RTTNews - The markets across Asia, except India and China, ended in the positive territory on Friday on increasing optimism about global recovery and satisfactory earnings. Positive closing in Wall Street amid choppy trading led by late buying interest lifted market sentiment across Asian markets. However, the gains were limited as traders preferred to lock-in gains ahead of the weekend. The Chinese and Indian markets, however, ended in negative territory on profit taking.
In Japan, the benchmark Nikkei 225 Index ended the session at a 10-month high of 10,597, up 80.14 points, or 0.76%, while the broader Topix index of all first section stocks gained 5.16 points, or 0.53% and closed at 974.
On the economic front, the Ministry of Economy, Trade and Industry revealed that an index measuring tertiary industrial activity unexpectedly increased by a seasonally adjusted 0.1% during the month of June, contrary to economists' mean expectations of a 0.3% decline.
Trading companies and machinery companies led the gains following rise in commodity prices in the international market.
Trading companies gained after Goldman Sachs analyst said that a recovery in steel production makes trading companies more attractive. Mitsubishi Corp. rose 3.32%, Mitsui & Co., gained 2.78%, Toyota Tsusho Corp. advanced 1.78%, Marubeni Corp surged up 5.78% and Sumitomo Corp. added 0.62%.
Machinery companies advanced on expectation that demand is picking up in China. Komatsu surged up 5.28%, Hitachi Construction Machinery soared 8.37%, Daikin Industries advanced 2.57% and Kuboto Corp. rose 2.81%.
In banking space, Mitsubishi UFJ Financial added 0.66%, Resona Holdings advanced 0.91% and Sumitomo Mitsui edged up 0.24%. Mizuho Financial remained unchanged from previous close.
Among retailers, Aeon & Co., the second largest retailer in the country, gained 0.61% and J Front Retailing gained 1.76%. However, Fast Retailing fell 2.60% following news that its rival Aeon started selling jeans at a price tag of 880 Yen, lower than the price of 990 Yen charged by Fast Retailing.
In Australia, the benchmark S&P/ASX200 Index gained 25.10 points, or 0.57%, to close at 4,461, and the All-Ordinaries Index ended at 4,465, representing a gain of 28.40 points, or 0.64%.
On economic front, Glenn Stevens, Governor of the Reserve Bank of Australia, said that it would be appropriate for the central bank board to start adjusting interest rates back towards normal levels provided the situation warrants no more exceptional monetary stimulus. The Governor, in his half-yearly testimony before the House of Representatives standing committee, said, The timing and pace of those adjustments, if and when they come, will be a matter of careful consideration, taking into account all the relevant factors, including what might be happening with market interest rates.
Light sweet crude oil price for September delivery ended at $70.88 a barrel in electronic trading, up $0.36 from its previous close $70.52 a barrel in New York on Thursday.
Profit taking late in the session trimmed the gains in the market while the underlying sentiment is one of optimism driven by satisfactory earnings results from companies.
Among banks, ANZ Bank gained 2.67%, National Australia Bank rose 2.97% and Westpac Banking advanced 0.62%. However, Commonwealth Bank of Australia ended in the red with a loss of 1.07% on profit taking.
Mixed trading was witnessed among the oil stocks. While Woodside Petroleum lost 1.01% and Santos slipped 0.81%, Oil Search gained 0.90% and Origin Energy advanced 1.60%.
In mining and metals space, BHP Billiton remained unchanged from previous close, Rio Tinto advanced 2.02%, Oz Minerals gained 1.75% and Mincor Resources surged up 4.33%. However, Gindalbie Metals shed 2.22% and Alumina edged down 0.27% on profit taking.
Mixed trading was witnessed among the gold stocks. While Sino Gold managed to end in positive territory with a gain of 0.17%, Lihir Gold slipped 0.76% and Newcrest Mining lost 1.19%.
Leighton Holdings, the biggest construction company in the country, reported a 28% drop in net profit for the year ended 30th June 2009. However, it forecast that profit will rebound in the current year following signs of recovery in the construction and mining sectors. Following the positive outlook, the shares surged up 7.32%.
In Hong Kong, the Hang Seng Index recovered most of its losses in early trading and managed to end in positive territory with a gain of 32.03 points, or 0.15%, at 20,893.
Buying interest emerged at lower levels in late trading session following news that the country came out of recession with a GDP growth of 3.3% in the second quarter compared to the previous quarter. In early trading, the market slumped nearly 500 points on profit taking and weak-cues from mainland China.
Li & Fung led the gains after having reported better than expected profit for the second quarter. The stock surged up 9.23%. Espirit Holdings, wholesaler and retail trader, gained more than 8% on increased optimism about higher demand.
Banks and property stock also witnessed buying interest at lower levels.
In South Korea, the benchmark KOSPI Index gained 26.77 points, or 1.77% to close at 1,591. Technology and banks led the gains on increasing optimism that the worst for the global economy is over and recovery will start later in the year.
In India, investors chose to take profits after downbeat economic data from the U.S. dampened investor sentiment. A three percent loss in Chinese market and jitters that deficient monsoon would bring down economic growth also weighed on market movement. The BSE finished at 15,412, down 107 points or 0.69% and the S&P CNX Nifty fell 25 points or 0.54% to 4,580.
Among the other major markets in the region, China's Shanghai Composite Index slumped 93.59 points, or 2.98%, to 3,047. and Indonesia's Jakarta Composite Index slipped 9.62 points, or 0.40% to close at 2,387. However, Singapore's Strait Times Index added 17.33 points, or 0.66% to close at 2,631 and Taiwan's Weighted Index gained 34.55 points, or 0.49% to close at 7,069.
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