Stock markets in Asian region ended higher on Tuesday, 16 February 2010, as investorswere seen in indulging in selective buying after weakness seen in recent weeks. Theregional markets failed to find any prominent triggers as the U.S. markets were closed onMonday and most of the markets in the Asian region are closed due to Lunar New Yearholidays. Financial and materials companies led the rise as earnings reports boostedconfidence economic conditions are improving.
On Wall Street, the stock markets were closed on the account of President Day holiday.
In the commodity market, crude oil rose after gains in Asian equities and growth in Japan’seconomy increased confidence that a global economic recovery will lead to higher fueldemand.
Crude oil for March delivery rose as much as $1.10, or 1.5%, to $75.23 a barrel inelectronic trading on the New York Mercantile Exchange today. It was trading at $74.91 abarrel at 8:44 a.m. London time.
Brent crude for April delivery rose as much as $1.23, or 1.7%, to $73.74 a barrel on theICE Futures Europe exchange in London. It traded at $73.39 a barrel at 8:44 a.m. Londontime. The contract fell 39 cents, or 0.5%, to settle at $72.51 a barrel yesterday.
Gold gained for a second day as the dollar weakened, boosting the appeal of preciousmetals as an alternative investment. Gold for immediate delivery gained $13.45, or 1.2%,to $1,114.55 an ounce at 3:22 p.m. Singapore time, after earlier rising to $1,115.20, thehighest price since 3 February 2010. Bullion for April delivery rallied 2.3% to $1,114.80an ounce after touching $1,115.50 in electronic trading on the New York MercantileExchange’s Comex unit.
In the currency market, the Japanese yen was softened against major currencies on Tuesday,while strengthened against US dollar on safe heaven buying. Japan’s currency yen wasquoted at 89.84 against the greenback.
The Hong Kong dollar was trading at HK$ 7.7706 against the dollar. Actually the Hong Kongdollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85to the U.S. dollar.
In Sydney trades, the Australian dollar rose as the currency followed an afternoon rallyof the euro. At the local close, the Australian dollar was trading at $US0.8934, up 0.7%from Monday’s close of $US0.8869. The release of the minutes of the Reserve Bank ofAustralia’s (RBA) monthly meeting on 2 February had a small effect on the localcurrency. The RBA said its decision to leave the cash rate unchanged at 3.75 per cent on 2February 2010 was finely balanced. RBA board members said further rate increases werepossible if the economy continued to improve as predicted.
In Wellington trades, the New Zealand dollar closed the trading session slightly strongerwith little movement in overseas markets, but stronger foreign currencies. The Kiwi was atUS69.90c at 5pm, compared with US69.82c at 8am and US69.77c at 5pm yesterday.
The South Korean won ended at 1,151.5 won to the U.S. dollar, down 0.2 won from Friday'sclose.
In equities, Asian markets ended higher, with banks driving Australian stocks up after anupbeat quarterly trading update from Westpac, while resource shares advanced in Tokyo onhigher commodity prices. Trading volumes were weak as markets including in China, HongKong, Taiwan and Singapore were closed for the day for Lunar New Year, and as U.S. marketswere shut Monday for a holiday.
In Japan, share market ended tad higher in quiet trading buoyed by steady domesticcurrencies and overnight European markets showed some resilience. Better-than-expected GDPfigures also helped to hold gains. Trading was quiet as most of investors opted to stay onthe sideline ahead of a meeting of euro zone finance ministers in Brussels, where theGreek debt crisis will inevitably top the agenda. At the closing bell, the Nikkei 225Stock Average index was at 10,034.25, gained 20.95 points, or 0.21%. The broader Topix ofall First Section issues on the Tokyo Stock Exchange has gained 1.70 points, or 0.19%, to885.17.
In Australia, the shares finished the session higher, thanks to positive quarterly updatefrom Westpac, however lack of offshore cues due to holidays in the China and US andcautious about Greece debts trimmed some of morning gains. At the closing bell, thebenchmark S&P/ASX200 index climbed up 22.30 points, or 0.49%, to 4,567.80, meanwhilethe broader All Ordinaries has gained 20.40 points, or 0.45%, to 4,590.80.
In economic section, the National Australia Bank said on Tuesday that the businessconfidence index stood at 15 in January, up from 8 in December. While the businessconditions index fell to 3 from 10 in December, reflecting large falls in the tradingconditions and profits sub-indices. The Reserve Bank Board saw the decision to leave thecash rate on hold at 3.75% to be “finely balanced”.
In New Zealand, stock market ended in the positive terrain with the benchmark index risingby almost 1% after dipping down yesterday. The NZX 50 rose further by almost 0.92% or28.07 points to 3087.61. Meanwhile, the NZX 15 increased 0.88% or 48.97 points to close at5548.42.
In South Korea, stocks closed higher as promises of financial aid to debt-ridden Greecehelped shore up investor sentiment. The benchmark Korea Composite Stock Price Index(KOSPI) advanced 7.39 points or 0.46% to end at 1,601.05, its first closing above the1,600-mark in seven trading sessions.
In India, the key benchmark indices jumped in late trade tracking as firm global stocksboosted investor sentiment. Capital goods, IT, banking, auto, healthcare and metal stocksled the rally. The market breadth was positive. Except the BSE Consumer Durables index allthe other sectoral indices on BSE were in green. The BSE 30-share Sensex was up 188.33points or 1.17% to 16,226.68. The S&P CNX Nifty was up 53.80 points or 1.12% to4,855.75.
Elsewhere, stock markets in Indonesia’s Jakarta Composite index gained by 41.05points ending the day higher at 2558.50 while in Philippines, the benchmark index PSEiescalated 0.15% or 4.47 points to 2,967.71.
In other regional market, European stock markets advanced while investors waited forconcrete proposals to emerge from the meeting of euro zone finance ministers taking placeon Monday and Tuesday. The ministers are expected to come up with a more detailed plan toease the Greece's debt crisis.
The meeting comes after European leaders pledged to help Greece but failed to explain howexactly it will be done last week. Instead of presenting a solid rescue plan, the EUresorted to a vague promise to take ‘determined and co-ordinated action ifneeded’ to help the country.
On a regional level, the U.K. FTSE 100 index climbed 1.2% to 5,229, the German DAX indexrose 1.3% to 5,583 and the French CAC-40 index advanced 1.1% to 3,645.
