Asian markets make headway on Monday

Shanghai, Sensex, Seoul, Sydney extend rally while Hang Seng, Nikkei continues to follow
Stock market in Asian region closed firm on Monday, 9 November 2009, with the modest up move on Wall Street last Friday, economic hopes and some encouraging corporate news keeping investor sentiment fairly bullish. Stocks gained momentum on strengthening confidence of global economic recovery after the G20 meetings concluded that global stimulus efforts would remain in place until the economic recovery was assured. Still, the gains are limited in some markets with a section of investors appearing a bit concerned about the pace of economic recovery.
On Wall Street, stocks ended the week with modest gains. All three major indices added more than 3% in their kitty. It was mainly riding on earning report from Cisco Systems and better than expected non farm productivity report, that stocks managed a good end for the week.
On that day, the Dow ended higher by 17.5 points at 10,023.52. Nasdaq ended higher by 7.12 points at 2112.5. S&P 500 ended higher by 2.67 points at 1079.5. For the week, the Dow Jones Industrial Average ended higher by 310.69 points (3.2%) at 10,023.42. The Nasdaq Composite Index, ended higher by 67.33 points (3.3%) at 2,112.44. S&P 500 ended higher by 33.11 points (3.2%) at 1069.3.
In the commodity market, crude oil rose from a one-week low as Hurricane Ida entered the Gulf of Mexico, forcing BP and Chevron Corporation to cut output.
Crude oil for December delivery rose as much as $1.52, or 2%, to $78.95 a barrel in electronic trading on the New York Mercantile Exchange. It was at $78.46 at 9:18 a.m. in London.
Brent crude for December settlement rose as much as $1.50, or 2%, to $77.37 a barrel on the London-based ICE Futures Europe exchange. It was at $76.79 at 9:18 a.m. local time.
Gold climbed to a record in London and New York as a weaker dollar prompted investors to buy bullion as an alternative investment. Gold for immediate delivery rose as much as $13.33, or 1.2%, to $1,108.43 an ounce in London and traded at $1,106.60 by 9:29 a.m. local time. December gold futures climbed as much as 1.2% to $1,108.80 an ounce on the New York Mercantile Exchange’s Comex division and were last at $1,106.90.
In the currency market, the U.S. dollar and the Japanese yen edged down against their major counterparts as a rally in Asian and European stocks reduced demand for safe-haven currencies.
The Japanese yen drifted lower against the US dollar as Asia as a rally in Asian stocks prompted investors to buy higher-yielding currencies as it was trading at 89.8870 against greenback
The Hong Kong dollar was trading at HK$ 7.7500 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.
In Sydney trade, the Australian dollar hit a two-week high on Monday, aided by record-high gold prices, strong demand from Japanese investors and data that indicated resilience in the local property market. The dollar closed locally at $US0.9250, up from $US0.9135 on Friday.
In Wellington trade, the New Zealand dollar rose after dairy co-operative Fonterra increased its forecast payout to farmers to $6.05 per kilogram of milk solids, from the $5.10 announced in September. The NZ dollar rose as high as US73.63c, its highest since October 29, on the news and finished its local session at US73.58c from US72.25c at 5pm on Friday.
The South Korean ended at 1,161 won against the greenback, up 7 won from Friday's close, as foreign investors scooped up Seoul stocks.
The Taiwan dollar strengthened against the greenback. The Taiwan dollar was trading higher against the US dollar at NT$ 32.3650, 0.5700 up from Friday’s close of NT$32.5090.
In the Asian equity market, most of the regional equities ended mostly higher as Moody's lifted its outlook on China and Hong Kong, helping to fuel advances in those markets.
In Japan, shares markets managed to hold gain line as investors stepped in for bottom fishing on upbeat earnings outlooks, while broader Topix fell below the line triggered by stronger yen and wariness about domestic political prospects. Shares of gold miners getting a boost after precious metal jumped to record high. Insurance companies shares rose on better than expected earning figures.
The Nikkei 225 Stock Average index closed at 9,808.99, gained 19.64 points, or 0.2% from its previous close, while the broader Topix of all First Section issues on the Tokyo Stock Exchange slid 3.34 points, or 0.38% to 870.67.
On the economic front, the Ministry of Finance said Monday that Japan official reserve assets totaled $1.08 trillion by the end of October, up $4.17 billion from previous month. As of October 31, foreign currency reserves amounted to $1.01 trillion, while reserves with the International Monetary Fund stood at $4.37 billion. Gold reserves totaled $25.59 billion, while SDR’s were worth $21.17 billion.
