or 0.2%, to 1118 and the Nasdaq finished higher by 7 points, or 0.3%, to 2281.

In the commodity market, crude oil traded near $80 a barrel after rising on a possible resolution to Greece’s budget problems and as an industry report showed a decline in distillate supplies in the U.S., the world’s biggest energy user.

Crude oil for April delivery traded at $79.69 a barrel, up 1 cent, in electronic trading on the New York Mercantile Exchange at 4:01 p.m. Singapore time. Yesterday, the contract rose 98 cents to settle at $79.68.

Brent crude for April delivery was at $78.13 a barrel, down 5 cents, on the London-based ICE Futures Europe exchange at 4:02 p.m. Singapore time. Yesterday it rose $1.29, or 1.7 percent, to $78.18 a barrel.

Gold, trading little changed in Asia, may snap a four-day rally on speculation that Greece will unveil additional deficit cuts today, stemming a slide in the euro and cutting demand for the precious metal as a hedge. Gold for immediate delivery traded 43 cents lower at $1,134.27 an ounce at 2:59 p.m. in Singapore, after falling as much as 0.2% earlier.

In the currency market, the US dollar fell to its lowest in more than two months against the yen on Wednesday as investors cut long positions versus other currencies. The Japan’s currency yen was quoted at 133.23 against the pound, 120.97 against the euro, 82.67 against the franc, 80.35 per Australian dollar, and 88.80 against the greenback.

The Hong Kong dollar was trading at HK$ 7.7627 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 trades, the Australian dollar clung near multi-year highs against a range of currencies on Wednesday after the official figures showed Australia’s economy grew at the fastest pace in almost two years last quarter, underpinning the outlook for yet higher interest rates. The Australian dollar was quoted at 0.60022 against the pound, 0.6633 against the euro, 0.9704 against the franc, 80.33 against the yen, and 0.9038 against the greenback.

In Wellington trades, the NZ dollar slipped overnight against the euro and yen, but after a bumpy night was back at a similar level against the greenback as it had been at the local close, at US69.76c. The New Zealand dollar fell to its lowest level against its Australian counterpart in more than nine years, after Australia's official interest rates were yesterday raised 25 basis points to 4 per cent. The trade-weighted index was down to 64.45 from 64.69 yesterday.

The South Korean won closed at 1,146.50 won to the greenback, up 6.10 won from Tuesday's close, as easing Greek woes stoked investor appetite for risky assets.

The Taiwan dollar strengthened against the greenback. The Taiwan dollar was trading higher against the US dollar at NT$ 32.0040, 0.0350 up from Tuesday’s close of NT$32.0390. It is the highest closing since 3 February 2010.

In equities, Asian markets saw broad but modest gains Wednesday, with strength in commodity plays and upbeat economic data helping to lift Australia's benchmark stock index to its highest level in more than five weeks.

In Japan, the stock market ended in positive territory, led by steel stocks following positive export data related to steel products. Positive closing on Wall Street in the previous session amid increasing optimism about economic recovery and higher commodity prices in the international market also lifted market sentiment. The benchmark Nikkei 225 Index rose 31.30 points, or 0.3%, to 10,253.14, while the broader Topix index of all First Section issues advanced 2.94 points, or 0.3%, to 906.

On the economic front, a report released by Markit Economics revealed that the Japan Nomura services purchasing managers' index stood at a seasonally adjusted 44.6 in February, up from 43.4 in the previous month. A reading above 50 indicates expansion, while one below suggests contraction. The report further noted that services output declined at a slower pace in February, while the level of new work placed at Japanese service providers fell again, extending the current period of decline to 26 months. Although the pace of reduction in new orders was solid, it was the least marked in six months.

Separately, a report released by the Ministry of Health, Labor and Welfare revealed that wages for Japanese workers unexpectedly increased in January. According to the report, total cash earnings of employees in establishments with five or more employees increased 0.1% year-on-year to JPY 273,142 in January, which was the first rise in 20 months. Economists were expecting a 1.2% fall for January. In December, cash earnings dropped by a revised 5.9%. The report further noted that real wages grew 1.6% in January from the previous year, following a 4.2% fall in December. At the same time, total hours worked climbed 0.3%, reversing December's 0.9% drop. The number of regular employees was down 0.2%, the same rate as in December.

