Asian Markets, Fundamentals

Stocks in Asia/Pacific Advance As China Pledges to Supports Domestic Growth

Asia Session Key Developments

• Gold Advances to Fresh Record High
• China’s Zhang Ping Pledges to Support Domestic Demands

The Asian equities market tipped higher on Monday, with the Hang Seng halting the five-day decline as policy makers pledged to support domestic demands, while the ASX 200 0.67% as gold prices pushed to a fresh record high of 1,165.695/oz. The chairman of the National Development and Reform Commission, Zhang Ping, said that the nation will aim to expand domestic demands and pledged to maintain “consistent, stable” policy to encourage a sustainable recovery, and expects the nation to reach its 8% growth forecasts for 2009 as the Organization for Economic Cooperation and Development raises its outlook for the global economy. Meanwhile, the economic docket showed new motor vehicle sales in Australia for the third month as the expansion in monetary and fiscal stimulus continues to work its way through the real economy, and conditions should improve going into the following year as the economy skirts the global recession.

Nikkei 225                          9,497.68

Closed in observance for Labor Thanksgiving Day.

Hang Seng                        22,771.39

Hong Kong shares closed to the upside on Monday, marking its first advance in 5 days as Zhang Ping, the chairman of the National Development and Reform Commission pledged to maintain “consistent, stable” policies to support domestic demands, leading the benchmark equity index to surge 315.55 points (1.41%) and end the trade at 22,771.39 as all 9 components gained on the day. Shares of China Construction Bank Corporation, the nations’ second-largest lender, rallied 4.08% following the announcement, with Industrial & Commercial Bank of China advancing 3.26% as Mr. Ping anticipates China to reach its 8% growth target for 2009. At the same time, Henderson Land Development gained 2.31% as Credit Suisse forecasts office rents to rise 20% in the following year, while Aluminum Corp of China added 1.99% on the back of higher commodity prices.

S&P/ASX 200 Index           4,717.00

Stocks in Australia pushed higher on Monday on the back of higher commodity prices, leading the S&P/ASX 200 to climb 31.20 points (0.67%) and close at 4,717.00, with 9 of its 10 components gaining on the day. Shares of Newcrest Mining, the country’s largest gold producer, rose 3.24% as gold soared to a new record high of 1,164.420, while Rio Tinto Group, the world’s third-biggest mining company, advanced 3.59% amid the London Metal Exchange Index having its largest weekly gain in a month. Meanwhile,  Sims Metal Management plunged 4.10% subsequent to the world’s largest recycler of scrap metal completing a A$400 million share sale, while Qantas Airways, Australia’s biggest airline added 1.12% as the company said it will spend A$4.4 billion over the next two years as it plans to purchase new aircrafts.

Notable Asian Session Event Risk / Economic Releases