Japan, Korea Gain, HK and Taiwan Fall

Ivaylo
04 Aug, 2006
New York City

Asian stock indexes were mixed Friday, as two rate hikes in Europe strenghtened concerns that rising global interest rates could curb growth and limited enthusiasm about a one-month high reached by the Dow Jones Industrial Average overnight. Investors were held back as they awaited the U.S. Federal Open Market Committee meeting next Tuesday to make out U.S. interest rate trends.

[R]7:15AM Asia ended mixed on rate-hikes and concerns over FOMC meeting.[/R]
Asian markets ended mixed on Friday. Japan''s Nikkei 225 Average gained 0.19% to close at 15,499.18. Mitsubishi UFJ Financial Group gained, rising 1.94% and Sumitomo Realty & Development, also advanced 2.01%. Among electronics issues, Matsushita Electric Industrial climbed 0.21%. Pharmaceuticals also advanced, with Takeda Pharmaceutical rising 1.73%. Internet business company Softbank gained 2.08%.

South Korean shares also closed higher. The Korea Composite Stock Price Index, or Kospi, closed up 1% at 1304.51. Bank and brokerage stocks contributed to the main index''s increase. Samsung Securities climbed 1.2% and Daewoo Securities jumped 5.1%. Kookmin Bank rose 1.7%.

Hong Kong shares finished lower with the Hang Seng Index falling 0.94% to 16887.80. Computer maker Lenovo Group, helped by a better-than-expected first-quarter result, jumped 3.6%, being the only gainer among 33 index constituent stocks. Most stocks fell on uncertainty over the direction of U.S. interest rates. Taiwan shares also fell with technology stocks being sold after they gained in the previous two sessions. The Weighted Price Index of the Taiwan Stock Exchange shed 0.3% to 6442.61.

[R]6:30AM European markets bounce back, regardless of ECB rate-hike.[/R]
European markets were higher on Friday morning. The German DAX Xetra 30 index rose 0.5% at 5,667, the French CAC 40 index added 0.4% at 5,001 and the U.K. FTSE 100 index rose 0.2% at 5,847. Allianz was so impressed with its second-quarter performance, that it was prompted to lift its full-year targets. Its shares gained 2.4%. Swiss reinsurance company Swiss Re moved up 0.3% lower after reporting a 16% first-half profit rise and holding its outlook.

Electricite de France surged 3.7% after getting permission to raise French electricity prices by 1.7%, starting in mid-August, and reporting second-quarter comparable revenue growth of 10.9%. Anglo American rose 3.4% after announcing it would buy back $4 billion in shares, lifting its dividend by 18% and reporting a 52% increase in adjusted operating profit. Philips Electronics gained 2.1% following its agreement to sell 80% of its semiconductor unit for 8.3 billion euros to a consortium of private-equity investors led by Kohlberg Kravis Roberts & Co.

Crude oil rose above $77 a barrel in London on reports that a German and three Filipino oil workers were kidnapped by suspected militants, raising concern about further supply disruptions from Africa''s largest oil producer. Brent crude oil for September settlement rose as much as 61 cents, or 0.8 percent, to $77.17 a barrel on the ICE Futures exchange in London. The contract traded at $77 at 11:20 a.m. in London. Crude oil for September delivery was up 13 cents to $75.59 a barrel on the New York Mercantile Exchange.

Gold bounced around on Friday after failing to break above this week''s two-week high, capped by selling pressure ahead of crucial U.S. jobs data and next week''s U.S. Federal Reserve meeting. Spot gold hit a high of $647.00 an ounce before dipping to $646.20/647.70 an ounce, down slightly rom $646.50/648.00 late in New York on Thursday.

The euro was a little lower against the U.S. dollar Friday, giving up modest gains that it made after the ECB hiked interest rates. The euro bought $1.2792 in early European trading, down from $1.2805 in New York late Thursday.The British pound also retreated from gains it made after the Bank of England raised rates, slipping to $1.8862 from $1.8883. The dollar rose to 115.19 Japanese yen from 114.91 yen

[R]5:00AM Gold, silver, oil fall, ignoring ECB warnings for raising the rates.[/R]
December gold ended down $7.10 at $657 a troy ounce and September silver closed down 15.5 cents at $12.09 an ounce. October platinum finished down $14.10 at $1,246.50 an ounce, while September palladium ended the session down $4.30 at $324.65 an ounce. The benchmark September copper contract slipped to a weekly low of $3.4325 per pound before finishing 10.15 cents lower at $3.4895 per pound.

September crude-oil finished 35 cents lower at $75.46 a barrel after hitting an intraday low of $74.65. The September gasoline contract sank 3.77 cents to close at $2.3000 a gallon. The September heating oil contract dipped 1.59 cents to $2.1135 a gallon. On the New York Board of Trade, Arabica coffee futures hit three-month highs. September ended 2.15 cents higher at $1.0585 a pound, after trading as high as $1.0890 a pound. Futures of raw sugar in foreign ports dipped to 7-month lows before recovering. The October contract finished down 0.25 cent at 14.28 cents a pound.