Asian Stock Markets Extend Advance on Growth Optimism; Hong Kong Exports Rise for the First Time in 13 Months

Asia Session Key Developments Japan’s Industrial Outputs Advance for Ninth Month Australian Markets Closed in Observance of Christmas/Boxing Holiday The Asian stock markets climbed to a three-week high on Monday as policy makers in China held an improved outlook for growth while former Bank of Japan Governor Toshihiko Fukui expects “stable and sustained” growth next year as the expansion in global policy continues to feed through the world economy. Meanwhile, industrial outputs in Japan rose for the ninth uninterrupted month, displaying signs that the economic expansion is accelerating as Asia leads the world economy out of the first recession since the Second World War. At the same time, Japan’s retail trade rose for the fourth time in the past five months, while labor cash earnings in the region slumped at an annual pace of 2.8% to exceed expectations for a 1.8% drop. Furthermore, Hong Kong’s exports in November rose for the first time in 13 months, with overseas shipments gaining 1.3% from a year earlier after tumbling 13.1% the month prior, while imports leaped an annualized 6.5%, which widened the trade deficit to HK$20.7B from HK$19.2B in October. Nikkei 225                          10,378.03 The Japanese equity markets advanced on Monday, leading the Nikkei 225 to gain 139.52 points (1.33%) and close at 10,634.23. All ten components pushed higher on the day, with consumer services leading the rally, rising 2.39%, which was followed by a 1.70% gain in oil & gas. Shares of Sharp Corp advanced 2.17% after the firm reached a patent cross-licensing agreement with Toyoda Gosei Co, while Nippon Oil Corp soared 4.80% as the firm announced plans to close three crude distillation units next year to lower costs. Meanwhile, Nippon Mining leapt 5.43% as Japan Energy, a unit of Nippon Mining, will process 5% more crude oil in January through March versus the same time period a year ago, while JFE Holdings advanced 1.37% as industrial outputs in Japan increased for the ninth month in November. Hang Seng                        21,480.22 Hong Kong shares pushed lower on Monday as the government sold two development sites below market expectations, leading the Hang Seng Index to shed 36.78 points (0.17%) and close at 21,480.22 as five of the nine components traded lower on the day. Shares of Sino Land advanced 0.55% after paying HK$10.4B with K Wah International to acquire two waterfront sites in Hong Kong’s New Territories, while Henderson Land Development slid 1.99% following the sale. Moreover, China Resources Power Holdings, the country’s fourth largest listed power company by market value added 0.82% as the company actively participated in coal mine consolidations in Shanxi Province, while China Petroleum rose 0.65% on the back of higher commodity prices. S&P/ASX 200 Index           4,790.90 Closed in observance of Christmas/Boxing Day Posted by CFDTrading on Monday December 28, 2009 8:28 am