SINGAPORE – Asian stock markets achieved strong gains Wednesday after rising Wall Street Tuesday with gold miners around the region after rising bullion prices rose to new heights and real estate companies are in Japan.
Australia S & P / ASX 200 added 1.7%, Japan’s Nikkei Stock Average climbed 1.8%, 1.5% increase in profits Tuesday, South Korea KOSPI Composite rose 1.3%, while Hong Kong Hang Seng index added 1.1%. China’s markets remained closed for the Golden Week holidays.
Gold stocks in the region rallied after the spot gold hit a new record in early Asian trading, touching $ 1,352.10 per troy ounce for withdrawal. It was last at $ 1,346.30 per troy ounce, up $ 5.70 from its New York close on Tuesday.
“An increasing number of investors realize that the continuation of the quantitative easing pending in the U.S. Federal Reserve is highly inflationary,” said Associate Director Martin Hennecke Tyche Group in Hong Kong.
Morgan Stanley said in a research note that quantitative easing is probably an extension of term of U.S. dollar weakness straight, act as “unambiguously bullish drivers” of gold prices in the short term.
Among other markets, New Zealand NZX-50 was 0.5% higher, Singapore Straits Times Index gained 0.9%, Malaysia KLCI rose 0.5%, Taiwan TAIEX stuck at 1.0%, Indonesian shares rose 0.2 % and Philippine shares gained 0.6%. In late trading, India’s Sensex rose 0.7% and Thailand SET added 0.9%.
Among gold miners, Newcrest Mining added 3.5% Australia, Japan, Sumitomo Metal Mining rose 7.2% and Hong Kong-listed zhaojin Mining stuck at 3.0%.
Other resources also plays a boost, with the Australian heavyweights BHP Billiton and Rio Tinto added 2.6% each.
In Tokyo, 30 of the Topix the 33 subindexes ended higher with property stocks leading the broader market after the Bank of surprise Japan’s announcement Tuesday that its key rate to decrease and will temporarily fund the assets, including real- estate investment trusts to identify and buy exchange-traded funds.
“The announcement effect is significant, since the BOJ essentially that J-REITs are undervalued,” said Naoki Fujiwara, fund manager at Shinkin Asset Management. Real estate developers in general will benefit if the measure helps real estate transactions and property value. ”
Nomura Real Estate Holdings jumped 9.6%, Mitsui Fudosan rose 3.5% and Mitsubishi Estate rose 4.2%.
Suzuki Motor rose 5.2% after an Asahi Shimbun report that the automaker plans auto engine production is declining in Japan and the use of overseas operations to consider.
Financials ended higher after earlier weakness on a Bloomberg report that Japan’s financial regulator is considering stricter rules for the capital’s largest banks in the country. The report was later denied by the Financial Services Agency.
Nomura Holdings closed 6.9% and Mizuho Financial Group advanced 8.6%.
In Korea, the KOSPI benchmark index crossing the psychologically important 1900 level. “This is not about economic fundamentals push the KOSPI higher, but strong liquidity position supported by foreign players, who bet on higher rates and a stronger Korean won, Hana Daetoo Securities said Suh Dong-pil.
“If investors prefer non-dollar assets because of the reduced value of the dollar, more fresh capital expected to flow into the domestic stock market,” said Lee Kyoung-min at Woori Investment & Securities.
Technology shares were rallying after their recent weakness with Samsung Electronics to 3.7% for the third quarter guidance due Thursday and LG Display gained 4.1%.
Majors currencies traded in tight ranges after the loss of the dollar Tuesday. Yen traders remained on the lookout for possible currency intervention to weaken the Japanese authorities if the dollar / yen edges closer to 82.87, the level where the intervention was seen in September.
The dollar was 83.04 yen from 83.18 yen in late trading in New York Tuesday. The euro was at 115.11 yen, from 115.14 yen.
Nymex November crude oil futures rose six cents to $ 82.88 a barrel on Globex.
source:wsj
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