Asian markets consolidated their recovery from last week’s onslaught, with stocks in India and Thailand leading the way. However, stocks in China closed down 0.2 per cent.
“A resolution to the Irish situation is boosting risk appetite across the board in Asia,” commented Kevin Grice, emerging markets economist at Capital Economics. “But Chinese markets are still reeling from last week’s reserve requirement increase - and possible further anti-inflation measures.”
China’s Shanghai Composite fell 0.2 per cent to 2884.37. Banking stocks fell in response to last week’s policy measures, with China Construction Bank down 2.3 per cent. Poly Real Estate Group saw losses of 1.2 per cent due to fears of a slowdown in mortgage lending.
Hong Kong’s Hang Seng index was up 0.2 per cent to 13193.71. Real estate companies, however, fell sharply after tough measures were announced on Friday to rein in the property market. Sun Hung Kai Properties, the world’s biggest developer, declined 3.1 per cent; Cheung Kong Holdings, Hong Kong’s second-biggest developer, slid 3.2 per cent; and Sino Land, the developer owned by billionaire Robert Ng, plummeted 5.6 per cent.
India’s BSE Sensex was the shining star, rising 1.9 per cent to 19957.59 to make up for Friday’s losses. Reliance Power was up 2.1 per cent, the most since November 11.
Meanwhile Murli Industries, a manufacturer of paper, animal feed, and edible oils, soared 20 per cent on reports that Cemex SAB de CV, the largest cement maker in the Americas, is close to buying the company’s cement business for about $550 million.
South Korea’s Kospi index was up 0.2 per cent to 1944.34. Samsung Electronics climbed 3.7 per cent.
Indonesia’s Jakarta Composite was up 0.4 per cent to 3741.23, while Malaysia’s FTSE Bursa fell 0.2 per cent to 1503.2.
Thailand’s SET index rose 1 per cent to 1019.19. But Italian-Thai Development, Thailand’s largest construction company, suffered a 5.2 per cent loss after being downgraded by DBS Vickers Securities, which expects an increase in the company’s expenses from a project in Myanmar. Loxley Pcl, a Thai trading company, fell 4.6 per cent to close at its lowest level since October 11.
The Philippines’ PSE index fell 0.4 per cent to 4186.89, while Vietnam’s Ho Chi Minh index was 0.1 per cent down to 426.19.
In currencies, the Chinese renminbi was roughly flat against the dollar, as was the Indonesian rupiah and the Thai baht. The South Korean won and Malaysian ringgit both rose 0.4 per cent against the greenback, while the Indian rupee fell 0.4 per cent.
