Asian Markets, Fundamentals

Asian Stocks Mixed on Growth Concerns, Nikkei Pushes Back Above 10,000

Asia Session Key Developments

• Yen Retreats Across the Board
• Nikkei Bucks Trend
  

The Asian equities markets were mixed on Friday, with the Nikkei climbing 10.4% for the week to post its largest advance in more than a year, while Hong Kong shares halted the four-day rally following the unexpected decline in U.S services. As policy makers hold a cautious outlook for future growth, fears of a protracted recovery may temper the advance in the equities market as the global financial system remains weak.

Nikkei 225                          10,022.59

The Japanese equity markets pushed higher on Friday for a fifth straight day, leading the Nikkei 225 to advance 44.92 points (0.45%) and close at 10,022.59. Five of the ten components traded higher on the day, with industrials rising 1.07% to lead the way and was followed by a 0.71% gain in consumer goods. Shares of Nippon Yusen, the country’s largest line by sales soared 6.18% as the Baltic Dry Index, which measures the cost of shipping commodities, extended gains for a second day, while Japan Airlines leapt 8.70% as the airline proposed a $1.1 billion investment which will keep the carrier in the Oneworld alliance. At the same time, Pioneer advanced 2.61% after reaching an agreement with Suning Appliance to sell electronics in China, while Hitachi, Japan’s fourth-largest company by sales pushed 4.24% higher as the company plans to raise as much as $4.6 billion from issues of stocks and convertible bonds in order to pay debt and invest in facilities.

Hang Seng                        22,498.15

Hong Kong shares closed to the downside on Friday, leading the benchmark equity index to shed 55.72 points (0.25%) and end the trade at 22,498.15 as 7 of the 9 components traded lower on the day. Shares of Henderson Land Development slid 2.31% as Hong Kong home prices fell 1.3% in the week ended November 29^th to the lowest in nine weeks, while Hong Kong & China Gas shed 1.07% on the back of lower commodity prices. At the same time, Industrial and Commercial Bank of China tipped 0.15% lower as China’s banking regulator has asked the nation’s larger lenders to increase their minimum capital adequacy ratios to 11%, while Li & Fung, the biggest supplier of toys and clothing to Wal-Mart, slipped 3.76% to lead the decline on the index following the unexpected contraction in U.S. services.

S&P/ASX 200 Index           4,702.20

Stocks in Australia traded lower on Friday, with the S&P/ASX 200 slipping 72.40 points (1.52%) to close at 4,702.20. Nine of the ten components traded lower on the day, with basic materials plummeting 2.27% to lead the decline, while technology advanced 0.18% to taper the sell-off. Shares of Newcrest Mining, Australia’s largest gold producer slid 2.27% as gold for immediate delivery fell for a second consecutive day, with Mincor Resources tumbling 6.57% on the back of lower metal prices. At the same time, BHP Billiton tipped 2.52% lower as the company along with Rio Tinto is working to secure an agreement for their proposed $116B iron ore joint venture in Western Australia by Saturday’s self-imposed deadline.