Asian Markets end up mixed on Wednesday

Shanghai slips on melded economic data whereas Sensex surge in spite of cyclone alert

Stock markets in Asian region witnessed a mixed trend on Wednesday, 11 November 2009, following a rather choppy session on Wall Street overnight. Some of the regional markets did get off to a bright start, but are seen struggling for support at higher levels finishing the day at par. With no significantly positive cues to warrant any strong buying, investors were seen indulging in some profit booking, cashing in gains from recent sharp rallies.

On Wall Street, stocks in the U.S. stayed within a tight range and closed mixed on a fairly uneventful day for the markets. The Dow Jones Industrial Average added 20 points, or 0.2%, to 10,247. The S&P 500 held flat at 1093, while the Nasdaq slipped 3 points, or 0.1%, to 2151.

In the commodity market, crude oil traded near $79 a barrel after an industry report showed U.S. crude and fuel stockpiles rose, outweighing signs of economic expansion in China.

Crude oil for December delivery traded at $78.69 a barrel, down 36 cents, in electronic trading on the New York Mercantile Exchange at 2:12 p.m. Singapore time. Yesterday, the contract fell 38 cents to settle at $79.05.

Brent crude for December settlement was at $77.11 a barrel, down 66 cents on the London-based ICE Futures Europe exchange at 2:23 p.m. Singapore time. Yesterday, the contract fell 27 cents, or 0.3%, to end the session at $77.50.

Gold rose to a record in London and New York as the dollar fell for a third day, spurring demand for the metal as a hedge against further weakness. Gold for immediate delivery rose as much as 0.9% to $1,115.80 an ounce, before trading at $1,115.20 at 8:08 a.m. London time. December-delivery gold on the Comex division of the New York Mercantile Exchange added as much as 1.2% to $1,116 an ounce.

In the currency market, the US dollar edged down against the yen after better-than-expected Japanese machinery orders data, but was nearly flat against other major rivals.

The Japanese yen strengthened against major currencies after Japanese machine orders rose more than forecast, adding to evidence the economic recovery is gathering momentum. The Japanese yen was quoted at 89.8270 versus the US dollar, up from Tuesday’s quote of 89.86 yen.

The Hong Kong dollar was trading at HK$ 7.7500 against the dollar. Actually the Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.

In Sydney trade, the Australian dollar closed a fraction higher on Wednesday, after positive offshore and poor domestic economic data left the unit trading in a tight range. At the local close, the dollar was trading at $US0.9296, up from Tuesday’s close of $US0.9259. During the overnight session, the unit traded in a tight range between $US0.9286 and $US0.9324.

In Wellington trade, the New Zealand dollar was volatile this afternoon after Chinese financial data was released. The NZ dollar rose to US74.39c around 3pm, before settling at US74.04c at 5pm from US74.06c at the same time yesterday.

The South Korean won ended at 1,157.9 won against the greenback, up 4.3 won from Tuesday's close, as offshore investors unloaded the greenback.

The Taiwan dollar strengthened against the greenback. The Taiwan dollar was trading higher against the US dollar at NT$ 32.3430, 0.0060 up from Tuesday’s close of NT$32.3490

In the equity market, Asian stock markets were mixed as investors digested recent gains and mulled a mixed bag of Chinese data. Wall Street's tepid performance Tuesday provided little impetus for Asia, with the Dow Jones Industrial Average up just 0.2% and the S&P 500 flat.

In Japan, shares market finished the session in mixed terrain with benchmark Nikkei 225 managed to extend winning streak for fourth consecutive day. Market lost its early gains inspired by better than expected Japanese machinery orders and improving corporate earning as yen appreciation concern after greenback retreat to lower 89-yen range.

At closing bell, the Nikkei 225 Stock Average index was at 9,871.68, gained 0.95 points, or 0.01% from its previous close, while the broader Topix of all First Section issues on the Tokyo Stock Exchange fell 0.15 points, or 0.02% to 872.29.

On the economic front, the Cabinet Office said Japan’s core machinery orders, a closely watched indicator of corporate capital spending, jumped 10.5% in September, outperforming forecasts and rising for the second month in a row. The Cabinet Office predicted that in the current October-December quarter, orders will increase 1.0% from the previous quarter.

In Mainland China, share market finished the session lower with benchmark Shanghai Composite snapped eight days winning streak as market participants’ banked profit.

The Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, shrank 3.42 points, or 0.11%, to 3,175.19, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, lost 0.23%, to 3,495.67.

On the economic front, the statistics bureau of china said the nation’s industrial production rose 16.1% from a year earlier in October, the most since March 2008. Retail sales gained an annual 16.2% in October, and urban fixed-asset investment climbed 33.1% in the first 10 months of this year.

The People’s Bank of China stated today that domestic banks extended 253 billion Yuan ($37 billion) of new local-currency loans in October, lower than 516.7 billion Yuan in September.

On the other side, the customs bureau said export tumbled 13.8% in October from previous year. That narrowed from a 15.2% decline in September.

In Hong Kong, the stock surged with benchmark Hang Seng index endured gains for fourth day in row as gains from the major heavyweight after better than expected China’s retail sales and industrial production figures.

At closing bell, the Hang Seng Index escalated 359.05 points, or 1.61%, to 22,627.21, meanwhile the Hang Seng China Enterprise, which tracks the overall performance of 43 mainland Chinese state-owned enterprises on the Hong Kong Stock Exchange, advanced 93.24 points, or 0.7%, to 13,460.43.

