Asian markets ended a choppy session on a mixed note today as rate hike worries in China kept the buying enthusiasm curbed. The extremely bullish cues from the overnight US markets did not do much to provide a fillip to the stocks in the region. Tokyo stocks edged higher but other Asian markets were held back by worries about China and steps to damp down its economy. The markets around the world went up yesterday on ideas that the Ireland debt troubles would get an interim relief on the increased likelihood of the country accepting a bailout package from the European Union and the International Monetary Fund. Ireland had been reluctant to accept aid on its sovereign debt earlier in the week, causing irruptions in the world financial markets. The US equities staged a tremendous rally in the last session as upbeat global cues and a strong initial public offering from auto giant General Motors (GM) helped to boost the sentiments. Positive economic data also supported the markets. The Dow surged up by 173.35 points or 1.6% to close at 11,181.23.
Manufacturing activity in the Philadelphia area has shown considerable improvement in the month of November, the Philadelphia Federal Reserve revealed in a report on Thursday, with the index of activity in the sector surging up by much more than anticipated. The Philly Fed said its index of regional manufacturing activity jumped to 22.5 in November from 1.0 in October, with a positive reading indicator growth in the sector. The index has been expected to show a much more modest increase to a reading of 5.0. With the much bigger than expected increase, the Philly Fed Index reached its highest level since December of 2009.
Japanese stocks managed to end in green as the strong US kept the momentum mostly positive. The equities pared their early gains though, losing out throughout the session after breaking below the key 10100 levels. The exporters were supported by this week's dip in the value of the yen while a generally strong economic data from US has also been influential. The benchmark Nikkei 225 index ended the session up 8.76 points or 0.09%, to close at a fresh five-week closing high of 10,022.39.
Australian stocks closed lower today, as speculation of more interest rate rises in China dampened investor sentiment to risk. Energy stocks managed to record some gains but miners ended mostly lower. Banks and financials also dropped. The benchmark S&P/ASX 200 index fell 11.0 points, or 0.24% to close at 4629.2.
Chinese equities ended up today after the latest battering on bargain hunting in heavyweights. Upbeat commodity prices kept the momentum positive for the stocks and securities firms and property developers led the gains. The benchmark Shanghai Composite Index added 23.11 points or 0.81% to close at 2,888.57. The Ministry of Finance said Friday the combined profits of China's state-owned enterprises increased 44.8 percent year on year to 1.626 trillion Yuan in the first 10 months. Profits rose in the sectors of electronics, chemicals, textiles, petroleum and construction materials.
After markets hours, China's central bank announced it would raise the deposit reserve requirement ratio for banks by 50 basis points from Nov. 29, the fifth such hike this year and the second increase this month. The People's Bank of China said the move was aimed at enhancing liquidity management and moderately regulating credit supply.
In Mumbai, the key benchmark indices slumped to fresh intraday lows in late trade, underperforming mostly lower global stocks, with markets keeping a watchful eye on events out of Ireland and wary ahead of possible China policy tightening. The market breadth was weak. Index heavyweight Reliance Industries (RIL) extended initial losses. Banking, consumer durables, IT, metal and realty stock fell. Year-end profit taking by foreign funds may continue to weigh on the domestic bourses in the near term. The market has come off soon after hitting a record closing high early this month. As per provisional figures, the BSE 30-share Sensex was down 376.11 points or 1.89% to 19,554.53. The Sensex rose 52.11 points at the day's high of 19,982.75 in early trade. The Sensex lost 425.77 points at the day's low of 19,504.87 in late trade.
In other markets, the Hang Seng index in Hong Kong dropped 0.13% on government's new measures to cool the territory's booming property market. Straits Times index in Singapore dropped 0.56% while TSEX index in Taiwan added 0.27%. In commodities, crude oil came off a high of $82.75 a barrel and currently quotes at $81.84, down 1 cent on the day. Prices had recovered yesterday after witnessing a sustained spell of selling earlier in the week.
