Steady gains for most Asian indices

Markets remain on edge ahead of key interest rate decisions tomorrow

Asian markets ended on a steady note today with some profit selling emerging in the late session moves as investors awaited key central banking decisions in Japan and Australia tomorrow. The markets had gotten off to a decent start as positive closing for US stocks on Friday supported the sentiments. However, the DOW futures slipped into red as the trading progressed and early gains were cluttered somewhat. US dollar also rose from its six-month lows and some selling emerged in commodities too. Chinese markets remained shut for a weeklong holiday.



In US, stocks eked out decent gains amid mixed economic data. Dow added 41.63 points or 0.4% to close at 10,829.68 after the US Commerce Department announced that the consumer spending was 0.4% higher in August than in July, while incomes grew by 0.5% on the month. The savings rate also edged up to 5.8%. However, the Institute for Supply Management reported a drop in its purchasing managers' index during September, with the gauge of manufacturing activity slipping to 54.4 from 56.3 the month prior.

Today, in Japan, stocks closed in red in an intraday downswing as continued gains in the Japanese Yen against the US dollar hurt the sentiments. Worries about the local banking sector also pulled the stocks down as investors awaited for Bank of Japan meeting due tomorrow. The benchmark Nikkei 225 Index dropped 23.17 points, or 0.25%, to 9,381, while the broader Topix index of all First Section issues was down 7.23 points, or 0.87%, to 823.

On the economic front, a report released by the Ministry of Health, Labor and Welfare revealed that cash earnings of laborers at Japanese companies remained unchanged year-over-year at 274,332 yen in August. The report further noted that scheduled earnings edged down 0.1% while non-scheduled earnings rose 10.8%. Special cash earnings decreased 10.7%. Cash earnings increased in manufacturing by 3.3% and in information and communications by 4.2%. Meanwhile, earnings in medical, healthcare and welfare fell 4.1%.

The Australian stocks closed in green with optimistic cues from the US markets and steady global risk appetite led to decent gains in index-linked counters. The markets were a little apprehensive in the closing hours as some profit selling emerged ahead of the key interest rate decision by the Reserve Bank of Australia tomorrow. The bank is seen hiking the increase the interest rates by 25 basis points to curb the inflationary expectations in the economy. The benchmark S&P/ASX200 Index added 46.10 points, or 1.01% to close at 4,625 points, while the All-Ordinaries Index logged a gain of 43.70 points or 0.94% to end at 4,678.

On the economic front, a report released by the TD Securities in association with the Melbourne Institute revealed that the gauge of inflation went up to 3.2% in September from 3% in August. On a monthly basis, consumer prices rose 0.1% after the 0.2% increase in the previous month.

In Mumbai, the key benchmark indices gave up initial strong gains as European stocks and US index futures edged lower. The BSE Sensex slipped into the red at the fag end of the trading session whereas the 5-unit S&P CNX Nifty closed slightly above the flat line. Index heavyweight Reliance Industries edged higher. FMCG stocks declined. Auto and banking stocks were mixed.

As per provisional figures, the BSE 30-share Sensex was down 6.18 points or 0.03% to 20,438.86. The Sensex surged 261.60 points at the day's high of 20,706.74 in early trade, its highest level since 15 January 2008. The S&P CNX Nifty was up 8 points or 0.13% at 6,151.40 as per provisional figures. It hit high of 6,222.10 in morning trade, its highest level since 15 January 2008.

In other markets, the Straits Times index in Singapore rose 0.85% while the TSEC index in Taiwan edged up 0.02%. Hang Seng index in Hong Kong jumped 1.17%. DOW futures have slipped and currently quote down 47 points from the previous close. Light sweet crude oil futures for November delivery slipped under $81 per barrel to test a low of $80.77 per barrel and were last seen quoting at $81.15, down 43 cents from the previous close.