Asian markets end mixed

Select indices record gains, as economic undertone remains positive in region

Asian markets ended mixed today, though select indices added decent gains on the back of positive overnight close in the US markets and a strong set of economic numbers from China and Japan. US dollar plummeted to fresh six-month lows above 1.3600 against the Euro and supported the risk appetite. Commodity prices also remained strong. The economic undertone remains steady in Asia after the Asian Development Bank (ADB) stated yesterday that developing Asia's robust recovery from the global crisis is gaining further momentum. The ADB forecasts healthy growth of 8.2% for the region in 2010, well above 5.4% recorded in 2009 and also above ADB's earlier forecast of 7.5% in ADO 2010, released in April.



In US, stocks moved up substantially yesterday, bouncing off the initial ended the day mostly higher. The Dow added 46.10 points or 0.4% to 10,858.14. The economic data was mostly weak. Conference Board consumer confidence index fell to 48.5 from a downwardly revised 53.2 in August. The index has now dipped to its lowest level since coming in at 46.4 in the month of February. Housing reflected a minute up tick as the S&P/Case-Shiller 20-City Composite Home Price Index edged up 0.6% in July compared to June.

In Japan, stocks went up after losses in the last session as the market factored in a better-than-expected outcome from the Bank of Japan's September tankan survey, which showed sentiment among the country's big manufacturers picked up for the sixth-consecutive quarter, and at a faster pace than expected. The benchmark Nikkei 225 index closed up 63.62 points or 0.67% on the day.

The Australian equities ended lower as selling in financials undercut the gains in the resource stocks and pulled the stocks in red. Markets were also worried because of the media reports stating that credit ratings agency Fitch would stress-test the impact of steeper home prices on Australian banks' debt. The benchmark S&P/ASX200 Index dropped 24.8 points, or 0.5% to close at 4645 while the broader All Ordinaries Index lost 23 points, or 0.5% to end at 4694.


In China, the stocks were seen gaining slightly after the HSBC's closely watched China manufacturing purchasing managers' index went up to 52.9 September from 51.9 in August, clocking the strongest reading in five months. However, the overall momentum was lax, as traders seemed to factor in the soaring asset prices in the economy, particularly the real estate segment. Shanghai Composite, China's key stock index, dropped 0.03% to close at 2,610.67, lingering above the critical 2600-point mark.

In Mumbai, the key benchmark indices continued their downward trend to hit fresh intraday lows in late trade on profit taking after this month's strong gains in share prices. Investors sold metal, realty, consumer durables and FMCG stocks. The Sensex fell below the psychological 20,000 mark, after moving above and below that level intraday. The 50-unit S&P CNX Nifty also fell below the psychological 6000 mark. Copper major Sterlite Industries tumbled after the Madras High Court on Tuesday, 28 September 2010, ordered closure of Sterlite Industries' copper smelting plant at Tuticorin after noting that the company has failed to comply with environmental issues. The 30-share BSE Sensex ended down 149 points or 0.74% at 19,956 while the broader Nifty settled down 38 points or 0.63% at 5,991.


In other markets, the Hang Send Index in Hong Kong went up 1.22%, Straits Times index in Singapore gained 0.28% while the TSEC index in Taiwan added 0.63%. Dollar plummeted in late Asian trades, sliding beyond 1.3600 levels against the Euro to drop to six-month highs. Crude oil went up near $77 per barrel levels before easing while Gold stabilized around $1210 per ounce mark.