Director Kowie Geldenhuys

  Macau Strategic Services Recruitment
Macau Translations
Home arrow Business arrow Asian stocks regain ground on bargain-hunting
Asian stocks regain ground on bargain-hunting PDF Print E-mail
Saturday, 15 November 2008
Stocks in Asia rebounded yesterday on the back of a rally on Wall Street and as traders stepped in to pick up bargains following three days of heavy selling amid fears for the global economy.
Markets followed the lead from Wall Street, which soared overnight despite a raft of data highlighting further problems with the world's biggest economy.
Trade was light as dealers looked to Washington where they hoped a summit of leaders of the 20 leading economies would come up with concrete action to find a way out of the worst financial crisis since the 1930s.
Most bourses opened sharply higher on the back of the New York — which was up 6.67 percent overnight — but eased back as recession fears set back in. Tokyo finished 2.72 percent higher, while Hong Kong was up 2.4 percent and Sydney added 1.4 percent.
The buying followed three straight days of losses in the region.
"The rally is just driven by bargain hunting after the sharp dips," said Kazuhiro Takahashi, equity trading information chief at Daiwa Securities SMBC.
Wall Street's rally came as figures released in the US showed unemployment had risen to 6.5 percent, the highest since 1994, while there was still uncertainty over the future of the country's auto industry, which is seeking government help.
Figures also showed a steep drop in both imports exports in the united states, highlighting the slowdown in the world's biggest economy.
"There was no logical reason as to why shares rose, and worries remain over how the US will handle the financial crisis," said Yosuke Hosokawa, chief forex strategist at Chuo Mitsui Trust Bank.
Shanghai, which has bucked the trend this week and mainly posted gains, rose sharply again Friday — by 3.05 percent — as dealers hoped a 586 billion dollar stimulus announced by Beijing Sunday would increase spending.
There were also hopes of another reduction in interest rates.
Taipei rose 0.34 percent, while Singapore, Seoul and Kuala Lumpur finished flat.
As the G20 summit got under way in the US Japan said it would provide 100 billion dollars for the International Monetary Fund to help developing nations and also called for more investment from other leading countries.
In other markets Manila soared 3.07 percent, New Zealand added 1.39 percent, Jakarta was 0.4 percent higher.
However, Bangkok fell for a fifth straight day, losing 0.81 percent and Mumbai lost 1.58 percent.

HONG KONG: Hong Kong share prices closed 2.4 percent higher.
The benchmark Hang Seng Index closed up 321.31 points at 13,542.66. Despite Friday's gain, the index was still down 4.9 percent on the week.
Turnover for the day was light at 44.53 billion Hong Kong dollars (5.71 billion US).
The China Enterprises Index, which tracks the movement of China-registered companies traded in Hong Kong, jumped 3.3 percent on hopes for an interest rate cut on the mainland.
Ernie Hon, a strategist at ICEA Securities said he expected the People's Bank of China will cut rates by as much as 81 basis points over the coming weekend.
Chinese financial companies performed most strongly on hopes of a cut.
Bank of Communications rose 3.2 percent to 4.53 dollars, China Construction Bank jumped 2.2 percent to 4.14 and Bank of China gained 2.9 percent to 2.14.
Property developer China Overseas rose 3.8 percent to 9.26 dollars as housing demand may rise if mortgage rates fall after the rate cut.
Offshore oil producer CNOOC gained 4.3 percent to 6.00 dollars and PetroChina rose 4.1 percent to 5.83.
Bucking the trend, steel-to-property conglomerate Citic Pacific slid 7.1 percent to 6.15 dollars after Goldman Sachs lowered its target price to 8.30 from 12.50 due to concerns over a share dilution after its parent exercises a convertible bond.

SHANGHAI: Chinese share prices jumped 3.05 percent.
The benchmark Shanghai Composite Index, which covers A and B shares, closed up 58.83 points to 1,986.44 on turnover of 87.8 billion yuan (12.9 billion dollars).
Food and beverage firms rose on hopes domestic consumption will get a boost from the stimulus package.
Tsingtao Brewery rose 8.7 percent to 18.18 yuan and Hunan Jinjian Cereals Industry hit the 10 percent upside limit at 4.79 yuan.
Property developers gained on hopes that lower mortgage rates would give a boost to weakening demand. China's biggest listed property developer, China Vanke, rose 4.1 percent to 6.92 yuan.

TOKYO: Japanese share prices gained 2.72 percent.
The Tokyo Stock Exchange's benchmark climbed 223.75 points to finish at 8,462.39 after jumping more than five percent in early trade.
The broader Topix index of all first-section shares rose 9.38 points or 1.12 percent to 846.91.
Exporters rallied after the dollar jumped against the yen overnight, although the greenback eased back in Asian trade on Friday. A stronger dollar makes Japanese exports more competitive overseas.
Chip-testing equipment maker Advantest jumped 9.1 percent to 1,278 yen and disk-maker TDK rose 7.3 percent to 3,250 yen.
Kubota, Japan's top agricultural machinery maker, gained 6.4 percent to 551 yen.

[email protected] : : [email protected]

c 2007 Macau Daily Times : : Joomla! is Free Software released under the GNU/GPL License.