Asian markets gain amid thin trades

Buying still continues to emerge in region though

Asian markets gained amid thin trades on the last trading day of the week, as the Chinese markets remained shut. In the US, economic data revealed that 2Q GDP was marginally higher at 1.7% from the preliminary reading of 1.6%, and jobless claims declined more than expected on signs of pick-up in demand for jobs. However, the Wall Street still ended in red in the previous session on concerns about Europe and risky assets were mostly mixed today.



The Japanese stocks closed in green, tracking a generally strong sentiments in Asia as the strong US GDP data assisted the exporters after a sharp drop in last session. The stocks were also supported by the upbeat Tankan survey yesterday. Traders eyed the Bank Of Japan interest rate meeting next week. There are expectations that the central bank will ease policy further and that the yen's rapid advance could be curbed by more intervention by the authorities. The benchmark Nikkei 225 Index added34.88 points, or 0.37%, to 9,404, while the broader Topix index of all First Section issues gained 0.46 point, or 0.06%, to 830.

On the economic front, a report released by the Ministry of Internal Affairs and Communications revealed that nationwide core consumer prices in Japan were down 1.0% on year in August, matching expectations following the 1.1% decline in July.

The Australian market dropped though, extending its losses as selling continued in major banks, undercutting the gains in resources. Media reports indicated that Australian banks might raise their lending rates at a faster pace than the central bank, as they look to pass on rising wholesale funding costs to customers. The benchmark S&P/ASX200 Index dropped 3.70 points, or 0.08% to close at 4,579 points, while the All-Ordinaries Index ended at 4,635, representing a loss of 2.20 points, or 0.05%.

In Mumbai, stocks rallied adding to gains in last session as positive global cues and strong growth in monthly sales numbers reported by automakers like Tata Motors, Maruti Suzuki and TVS Motors supported sentiments. Equities started October 2010 on a buoyant note with the two key benchmark indices -- the barometer index BSE Sensex and the 50-unit S&P CNX Nifty, scaling 32-1/2-month highs. Firm global stocks underpinned sentiments. The seasonally adjusted HSBC Purchasing Managers' Index, which measures the overall health of the manufacturing sector, fell to 55.1 in September from 57.2 in August, as growth in overall new business intake slowed for a second successive month. The 30-share BSE Sensex closed 375 points or 1.87% to close at 20,445 and the broader Nifty added 113 points or 1.88% to end at 6,143.

In other markets, the Straits Times index in Singapore added 1.07% while the TSEC index in Taiwan edged up 0.08%.