Autos Boost Nikkei

Elena
27 Apr, 2006
New York City

Asian markets closed mixed. The Nikkei advanced on strong quarterly results from Japanese companies and continuously falling oil prices. The index rose 0.3% to 17,114.54, supported by blue-chip automakers. Taiwan Weighted index reversed from earlier gains to close down 0.5% on profit taking in tech stocks. Hong Hong Hang Seng closed higher by 0.4% on property stocks.

[R]8:15AM Asia markets closed mixed.[/R]
Asian-Pacific benchmarks finished mixed. The Nikkei advanced on optimism about strong corporate earnings outlook, bolstered by upbeat quarterly results from Japanese companies and continuously falling oil prices. The index rose 0.3% to 17,114.54, supported by blue-chip automakers like Honda Motor, up 5.3%, Nissan Motor, up 2.9%, and Toyota Motor, up 0.5%. Taiwan Weighted index reversed from earlier gains to close down 0.5% on profit taking in tech stocks which offset gains in financial and other companies. Hong Kong’s Hang Seng closed higher by 0.4%, boosted by property stocks. South Korea’s Kospi ended flat, but hit a new closing high.


[R]8:00 AM European averages dropped at mid-day.[/R]
European markets sharply declined at midday, reflecting weaker commodity and energy stocks, mixed earnings reports and deal talk involving companies like Siemens, Alcatel, and France Telecom. Metals prices moved lower after China lifted its base interest rate to 5.85%. Major mining companies like Rio Tinto and BHP Billiton sent the resource sector down 4%, while oil and gas giants Royal Dutch Shell and BP helped the energy sector down 2%. Alcatel fell 5.9% on lower profit, while Siemens dropped 3.1% after it agreed to buy Diagnostics Products Corp. for $1.86 billion. The German DAX 30 dropped 0.7%, the French CAC 40 lost 0.9%, and London FTSE 100 declined 0.8%.