TNS ASIA MORNING BRIEF: Shares down, Bank of Korea ups key rates

TNS ASIA  MORNING BRIEF: Shares down, Bank of Korea ups key rates

By Sophia Rodrigues

AUCKLAND, Nov 16: TickerNews Service briefing on Asia markets this morning:

TOPICS: MKTS DN - AUSTRALIAN BANKS - BOK UPS RATE - GOLD STKS DN

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*ASX200 4686, dn 0.03% * Nikkei225 9805, dn 0.22% * CSI300 3288, dn 0.81%

*Hang Seng 23991, dn 0.15% *Kospi 1900, dn 0.55% *STI 3236, dn 0.00%

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SHARES WEAK

Asian shares were lower across all markets, taking cues from weak performance on Wall Street.

There were reports suggesting CME Group Inc was raising margins on all precious metals, including gold and silver by the end of the day.

Chinese shares led the fall for the second straight session on selling across all major sectors despite major banks denying they had stopped lending to property developers.

Hang Seng was lower on weakness mainly in mainland banking and property shares. Gold shares were also weak.

South Korean index Kospi was lower on selling across all main sectors, with Hyundai leading the weakness in the market.

Australian shares gave up early gains to edge lower as banking shares erased most of their initial gains. Oil and gold shares were also weak.

Nikkei225 fell on weakness in banking shares and trading houses, while export shares rose.

Weak yen provided some support to the market.

In Singapore, the market gave up early gains to edge marginally down on some weakness in banking shares.

AUSTRALIA

ASX/200 index gave up early gains to edge lower as banking shares erased some of the gains while oil shares remained weak.

Banking shares were up, but off initial highs. ANZ rose 0.4% despite reports of the bank missing out on buying majority stake in Korea Exchange Bank to Hana Financial Group.

Westpac rose 0.7%, National Australia Bank 0.04% and Commonwealth Bank 1%.

Qantas shares fell 2.5% even after the airline said it saw no delay to its A380 delivery schedule despite Rolls Royce engine woes.

AMP fell 2.4% while AXA rose 1.6% on reports that five out of six board members recommended the AMP deal, while the sixth member seeks more information.

Among mining companies, Rio Tinto fell 1.1% but BHP Billiton rose 0.07% and Fortescue Metals was flat.

In the oil sector, Woodside Petroleum fell 0.6%, Santos 1% and ROC Oil 1.2%.

JAPAN

Nikkei225 dropped on weakness led by financial shares but a weak yen ensured the fall was muted.

Yen fell to six-week lows against the greenback in overnight trades and was largely supportive of stocks.

Among banking stocks, Mitsubishi UFJ fell 0.5%, Mizuho Financial 0.7% and Resona 1.1%.

Trading houses tracked weakness in commodity prices with Mitsubishi Corp down 0.5%, Mitsui & Co 1.4% and Marubeni Corp 0.7%.

Export shares were generally higher with Canon up 0.4% and Sony 1.4%.

KOREA

South Korean Kospi was lower on weakness across most sectors.

Bank of Korea raised key interest rates by 25 basis points to 2.5% to mark the first increase since July.

Shipbuilding shares led the fall in equities with Daewoo Shipbuilding down 3.3%, Hyundai Heavy 2.5% and Hanjin Heavy 5.9%.

Among shipping shares, STX Pan Ocean dropped 2.8% and Hanjin Shipping 0.9%.

In the banking sector, Korea Exchange Bank declined 3.1%, Woori Finance 3.9% and KB Financial 1.7%.

Technology shares were mixed despite the sector being among the worst performers on Wall Street.

Hynix Semiconductor rose 0.6%, Samsung Electronics 0.6% but LG Electronics fell 0.7%.

Hyundai E&C plunged 15% after the company announced its preferred bidder for the company. Hyundai Merchant Marine fell 14.9%.

CHINA

Chinese shares opened lower and extended losses on weakness across most sectors as the last hike in the bank's reserve requirement came in to effect from Tuesday.

Banking shares fell even as major banks denied reports that they were banned from lending to real estate developers until December end.

Bank of China fell 1.5%, China Construction Bank 3.5% and Bank of Communications 1.5%.

Property shares declined on reports that China plans to impose restrictions on foreigners buying property.

Gemdale dropped 1%, Vanke 1.9% and Wolong Real Estate 1%.

Resources shares were lower with Western Mining down 2.9%, Zijin Mining 3.1% and Aluminium Corp 1.2%.

HONG KONG

Hang Seng index was marginally down on weakness mainly in mainland banking and property shares.

Among mainland property shares, Country Garden fell 1.4%, and Shimao Property 0.8% and among banks, Bank of Communicatiosn fell 0.1%, ICBC 1.3% but Bank of China rose 0.2%.

Other banking shares rose with Hang Seng Bank up 2.5% and HSBC 0.4%.

Cathay Pacific rose 5.2% after the airline forecasted full-year earnings would surpass forecasts on robust passenger and cargo demand.

Lenovo fell 5.1% after TPG Capital and General Atlantic sold shares worth $200 million in the company.

Gold stocks were lower with Zijin Mining down 0.6% and Real Gold Mining 1%.

SINGAPORE

Singapore index was higher on gains, mostly in commodity and property shares but pared those gains as banking shares faltered.

Property shares went up after data showed property sales volume rose 16.1% in October. Capitaland rose 0.8%, City Development 0.9% but Keppel Land fell 0.4%.

Among commodity shares, Golden Agri added 2.1%, Wilmar 0.8% and Noble Group 0.4%. (End)

Filed by Nayantara Sridhar

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