Foreign Market Wrap

Nov. 18, 2009 (Baystreet.ca) --

Asian markets ended mixed Wednesday, with banking shares leading Japan lower on concerns over equity issuances, while gains in brokerages helped South Korean stocks advance.

In Tokyo, the Nikkei 225 index fell back 53.13 points, or 0.6%, to 9,676.80

In Hong Kong, the Hang Seng Index gave back 73.82 points, or 0.3%, to 22,840.33.

Tokyo Tatemono said it will raise up to 45.64 billion yen ($513 million U.S.) through a new share issue. Tokyo Tatemono dropped 17%. Mitsubishi UFJ Financial Group slipped 0.6% before announcing plans to issue billions of dollars of new shares to bolster its capital base.

MUFG also reported that group net income for the fiscal half ended in September soared more than 50%, thanks to gains in trading.

In South Korea, recent underperformers such as brokerages helped lift the Kospi, with Daewoo Securities up 6.6% and Samsung Securities rising 2.7%, while KB Financial rose 1.2% among banks.

One expert noted that the Kospi was trying to recoup losses after continued firmness on Wall Street.

In Hong Kong, the Hang Seng Index failed to stay above the psychologically important level of 23,000 for a second session on caution after recent gains.

A 2.5% rise in index heavyweight China Mobile's shares supported the market, however, after Chairman Wang Jianzhou said the company was still in talks with Apple to sell the iPhone in China. The company's rival, China Unicom, began selling iPhones in China last month.

Property stocks, which have far outperformed the broad market, declined on profit-taking, with New World Development falling 1.9% and Sun Hung Kai Properties shedding 0.8%. But analysts remained confident that there was room for further gains.

Hong Kong-listed shares of China Strategic Holdings ended up 6.7%, though way below their intraday peak.

The moves come a day after the company said it planned to sell a 30% stake in the Taiwanese unit of American International Group, which it agreed to buy last month, to Taiwan's Chinatrust Financial Holding.

In return, China Strategic said it would acquire a 9.95% stake in Chinatrust, widening its presence in the Taiwanese financial-services sector. Chinatrust shares gained 0.7%, but also ended off the day's high.

Solar-energy stocks rallied in Taipei on hopes that an agreement with China to cooperate on clean-energy issues would lead to project wins. Gintech Energy jumped by the day's 7% limit.

In Sydney, Newcrest Mining gained 0.6% and Lihir Gold added 1.4% on buoyant gold prices. Spot gold rose was recently down $1.30 from New York close, at $1,139.30 U.S. a troy ounce, after climbing as high as $1,142 U.S. earlier in the day.

CHINA

The Shanghai 300 Composite Index eked out a gain of 1.88 points to 3,630.23.

Chinese power utilities sparkled amid expectations of increased electricity usage due to the strong economic recovery as well as a cold wave across several parts of the country this winter.

Shanghai Electric Power was 6.7% higher and Chongqing Fuling Electric Power Industrial climbed 6%.

Elsewhere:

Taiwan's Taiex index reversed its field and gained 33.48 points, or 0.4%, to 7,766.69.

Singapore's Straits Times index was down 19.91 points, or 0.7%, to 2,745.04

Korea's Kospi index regained 17.99 points, or 1.1%, to 1,603.97

New Zealand's NZX Index finished 3.11 points lower, to 3,128.40

Australia's S&P/ASX 200 picked up 9.60 points, or 0.2%, to 4,739.00