Asian stock markets on a high
On Wednesday, most of the Asian stock markets were high and it was supported by Wall Street’s rally. Resource stocks, energy, and gold were shining after the prices of the gold went up a record high as the prices of the oil and base metals increased on Tuesday. The investors were expectant about American third quarter income, which started on Wednesday with the reporting of Alcoa (aluminum giant). Bell Potter who is a Senior Client Adviser at Stuart Smith, Sydney said that there are only little negatives witnessed, with more hopefulness about profit margin growth and not essentially top line income impelling the market.
Nikkei 225 of Japan was up by 0.8 percent; Kospi Composite of South Korea was up by 0.2 percent, Hang Seng of Hong Kong was at 1.6 percent, and S&P/ASX 200 of Australia was by 1.5 percent. Dow Jones Industrial Average prospects were up by ten points in the screen trade after the closing of DJIA at 1.3 percent.
After the prices for the spot gold increased and touched a record high on Tuesday at $1043.54 per troy ounce, the gold miners were leading the way in Australia. The yellow metal was lately at $1038.29 per troy ounce which came down by $3.49 from the close of New York. Lihir Gold increased by 5.1 percent and Newcrest Mining rushed 6.3 percent. On Tuesday, the profits earned by base metals price assisted BHP Billiton up 2.6 percent and Rio Tinto increased by 4.2 percent as the increase in the crude oil prospects helped Wood side Petroleum by 0.3 percent and Santos by 1.0 percent.
The lead November Nymex crude oil prospects agreement was lately increased 42 cents at $71.29 per barrel, settling at 46 cents more in New York on Tuesday. Energy stocks and miners too surpassed in the Asian markets. Mitsubishi Materials was up 6.5 percent, Sumitomo Metal Mining in Japan was up 5.2 percent, and in Korea Korea Zinc rushed 6.8 percent and Posco increased 1.6 percent.
In Hong Kong Chalco were up 2.6 percent, Shenhua 2.1 percent and Cnooc up by 1.2 percent. Ben Kwong of KGI was of the view that better market feeling will probably lend some assistance for the local market, but possible policy dangers in China further on restrain any more increase in the coming term. The shares of Japan were also joining, though a market analyst with Daiwa Securities SMBC said that yen being stronger than American dollar is a big worry. It will not happen like that the investors will be sell exporters aggressively, but they will be quite careful regarding investing with them.
Tosoh who is a main material maker from Japan is amongst the big gainers was up 5.8 percent and peer Showa Denko increased 8.7 percent when Nikkei reported that both of them were starting to manufacture safe, inexpensive materials for lithium ion batteries for increasing the green vehicles demand. NZX-50 of New Zealand came down 0.4 percent, main index of Malaysia was up 0.3 percent, and Straits Time Index of Singapore was up 1.1 percent. Main index of Indonesia was up 0.3 percent, main index of Taiwan increased 0.6 percent, and Philippines shares increased 2.3 percent. The markets of China were closed because of their National Day holidays.
The land-assets, construction stocks, and banks were having an increase from the weak American dollar with Cathay Financial increase 4.3 percent and Fubon Financial yup 1.7 percent. Randy Chang of KGI Securities said that the profits are because of the liquidity momentum while the Asian currencies profits against American dollar. The market of New Zealand undid their previous profits as the strong Telecom Corp. came down 2.2 percent and Fletcher Building lost 2.2 percent. The broker of David Price said that the fault of these two stocks were because of the index alterations from foreign parties.
The American dollar was up against the yen in the foreign exchange market after the Tuesday’s heavy losses and was trading at Y88.87 in late New York business. The euro was recorded at $1.4697 from $1.4723 and from Y130.65 at Y130.66. On Tuesday the market of base metals was getting the flow back after the impressive profits. Mark Pervan who is a Senior Commodity Strategist at ANZ said that the base metals are following the dollar. Copper is still maintaining is importance but aluminum is looking shaky.