Asian Stocks Climb, Nikkei at 5-Month High
Published: Monday, 27 Sep 2010 | 3:35 AM ET
By: Reuters with CNBC.comDiggBuzz FacebookTwitter More Share
Asian stocks climbed on Monday, strong gains in U.S. stocks Friday drove Wall Street higher for a fourth straight week.
Stocks closed higher for a fourth straight week Friday, extending a September rally with huge daily gains fueled by optimism over the future direction of the economy.
The FTSE CNBC Asia 100 Index [.FTFCNBCA 6463.8 90.59 (+1.42%)] of bluechip stocks is up 0.8 percent.
Japan's stocks finished 1.39 percent higher, led by chip-related stocks and exporters. But market players said further rises would be held in check by the yen's continued strength against the dollar.
Shares in consumer lenders plunged after media said struggling consumer lender Takefuji is making final preparations to file for bankruptcy protection from creditors, crippled by the reimbursement of overcharged interest.
Analysts have warned that Takefuji could struggle to survive given that it does not have the financial backing of a major bank like competitors Acom and Promise.
Acom sank 11 percent to 1,329 yen and fellow consumer lender Aiful nosedived 20 percent to 92 yen. Trade in Takefuji shares was suspended by the Tokyo Stock Exchange.
The benchmark Nikkei [JPY=X 84.21 -0.11 (-0.13%)] rose 131.47 points to 9,603.14, set for its biggest monthly gain since March with a rise of some 8.8 percent. But it is up only some 2.4 percent on the quarter.
The broader Topix climbed 1.3 percent to 849.30.
Exporters climbed broadly, boosted by the Wall Street rise, with Canon gaining 2.5 percent to 3,885 yen and Honda Motor up 2.8 percent at 3,015 yen.
Commodities-linked firms climbed after metals gained broadly on Friday, when oil rose strongly as well. Mitsui & Co gained 3.3 percent to 1,247 yen and Mitsubishi Corp rose 3.2 percent to 1,977 yen.
The South Korean market gained ground as rallies on Wall Street improved sentiment and continued to attract foreign investors to pick up shares.
The Korea Composite Stock Price Index (KOSPI) [KR;KSPI Unavailable ()] ended up 0.77 percent at 1,860.83 points.
The South Korean won hit the highest level against the dollar in more than four months on Monday
Crude refiners were boosted by the stronger won, which renders the cost of importing crude oil cheaper. S-Oil rose 1.6 percent and GS Holdings firmed 1.0 percent.
Airlines and tourism issues likewise outperformed amid expectations a stronger local currency will increase demand for overseas tours.
Korean Air Lines added 5.4 percent and Asiana Airlines soared 7.7 percent.
Hyundai Engineering & Construction Co surged 4.9 percent, continuing to ride higher on expectations of its imminent sale.
Shareholders of Hyundai Engineering are scheduled to receive preliminary bids for their $2.1 billion stake in the builder by October 1.
Hyundai Motor plans to disclose its decision to bid for Hyundai Engineering, according to a company executive who declined to be named.
But the automaker's shares fell as much as 1.9 percent after news of a recall of about 139,500 Sonata sedans sold in the U.S. due to problems with the steering wheel that could cause a loss or reduction of control.
Shipbuilders rallied amid strengthening hopes for new orders, analysts said. Daewoo Shipbuilding & Marine Engineering rose 4.7 percent and Samsung Heavy Industries firmed 1.9 percent.
Australian stocks closed 1.6 percent higher in a broad rally led by gains in banks and miners such as BHP Billiton, which hit a six-week peak.
BHP rose 1.5 percent to A$39.66 while rival Rio Tinto rose 2 percent to A$77.15, a fresh five-month peak.
Investors were encouraged as copper surged to five-month highs, gold touched a record above $1,300 an ounce and Wall Street notched up a fourth straight week of gains.
Among the lenders, Australia and New Zealand Banking Co climbed 2.5 percent to A$24.20.
Australia's benchmark S&P/ASX200 index [AU;XJO 4675.365 73.50 (+1.6%) ] rose 73.4 points to 4,675.3 after ending Friday at its lowest level in two weeks.
New Zealand's benchmark NZX 50 index rose 0.8 percent to 3,239.1.
Iron ore miner Murchison Metals closed 10 percent lower, paring losses after the iron ore miner denied a report that partner Mitsubishi Corp would pull out of their joint venture in Western Australia.
LNG rose 4.5 percent to A$0.465 after it said it was studying the possibility of a new liquefied natural gas project in northern Queensland state, using gas from partner Metgasco, which rose 3.4 percent to A$0.46.
ASX gained 3 percent to A$33.70, taking its September gains to 15.8 percent as investors bet conditions were turning around for the exchange.
Wesfarmers added 2.2 percent to A$34.49. The conglomerate revealed plans to invest more than A$600 million ($576 million) to expand its Bunnings hardware retail chain in the country's most populous state.
Taiwan shares advanced 0.4 percent, as a surge on Wall Street sparked investor optimism of
better prospect for technology exporters
The world's top contract chip maker, TSMC, rose 1 percent, following a 3.3 percent rise in its ADRs on Friday.
HTC added as much as 1.4 percent before ending down 0.3 percent. Local media reported that it is set to launch its first 4G models using LTE technology.
The main TAIEX share index [.TWII 8191.54 24.9199 (+0.31%)] closed 24.92 points higher
at 8,191.54.
China's key Shanghai Composite Index [CN;SHI 2627.9666 36.4165 (+1.41%)] advanced 1.4 percent, near a two-week closing high, buoyed by strength in overseas markets last week.
Gold miners rallied on the back of record high gold prices. Zhongjin Gold was up 4.3 percent, Henan Yuguang Gold & Lead surged 10 percent and Shandong Gold Mining advanced 4.9 percent.
Hong Kong stocks rose to an eight-month high, helped by that strong rally on Wall Street and as local property plays continued their strong run.
The benchmark Hang Seng Index [HK;HSI 22340.84 221.41 (+1%)] jumped 1.28 percent to 22,401 points.
Low interest rates and expectations for further appreciation in the yuan, which makes Hong Kong dollar-denominated assets cheaper for mainland investors, were likely to continue attracting funds into the local housing market, said analysts.
Sun Hung Kai Properties rose 3.8 percent, while Li Ka-shing-controlled Cheung Kong (Holdings) gained 3.5 percent to a more than two-year high.
Shares of Hong Kong Exchange gained 2.8 percent to HK$152, supported by news on Brazil's Vale. The world's largest iron-ore producer said in regulatory filing that it planned to list shares in Hong Kong in the form of depositary receipts.
In Southeast Asia, Singapore's STI [.FTSTI 3113.46 20.78 (+0.67%)]and Malaysia's KLCI [MY;KLCI 1464.71 13.52 (+0.93%)]both gained ground.
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