By V. Phani Kumar, MarketWatch , Shri Navaratnam and Leslie Shaffer
HONG KONG (MarketWatch) — Most Asian markets ended higher Tuesday, with a strong outlook for nonferrous and precious metals driving several stocks in the sector, while hopes for better semiconductor memory prices boosted shares of chip makers.
Those gains helped regional stocks end on a mostly positive note, overcoming weakness in several steel makers on concerns about their earnings.
Japan’s Nikkei Stock Average (JP:NI225 10,519, +16.12, +0.15%) gained 0.2%, Australia’s S&P/ASX 200 (AU:XJO 4,802, +38.74, +0.81%) added 0.8%, South Korea’s Kospi slipped 0.2% and Taiwan’s Taiex advanced 0.7%.
India’s Sensex (XX:SENSEX 19,092, +209.80, +1.11%) climbed 0.6% in afternoon trade, with the advance fronted by a 4.4% jump in Tata Consultancy Services, after the country’s largest software exporter beat earnings expectations Monday.
In Hong Kong, the Hang Seng index (HK:HANGSENG 24,154, -2.99, -0.01%) finished little changed, while China’s Shanghai Composite (CN:SHCOMP 2,709, +2.32, +0.09%) , which tumbled 3% in the previous session and traded lower for most of Tuesday on the central bank’s move on Friday to tighten banks’ reserve requirements, ended 0.1% higher on bargain buying in banking stocks.
“I think China has economic momentum that they wouldn’t want to stop,” said Bell Potter senior client adviser Stuart Smith in Australia. “Any tightening is meant to stymie speculation and that’s a good thing.”
The state-run China Securities Journal reported that China’s gross domestic product grew 10.1% in 2010, compared with a 9.2% increase in 2009. The report cited a source at China’s top economic planning agency.
Shares of China Construction Bank Corp. (CICHY 18.93, +0.04, +0.21%) (CN:601939 4.75, +0.03, +0.64%) climbed 0.6% and Industrial & Commercial Bank of China (IDCBY 15.71, +0.20, +1.29%) (CN:601398 4.25, +0.03, +0.71%) added 0.7% in Shanghai.
Dow Jones Industrial Average (IDCBY 15.71, +0.20, +1.29%) futures were up 15 points in screen trade.
“As money comes back into emerging markets and Asia, it’s no longer as simple as buying liquid large caps,” said Ben Collett, head of Japanese equities at Louis Capital Markets. “What I’m looking for right now [are] laggards — companies that have high cash balances and, especially in Japan, making moves to use that cash.”
Nonferrous metal stocks broadly climbed across the region after Morgan Stanley issued robust outlooks for aluminum, zinc, gold and silver, while keeping a positive view on copper prices.
Shares of Aluminum Corp. of China (HK:2600 7.51, +0.39, +5.48%) (CN:601600 9.79, +0.07, +0.72%) (ACH 23.38, -0.38, -1.60%) climbed 0.7% in Shanghai and surged 5.5% in Hong Kong, while Korea Zinc added 2.2% in Seoul.
Elsewhere in the region, Alumina (AWC 9.79, +0.05, +0.51%) (AU:AWC 2.51, +0.09, +3.72%) jumped 3.7% and Newcrest Mining (AU:NCM 38.04, +0.23, +0.61%) (NCMGY 37.58, -0.82, -2.14%) added 0.6% in Sydney.
Sterlite Industries (SLT 15.83, -0.42, -2.58%) rose 1.1% in Mumbai.
But many steel makers declined amid concerns earnings will come in below expectations.
Nonferrous metal stocks broadly climbed across the region after Morgan Stanley issued robust outlooks for aluminum, zinc, gold and silver, while keeping a positive view on copper prices.
Shares of Aluminum Corp. of China (HK:2600 7.51, +0.39, +5.48%) (CN:601600 9.79, +0.07, +0.72%) (ACH 23.38, -0.38, -1.60%) climbed 0.7% in Shanghai and surged 5.5% in Hong Kong, while Korea Zinc added 2.2% in Seoul.
Elsewhere in the region, Alumina (AWC 9.79, +0.05, +0.51%) (AU:AWC 2.51, +0.09, +3.72%) jumped 3.7% and Newcrest Mining (AU:NCM 38.04, +0.23, +0.61%) (NCMGY 37.58, -0.82, -2.14%) added 0.6% in Sydney.
Sterlite Industries (SLT 15.83, -0.42, -2.58%) rose 1.1% in Mumbai.
But many steel makers declined amid concerns earnings will come in below expectations.
