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Asian markets start year on upbeat note
AFP - Tuesday, January 5
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Asian markets start year on upbeat note
HONG KONG (AFP) - – Asian markets began the new decade broadly higher Monday with dealers in Tokyo lifted by news of extended credit to Japan Airlines and a strong yen as well as upbeat jobs data in the United States.
And the new year saw the introduction of a new trading system in Tokyo as the stock exchange tries to keep ahead of its regional rivals following a series of technical problems in recent years.
Tokyo ended the day 1.03 percent higher at 10,654.79, a 15-month high, and Sydney added 0.12 percent to 4,876.3.
"The mood on the first day of trading this year is good," Kenji Shiomura, market analyst at Daiwa Securities, told Dow Jones Newswires.
Japan Airlines (JAL) shares soared 31.3 percent to 88 yen, off a high of 93, after the government Sunday agreed to double a state-funded loan to the cash-strapped carrier to 200 billion yen (2.2 billion dollars).
JAL shares plunged 23.9 percent on the last trading day of 2009 on fears Asia's largest airline might file for bankruptcy.
"There was talk about the company's operating funds drying up unless it secured a bigger credit line by January. I suppose that worry eased," said Makoto Sengoku, a market analyst at Tokai Tokyo Securities.
Japan's exporters were also helped by the weaker yen.
The dollar eased to 92.79 yen in Tokyo Monday afternoon trade, down from 93.00 in New York late Thursday, and the euro fell to 132.58 yen from 133.26.
The dollar's overall tone remained firm thanks to optimism over the US economy, dealers said.
Sentiment was helped after data from Washington showed seasonally adjusted initial claims for unemployment insurance benefits in the week ending December 26 stood at 432,000, a fall of 22,000 from the previous week. The figure is the lowest since July 2008.
But Hong Kong was 0.23 percent lower at 21,823.28, while Shanghai dropped percent to 3,243.76.
Banks and property developers led the decline in Shanghai on worries about a possible tightening of monetary policy amid inflation concerns.
China's dealers ignored two surveys showing a strong manufacturing sector.
The HSBC China Manufacturing purchasing managers' index rose to 56.1 in December from 55.7 in November, the survey showed.
A reading above 50 indicates expansion, while a reading below 50 points to an overall decline.
A separate PMI published by the China Federation of Logistics and Purchasing showed manufacturing activity rose to 56.6 percent in December -- the highest in 20 months.
The Tokyo Stock Exchange reported a smooth debut for its new faster trading "arrowhead" trading system, which can process orders in 0.005 seconds, much faster than before and on a par with New York and London.
The new technology was brought in following a number of problems, including the 2005 suspension of trading in all shares because of a software problem, which tarnished the bourse's reputation in the face of growing competition.
Meanwhile, Singapore announced its economy shrank 6.8 percent in the fourth quarter compared with the previous three months. However, the drop was not as big as expected and gross domestic product actually rose 3.5 percent year-on-year.
The data was largely ignored by the city-state's stock market, which closed 0.11 percent lower at 2,894.55 on profit-taking after hitting a 17-month high last week.
Oil jumped above 80 dollars a barrel after Russia cut its supplies to neighbour Belarus due to a row over tariffs.
New York's main futures contract, light sweet crude for delivery in February, rose 78 cents to 80.14 dollars a barrel.
Gold closed higher in Hong Kong, at 1,107.00-1,108.00 US dollars an ounce, from Thursday's 1,102.00-1,103.00 dollars.
Elsewhere, Seoul rose 0.79 percent to 1,696.14, Taipei ended up 0.24 percent at 8,207.85, while Jakarta was 1.62 percent higher at 2,575.41, Kuala Lumpur added 0.23 percent to 1,275.75 and Mumbai put on 0.54 percent to 17,558.73.
Manila dropped 1.56 percent to 3,005.01 and Bangkok edged 0.31 percent down to 732.28.
Wellington was closed for a holiday.
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