Asia Market Report-Markets quiet ahead of US jobs data

Date: Friday 04 Jun 2010

Japanese shares ended the week on a dull note as Naoto Kan was confirmed as the country’s new Prime Minister.

The lower house of the Japanese parliament rubber stamped Kan’s appointment shortly before the market closed.

The Nikkei 225 ended the day 13 points lower at 9,901.

Cement companies Sumitomo Osaka Cement and Taiheiyo Cement weighed the index down.

At the opposite end of the scale Fuji Heavy Industries was the best performer. The company, which makes Subaru cars, is set to announce a record year for its North American operations, according to newspaper reports.

Chemist shops owner Ain Pharmaciez was pumped up after it said expects operating profit in the year to April 2011 will be around one-fifth higher year-on-year.

Brokerage Daiwa Securities closed slightly lower on the day reports emerged that the pay of its top executives rose by 36% in the year to 31 March, with the (mean) average salary $590,000.

The picture was a bit brighter in Hong Kong but once again the market movement was minor, with the Hang Seng index rising 32 points to 19,819.

As in Japan, investors were reluctant to commit themselves ahead of the US non-farm payrolls data for May, due out today.

Mobile phone network provider China Mobile was wanted after the World Bank forecast that the Chinese economy will grow by between 9% and 10% in 2010.

TPV Technology, the computer monitors maker, pushed higher after flagging a near tripling in earnings.

Miners were not having a good time of it, however, after Freeport-McMoRan Copper & Gold and Codelco, the world’s largest copper producers, said yesterday that China’s plans to put the brakes on economic growth may curb demand for the metal.

Jiangxi Copper fell back while in Australia miners BHP Billiton and Rio Tinto were also under pressure.


Elsewhere Chinese steelmaker Baoshan Iron was dented by reports that it plans to cut prices in July.