Asian stock markets gain ground
HONG KONG, June 16: Asian stocks gained ground on Monday as the markets welcomed a cooldown in oil prices as well as last week’s bounceback on Wall Street, with bargain-hunters driving many of the rallies.
But trading volumes were off and there were signs that investors were nervous about jumping in too heavily, with fears of more volatility ahead as mounting fuel and food prices deepen inflation worries.
Tokyo gained 2.72 per cent and Hong Kong picked up 1.94 per cent, while Sydney was little changed, edging down 0.1 per cent. Chinese shares were mixed.
Oil prices slid after UN Secretary General Ban Ki-moon, who visited Saudi Arabia at the weekend, said Oil Minister Ali al-Nuaimi had agreed to increase production to bring the soaring price of crude under control.
TOKYO: The Nikkei-225 Index soared 2.72 per cent thanks to the rebound on Wall Street, a drop in oil prices and a weaker yen that benefits exporters.
The benchmark added 380.64 points to close at 14,354.37. The broader Topix index of all first-section shares rose 30.12 points or 2.20 per cent to finish at 1,401.69.
But dealers warned that trade volume was low, at just 1.89 billion shares compared to 3.1 billion on Friday, and that investors may be looking to lock in gains in the days ahead.
The rise was led by short-covering, not by spot demand, as low trading volumes showed, said Yutaka Miura, a senior analyst at Shinko Securities.
It would not surprise me if investors may move soon to cash in profits from relatively high-priced Japanese stocks, Miura said.
HONG KONG: Bargain-hunters drove the Hang Seng Index up 1.94 per cent, as the benchmark added 437.39 points at 23,029.69 in a rebound after last week’s punishment. Almost every blue-chip issue saw gains.
“We got oversold last week, so we are due for a rally this week. Together with a good performance on Wall Street on Friday, investors snapped up some bargains,” said Howard Gorges at South China Securities.
Cathay Pacific and mainland oil firms were higher on a cooling in oil prices.
SYDNEY: Australian share prices were little changed, edging down 0.1 per cent as falls in the banking sector just slightly outweighed gains in resources.
The S&P/ASX 200 Index closed down 6.4 points, while the broader All Ordinaries was 3.3 points lower at 5,476.3.
The market is rotating to resources, where there is clear growth next year, said Southern Cross Equities director.
Mining heavyweight BHP Billiton rose 1.3 per cent to 43.61 Australian dollars and Rio Tinto added 1.3 per cent to 136.20.
KUALA LUMPUR: The Kuala Lumpur Composite Index gained 0.7 per cent, up 8.71 points to 1,238.06. Profit-taking capped gains in blue-chips and market heavyweights.
Retail players took the opportunity to sell into strength, said one dealer.
Concern over rising inflation and its impact on economic growth and corporate earnings continues to dictate sentiment and this is likely to cap gains in the near term.
WELLINGTON: New Zealand share prices closed 0.28 per cent lower as many investors chose to sit on the sidelines following last week’s volatility.
The NZX-50 Gross Index fell 9.71 points to 3,406.30 on thin turnover worth 50 million dollars (37.5 million US).
Investors were “a little bit punch-drunk” after sharp falls last week, said ABN Amro Craigs equities adviser Nigel Scott.
JAKARTA: The Jakarta Composite Index was flat, down just 0.38 points at 2,398.04.
Buying was subdued as investors took profits on any rebound, a trader told Dow Jones Newswires.
Coal miner Bumi ended down 0.6 per cent at 8,150 rupiah and rival Indo Tambangmegah dropped 2.7 per cent at 32,900.
MUMBAI: The Sensex Index gained 1.36 per cent, up 206.2 points to 15,395.82, as easing oil prices helped give the market a boost.
But dealers said that medium-term inflation concerns persist, as annual inflation in Asia’s third-largest economy rose to 8.75 per cent for the week ended May 31, the highest since February 2001.—AFP