Price actions in the Asia/Pacific region were mixed on Monday, with the Nikkei reversing the 1% slide during the early trade to hold flat at the close. The appreciation in the Japanese yen dragged on export-based firms early in the session, while the Hang Seng Index pushed to a six-month high
Asia Session Key Developments
· Australia’s producer price index unexpectedly falls in first quarter
· China’s Premier Wen Jiabao sees ‘better-than-expected’ results from stimulus plan
Hang Seng Index Climbs to Six-Month High as China’s Premier Wen Jiabao Spurs Hope for Improved Growth
Price actions in the Asia/Pacific region were mixed on Monday, with the Nikkei reversing the 1% slide during the early trade to hold flat at the close. The appreciation in the Japanese yen dragged on export-based firms early in the session, while the Hang Seng Index pushed to a six-month high, led by China-related shares, after Premier Wen’s stated that the most recent stimulus plan has been ‘better-than-expected’ in fostering economic activity.
NKY 225 8924.75
Japanese stocks rose on Monday, reversing an early decline, which was led by steelmakers after Nomura recommended buying the stocks. The Nikkei added 17.17%, or 0.19% to close at 8924.75 after dropped as much as 1% during the morning trade. Kobe Steel Ltd. and Sumitomo Metal Industries Ltd., surged as least 7% after the brokerage firm upgraded the industry to “bullish” however, Toshiba Corp. slumped 4.8% on the news that the firm may sell shares to raise capital.
HSI 15750.91
The Hong Kong benchmark index advanced 149.64 points, or 0.96% to 15750.91, which is the highest close since October15, led by China-based shares after Premier Wen Jiabao said the stimulus plan has fared ‘better-than-expected.’ The breakdown of the index showed industrials surged 3.03%, while the energy-sector increased 1.22%, and at the same time, financial added 1.13%, led by Bank of China Ltd., the country’s second biggest lender, which climbed 4.98%.
ASX 200 3769.00
Australia’s ASX 200 slipped 7.7 points, or 0.20% to 3769.00 at the close in Sydney, and the index was dragged lower by basic material, which fell 1.19%, as investors remained skeptical over Aluminum Corp. of China’s $19.5B bid for a controlling stake in Rio Tinto. As a result, shares of Rio Tinto plunged 2.06%, while BHP Billiton dropped 1.59%, and at the same time, banking shares dropped 0.4% as shares of Commonwealth Bank of Australia slipped 1.35%.
Notable Asian Session Event Risk / Economic Releases
