Stock markets across the Asia-Pacific region are trading firm on Friday with the overnight rally on Wall Street significantly buoying up sentiment. The sharp upward revision in economic growth forecast by the Australian central bank and better-than-expected employment and productivity reports from U.S. appear to have erased some concerns about the pace of global economic recovery.
Most of the markets in the region are trading with fairly sharp gains right since trading commenced on Friday. There appears to be some resistance at higher levels in some markets, but that has not resulted in any significant sell-off as such.
The Australian market is trading firm, aided by notable gains posted by bank, materials, energy and industrials stocks. The benchmark S&P/ASX 200 index is up 63.2 points, or 1.7%, at 3,757.5. The broader All Ordinaries index trading at 4,595, up 75.8 points, or 1.7%, over its previous close.
The Reserve Bank of Australia, releasing its quarterly economic statement, sounded optimistic about Australia's recovery path, saying growth in business investment and exports is expected to be strong, underpinned by an ongoing expansion in the resources sector and a bounce back in Asian economies, particularly China.
While ramping up its forecasts for economic growth out to the end of 2010, the central bank has hinted that more interest rate increases are on the way after two hikes in the past four weeks. The RBA has forecast gross domestic product to expand by 1.75% in year average terms by the end of calendar 2009, compared to its previous forecast in August for growth of 0.5%. Growth will then rise to 2.25% over the year to the end of June 2010, and to 3.25% by the end of the year. Previously it was looking for growth of 1% and 2.25% respectively.
The central bank feels inflation is likely to moderate over the year ahead as the lagged effects of the recent economic slowdown and the appreciation of the Australian dollar exchange rate, which has made imported goods cheaper, works through the economy.
Among key bank stocks, Westpac Banking Corporation is trading stronger by about 2.7%, Commonwealth Bank of Australia and National Australia Bank are up 2% and 1.7% respectively, while ANZ Bank is trading with a modest gain. Diversified financials stock Macquarie Group is up nearly 3.5%.
Among materials stocks, BHP Billiton is up 1.7% and Rio Tinto is gaining 2.3%. Incitec Pivot is up nearly 5%. Orica, Bluescope Steel and Fortescue Metals are also trading notably higher. However, Newcrest Mining is down in negative territory with a modest loss.
In the energy space, Woodside Petroleum is gaining over 1%. Oil Search is up nearly 2%, while Santos and Origin Energy are up with modest gains.
Capital goods sector heavyweight Leighton Holdings is trading with a sharp 5% gain. Insurance stock QBE Insurance is up 4.5% over its previous closing price and transportation stock Transurban Group is gaining about 5.5%. Worleyparsons, another prominent gainer, is trading higher by as much as 5.5%.
In the currency market, the Australia dollar opened modestly higher on Friday. In early trades, the Aussie was quoting at US$0.9103-US$0.9105, up from Thursday's close of US$0.9072-US$0.9075.
The Japanese stock market opened on a bright note on Friday with the positive close on Wall Street overnight triggering heavy buying in several blue chips. Bargain hunting after the previous session's sharp decline is also contributing to the rally in morning trades. Renewed optimism about an economic recovery buoyed up technology and export-oriented shares.
The benchmark Nikkei 225 index is trading at 9,835, up 117.6 points, or 1.21%, over its previous close.
Bank stocks are quite subdued on reports that financial regulators in major countries will tighten capital adequacy rules for internationally active lenders. Sumitomo Mitsui Financial, Chuo Mitsui Trust Holdings, Mitsubishi UFJ Financial and Mizuho Financial Group are exhibiting weakness. Bank of Yokohama and Mizuho Trust & Banking are trading slightly higher than Thursday's closing prices.
Shares of computer and network equipment manufacturer NEC Corp. are up over 8% on strong buying support. The company said Friday it will raise up to 134 billion yen in proceeds from equity financing by issuing new shares making up more than a quarter of its outstanding shares, in the latest instance of a Japanese firm tapping into the stock market to strengthen financial standing.
Toyota Motor Corp. is trading modestly higher after the firm announced Thursday evening it booked its first group net profit in four quarters in the July-September period. The automaker also sharply upgraded its fiscal 2009 outlook to a 200 billion yen net loss from the previously forecast 450 billion yen loss. Toyota booked a 436.9 billion yen net loss in fiscal 2008.
Share of Fast Retailing Co. are up over 2% after the firm said it aims to sell 50 million Heattech thermal underwear pieces worldwide this winter through its Uniqlo clothing chain.In the currency market, the U.S. dollar traded in the upper 90 yen range early Friday in Tokyo, up slightly from its overnight levels in New York.
In early trades, the dollar fetched 90.79-90.82 yen against Thursday's close of 90.67-90.77 yen in New York and 90.40-90.43 yen in Tokyo. The yen is currently trading at 90.62 to the U.S. dollar.
The South Korean stock market is trading firm led by gains posted by key technology, steel and bank stocks. The benchmark KOSPI index is up 19.8 points, or 1.28%, at 1,572.
Among bank stocks, Woori Finance and KB Financial are trading higher by over 2% and 3% respectively, while Shinhan Financial and Korea Exchange Bank are trading modestly higher.
In the tech space, Hynix Semiconductor is up over 3% and heavyweight Samsung Electronics is gaining about 1%, while LG Display LCD and LG Electronics are trading with modest gains.
Steel stocks Hyundai Steel and POSCO are trading stronger by more than 2% and 3% respectively. Oil stocks SK Holdings and S-Oil are up with notable gains, while KEPCO is trading flat.
In the shipping space, Hyundai Heavy Industries, Samsung Heavy Industries and STX Pan Ocean are up 1.5%-2%, while Daewoo Shipbuilding is up 0.5% over its previous closing price.
Among automobile stocks, Kia Motor and Hyundai Motor are both trading higher by about 1%, while Ssangyong Motor is gaining over 9%. Airliners are trading firm, while telecom stocks are exhibiting a mixed trend.
Among other stock markets in the Asia-Pacific region, Hong Kong, Indonesia and Singapore are trading with sharp gains. Shanghai, New Zealand and Taiwan are also trading firm with notable gains. Stock markets in the region had ended mostly lower on Thursday.
On Wall Street, stocks rallied sharply on Thursday with some upbeat figures on the labor market and quarterly productivity lifting investor sentiment significantly. The major averages all posted standout gains after ending each of the two previous sessions mixed, with the Dow climbing back above the 10,000 level.
The Dow closed stronger by 203.8 points, or 2.1%, at 10,006, the Nasdaq gained 49.8 points, or 2.4%, to end at 2,105.3 and the S&P 500 advanced by 20.1 points, or 1.9%, to 1,066.6.
Major European markets closed moderately higher on Thursday. The French CAC 40 index moved up 1.1%, while the German DAX index and the U.K.'s FTSE 100 gained 0.7% and 0.4% respectively.
Crude oil fell for the first time in four sessions on Thursday amid demand worries. Light sweet crude for December delivery finished at US$79.62 per barrel, down 78 cents on the session.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.