Indexes Gain Ground Region – Wide,
As Hong Kong, Shanghai Hit Record Highs
Asian-Pacific markets closed higher Monday, with Hong Kong and Shanghai both reaching record closing highs, while the Japanese benchmark index hit its highest close in nine months.
Japan's Nikkei Index finished the day 0.7% higher at 17424, the Hong Kong Hang Seng Index soared 2.2% to 20772, South Korea's Kospi Index advanced 0.2% to 1363, the Shanghai Composite Index jumped 3.6% to 2933, Taipei ended 0.03% higher at 7842 and Australia's S&P/ASX 200 rose 0.9% to close at 5727.
In Japan, stocks rose as shares in real-estate developers and steelmakers benefited from the optimistic outlook for corporate earnings, while bargain-hunting lifted bank stocks. Mitsubishi Estate rose 2.4% and Mitsui Fudosan ended 2% higher. Nippon Steel gained 2.5% and JFE Holdings advanced 3.7%. Among bank stocks, Mitsubishi UFJ Financial Group rose 2.6%, Mizuho Financial Group finished 2.1% higher and Sumitomo Mitsui Financial Group advanced 1.6%.
In Hong Kong, heavy buying of HSBC and China Mobile pushed the Hang Seng Index to close at a record high, as both companies accounted for 58%, or 255.79 points, of the Hang Seng Index's 444.50-point rally. HSBC, which rose 1.7%, was the most heavily traded stock, while China Mobile ended 4.3% higher following its report last Friday that it had its strongest-ever monthly subscriber additions in December with 4.8 million new users.
"Investors favor blue chips these days as the fundamentals of these companies are more solid than many Chinese financial stocks, the recent star performers, whose valuations have become a bit pricey," said Y.K Chan, a strategist at Phillip Capital Management (HK) Ltd.
In South Korea, shares were led higher by blue chips including Hynix and LG Electronics. Hynix Semiconductor rose 2.2% on a technical rebound after a loss of 4.9% Friday. LG Electronics gained 1.7% ahead of its fourth-quarter results Tuesday.
In China, transportation and retail companies surged on expectations of strong revenue in the run-up to the Chinese New Year, which helped send the benchmark Shanghai Composite Index to a record closing high. Among the day's biggest gainers, bus and taxi operator Beijing Bashi surged 10%, the daily limit, and Daqin Railway also rose 10%, while Shanghai Airlines gained 9.9%. Among retailers, Chengdu People's Department Store, Beijing Wangfujing Department Store and Yinchuan Xinhua Department Store all closed 10% higher.
In Australia, strength in commodity prices fueled broad-based gains in the stock market, with resources leading the charge. BHP Billiton was the biggest points contributor to the index, rising 2.1%. Woodside Petroleum rose 2.5%.
From: Wall Street Journal
Date: January 22, 2007 Back