Asian benchmarks register modest gains
19 Jan 2009 | 16:32 Asian benchmarks register modest gains
The Asian stock markets ended on a bullish note even as the optimism at the start of the session waned somewhat as the day progressed with negative economic numbers from Japan cluttering the sentiments. The initial boost was primarily on the back of positive cues from the US markets, which ended moderately higher on Friday and the regional benchmarks hopes that more bailouts from the world's major economies would help the global financial sector to come out of the current quagmire.
Industrial output in Japan plunged 8.5 percent month-on-month on a seasonally adjusted basis in November 2008, compared with a preliminary 8.1 percent decline estimation. It was the sharpest decrease in industrial production in the world's second largest economy since February 1953. However, Japan's key stock index managed to end in green as investors welcomed a dip in the yen, lifting electronics companies, automakers and other exporters. The Nikkei 225 stock index added 26.70 points, or 0.3 percent, to close at 8,256.85 points.
Financials stole the limelight in the session as investors concentrated on the developments in the US banking industry. On Friday, the Dow Jones industrial average rose 0.8 per cent to 8281.22, the Standard & Poor's 500 index rose 0.8 percent to 850.12, while the Nasdaq composite index rose 1.2 percent to 1529.33. The markets witnessed an erratic session that had investors tussling with concerns about the ongoing problems in the banking industry in response to more billion-dollar losses at Citigroup Inc and Bank of America Corp. Yet investors were also heartened by plans for both banks to restore themselves to profitability, and they were also willing to place bets on a range of consumer and industrial stocks.
Australian equities closed stronger as benign inflationary expectations fueled hopes of further reductions in the borrowing costs. The benchmark S&P/ASX200 index closed up 1.08 per cent and the broader All Ordinaries index gained 1.03 per cent.
The TD Securities-Melbourne Institute inflation gauge for December fell by 0.2 per cent, following a 0.6 per cent fall in November. The inflation gauge has now declined for three consecutive months for the first time since the series began in 2002, with falls in petrol, fruit and vegetable prices driving the latest monthly decline.
In other Asian markets, The NZX50 declined 0.15% or 4.185 points to close at 2747.975, the Hang seng index ended up 84 points or 0.64% at 13339.99, Jakarta Composite dropped 13.18 points or 0.97% to close at 1,350.687, KLSE Composite closed down 0.98 points or 0.11% at 896.47 while the Straits Times gained 16.54 points or nearly one percent to close at 1,746.99. Indian equities ended flat, paring their initial gains to close at 9329, up 6 points or 0.06%.
Europe's leading exchanges opened with good gains with most banks going well after the UK and Denmark unveiled new rescue packages for the sector. Britain revealed Monday a second bailout plan for its ailing banks, aimed at protecting them from bad assets in an effort to boost lending to the wider economy.
The UK Treasury said its package is designed to "reinforce the stability of the financial system, to increase confidence and capacity to lend, and in turn to support the recovery of the economy" after the global financial and economic situation "continued to deteriorate" over the past two months.
The Asian stock markets ended on a bullish note even as the optimism at the start of the session waned somewhat as the day progressed with negative economic numbers from Japan cluttering the sentiments. The initial boost was primarily on the back of positive cues from the US markets, which ended moderately higher on Friday and the regional benchmarks hopes that more bailouts from the world's major economies would help the global financial sector to come out of the current quagmire.
Industrial output in Japan plunged 8.5 percent month-on-month on a seasonally adjusted basis in November 2008, compared with a preliminary 8.1 percent decline estimation. It was the sharpest decrease in industrial production in the world's second largest economy since February 1953. However, Japan's key stock index managed to end in green as investors welcomed a dip in the yen, lifting electronics companies, automakers and other exporters. The Nikkei 225 stock index added 26.70 points, or 0.3 percent, to close at 8,256.85 points.
Financials stole the limelight in the session as investors concentrated on the developments in the US banking industry. On Friday, the Dow Jones industrial average rose 0.8 per cent to 8281.22, the Standard & Poor's 500 index rose 0.8 percent to 850.12, while the Nasdaq composite index rose 1.2 percent to 1529.33. The markets witnessed an erratic session that had investors tussling with concerns about the ongoing problems in the banking industry in response to more billion-dollar losses at Citigroup Inc and Bank of America Corp. Yet investors were also heartened by plans for both banks to restore themselves to profitability, and they were also willing to place bets on a range of consumer and industrial stocks.
Australian equities closed stronger as benign inflationary expectations fueled hopes of further reductions in the borrowing costs. The benchmark S&P/ASX200 index closed up 1.08 per cent and the broader All Ordinaries index gained 1.03 per cent.
The TD Securities-Melbourne Institute inflation gauge for December fell by 0.2 per cent, following a 0.6 per cent fall in November. The inflation gauge has now declined for three consecutive months for the first time since the series began in 2002, with falls in petrol, fruit and vegetable prices driving the latest monthly decline.
In other Asian markets, The NZX50 declined 0.15% or 4.185 points to close at 2747.975, the Hang seng index ended up 84 points or 0.64% at 13339.99, Jakarta Composite dropped 13.18 points or 0.97% to close at 1,350.687, KLSE Composite closed down 0.98 points or 0.11% at 896.47 while the Straits Times gained 16.54 points or nearly one percent to close at 1,746.99. Indian equities ended flat, paring their initial gains to close at 9329, up 6 points or 0.06%.
Europe's leading exchanges opened with good gains with most banks going well after the UK and Denmark unveiled new rescue packages for the sector. Britain revealed Monday a second bailout plan for its ailing banks, aimed at protecting them from bad assets in an effort to boost lending to the wider economy.
The UK Treasury said its package is designed to "reinforce the stability of the financial system, to increase confidence and capacity to lend, and in turn to support the recovery of the economy" after the global financial and economic situation "continued to deteriorate" over the past two months.
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