Asian markets end slightly weak

Lack of active trading makes major indices mostly drop

Lack of active trading participation by the investors ahead of the Christmas holidays saw the Asian markets ending on a slightly weak note amid thin sideways movements. The markets started off decently on positive overnight cues and strong commodity prices but gave up their advances as the day progressed. The data out yesterday showed that the US economy expanded at a 2.6% pace in the third quarter, slightly faster than previously reported 2.50, following mainly because of a higher inventory buildup. Over the past four quarters, the economy has clocked a growth of 3.2%, reflecting a modest rebound from the sub prime led recession. US stocks edged slightly higher last night amid low volume with the Dow gaining 26.33 points or 0.2% to close at 11,559.49. Japanese markets were closed for a public holiday today, making the session a listless one on the whole.



The Australian market started on a firm note despite the latest worries on the economic front as the investors were pulling the index-linked counters up right from the start. Banks and oil companies gained decent ground amid light trades and the benchmark S&P/ASX200 Index added 20.60 points, or 0.43% to close at 4,799 points.

In China, markets extended yesterday's losses amid rate hike worries and the benchmark Shanghai Composite index came off its intraday high amid a late sell off. The government reportedly tightened controls on foreign investment in property and a measure of lending costs between banks rose to the highest in three years, indicating a short-term liquidity squeeze. . The benchmark Shanghai Composite dropped 0.80% to close at 2,855, sliding for a second day.

In Mumbai, the key benchmark indices provisionally closed with small losses in thin trade amid macroeconomic worries caused by a surge in global crude oil to above $90 a barrel level. Low trading volumes caused volatility. As per provisional figures, the BSE 30-share Sensex was down 27.66 points or 0.14% to 19,988.14. The index fell 76.50 points at the day's low of 19,939.30 in early afternoon trade. The Sensex rose 60.28 points at the day's high of 20,076.08 in morning trade.

In other markets, South Korea's Seoul Composite dropped 0.58%, Hong Kong's Hang Seng index shed 0.62% while Taiwan's Taiex added 0.43% as the country's industrial production went up by 19.37% in November from the previous year. The surge was bigger than the expected rate of 12.5% and last month's 14.46%%.

US dollar rose slightly today and kept the gains in commodities under check. The Crude oil managed to add some gains but drifted lower after a test of $90.79 per barrel. Gold also slipped after failing to break above $1390 per ounce and currently trades at $1383.80, down $3.60 per ounce from the previous close.