In Mainland China, share market recouped morning losses to finish the session with benchmark Shanghai Composite endured gains for seventh day in row, as market participant stepped in for dip buying as Group of 20 governments agreed to maintain stimulus efforts until the economic recovery was assured. Power producers’ shares escalated after the Shanghai Securities News said the government might raise power price charged on consumer by up to 6%. Automakers were firmer after vehicle sales jumped. Energy and materials and resources stocks benefited from rising crude oil and metal prices on Monday.
The Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, surged 11.55 points, or 0.36%, to 3,175.58, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, grew 0.37%, to 3,495.79.
In Hong Kong, the stock market surged with broad based gains across the sector on sign of investor’ improved confidence in the global economic recovery. Materials and resources and energy stocks outperformed on the back of gains in precious metal and oil prices and increased risk appetite. Banks and financials and properties gained on tracking firmer overseas markets with a persistent inflow of funds. Automakers were firmer after vehicle sales jumped.
At closing bell, the Hang Seng Index escalated 377.83 points, or 1.73%, to 22,207.55, meanwhile the Hang Seng China Enterprise, which tracks the overall performance of 43 mainland Chinese state-owned enterprises on the Hong Kong Stock Exchange, advanced 301.28 points, or 2.31%, to 13,318.48.
In Australia, the share market posted broad based gains across the sector after strong opening inspired by Wall Street Friday and as recent optimistic assessment of the economy by the central bank and fairly good corporate results. Banks and financials outperformed, buoyed by takeover offer for AXA Asia Pacific and Commonwealth Bank September quarter trading update.
At the closing bell, the benchmark S&P/ASX200 index spurted 80.9 points, or 1.76%, to 4,674.9, while the broader All Ordinaries spurted 82.10 points or 1.78%, to 4,686.50.
On the economic front, the Australian Bureau of Statistics stated today that the number of loans for owner occupied housing in Australia was up a seasonally adjusted 5.1% to stand at 65,505 in September compared to the previous month. The total job advertisements in Australia were down a seasonally adjusted 1.7% on month in October, the Australia New Zealand Banking Group said today, coming in at 133,709 ads. On an annual basis, ads were down 42.3%.
In New Zealand, stock market ended the first trading day of the week in the green region. The share market inched up for the second day in a row Monday. One of the main movers of the benchmark NZX-50 during the early hours was Fletcher Building shares that lifted further above the two-month low of 786 reached on Thursday. The NZX50 ascended 0.15% or 4.90 points to 3165.06. The NZX 15 added 0.17% or 9.88 points to close at 5737.24.
In South Korea, stocks closed higher as investors snapped up steelmakers, builders and tech shares, following gains in U.S. markets. The benchmark Korea Composite Stock Price Index (KOSPI) advanced 4.33 points to 1,576.79.
In Singapore, stock market spurted with broad based gains across the sector on tracking strong cues from Wall Street Friday and positive other Asian bourses. The blue chip Straits Times Index was ended session at 2,696.38, gained 35.17 points or 1.32%.
In Taiwan, stock markets followed the regional trend. The benchmark Taiex share index extended its run with gains by adding 73.65 points or 1% in a day, closing at 7536.70.
In Philippines, equities closed slightly lower, as selling pressure was seen in the broad markets due to the cautiousness generated by the two explosions that rocked the Philippines capital Manila today. At the concluding bell, the benchmark index PSEi lost 0.53% or 15.76 points to 2,915.71, while the All Shares index tumbled 0.39% or 7.35 points to 1,832.11.
In India, the key benchmark indices spurted as the US dollar fell sharply against major rivals after finance ministers and central bankers from the Group of 20 leading economic powers pledged to keep massive stimulus measures in place until the global recovery strengthens. Closer home, hopes of a pick-up in the pace of economic reforms further bolstered bulls. The BSE 30-share Sensex was up 340.44 points or 2.11% to 16498.72. The S&P CNX Nifty jumped 102.25 points or 2.13% to 4898.40.
Elsewhere, Malaysia's Kula Lumpur Composite index finished slightly higher at 1267.75 while stock markets in Indonesia’s Jakarta Composite index ended the day higher at 2406.43.
In other regional market, European shares jumped on Monday, with miners performing well and as investors also welcomed earnings and deal moves in the insurance sector. On a regional level, the U.K. FTSE 100 index rose 1.1% or 57.76 points to 5,200, the German DAX index climbed 1.4% or 76.61 points to 5,565 and the French CAC-40 index rose 1.35% or 49.91 points to 3,757.