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Asian markets gain as oil retreats |
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HOME >> NEWS >> Asian markets gain as oil retreats |
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 Most Asia-Pacific equities rallied on Tuesday, following Wall Street’s gains overnight, as investors took heart from retreating oil prices and better-than-expected earnings from HSBC.
The devastating earthquake that hit China’s Sichuan province on Monday weighed down Shanghai stocks.
In Australia, all eyes were on the stocks of Westpac and St George Bank, which resumed trading today after announcing the planned merger. St George’s board has apparently indicated it would accept the offer of 1.31 Westpac shares for each share of Australia’s fifth-largest bank.
Westpac’s shares slid 3.3 per cent to A$25.11, while St George shares surged 25 per cent to A$33.37.
The Nikkei 225 gained 1.5 per cent to 13,953.73, the important 14,000 mark still eluding the index, while the broader Topix was up 1.3 per cent at 1,360.05. With earnings season still going strong in Japan, there was plenty of profit, dividend and share buyback news moving stocks.
Nikko Asset Management remarks in a report that Japanese company dividend policy is helping support the market.
Nikko Asset points out that as of Monday 58 Japanese companies of the Topix 100 have forecast their dividend forecasts for this fiscal year, within which 29 of the 58 have forecast an increase. Notwithstanding the special case of Rohm, none of the 58 companies announced a dividend cut for the year despite 20 of the 58 companies giving negative earnings growth forecasts.
Camera maker Nikon led the Nikkei higher after announcing on Monday a dividend hike, a share buyback and a 38 per cent profit increase for the year ended March. Shares rallied 13 per cent to Y3,190.
Similarly, Dentsu, Japan’s largest advertising agency, surged 7.2 per cent to Y256,000, after it said it planned to raise its dividend in the fiscal year just started and planned to buy back a significant chunk of shares.
Over in Hong Kong, shares gained momentum in afternoon trading, rallying 2 per cent to 25,552.77. HSBC, which said overnight that first quarter earnings were higher than in 2007, despite having to put aside nearly $6bn in additional provisions from the credit crisis, gained 1.9 per cent to HK$135.40, leading up the Hang Seng behind China Mobile, which rallied 2.9 per cent to HK$132.90.
Other Hong Kong stocks on the rise were Chinese aluminium company Chalco, and Tencent, both of which will be added to the Hang Seng Index in June, the Hang Seng Indexes Co. said on Friday. Chalco rallied 6.3 per cent to HK$13.14, while Tencent jumped 8.8 per cent to HK$62.65.
The Shanghai Composite Index managed to pare some of its earlier losses after the Sichuan earthquake on Monday rattled buildings as far away as Bangkok, devastating the area. Shares closed down 1.8 per cent at 3,560.243.
On the Shanghai Stock Exchange, insurance company China Life lost 4.7 per cent to Rmb31.63. Sinopec fell 2.3 per cent to Rmb11.81.
In Seoul, shares rallied in afternoon trading to close 1.1 per cent higher at 1,842.80, while Singapore gained 0.8 per cent to 3,206.41 and Taiwan rose 1.8 per cent to 8,989.53. Asia Cement rallied 7 per cent to T$55.3 after the earthquake in Sichuan.
In Mumbai, the Sensex was recently trading 0.2 per cent higher at 16,887.65
Back in Tokyo, Pioneer shares surged 8.3 per cent to Y1,102 after a local report that the company would cut its workforce by 2,000 to restructure its plasma screen business.
Fujitsu’s shares also soared, on the back of its earnings forecasts for this fiscal year, where it projects net income to more than double to Y100bn. Shares in the company rallied 13 per cent to Y773. |
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