INO.com News - Asian Markets End Higher, As Dubai Crisis Eases (rtt)

Asian Markets End Higher, As Dubai Crisis Eases

(RTTNews) - The markets across Asia snapped the sharp losses suffered in the previous session and ended in positive territory, led by banks, after the Central Bank of the United Arab Emirates stated that it would extend assistance to the local and foreign banks affected in the crisis.

In Japan, the benchmark Nikkei 225 Index gained 264.03 points, or 2.91% to 9,346, while the broader Topix index of all First Section issues advanced 28.93 points, or 3.57%, to 840.

On the economic front, a preliminary report released by the Ministry of Economy, Trade and Industry revealed that industrial output in the country rose 0.5% month-on-month in October, posting a seasonally adjusted index score of 89.9. That was sharply lower than analyst expectations for a 2.5% increase following the 2.1% gain in September. On an annual basis, output fell 15.1% after the 18.4% contraction in the previous month.

In a separate report, the Ministry of Health, Labor and Welfare revealed that total cash earnings of wage earners in Japan dropped 1.7% year-on-year in October, slower than the revised 1.8% fall in the previous month and the 2.7% decrease in August. The report further noted that contractual cash earnings were down 1.7% annually in October compared to the 2.1% fall in the preceding month.

The Ministry of Land, Infrastructure, Transport and Tourism, in a report revealed that housing starts dropped 27.1% year-on-year in October, slower than a 37% drop in the previous month. Economists expected a 33.5% drop for the month. The housing starts have now been declining continuously since December last year.

Almost all the stocks across the board ended in positive territory, led by banking, automotive stocks.

All the major banks surged sharply higher. Sumitomo Mitsui Financial surged up 8.78%, Mizuho Financial soared 9.46%, Mitsubishi UFJ Financial climbed 8.56% and Resona Holdings gained 5.72%.

Automotive stocks also ended sharply higher on expectation that the recent Dubai crisis might not jeopardize growth prospects. Toyota Motor rose 4.24%, Honda Motor advanced 1.50%, Mitsubishi Motor surged up 4.46%, Nissan Motor gained 3.47% and Suzuki Motor climbed 2.86%.

Exporters also ended in positive territory after yen weakened to 86-yen per dollar. Canon Inc. rose 4.06%, Sony Corp. advanced 2.65% and Sharp Corp. climbed 3.67%.

Shipping related stocks also ended in positive territory. Kawasaki Kisen Kaisha gained 2.03%, Mitsui OSK Lines advanced 2.11% and Nippon Yusesn added 1.51%.

In Australia, the benchmark S&P/ASX200 Index surged up 129.20 points, or 2.83% to close at 4,701, while the All-Ordinaries Index ended at 4,715, representing a gain of 118.30 points, or 2.57%.

On the economic front, a report released by the Melbourne Institute and TD Securities revealed that the unofficial monthly inflation gauge in the country increased at a faster pace in November. As per the report, prices measured on the inflation gauge rose 2.1% year-on-year in November, falling within the Reserve Bank of Australia's target range of 2% to 3%. This follows a 1.2% increase in the inflation gauge in October.

Banks and mining stocks led the gains as fears about the Dubai financial crisis faded.

Among the major banks, ANZ Bank rose 4.53%, Commonwealth Bank of Australia gained 4.35%, National Australia Bank surged up 5.96% and Westpac Banking climbed 4.37%. Investment banker Macquarie Group also soared 5.87%.

Metals and mining stocks also ended higher on expectation that recovery prospects will not be dented by the recent Dubai crisis.

Among mining stocks, BHP Billiton gained 2.25%, Rio Tinto surged up 4.54%, Fortescue Metals climbed 4.99%, Gindalbie Metals advanced 2.21%, Iluka Resources rose 4.36% and Oz Minerals increased 3.39%.

Oil stocks also advanced. Woodside Petroleum added 1.35%, Santos gained 2.72%, Oil Search added 0.71% and Origin Energy rose 2.09%.

In Hong Kong, the Hang Seng Index recovered smartly from Friday's loss and ended in positive territory with a gain of 687.00 points, or 3.25%, at 21,821, as concerns about the financial crisis in Dubai World eased considerably following assurance from the Central Bank of the United Arab Emirates that it would extend financial assistance to the local and foreign banks. Bargain hunting at lower levels following sharp drop of more than 1,000 points on Friday lifted the market higher with banks leading the way. All the 42 components in the index, except one, ended in positive territory with marginal gains.

In South Korea, the KOSPI Index gained 31.10 points, or 2.04%, to close at 1,556, recovering smartly from the sharp decline in the previous session as concerns about the financial crisis in conglomerate Dubai World eased considerably following assurances from the Central Bank of United Arab Emirates. Traders evinced fresh buying interest on banking shares on bargain hunting following sharp fall in the previous sessions. Technology, automotive and commodity stocks also ended higher, following other markets in the region.

Better-than-expected GDP data for the second quarter and realization that Dubai's debt crisis would have only a limited impact on local companies and banks helped the Indian market bounce back sharply on Monday. The weakening of the dollar against other major currencies and a sharp rebound across Asia also improved sentiment. The BSE Sensex closed at 16,926, up 294 points or 1.77% and the S&P CNX Nifty rose 91 points or 1.84% to 5,033.

Among other major markets in the region, China's Shanghai Composite Index gained 99.04 points or 3.20% to close at 3,195, Indonesia's Jakarta Composite Index advanced 22.32 points, or 0.93% to close at 2,416, and Taiwan's Weighted Index climbed 1.22%, or 91.30 points, to close at 7,582. However, Singapore's Strait Times Index bucked the general trend and ended in negative territory with a loss of 30.10 points, or 1.09%, at 2,732.

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