Asian markets end moslty up

Positive economic data supports sentiments, strong commodities also help

Asian equities ended mostly up with an excellent bounce in the Chinese markets lifting the sentiments though rising inflationary worries and profit selling pressures pulled select markets lower. The undertone mostly remains upbeat on strong commodity prices and strong corporate earnings growth. The markets also eyed tomorrow's Chinese gross domestic product (GDP) data, which is expected to show that the Asian juggernaut once again clocked a surge of around 9%. The overnight cues were strong as the US stocks shrugged off concerns surrounding Apple Inc, which was hit by news of Chief Executive Steve Jobs' medical leave as strong earnings for the iPhone and iPad maker triggered a sound rally in the stock and lifted overall sentiments.



The positive current of economic releases also continued. The US National Association of Home Builders stated that its index of homebuilder confidence remained unchanged at a relatively low level for a third consecutive month. The New York Fed said its general business conditions index rose to 11.9 in January from a revised 9.9 in December, with a positive reading indicating growth in regional manufacturing activity.

The Japanese market gained on these pointers. However, the soaring Japanese Yen kept the upside limited and the markets were not able to extend gains beyond 10600 levels for the benchmark Nikkei 225 index. The Japanese Yen neared 82 levels against the US dollar, extending its recent show of strength. In the end, the benchmark Nikkei 225 Index closed up 38.12 points, or 0.36% to 10,557.10. On the economic front, a report released by the Ministry of Economy, Trade and Industry revealed that an index measuring tertiary industry activity in Japan was up a seasonally adjusted 0.6% in November compared to the previous month, standing at 98.6.

The Australian stocks also extended gains for the second successive session and closed at a new 9-month high on strong commodity prices. Results of a latest survey compiled by Westpac Bank and the Melbourne Institute revealed that consumer confidence in Australia plunged in January. The Westpac/Melbourne Consumer Sentiment Index fell by 5.7% to a reading of 104.6 in January. The figure compared to 111.0 for December. Westpac/Melbourne said uncertainty about Australia's economy as a result of the Queensland floods led to the plunge in consumer confidence. The benchmark S&P/ASX200 Index closed higher by 32.80 points, or 0.68% to 4,835 points.

Chinese stocks gained the most in more than a month as high-speed railcar makers and coal producers soared. The sell off post a hike in the reserve ratio for the country's banks seemed to have been and markets were eying an upbeat outing in the tomorrow's GDP numbers. High-speed railcar manufacturers rallied after the United Kingdom said it will adopt Chinese technology for its 50-billion-U.S. dollar high-speed railway project. The benchmark Shanghai Composite Index added 49.12 points or 1.81% to close at 2,758.1 points.

In Mumbai, the markets witnessed high volatility as inflationary pressures continued to keep the sentiments under check. Index heavyweights Reliance Industries extended losses in late trade. IT and capital goods stocks declined while FMCG and consumer durables stocks reversed initial gains. As per provisional figures, the BSE 30-share Sensex was down 94.73 points or 0.5% to 18,997.32. The index rose 75.01 points at the day's high of 19,167.06 in early afternoon trade. The index fell 193.49 points at the day's low of 18,898.56 in late trade.

In other markets, the Straits Times in Singapore dropped 0.23%; Seoul Composite in South Korea added 0.92% while the Taiex in Taiwan also gained 0.71%. Commodity prices stayed supported on falling US dollar and continued positive current of economic data. The crude oil prices rose nearly to $92 per barrel while COMEX Gold also topped $1376, both the commodities adding nearly half a percent in the day's trade.