Asia Daily Markets Briefing

The major markets across the Asia-Pacific region ended higher on Monday, unfazed by the rocket launch by North Korea on Sunday. The major averages in the region extended their gains for a fifth consecutive week last week on increasing optimism that the worst of the global economic crisis is over and the initiatives of the governments will yield positive results in the near term.

In Japan, the benchmark Nikkei 225 Index gained 1.02% or 108.09 points to close at 8,886. However, the broader Topix index of all First Section Issues pared its gains and shed 0.39 points or 0.01% to close at 831.

Automakers moved higher in reaction to the yen’s strength and a report in the Nikkei newspaper that stated that the government would subsidize purchases of eco-friendly vehicles such as hybrids. Among the automakers, Toyota advanced 1.08% and Isuzu Motors rose 8.59%. However, Honda edged down 1.26%.

Exporters also benefited from the stronger yen. Canon gained 1.63%, Sony added 1.04% and Sharp rose 4.68%. However, Trading houses slipped on profit taking, Mitsubishi Corp. lost 0.61%, Sumitomo Corp. edged down 0.11% and Itochu fell 1.14%.
Oil stocks ended higher, with Inpex advancing 4.92%, Showa Shell gaining 2.19% and Nippon Oil edging up 0.92%. However, banks pared back most of their early gains and ended mixed in reaction to a report that forecast losses for the banks for the year. Mitsubishi UFJ lost 2.47%, Mizuho Financial edged down 0.49%, and Sumitomo Mitsui declined 1.37%. However, Resona Holdings bucked trend and edged up 0.45%. Brokerage Nomura Holdings fell 0.85%.

In Sydney, the benchmark S&P/ASX 200 index gained 21 points or 0.56% to close at 3,757 and the broader All Ordinaries index added 22.40 points, or 0.61% to 3,696.
On the economic front, a report showed that the TD Securities-Melbourne Institute inflation gauge fell 0.1% in March, while the annual rate rose by 2.6%. Meanwhile, a survey by Australia and New Zealand Banking Group showed that the total number of job advertisements fell 8.5% in March from the month before, to average 147,804 a week.

Among banking stocks, Commonwealth Bank of Australia gained 2.11%, National Australia Bank advanced 3.33%, Westpac moved up 1.47%, and investment bank Macquarie Group rose 5.26%. However, ANZ Banking Group bucked the trend and lost 1.15%.
In the resources sector, index leader BHP Billiton lost 1.73%, and Rio Tinto fell 2.15%. Gold-related stocks ended lower following a drop in gold prices. Lihir Gold dropped 6.13%, Newcrest Mining shed 5.10%, and Sino Gold fell 4.55%. Energy and retail stocks ended on a mixed note.

The benchmark Hang Seng Index advanced 3.11% or 452.35 points to close at 14,998. Property stocks, financials, resources and china-related stocks led the gains.
Among property stocks, Henderson Land advanced 2.79%, Wharf Holdings gained 3.05%, SHK Properties rose 3.63%, New World Development soared 7.64% and Swire Pacific added 6.18%.

Financial stocks also ended higher. HSBC Holdings gained 5.26%, Bank of China advanced 2.29%, Bank of Communications added 3.63%, ICBC rose 2.95% and Bank of East Asia moved up 3.46%.

Among the resource stocks, Aluminum Corporation of China, or CHALCO, surged 6.18%, CNOOC gained 1.68% and PetroChina rose 3.63%. However, China-related stocks ended mixed on profit taking. While China Resources gained 1.71%, China Mercantile Holdings lost 0.99% and China Overseas edged down 0.30%.

In Seoul, the benchmark KOSPI Index gained 1.10% or 14.10 points to close at 1,298. Profit taking at higher levels trimmed some of the gains during the trading session. Technology, auto, financial and shipbuilders showed significant buying interest.
Among the other major markets, Indonesia's Jakarta Composite Index advanced 1.09% or 16.28 points to 1,517, Singapore's Strait Times Index gained 27.11 points or 1.49% to close at 1,848, and Taiwan's Weighted Index ended at 5,556, up 0.48% or 26.59 points. The Chinese market was closed for public holiday.