In Mainland China, technical induced bargain hunting sent Chinese share market higher, after a sluggish start to early trading. Trading was languid as some investors leaned toward selling for quick profits as stocks performed strongly last month, while others were snapping up equities on the back of optimism about the Greek fiscal woes and higher base-metal prices and positive outlook of the domestic country's economy. At the closing bell, the Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, put on 23.89 points, or 0.78%, to 3,097.00. The Shenzhen Component Index on the smaller Shenzhen Stock Exchange rose 63.78 points, or 0.51%, to 12,612.69. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, has gained 0.74%, to 3,335.08.

In Hong Kong, the key indices finished the lackluster trade tad lower after trading between 20,845.16 and 21,016.29. Profit taking among properties and other blue chip stocks outweighed firmer financials and materials shares. At the closing bell, the Hang Seng Index fell 29.32 points, or 0.14%, to 20,876.79, meanwhile the Hang Seng China Enterprise, which tracks the overall performance of 43 Mainland Chinese state-owned enterprises on the Hong Kong Stock Exchange, rose 30.70 points, or 0.26%, to 12,048.25.

In Australia, stronger economic growth figures have propelled investors into Australian share market, sending the broader indices 0.7% up on Wednesday, 3 March 2010. Materials and resources companies led the way up with All Ordinaries components, followed by retailers and financials while property trusts and healthcare players lagged. Treasurer Wayne Swan says the growth in the Australian economy in the last three months of last year makes Australia the envy of the developed world. The economy grew at 0.9% in the three months to the end of December, its fastest pace since the March quarter of 2007, the latest quarterly national accounts show.

At the closing bell, the benchmark S&P/ASX200 index climbed up 33.80 points, or 0.72%, to 4,735.70, meanwhile the broader All Ordinaries jumped 33.90 points, or 0.72%, higher to 4,743.80.

In New Zealand, stock market ended in the positive terrain in line with most of the Asian markets with the benchmark index up for the sixth consecutive day in a row. The NZX 50 ascended 0.48% or 15.28 points to 3198.52. Meanwhile, the NZX 15 gained 0.61% or 34.95 points to close at 5719.58.

In South Korea, stocks finished higher as rallies in European stock markets reaffirmed investor sentiment that Greece's default worries have receded, analysts said. Reversing earlier losses and extending a winning streak to a third session, the benchmark Korea Composite Stock Price Index (KOSPI) gained 7.32 points to 1,622.44.

In Singapore, the share market closed higher tracking cues from Asian market, with investors taking comfort over an imminent announcement of a bailout package for debt-ridden Greece. As a result real estate developers led the way up, while banks and commodity players and some of the smaller players lagged. At the closing bell, the blue chip Straits Times Index was at 2,782.79, grew 10.59 points or 0.38%, off an intraday low at 2,767.64.

In Taiwan, stock market finished higher note, joining gains across other Asian bourses on hopes for an end to Greece’s debt problems, but smart phone maker HTC Corporation fell after a patent lawsuit by Apple. Stability in global stock markets ahead of a possible break in Greece’s debt crisis boosted Taiwan shares, although caution over the health of the global economy kept a lid on gains, with key U.S. jobs data due on Friday the next focus for investors. The benchmark Taiex share index extended gains in fourth session on Wednesday after ending the day higher by 31.90 points or 0.42% at 7629.52.

In Philippines, the stock market closed mixed, with the composite index ending marginally higher, as investor's took cues from the global market, which is turning positive. At the final bell, the benchmark index PSEi escalated 0.24% or 7.40 points to 3,069.29, while the All Shares index went up 0.53% or 10.34 points to 1,949.76.

In India, the key benchmark indices extended gains for the third straight day on Wednesday on higher Asian stocks. The BSE Sensex crossed psychological 17000 marks at the fag end of the trade but provisionally closed below that level. Market shrugged weak European stocks. The BSE 30-share Sensex was up 227.45 points or 1.36% to 17000.01. The 50-unit Nifty was up 71.10 points or 1.42% to 5,088.10.

Elsewhere, Malaysia’s Kula Lumpur Composite index finished was little changed at 1286.10 while stock markets in Indonesia’s Jakarta Composite index gave up by 9.50 points ending the day higher at 2567.09.

In other regional market, European shares were mildly lower on Wednesday as investors eyed a mixed batch of earnings, with Greece's fiscal situation still front-and-center following reports the country will take new austerity measures. Of the major European regional markets, the U.K. FTSE 100 index declined 0.2% to 5,482, the German DAX index slipped 0.3% to 5,761.34 and the French CAC-40 index declined 0.3% at 3,799.67.