Asian Markets Fundamental Outlook (Focus: ASX, Nikkei, Yen)

[CFDTrading]

Nikkei Bucks Downtrend as Financials, Japanese Automakers Advance

Wednesday, 01 April 2009 10:04:09 GMT
Written by David Song, Analyst, Geng Chen
Full Article

Price actions throughout the Asia/Pacific region were mixed on Wednesday with the Nikkei advancing on speculation that the Japanese automakers will benefit from falling exchange rate and the possible failure of the U.S auto industry after President Barack Obama said that the Administration is prepared to let GM and Chrysler file for bankruptcy.

Asia Session Key Developments

• Japan’s Tankan manufacturing index falls to -58, the lowest since 1974

• Manufacturing in China drops for eighth month

Nikkei Bucks Downtrend as Financials, Japanese Automakers Advance

Price actions throughout the Asia/Pacific region were mixed on Wednesday with the Nikkei advancing on speculation that the Japanese automakers will benefit from falling exchange rate and the possible failure of the U.S auto industry after President Barack Obama said that the Administration is prepared to let GM and Chrysler file for bankruptcy. In addition, further weakness in the leading Asian economies have weigh on the markets as manufacturing activity in China fell for the eighth consecutive month in March, while sentiment amongst Japan’s biggest manufacturers dived to an all-time low.

NKY 225 8351.91

The Japanese equity market snapped a three-day slide on the first day of the new fiscal year as the Nikkei advanced 242.38 points, or 2.99% to end the session at 8351.91. All of the components climbed higher, led by a 4.09% gain in financials, which was followed by 3.69% advance in consumer goods. Honda Motor Co., Japan’s second largest automaker, added 6.7% while Sony Corp. rose 6.4% after a central bank survey showed that businesses expect a smaller drop in full-year profits.

HSI 13519.54

Stocks in Hong Kong fell for the first time in the week, led by phone companies, as the Hang Seng Index lost 56.48 points, or 0.42% to 13519.54. Unicom, China’s second largest mobile-phone company, tumbled 8.1%, while China Mobile Ltd. lost 2.7%. Meanwhile, PetroChina Co. the nation’s biggest oil company dropped 1.1% after Citigroup downgraded the stock to “sell”. Meanwhile, Bank of China Hong Kong rallied 9.7% after its parent company, Bank of China Ltd, said it will increase its stake in the unit.

ASX 200 3579.70

The Australian stock index was little changed on Wednesday as the ASX dropped 2.40 points, or 0.07% to close at 3579.70. The most notable decline was led by Macquarie Airports, Australia’s biggest owner of air terminals, as the company’s shares plunged nearly 8%, and was followed by Macquarie Communications Infrastructure Group, which dropped 6.8% today.

Notable Asian Session Event Risk / Economic Releases

 

[CFDTrading]

Monday, 06 April 2009 09:17:09 GMT
Written by David Song, Analyst, Geng Chen, CFDtrading.com
Full Article

Asian stocks rose for a fourth day on Monday, led by the rally in the Hong Kong market, after Wall Street ended higher on Friday to mark its fourth consecutive week of gains. Broad based gains in financials and basic materials led the markets higher, while shares of Japanese exporters such as Panasonic and Mazda surged higher after the U.S. dollar pushed above 101 Yen for the first time since October.

Asia Session Key Developments

· USD/JPY breaks 101.00 to reach a five-month high
· Oil prices rise 1.5% to $53/bbl

Asian Stock Markets Surge Higher, Led by Higher Commodity Prices, Rising Exchange Rates

Asian stocks rose for a fourth day on Monday, led by the rally in the Hong Kong market, after Wall Street ended higher on Friday to mark its fourth consecutive week of gains. Broad based gains in financials and basic materials led the markets higher, while shares of Japanese exporters such as Panasonic and Mazda surged higher after the U.S. dollar pushed above 101 Yen for the first time since October. Meanwhile, Europe’s largest bank, HSBC, jumped after raising nearly $18 billion in capital.

NKY 225 8857.93

Japan’s Nikkei 225 Stock Average gained 108.09 points, or 1.24% to end the session at 8857.93. Mazda Motor Corp, Japan’s second largest car exporter, surged 10% after the yen declined to a five-month low against the dollar and euro, while Panasonic Corp, the world’s largest consumer electronics maker, jumped 2.3% after Nomura Holdings Inc. raised the stock to “buy”.

HSI 14998.04

The Hang Seng Index rallied 452.35 points, or 3.11% to end at 14998.04, which was led by a 4.25% gain in basic materials. The rise was also powered by a 4.13% advanced in industrials and a 3.46% increase in financials. Aluminum Corp. of China Ltd, the nation’s biggest producer of the metal, jumped 6.4% while PetroChina Co. climbed 3.7% after metals and oil prices continued to push higher, and HSBC Holdings Plc, Europe’s biggest bank, rose 3.4% after raising $17.7 billion from the largest corporate rights offering in the U.K.

ASX 200 3756.60

Australia’s ASX 200 Index rose 21.00 points, or 0.56% to close at 3756.60 in Sydney, powered by a 4.21% gain in telecommunications and s 1.18% advance in financials. Telstra Corp, Australia’s largest telephone company surged 4.6% after underperforming last week, while the National Australia Bank jumped 2.2%, which led banking share higher.