Stock markets in Asian region extended their gain for sixth session on Wednesday, 17February 2010, on speculation the global economy is recovering as commodity prices gained,US manufacturing expanded faster than estimated and Barclays more than doubled profit. Thekey benchmark indices in Hong Kong, Indonesia, Japan, South Korea and Singapore rose by0.59% - 1.65%. Stock markets in China and Taiwan were closed for the Lunar New Yearholidays.
On Wall Street, the Dow rallied to a triple-digit gain Tuesday as strong earnings andeconomic data, coupled with the Euro’s gains against the dollar, helped an array ofequities and commodity prices. The Dow Jones Industrial Average finished higher by 170points, or 1.7%, to 10,269. The S&P 500 gained 19 points, or 1.8%, to 1095, and theNasdaq advanced by 31 points, or 1.4%, to 2214.
In the commodity market, crude oil was little changed above $77 a barrel in New York afterrising as the dollar fell against the euro on speculation Greece won’t need aEuropean Union bailout to meet deficit-reduction targets.
There was no floor trading in New York on 15 February 2010 because of the Presidents Dayholiday. Electronic trades that day and yesterday’s session counted toward thesettlement.
Prices also gained after manufacturing in the New York region grew at the fastest pace infour months. The Federal Reserve Bank of New York’s general economic index rose to24.9 this month, higher than anticipated, from 15.9 in January
Crude oil for March delivery traded at $77.07 a barrel, up 6 cents, in electronic tradingon the New York Mercantile Exchange at 3:13 p.m. Singapore time. Yesterday, the contractrose $2.88, or 3.9%, to $77.01, the biggest percentage gain since 30 September 2009.
Brent crude for April delivery traded at $75.70 a barrel, up 2 cents, on the London-basedICE Futures Europe exchange at 3:14 p.m. in Singapore. Yesterday, the contract increased$3.17, or 4.4%, to $75.68.
Gold, little changed, may extend its gain to the highest almost a month as the dollarweakens, boosting demand for the precious metal. Gold for immediate delivery was at$1,118.43 an ounce at 2:50 p.m. in Singapore after trading between $1,115.95 and$1,120.90. Bullion yesterday rose 1.7% to $1,119.45 an ounce, the highest closing pricesince 19 January 2010.
In the currency market, the Japanese yen was softened against major currencies onWednesday. Japanese yen softened against euro as concerns over Greece's deficit problemrecede after EU finance minister meeting overnight, easing demand for downside hedges. TheJapan’s currency yen was quoted at 90.35 against the greenback.
The Hong Kong dollar was trading at HK$ 7.7688 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 held fort at three-week highs above $US0.9000 onWednesday, aided by a perkier mood in markets, expectations of more rate rises at home anda pause in the Euro’s recent slide. At the local close, the dollar was trading at$US0.9012, up from $US0.8934 on Tuesday. Most of the gains were made offshore when aweaker US dollar, higher US stocks and commodity prices helped at the margins.
In Wellington trades, the New Zealand dollar drifted lower during its domestic sessionafter gaining nearly a cent overnight as investors regained their risk appetite amid anapparently stabilising situation in Greece and general market optimism. The NZ dollardrifted to US70.45c at 5pm after reaching US70.80c in early trading from US69.90c at 5pmyesterday.
The South Korean won ended at 1442.20 won to the U.S. dollar, up 9.3 won fromTuesday’s close of 1,151.5.
In equities, Asian markets rallied with resource shares rising sharply on higher commodityprices, while a weaker yen boosted Japanese exporters.
In Japan, the key stock average registered gains as positive cues from global shoresinstalled confidence in the economic outlook. Strong domestic and overseas earnings andeconomic data, coupled with the softer yen versus euro and US dollar and strongercommodities, helped an array of equities and commodity shares. Gains were also fueled byfresh round of buying activities in stock index futures during afternoon session.
At the settlement, the Nikkei 225 Stock Average index was at 10,306.83, spurted 272.58points, or 2.72%. The broader Topix of all First Section issues on the Tokyo StockExchange surged 19.46 points, or 2.2%, to 904.63.
