Asia Market Report((Wednesday, November 4, 2009,)

Asia: Nikkei gains in thin trade

The Nikkei gained 0.4%, in thin trading, as investors sit tight ahead of the Federal Reserve’s statement on the US economy and interest rates.

Shares on the rise included Fast Retailing after it reported a strong rise in sales at its Uniqlo clothing stores.

Toyota added 1.7% after a local newspaper report said the carmaker has increased production at its car plants.

Elsewhere Japan Steel Works surged 10% to 1,096 yen after it increased its annual earnings forecast.

However chip-related stocks came under pressure after broker Morgan Stanley downgraded the US semiconductor sector to ‘cautious’.

The Nikkei 225 index closed 41 points higher at 9,844 in Tokyo.

Hong Kong’s Hang Seng Index climbed 1.76% on Wednesday as bargain hunters moved in following two days of declines.

Metal stocks did particularly well as gold prices hit a new all time high. Zijin Mining rose nearly 5% while Sumitomo Metal Mining added 2.9% in Tokyo.

PetroChina rose 3.33% after Credit Suisse lifted its rating on the stock to ‘neutral’.

Banks also put in a good performance with shares in Bank of China up over 2% and China Construction Bank firming 2.2%.

The Hang Seng index closed up 341 points at 21,615 in Hong Kong.

Indices

Index	Value	% Change
Nikkei 225	9,844.31	+0.42%
Hang Seng	21,614.77	+1.76%
Straits Times	2,649.45	+1.06%