India, Indonesia Lead Asian Markets

123jump.com Staff
26 Dec, 2007
New York City

Asian stocks closed higher on optimism of better than expected sales during the holiday period in the U.S. and rising expectations of earnings for the current quarter. India and Indonesia led the region on local buying. Dollar edged higher against yen but bearish outlook for the dolar continued for the year 2008. Australia and Hong Kong markets were closed today.

[R]8:00AM New York, 10:00PM Tokyo – Asia markets closed higher led by a sharp surge in India, Japan, and Indonesia.[/R]

Asian markets closed higher on the optimism on earnings and expectations of better than expected retail sales in the U.S. during holiday period.

In Tokyo Nikkei 225 Index closed higher 100.95 or 0.65% to 15,653.54. Market of Hong Kong and Australia were closed today.

Dollar edged higher in the day’s trading lifting export sensitive stocks. Cannon, Toyota closed higher.

Toyota revised its annual forecast for auto sales for the fiscal 2008 to 9.85 million cars from 9.8 million on rising sales in Asia. Sales growth for Toyota and other automakers in Japan has been lackluster. Toyota jumped 1.2% to close at 6,180 yen.

Mitsubishi UFJ Securities forecasted one of the most bearish outlooks for dollar against yen. The forecast from the chief economist suggested that dollar could fall to 95 yen in 2008 and may take another year to recover. Most economists in Japan are looking for dollar to trade between 110 and 105 yen.

Dollar has lost more than 10% against most Asian currencies but has declined the most against euro in 2007 and in the last four years. Dollar has lost 5% against yen and most economists expect dollar to slide another 3% to 5% in the year 2008.

Sanyo Electric plunged 11% after the Tokyo Stock Exchange said that the company may be delisted.

Central Japan Railway declined 9% to 1.028 million yen after the company announced plans to build 5.1 trillion yen train link with little financial plan in place. Investors feared that company may take additional debt or sell equity to fund the project.

In South Korea Kospi Index increased 12.75 or 0.66% to close at 1,906.72, in Thailand SET index closed up 2.08 or 0.25% to 841.20, and in Indonesia JSE Index edged higher by 56.57 or 2.13% to 2,714.55. Sensex index in India surged 338.40 or 1.70% to 20,192.52.

Shipbuilders in Korea added as investors bet that the rising oil prices will keep order for new tankers flowing. STX Shipbuilding jumped 4% to 48,000 won.

SK Energy, the largest oil refiner in Korea, fell 3% to 1178,500 won as the spreads between the crude oil and refined crude fell in the international markets. SK was also fined along with other chemical makers for price fixing. The total fine levied on all the companies was 54.2 billion won.

Sensex Index in India surged 1.7% or 338.40 to close at 20,192.52. The index jumped higher on rising expectations for the third quarter earnings and the government permitting the charitable trusts to invest in stocks and bonds of listed companies. The permission will open doors for trusts with more than 25,000 crore rupees to allocate funds to the booming stock market.

Reliance Industries jumped 4% to 2,896 rupees, HPCL surged 7% to 340 rupees, and Indian Oil added 5.5% to 475 rupees.

Metals and mining stocks led the gainers in the index. Hindalco Industries jumped 4% to 209 rupees, Sterlite Industries added 2.6% to 1,026, and Hindustan Zinc increased 2.6% to 791 rupees.