Asia Markets Report

Asian Markets Extend Gains

The markets across Asia open for trading on last day of the week ended in positive territory taking cues from Wall Street where the major averages ended the previous session with smart gains led by financial and technology stocks. Higher prices of commodities and oil prices also lifted market sentiment as concerns about Europe debt crisis showed signs of easing a little for the present.

In Japan, the benchmark Nikkei 225 Index gained 123.26 points, or 1.3%, to 9763, while thebroader Topix index of all First Section issues also rose 8.63 points, or 1.0%, to 879.

On the economic front, a report released by the Ministry of Internal Affairs and Communications revealed that core consumer prices in the country declined 1.5% on year in the month of April, compared to the mean expectations for a drop of 1.4% in prices, following the 1.2% decline in the previous month.

A report released by the Ministry of Economy, Trade and Industry revealed that retail sales in the country increased 4.9% on year in April to 11.401 trillion yen, sharply higher economists' forecast for a 3.3% annual increase, following the 4.7% increase in the previous month. The report further noted that on a monthly basis, retail sales added 0.5%, defying expectations for a 1.0% decline after adding 0.8% in March.

In a separate report, the Ministry of Internal Affairs and Communications revealed that the unemployment rate in the country inched higher in April, having come in at a seasonally adjusted 5.1%. Economists, on the other hand, had expected employment rate to be flat at 5.0% as reported for March. As per the report, the number of unemployed persons in April was 3.56 million, an increase of 100 thousand or 2.9 percent from the previous year.

Light sweet crude oil futures for July delivery ended at $74.58 a barrel in electronic trading, up $0.03 per barrel from previous close at $74.55 a barrel in New York on Thursday.

Insurance stocks ended in positive territory. T&D Holdings gained surged up 4.55%, Tokio MarineHoldings climbed 2.63%, MS &AD Insurance rose 2.61% and NKSJ Holdings gained 2.96%.

Trading companies continued to extend gains from previous session. Mitsubishi Corp. advanced 1.37%, Mitsui & Co. added 1.38%, Marubeni Corp. gained 1.18%, Itochu Corp. was up 0.93% and Toyota Tsusho Corp. increased 1.44%.

Exporters also ended in positive territory. Canon Inc. gained 1.63%, Sony Corp. advanced 0.82%,Panasonic Corp. rose 1.65%, Sharp Corp edged up 0.20% and Fanuc Ltd climbed 4.44%.

Mixed trading was witnessed among banks. Sumitomo Mitsui Financial added 0.40% and Mizuho Financial remained unchanged from previous close. However, Mitsubishi UFJ Financial edged down 0.22% and Resona Holdings fell 1.03%.

In Australia, the benchmark S&P/ASX200 Index climbed 78.30 points, or 1.79% and closed at 4,457, while the All-Ordinaries Index ended at 4,479, representing a gain of 79.90 points, or 1.82%.

Light sweet crude oil futures for July delivery ended at $74.58 a barrel in electronic trading, up $0.03 per barrel from previous close at $74.55 a barrel in New York on Thursday.

Financial stocks led the gains on the market following gains in the US in the previous session. ANZ Bank gained 1.95%, Commonwealth Bank of Australia climbed 2.74%, National Australia Banksurged up 2.61% and Westpac Banking rose 2.99%. Investment banker Macquarie Groupincreased 1.89%.

Resource related stocks also ended in positive territory. BHP Billiton added 0.31%, Rio Tintoclimbed 1.75%, Fortescue Metals surged up 4.75%, Gindalbie Metals soared 4.85%, Iluka Resources remained unchanged from previous close, Mineral Resource rose 5.85%, Murchison Metals was higher by 2.08% and Oz Minerals increased 2.35%.

Oil related stocks also ended in positive territory. Woodside Petroleum gained 1.95%, Santos rose 1.47%, ROC Oil firm also rose 1.47%, Oil Search advanced 0.36% and Origin Energy was higher 1.08%.

Gold stocks, however, ended in negative territory. Lihir Gold slipped 1.25% and Newcrest Mininglost 1.08%.

Retail stocks ended in positive territory on bargain hunting at lower levels. David Jones gained 3.77%, Harvey Norman rose 3.29%, JB Hi-Fi Ltd advanced 0.75%, Myer Holdings climbed 3.88%, Reject Shop surged up 3.49%, and Wesfarmers increased 4.29%. However, Woolworths bucked the trend and ended in negative territory with a loss of 0.45%.

In Hong Kong, the benchmark Hang Sang Index extended gains for the second successive session and ended in positive territory with a gain of 335.34 points, or 1.73%, at 19,767, taking cues from strong gains on Wall Street in the previous session and positive trading across the markets in Asia. Higher commodity prices and bargain hunting at lower levels also lifted market sentiment.

Firm global cues and higher commodity prices amid receding worries about Europe's debt crisis helped the Indian market end sharply higher for a third straight session Friday. However, intra-day profit taking and uncertainty among investors about the near-term market outlook resulted in some choppy trading until the mid-session. After trading in a range of 16,891-16,693, the 30-share Sensexaverage ended up 197 points or 1.18% at 16,863 and the 50-share Nifty rose by 63 points or 1.27% to 5,067.

Among the other major markets open for trading, China's Shanghai Composite Index bucked the trend and ended flat with a marginal loss of 0.15 points, or 0.01% at 2,656, while the Taiwan's Weighted Index ended in positive territory with a gain of 52.16 points or 0.72% at 7,7,295. The markets in Indonesia, Singapore and Malaysia were closed for holidays.