Asian Economic News
Asian Markets Trade Firm On Wall Street Cues, Economic Optimism
10/14/2009 11:49 PM ET
(RTTNews) -
Asian stock markets are trading firm on Thursday with the overnight rally on Wall Street on the back of some better-than-expected quarterly results and economic data aiding sentiment to a marked extent. A slew of encouraging economic and corporate reports from the region are also seen contributing to the firm trend. Though some of the markets have pared a portion of their early gains due to profit taking, the mood remains fairly positive in the region.
In the Australian market, financials, energy, materials, consumer staples and consumer discretionary stocks rose sharply in early trades. However, with profit taking creeping in past noon, some of these stocks have pared a significant portion of early gains.
The benchmark S&P/ASX 200 index, which vaulted to 4,895.3 in early trades, is currently trading at 4,866, up 34.9 points, or 0.7%, over its previous close. The broader All Ordinaries index, which surged to 4,897.5 a few minutes past the opening bell, is up 33 points, or 0.7%, at 4,867.
In the banking space, ANZ Bank is up 0.8%, Commonwealth Bank of Australia is gaining about 1.5% and Westpac Banking Corporation is trading higher by 1.2%. However, National Australia Bank is down with a modest loss. Macquarie Group is trading modestly higher.
Shares of Bank of Queensland are trading 3% up after the bank said its normalised profit for the 12 months to August 31 rose 21% to A$187.4 million from A$155.4 million in fiscal 2008. The bank had forecast a 20% normalised profit growth. Net profit at the Brisbane-based bank rose 2% to A$141.1 million.
Top miners Rio Tinto and BHP Billiton are trading stronger by 2.7% and 1.6% respectively. Bluescope Steel and Fortescue Metals are up 1.7% and 3.3% respectively, while Orica, Newcrest Mining and Incitec Pivot are exhibiting weakness.
Among energy stocks, Woodside Petroleum, Oil Search and Santos are up 1.5%-2.5%, while Origin Energy is trading with a modest gain.
In economic news, Reserve Bank of Australia governor Glenn Stevens says it would be a mistake to be "too timid" to raise interest rates in response to a brighter economy. Mr Stevens said the period of greatest weakness in Australia was "probably past" and the risks of really serious economic weakness had "abated".
According to a survey by Melbourne Institute, consumer inflationary expectations was unchanged in October at 3.5%, matching its September and August results. The share of consumers who expect inflation to be within the Reserve Bank of Australia's two to three per cent target inflation range decreased 0.1% to 17.3%.
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