Asian markets don’t fail to astonish bidders

Growth of car industry (caused by 59% growth in China’s car sales in August) and raw material sector, as well as yen weakening and rising commodity prices, are equally positive signals

In brief: The markets are once again cherishing hopes for fast economic recovery, adding to investors’ optimistic outlook. In this connection, Pengana Capital’s expert Tim Schroeders stated that data on the U.S. production volumes had dispelled fears of a repeated recession.

Thursday, October 2, the principal Asian markets, with the exception of Indonesian and Thai markets, closed in green. According to yesterday’s data, the ISM index grew in July from 55.5 to 56.3 points, surpassing analysts’ forecast of a decrease towards 53 points.

By the end of trading, Japan’s Nikkei22 index went up by 1.52%, China’s CSI 300 – by 1.3%, while Australia’s S&P/ASX 200 – by 0.82%. Philippines’ PSEi finished trading with the record 2.04% growth. The regional MSCI Asia Pacific index, in its turn, stiffened by 1% to a two-week record of 119.26 points. Vietnam’s market didn’t open because of a national holiday. Once again, favorable U.S. statistics provides for growth of shares of companies making most of their profits in the U.S. market. Thus, Sony shares grew by 2.2%, while James Hardie Industries, the largest facing materials supplier in the U.S. market, gained 0.6% in the Sydney trading. At the same time, the shares of Billabong International, Australia’s leading surf clothing producer, grew by 2.2%. Today’s trading was favorable for Japanese exporters, against a background of yen’s weakening. Therefore, Honda Motor and Nissan Motor shares went up by 1.9% and 3% respectively. Finally, Ping An Insurance, China’s second-largest insurer, gained 2.7% after its board of directors had voiced an intention to pay yuan 29.1 billion ($ 4.3 billion) for 22.4% of Shenzhen Development Bank shares. Owing to this deal, the Chinese insurer is going to secure the control stock with 52.39% of shares. After the announcement, Shenzhen Development Bank’s shares grew by 3.9%.

Igor Tringlers
2010-09-02 22:11, Economics.

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