Asian equities edge upwards

Buying continues in regional benchmarks except China

Asian markets edged higher though shares in China continued to ease on liquidity worries. Commodity prices were stronger today as the dollar eased to a five week low against the Euro and risk appetite mostly stayed firm ahead of the weekend on steady cues from over night US markets. Economic data in the US, especially weekly jobless claims, continue to impress with unexpectedly small increase. US First-time Jobless Claims Slide To Lowest Since July, making the stocks encounter a poor manufacturing data in the form of the Philadelphia-area manufacturing index. The Dow gained 22.10 points or 0.2 percent to end at 10,594.83.



The Japanese stocks closed in green as exporters continued to gain from a frail undertone in the Japanese Yen and broad gains in the regional markets. Positive closing on Wall Street in the previous session also pushed up the index linked counters. The intervention of the Japanese monetary authorities to cap the freakish gains in the local currency against the US dollar have continued to keep the Yen lower, extending its drop from a 15 year high. The benchmark Nikkei 225 Index cloaked a gain of 116.59 points, or 1.23%, to 9,626, while the broader Topix index of all First Section issues added 7.38 points, or 0.87%, to 852.

The Australian market also gained, adding to recent gains as commodity prices stayed firm following the drop in US dollar and strong risk appetite. There was no activity on the economic front and traders mostly followed the commodity prices to push up the stocks ahead of the weekends. The benchmark S&P/ASX200 Index gained 33.60 points, or 0.73%, to end at 4,640 points, while the All-Ordinaries Index closed at 4,685, adding 35.10 points, or 0.75%.

Chinese markets plummeted though, adding to the latest losses as hefty selling in financials and heavyweight stocks hurt the sentiments. Traders continued to fret over the credit conditions in the economy and the recent revival in the inflationary expectations is also keeping the gains mostly limited in the stocks off late even as the rest of the world rallies. The Shanghai Composite Index fell for its third straight day to 2,598.7 points, after slumping nearly 2% in last session.

In Mumbai, the key benchmark indices regained strength in late trade to settle near day's high, with index heavyweights leading the rally. Firm global stocks and data showing heavy buying by foreign funds recently, underpinned sentiments. Hopes that the central bank may be nearing a pause in its current tightening cycle, also aided the rally on the domestic bourses. The BSE 30-share Sensex was provisionally up 200.52 points or 1.03% to 19,618.01. The barometer index today, 17 September 2010, struck a 32-month high.

In other markets, Hang Seng index in Hong Kong gained 1.30%, TSEC index in Taiwan added 0.72 % while Straits Times index in Singapore edged higher by 0.30%. Dollar eased to five week low against the Euro before cutting losses while DOW futures also come off after gaining 100 points in the session. Crude oil futures are back above $75, currently quoting at $75.04, up 47 cents on the day. Gold also rallied to fresh highs above $1280 per ounce.