Tuesday May 13, 11:24 AM
Asian shares higher as oil retreats, Shanghai slips after earthquake UPDATE
MANILA (Thomson Financial) - (Updating with closing figures throughout)
Asian shares ended higher on Tuesday with Japan tracking Wall Street's overnight gains following a pullback in crude oil prices, while Shanghai fell after
a 7.8-magnitude earthquake struck southwestern China's Sichuan province.
Oil prices eased to below $124 a barrel in Asian trade on Tuesday after hitting a record intraday high $126.40 in New York overnight, but inflation worries remained.
Sentiment was also supported by HSBC Holdings Plc.'s announcement that its first-quarter earnings were up from a year ago, although the global banking company took a $3.2 billion writedown on subprime mortgage assets in the United States.
Hong Kong's Hang Seng (news) rose 1.95 percent at 25,552.77, with HSBC's upbeat first-quarter earnings soothing worries about the global credit turmoil. HSBC shares rose 1.96 percent at H$135.5.
'The earthquake in China did little to dampen sentiment. People are more inclined to look at the U.S. markets where HSBC's results eased worries about the credit crisis,' said Eugene Law, research head at Celestial Asia Securities (1049.HK - news) .
The Nikkei closed 1.5 percent higher at 13,953.73, and the broader Topix gained 1.3 percent to 1,360.05.
The Shanghai Composite closed closed down 66.74 points or 1.84 percent at 3,560.24 on concerns about the damage wrought by China's strongest earthquake in decades which ripped through Sichuan province on Monday.
The death toll from the 7.8-magnitude quake has risen to nearly 10,000, according to state media.
'These are all difficult news for the market and will likely drag down Chinese stocks, particularly the banks. But I still think local shares will rise because the latest figures from China indicate that the economy remains strong,' said Francis Lun, general manager at Fulbright Securities.
News of the quake dragged down insurance companies listed in Hong Kong as investors worry the rising death toll and destruction of properties in China may impact on their revenue.
Australian banks in focus
In Sydney, the benchmark S&P ASX 200 closed down 0.3 percent at 5,812.7, with investors taking a defensive stance ahead of the release later Tuesday of the newly elected federal government's first fiscal budget. But volumes were healthy, fueled by takeover activity.
'There's been a bout of pre-budget nerves but the way things are shaping up, this could be the year of takeovers, which is good as it will get the market out of the doldrums,' said Michael Heffernan, a private client advisor at Sydney stockbroking firm Reynolds & Co.
The broader All Ordinaries index dropped 0.2 percent to 5,883.2.
The financial services sector remained in focus after Australia's third-largest bank in terms of market capitalization, Westpac, announced the terms of a friendly A$18.6 billion ($17.6 billion) offer for fifth-ranked St. George.
Westpact is offering 1.31 of its shares for each St. George share in a deal backed by St. George's board, subject to conditions.
'The market's telling us that there may be a counter bid but all the big banks will face competition issues,' said Heffernan.
Westpac ended down 3.3 percent at A$25.11, valuing its offer for St. George at A$32.64 per share. St. George jumped 25.2 percent to A$33.37. Both stocks were suspended from trading on Monday ahead of Westpac's announcement that it was in merger discussions with St. George.
Oil retreats
The Dow Jones industrial average rose 1 percent overnight while other benchmarks were also higher.
New York's main oil futures contract, light sweet crude for June delivery, was 73 cents lower at $123.50 in Asian trading from $124.23 at the close of trading in New York on Monday.
The benchmark contract had traded lower for most of the New York session, but struck a record intraday high of $126.40.
In Tokyo, exporters rallied as investors took comfort in a stable yen.
Japan's largest computer maker Fujitsu (FUJ.IL - news) soared 13.2 percent to 773 yen. Digital (Milan: DIB.MI - news) camera maker Nikon (Berlin: NKN.BE - news) surged 12.5 percent to 3,190 yen. Construction machinery maker Komatsu (Berlin: KOM1.BE - news) rose 3.8 percent to 3,220 yen. Consumer electronics giant Sony (Munich: 853687 - news) gained 3 percent at 4,790 yen. Nissan Motor climbed 3.2 percent to 960 yen.
South Korea's KOSPI closed up 1.1 percent at the day's high of 1,842.80. Samsung Electronics rose 3.7 percent to 735,000 won snapping a three-day decline on expectations that a weaker won combined with strong demand for its flat-screen panels and handsets will boost earnings.
The Malaysian KLSE closed 0.5 percent lower at 1,286.54 as investors locked in profits from recent gains in plantation and energy stocks.
Singapore's STI rose 0.7 percent to 3,203.42. The Taiwanese Taiex was up 1.81 percent at 8,989.53.
The Philippine Composite rose for the fifth straight session, gaining 1.6 percent to 2,849.29 on upbeat quarterly earnings.
The Jakarta Composite advanced 1.7 percent to 2,418.90, while India's sensex provisionally closed 0.91 Percent lower at 16,707.50.
|
Send Article by Email