In economic section, the Ministry of Economy, Trade and Industry said an index measuringthe activity of tertiary industries in Japan declined by a seasonally adjusted 0.9% inDecember to standing at 95.8 following the revised 0.1% contraction in November.
In Hong Kong, the shares spurted on the first trading day of the year of the Tiger, as themarket played catch-up following the Lunar New Year holiday for two days. The gains wasbolstered by strong cues from international market and surging metal prices in Londonwhich offset Beijing’s decision to increase bank reserve requirements ratio by 50basis points for the second time this year.
At the close, the Hang Seng Index surged 265.32 points, or 1.31%, to 20,534.01, meanwhilethe Hang Seng China Enterprise, which tracks the overall performance of 43 MainlandChinese state-owned enterprises on the Hong Kong Stock Exchange, spurted 171.98 points, or1.49%, to 11,708.34.
In Australia, the shares extended gains throughout the session, with key All Ordinariesindex registered rise at settlement, thanks to positive European market and Wall Streetovernight, stronger commodities prices, and generally upbeat earning updates. Investorsconfidence over the economy was strengthen by strong earning reports, with around 75% ofAustralian company’s ahead estimates.
At the settlement, the benchmark S&P/ASX200 index climbed up 100.10 points, or 2.19%,to 4,667.90, meanwhile the broader All Ordinaries has gained 96.0 points, or 2.09%, to4,686.80.
In economic section, the Department of Employment and Workforce Relations said Wednesdayan index measuring skilled job vacancies in Australia added 1.6% to standing at 44.4 inFebruary compared to the previous month. The latest Westpac-Melbourne Institute LeadingIndex rose by 1.3 points, or 0.5%, in December to 245.8.
In New Zealand, stock market continued to move forward with the benchmark index rising inthe positive terrain for the second day in a row. The NZX 50 advanced by 0.75% or 23.45points to 3111.06. Meanwhile, the NZX 15 increased 0.92% or 51.48 points to close at5599.90.
In South Korea, stocks finished up as eased fears over Greek sovereign debt sparkedappetite for risky asset. Extending two straight days of gains, the benchmark KoreaComposite Stock Price Index (KOSPI) advanced 26.38 points or 1.65% to end at 1,627.43.
In Singapore, the share market bolstered by positive Wall Street overnight and strongerAsian cues, strength in commodity prices, and generally upbeat earnings results. Gainswere also supported by firmer European bourses Wednesday and US index future IndicatingDow might open higher. At the settlement, the blue chip Straits Times Index was at2,794.06, gained 35.16 points or 1.27%, from Fridays closes at 2,758.90.
On economic section, statistic department of Singapore said month on month non-oildomestic exports declined seasonally adjusted 8.9% in January, compared to the previousmonth’s 4.2% increase. On annual basis, NODX grew by 21% in January 2010, followingthe 26% rise in previous month, due to higher electronic and non-electronic NODX.
In Philippines, momentum remained very strong in Philippines equities as the markets hitnearly one month high above 3000 mark, as bullish sentiment took off on the back of stronggains on Wall Street overnight. The benchmark index PSEi escalated 1.71% or 50.96 pointsto 3,018.67, while the All Shares index went up 1.23% or 23.32 points to 1,908.14.
In India, the key benchmark indices rose for the second straight day tracking firm globalstocks. Metal, banking, consumer durables and auto stocks rose. The market breadth wasstrong. The BSE 30-share Sensex was up 202.23 points or 1.25% to 16,428.91. The S&PCNX Nifty was up 58.25 points or 1.20% to 4,914.
Elsewhere, Malaysia’s Kula Lumpur Composite index finished slightly higher at 1259.07while stock markets in Indonesia’s Jakarta Composite index gained by 22.84 pointsending the day higher at 2581.34.
In other regional market, European shares rose for the third straight session onWednesday, as earnings out from the banking sector again helped to offset worries aboutGreece's fiscal position. On a regional level, the U.K. FTSE 100 index rose 0.73% or 38.44points to 5,283, the German DAX index advanced 0.97% or 54.26 points to 5,646 and theFrench CAC-40 index was up by 55.93 points or 1.52%, trading at 3,725.
