Regional Market Update
Markets higher on strong gains in Wall St.
· Asian stock markets were higher, after the Dow overnight posted its biggest one-day gain in more than a month to close back above the key 10,000-point level. There wasn't a single catalyst behind the move and it looked like a case of investors scooping up stocks that had become cheaper after heavy losses. The Dow had fallen 7.3% over two weeks. Growth in American retail sales bolstered optimism in the earnings season and investors speculated European banks will pass stress tests. Banks led the rally as State Street Corp. reported a profit and gave an upbeat forecast. The stock gained 9.9%.
Index Movements | Level | % Chg | % Chg 5D | % Chg 1M | % Chg 3M | % Chg 6M | % YTD | P/E (Fwd) | P/B (Fwd) |
Nikkei 225 | 9,527 | 2.7 | 3.7 | (0.1) | (14.7) | (11.8) | (9.7) | 17.7 | 1.2 |
S&P/ASX 200 | 4,337 | 1.9 | 2.3 | (1.0) | (12.2) | (11.7) | (11.0) | 14.0 | 1.7 |
Taiwan Taiex | 7,594 | 0.8 | 4.7 | 6.2 | (5.7) | (8.3) | (7.3) | 13.8 | 2.0 |
Kospi | 1,696 | 1.2 | 0.6 | 2.7 | (2.2) | 0.0 | 0.8 | 10.1 | 1.3 |
Hang Seng | 20,142 | 1.4 | 0.1 | 3.4 | (7.9) | (9.7) | (7.9) | 13.3 | 1.7 |
Shanghai SE Composite | 2,421 | 0.0 | 2.0 | (3.7) | (22.4) | (24.2) | (26.1) | 14.3 | 2.0 |
Hang Seng China Enterprises | 11,487 | 1.6 | 0.2 | 3.6 | (10.6) | (11.9) | (10.2) | 12.1 | 1.9 |
Straits Times | 2,891 | 1.0 | 2.5 | 5.2 | (2.4) | (1.1) | (0.2) | 14.1 | 1.6 |
Jakarta Composite | 2,921 | 0.7 | 1.6 | 5.1 | 2.5 | 11.7 | 15.3 | 13.9 | 2.9 |
Nifty | 5,241 | (0.9) | (1.3) | 5.1 | (1.2) | (0.1) | 0.8 | 16.9 | 2.7 |
Nifty level with one day's lag |
Australia and New Zealand
· Australia’s ASX Index was up over 2.0% powered by strong gains in financials and material stocks after overnight gains in U.S. peers. New Zealand shares were higher in thin trade.
Japan
· In Tokyo, all the Topix's 33 subindexes were higher. Companies with exposure to the euro zone were lifted by hopes that the uncertainty surrounding the region would be cleared up after bank stress tests are released later in the month. Mazda Motor was up 5.4% and Sony rose 3.6%. Tech stocks were lifted by the Nasdaq Composite's 3.1% surge on Wednesday with Toshiba up 2.9%. Retail giant Aeon rose 3.3% on solid March-May earnings posted late Wednesday, as aggressive cost-cutting efforts offset a decline in sales due to lackluster consumer spending and adverse weather.
· News that Japan's core machinery orders in May fell 9.1% from the month before, compared with a 4.0% rise in April and expectations for a 3.0% decline, had little impact on the market.
Taiwan
· Taiwan’s Taiex Index which has been resilient in last few weeks due to speculation about benefits from pact with mainland was up 1.0%. Gains in the index were led by financials, material and tech stocks.
· AU Optronics gained 3.4% percent to NT$30.35, the most since April 23. Taiwan’s second-largest flat panel maker said in an exchange filing to the Taiwan Stock Exchange June sales rose 38% YoY to NT$41 billion.
South Korea
· In Korea, stocks were rallying on hopes of robust second-quarter earnings. Samsung Electronics rose 1.2%, after slipping 0.8% on Wednesday despite issuing a record second-quarter operating profit guidance of KRW5 trillion while Hynix Semiconductor was up 2.8% and LG Display added 2.0%. Among financials, KB Financial was up 2.8% and Woori Finance rose 3.6%.
China
· China’s stocks rose for a third day, led by banks and commodity producers, after China Merchants Bank Co. said profit increased and U.S. retail sales grew at the fastest pace in four years.
· China Merchants Bank, the nation’s fifth-largest, gained 2.3% after saying first-half net income probably jumped more than 50% YoY. Dongfeng Automobile Co. rallied 5.1% after saying profit will more than triple. Jiangxi Copper Co. rose 2.3% as a U.S. retail trade group said sales were growing at the fastest pace since 2006, easing concern that a slump in consumer confidence will scuttle the economic recovery.
Hong Kong
· Hong Kong stocks rose, lifting the benchmark index to its biggest gain in more than two weeks, after a trade group said U.S. retail sales climbed and China Merchants Bank Co. forecast higher profit.
· Li & Fung Ltd., the world’s biggest supplier for retailers including Wal-Mart Stores Inc., advanced 1.3%. Merchants Bank, China’s fifth-biggest lender, gained 2.3% after saying first-half net income will rise more than 50% YoY. Cnooc Ltd., China’s biggest offshore oil explorer, gained 2.4% after saying it’s in final talks on cooperating with Tullow Oil Plc to develop oilfields in Uganda.
Singapore
· Singapore Strait Times Index was up nearly 1.0% on broad based gains across sectors. Commodity traders were up on overnight gains in CRB Index. CapitaMalls Asia, the owner of shopping malls in the region, gained 1% to S$2.06. The company is raising about 852 million ringgit ($267 million) through an initial public offering of its Malaysian unit. CapitaMalls Malaysia Trust priced units offered to institutions at 1 ringgit apiece, the low end of its projected price range, according to a company statement. The price for individual investors was fixed at 98 Malaysian cents.
· JES International Holdings, a Chinese shipbuilder, rose 3% to 17 Singapore cents. The company said it won contracts build six bulk carriers.
· Currency Updates
Date | 8-Jul-10 | ||||
USD | EUR | GBP | JPY | INR | |
USD | 1.0000 | 1.2664 | 1.5206 | 0.0113 | 0.0213 |
EUR | 0.7896 | 1.0000 | 1.2007 | 0.8935 | 0.0168 |
GBP | 0.6576 | 0.8328 | 1.0000 | 0.7442 | 0.0140 |
JPY | 88.3700 | 111.9200 | 134.3800 | 1.0000 | 1.8790 |
INR | 47.0350 | 59.5626 | 71.5185 | 0.5322 | 1.0000 |