In Australia, the share market added extending winning streak for fourth consecutive day, with almost all sector were higher, exception was industrials. Property trusts shares outperformed in market on news Investa Property, an Australian real estate firm owned by Morgan Stanley funds, was abandoning plans to list on the market and preventing the dilution of funds for other sector players.

At closing bell, the benchmark S&P/ASX200 index spurted 23.4 points, or 0.49%, to 4,765.9, meanwhile the broader All Ordinaries surged 21.9 points or 0.46%, to 4,765.9.

On the economic front, the Westpac-Melbourne Institute consumer sentiment index dropped by 2.5% to 118.3 in November after a 1.7% rise in October. The decline comes on the back of two-rate rises in recent months taking a bite out of consumer discretionary spending.

Australian Bureau of Statistics stated that lending finance data for September was up 6.1%. The lift in lending finance was coming from housing and commercial loans in the month.

The Department of Education, Employment and Workplace Relations stated that the country's leading indicator of employment rose for the fifth consecutive month in November to minus 0.841 from the previous reading of minus 0.998 in October.

In New Zealand, benchmark index registered a weak session ending the day in the negative region. The New Zealand share market slipped in early trading after stocks in the United States moved only slightly. The share market fell, ending three day winning streak. The NZX50 edged down 0.19% or 5.86 points to 3161.54. The NZX 15 inched up 0.02% or 1.398 points to close at 5713.26.

On the economic front, New Zealand’s food prices decreased 1.5 percent in the October 2009 month, Statistics New Zealand said Wednesday. This is the largest fall in three-and-a-half years. The food price index also fell in September and August, by 0.7 and 0.9%, respectively. Statistics NZ noted that although food prices are now 2.0% higher than a year ago, they are 12.1% higher than two years ago.

New Zealand’s rising tourist numbers underpinned gains in accommodation last month as the number of guest nights increased for all operators. Total guest nights rose 1.2%, seasonally adjusted, to 2.7 million in September compared to a month earlier, and have climbed 3% from the same month in 2008, according to the Accommodation Survey released by Statistics New Zealand.

Meanwhile, Reserve Bank Governor Alan Bollard on Wednesday while releasing the Bank’s November 2009 Financial Stability Report said that as international conditions have stabilized, outlook for the New Zealand economy and financial system has improved in the past six months, although some risks and challenges remain.

Dr Bollard noted that while the improved global outlook was generally positive for New Zealand, the rise in the New Zealand dollar over recent months could hinder continued improvement in the external balance. The New Zealand economy needs to live more within its means to reduce its vulnerability to adverse developments in offshore markets.

In South Korea, stocks closed higher as investors snapped up tech blue chips and securities shares. After range-bound trading, the benchmark Korea Composite Stock Price Index (KOSPI) climbed 12.52 points to 1,594.82.

In Singapore, stock market spurted with gains from major banks and blue chip shares on strengthening confidence for economic recovery after Japan’s machinery orders surged, China’s retail sales and industrial production accelerated and shipping rates climbed. The blue chip Straits Times Index was ended session at 2,740.43, gained 32.83 points or 1.21%.

In Taiwan, stock market stretched its winning streak in fourth session following the regional rally witnessed after Japan’s machinery orders surged, China’s industrial production accelerated and South Korea’s unemployment fell. The benchmark Taiex share index stretched gains for fourth session by adding 74.57 points or 0.98% in a day, closing at 7668.06, the highest closing since 26 October 2009 when market finished at 7668.40.

In Philippines, momentum remained very strong as the markets hit nineteen months high above 3000 mark, driven by soaring international gold prices, which lifted mining issues. The benchmark index PSEi ascended 1.68% or 50.43 points to 3,047.14, while the All Shares index mounted 1.04% or 19.52 points to 1,885.77.

On the economic front, the data released are showing positive economic prospects for the country. Domestic liquidity or M3 continued to post double-digit growth in September 2009, albeit at a slower rate of 11.6% year-on-year compared to 13.4% in the previous month. The double-digit growth of domestic liquidity was due in part to resilient foreign exchange inflows, indicating that funds in the banking system remain adequate to support economic activity.

Increasing signs of global economic recovery along with ample liquidity conditions provided support to credit activity. Outstanding loans of commercial banks including reverse repurchase agreements (RRPs) grew by 6.1% year-on-year to reach P2.2 trillion in September 2009, acceleration from the previous month's growth of 3.1%.

In India, bulls were back in command as the key benchmark indices surged in mid-afternoon trade after China reported continued strength in industrial production growth, keeping alive hopes of a recovery in global economy. The market shrugged off Cyclone Phyan which is expected to bring heavy rains to Mumbai, the commercial capital. The BSE 30-share Sensex closed up by 409.14 points or 2.49% to 16849.60. The S&P CNX Nifty finished higher by 122.25 points or 2.50% to 5003.95.

Elsewhere, Malaysia's Kula Lumpur Composite index finished slightly lower at 1270.15 while stock markets in Indonesia’s Jakarta Composite index ended the day higher at 2403.88.

In other regional market, European shares climbed on Wednesday, moving higher for the fifth time in six sessions, with miners leading the advance as metal futures climbed. The U.K. FTSE 100 index rose 0.8% to 5,271.83, the German DAX index climbed 0.9% to 5,658.67 and the French CAC-40 index up 0.9% at 3,818.29.