Asian Markets End In Positive Territory
Asian markets open for trading on Monday, except the Japanese market, ended the session in positive territory, but off the day's highs on optimism about sustaining global economic recovery. Positive cues from the Wall Street over the weekend on Friday and higher commodity prices lifted market sentiment. The Chinese market was closed for a holiday and the Japanese markets ended weaker on stronger yen and caution ahead of BOJ meeting.
In Australia, the benchmark S&P/ASX200 Index gained 46.10 points, or 1.01%, and closed at 4,625 points, while the All-Ordinaries Index ended at 4,678, representing a gain of 43.70 points, or 0.94%.
On the economic front, a report released by the TD Securities in association with the Melbourne Institute revealed that the gauge of inflation in the country revealed that consumer prices had risen past the top end of the Reserve Bank of Australia's 2%-3% target range in September. As per the report, the inflation gauge rose to 3.2% from 3% reported in the previous month. On a monthly basis, consumer prices rose 0.1% after the 0.2% increase in the previous month.
Banks and financial institutions led the gains in the market on optimism about sustaining economic recovery. ANZ Bank advanced 0.72%, Commonwealth Bank of Australia gained 1.26%, National Australia Bank climbed 1.80% and Westpac Banking Corp. was up 1.70%. Investment banking company Macquarie Group increased by 0.80%.
Resource related stocks also advanced on higher commodity prices. BHP Billiton advanced 1.37%, Rio Tinto gained 1.31%, Fortescue Metals rose 1.14%, Gindalbie Metals added 0.54%, Iluka Resourcesclimbed 1.66%, Macarthur Coal was up 1.44%, Mincor Resources surged up 2.90% and Oz Mineralsincreased by 1.37%. Murchison Metals, however, bucked the trend and ended in negative territory with a sharp loss of 2.98%.
Oil-related stocks also ended in positive territory on higher crude oil prices in the international market.Woodside Petroleum climbed 1.51%, Santos Ltd advanced 0.94%, Oil Search Ltd added 0.64% andOrigin Energy was up by 0.69%. ROC Oil Ltd remained unchanged from previous close.
The leading gold mining company Newcrest Mining ended in positive territory with a gain of 1.80%.
In Japan, the benchmark Nikkei 225 Index dropped 23.17 points, or 0.25%, to 9,381, while the broader Topix index of all First Section issues was down 7.23 points, or 0.87%, to 823.
On the economic front, a report released by the Ministry of Health, Labor and Welfare revealed that cash earnings of laborers at Japanese companies remained unchanged year-over-year at 274,332 yen in August. On the other hand, contractual earnings rose 0.5% annually to 262,551 yen. The report further noted that scheduled earnings edged down 0.1% while non-scheduled earnings rose 10.8%. Special cash earnings decreased 10.7%. Cash earnings increased in manufacturing by 3.3% and in information and communications by 4.2%. Earnings in medical, healthcare and welfare fell 4.1%.
Securities stocks ended in negative territory. Daiwa Securities declined 1.83%, Mizuho Securities Co., plunged 3.72%, Matsui Securities fell 1.74% and Nomura Holdings was down 2.90%.
Large banks also ended in negative territory amid concerns about the strengthening of the local currency and anticipation of fresh measures from the Bank of Japan to arrest the strength of the local currency against the dollar. Mizuho Financial Group plunged 5.88%, Sumitomo Mitsui Financial Group declined 2.90%, Mitsubishi UFJ Financial Group fell 2.55% and Resona Holdings was down 3.84%.
Real estate related stocks also ended weaker on stronger local currency. Sumitomo Realty & Development slipped 0.81%, Mitsubishi Estate Co. shed 0.86%, Tokyu Land Corp. plunged 2.57%,Tokyo Tatemono Co., fell 2.45% and Heiwa Real Estate was down 1.00%. Mitsui Fudosan, however, bucked the trend and ended in positive territory with a gain of 0.48%.
Shipping related stocks also slipped into negative territory on stronger local currency. Nippon Yuesenslipped 0.89%, Kawasaki Kisen Kaisha fell 2.30% and Mitsui OSK lines declined 1.55%.
The Indian market pared most of its initial gains to end modestly higher on Monday. Buoyed by sustained flows of foreign capital and positive economic data from the U.S. and China, the 30-share BSE Sensex rose to a fresh 33-month high of 20,707 earlier in the session. However, as the session progressed, stocks pared considerable gains, as investors took profits tracking weak global markets.
The Sensex finished up 31 points or 0.15% at 20,476, with 14 of its components closing firm. Thebroader Nifty rose by 16 points or 0.26% to 6,159 and the broader indexes such as the BSE small-cap and mid-cap indexes gained 0.33% and 0.69%, respectively.
The market in China was closed for a holiday.
Among the other markets in the region, Jakarta Composite Index in Indonesia gained 22.38 points, or 0.63%, to 3,570, the Strait Times Index in Singapore advanced 26.55 points, or 0.85%, to close at 3,157, and Taiwan Weighted Index edged up by 1.92 points, or 0.02%, to close at 8,246.