RTTNews - Most of the markets across Asia ended in positive territory, led by banks, mining and oil stocks on increasing optimism that the worst for the global economy is over. Better than expected economic data in China also lifted market sentiment. However, Japan's Nikkei slipped on profit taking.
The benchmark Nikkei 225 Index ended the session at 10,352, down 4.36 points, or 0.04%, while the broader Topix index of all first section stocks advanced 7.30 points to close at 958.
Volatile trading was witnessed as traders preferred to lock in gains ahead of earnings. Bargain hunting at auto and bank stocks on expectations of recovery in the economy offset the losses. Weak cues from the Wall Street also dampened market sentiment as traders await key economic numbers later in the week. Weak economic data related to wages also dampened the trader sentiment.
On the economic front, the Ministry of Health, Labor and Welfare revealed that the average wage in the country plummeted 7.1% year-on-year in June to 430,620 yen. That was significantly worse than the 3.2% annual contraction that analysts had been expecting following the upwardly revised 2.5% annual fall in May.
Light sweet crude oil for September delivery ended the Asian trading session at $70.22, up $0.77 from its previous close in New York at $69.45 a barrel on Friday.
Auto stocks advanced following reports that the U.S. House approved an emergency measure to add $2 billion to the cash for clunkers automobile purchase program,. Toyota Motor gained 2.51%, Honda Motor added 0.66%, Nissan Motor surged up 5.37% and Mazda Motor Corp soared 6.5%.
Financials advanced after Mitsubishi UFJ Financial Corp. reported a 48% rise in net income for the second quarter. The stock gained 5.63%. Among others, Mizuho Financial surged up 6.05%, Resona Holdings advanced 2.29% and Sumitomo Mitsui Financial rose 3.21%.
Casio Computer lost 4.63% after the company reported a net loss for the first quarter attributing sharp decline in sale of digital cameras and waterproof mobile phones.
Trading company Itochu Corp, shed 4.52% after the company reported that net income for the first quarter declined two-thirds on lower revenue.
Shipping stocks ended mixed. While Mitsui OSK Lined gained 2.08%, Kawasaki Kisen slipped 0.84% and Nippon Yusen lost 1.23%.
In Australia, the benchmark S&P/ASX200 Index ended at 4,263, representing a gain of 0.46% or 19.40 points, and the All-Ordinaries Index ended with a gain of 21 points, or 0.49% at 4,270.
On the economic front, a report released by the Australian Industry Group revealed that an index measuring manufacturing sentiment in the country ticked up 6.1 points to 44.5 during July, marking the highest score since September 2008. The report further noted that the rise in Index was boosted by improved scores among inventories, new orders and production. There was also improved confidence and a slight rebound in sales and orders.
In a separate report, the ANZ Bank revealed that total job advertisements in the country declined 1.7% percent in July following 6.7% contraction in the previous month.
Banks led the gains on increasing confidence about global recovery amid evidence of decline in the pace of bad debts in the economy. ANZ Bank gained 2.54%, Commonwealth Bank of Australia rose 1.99%, National Australia Bank advanced 2.55% and Westpac Banking increased 1.89%.
Mixed trading was witnessed among the oil stocks despite rise in crude oil prices. While Woodside Petroleum declined 1.75% and Oil Search slipped 0.18%, Santos added 1.25% and Origin Energy advanced 0.76%.
Metal stocks also ended mixed amid low volumes. BHP Billiton added 0.58%, Fortescue Metals advanced 1.26%, Gindalbie Metals rose 2.86% and Oz Minerals gained 2.86%. However, Rio Tinto slipped 0.18% on profit taking.
In Hong Kong, the Hang Seng Index gained 233.93 points or 1.14% and closed at 20,807, led by china-related stocks and property stocks on increasing optimism about global recovery. Better-than-expected economic data from mainland China also lifted market sentiment.
Property stocks advanced on recovery hopes. Wharf Holdings gained 3.29%, Henderson Land rose 3.32%, Sino Land surged up 4.30%, SHK Property added 1.78% and New World Development edged up 0.22%
Resource stocks advanced on higher commodity prices. Aluminum Corp. of China or CHALCO gained 7.21%, PetroChina added 1.26% and CNOOC advanced 3.26%
China Posco surged up 17.93% after economic data in mainland China revealed that Chinese export orders rose last month.
In South Korea, the benchmark KOSPI Index gained 7.49 points or 0.49% to close at 1,565, led by foreign institutional investment who evinced buying interest in blue chip stocks on increasing confidence that the worst for the global economy is over. Automakers, securities stocks and technology stocks posted gains.
The Indian market closed at a fresh 52-week high on Monday, boosted by strong global cues and consistent buying by foreign funds. Auto stocks led the market higher after reporting robust sales in July, followed by realty, metal, power and oil/gas stocks. The BSE Sensex ended at 15,924, up 254 points or 1.62% from its previous close, and the S&P CNX Nifty rose 75 points or 1.62% to close at 4,711.
Among the other major markets in the region, China's Shanghai Composite Index gained 50.53 points, or 1.48% to close at 3,463, Singapore's Strait Times Index advanced 22.44 points, or 0.84% to close at 2,682 and Indonesia's Jakarta Composite Index added 15.61 points, or 0.67% to close at 2,339. Taiwan's Weighted Index, however, bucked the trend and slipped 21.00 points, or 0.30% to close at 7,077.
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