Chip-Makers Lead Asia Higher

Ivaylo
13 Sep, 2006
New York City

Asian shares were higher on Wednesday, though, markets retreated from early gains. Japan Nikkei Average gained on separate reports from blue chip Bridgestone Corp. and truck maker Hino Motor Ltd. which stated that they will expand their international sales operations. Indexes in Shanghai and Hong Kong led advancers, with property stocks and energy-sensitive issues in focus.

[R]7:30AM Asian markets close higher on chip-makers and property stocks.[/R]
Asian markets finished higher on Wednesday. The Nikkei 225 Average finished the day 0.2% higher at 15750.05. Stocks in Tokyo closed mixed as a strong showing amid the export-oriented technology sector failed to counter declines in commodity companies. Elpida Memory advanced 6.6%, and Sumco gained 5.2%. On the other hand, selling pressure on consumer finance stocks continued, as Takefuji lost 3.4% and Aiful sank 3.3%.

Hong Kong Hang Seng Index gained 0.79% to close at 17210.04. shares ended higher for the second straight session. HSBC closed 0.7% higher, and China Mobile rose 1.2%. South Korea Kospi Index advanced 0.38% to 1333.13. Hynix Semiconductor advanced 3.1% on the company positive fundamentals and stabilizing memory chip prices. Transport shares rose on a sustained fall in oil prices, as Hyundai Merchant Marine rose 0.9% and Asiana Airlines climbed 1.6%.

Taiwan gained 0.59% to 6664.87. Stocks tracked Wall Street, with food companies leading after Uni-President Enterprises was chosen as a sponsor of the 2008 Beijing Olympics. Australia S&P/ASX 200 closed 0.86% higher at 5017.20. The stock market reversed two days of heavy losses with share-price gains tempered by the outlook for the Chinese-driven commodity boom. BHP Billiton gained 1.6% and Rio Tinto advanced 1.4%. Shanghai Composite Index bucked the upward trend and lost0.4% to finish at 1689.39.

[R]6:30AM European stocks traded higher Wednesday, tracking U.S. markets[/R]
European markets were higher by mid-morning on Wednesday. The U.K. FTSE 100 index rose 0.1% to 5,902, the German DAX Xetra 30 index advanced 0.2% to 5,888 and the French CAC-40 index increased 0.2% to 5,134. BAE Systems gained 1% after it said that its first-half net income rose 28%. On the other hand, Safran, the aero engine and telecoms group, plunged 7.6% after first half proforma operating profits fell 35%.

Scania, the Swedish truck company, jumped 8.9% in the wake of confirming MAN AG, its German rival was likely to make a bid. The stock rose 9% on Tuesday. MAN added 2.8%. Investor rose 4.4% following the investment vehicle statement it was willing to sell its Scania stake. Mediaset, private broadcaster, fell 3.5% after it announced its Italian advertising sales target of 2-3% did not seem achievable.

Crude oil for October delivery fell 26 cents to $63.50 in electronic trading on the NYME in London. Gold for immediate delivery dropped $5.88, or 1%, to $581.57 an ounce also in London. The euro was down slightly against the U.S. dollar Wednesday. In morning European trading the euro bought $1.2695, down from $1.2702 in New York on Tuesday. The British pound climbed slightly to $1.8748 from $1.8743 the day before, while the dollar rose to purchase 117.75 Japanese yen from 117.68 in New York.

[R]5:00AM Precious metals fell Tuesday on short-term speculation selling.[/R]
December gold shed $3 to end at $594.30 a troy ounce on the NYME, while December silver gave up 10 cents to $11.14 an ounce. December palladium also fell late in the session, finishing down $3.95 at $312.10 an ounce. However, October platinum managed a $7.90 gain to close at $1,208.50 an ounce. Most-active December copper finished down 4.45 cents at $3.3730 per pound.

October crude oil sank $1.85, to settle at $63.76 a barrel, the lowest close for a front month contract since March 27. October unleaded gasoline closed 4.25 cents down at $1.5521 a gallon. October heating oil ended down 4.57 cents at $1.7597 a gallon. October natural gas lost 9.6 cents to end at $5.574 a million British thermal units. On the New York Board of Trade, September Arabica coffee futures closed down 0.15 cent at $1.0010 a pound. Futures on raw sugar in foreign ports for October advanced 0.14 cent to close at 11.55 cents a pound.