The stock markets across the Asia-Pacific region closed mostly in positive territory in thin trade Monday as higher commodity prices lifted resource stocks. Gains on Wall Street Friday also boosted investor sentiment. The Japanese stock market closed higher in the last full trading day of the year on hopes of consolidation in the insurance sector. The stock markets in Hong Kong, Singapore, Australia, New Zealand and India also closed in positive territory, while the South Korean and Chinese markets closed flat. Bourses in Malaysia, Indonesia and the Philippines were closed on Monday for public holidays. Crude oil extended gains for the second day on Monday after Israeli air strikes in the Gaza strip raised concerns over supply disruptions. In late Asian trades Monday, crude for February delivery rose $2.83, or 7.50%, to $40.54 a barrel in electronic trading on the New York Mercantile Exchange. On Friday, crude for February delivery jumped $2.36 to $37.71 a barrel, after settling at a 4-year low near $35 on Christmas Eve.
In the currency market, the U.S. dollar weakened against the Japanese yen, the South Korean won and the Australian as well as New Zealand currencies. The dollar was trading in a range of 90.47-90.52 yen, down 0.03 yen from Friday's close in Tokyo. In Seoul, the South Korean won closed at 1,263 won to the U.S. dollar, up 36 won from Friday's close of 1,299 won. In Sydney, the Australian dollar was trading higher at US$0.6852 in late trades Monday compared to Wednesday's close of US$0.6781. In Wellington, the New Zealand dollar was buying US$0.5763, up from Wednesday's close of US$0.5675.
The Japanese stock market closed slightly higher on Monday on the last full-day of trading in the year, helped by short covering that wiped out earlier losses amid thin trading. Additionally, insurance stocks rose on news about a possible merger in the sector. Trading for the year will conclude Tuesday with a half-day session and the market will reopen on January 5.
The benchmark Nikkei 225 Index gained 7.65 points, or 0.09%, to close at 8,747.17 and the broader Topix index of all First Section Issues added 8.92 points, or 1%, to settle at 854.77. However, the Nikkei has slid 43% in the year, its worst performance ever.
Insurance companies surged on speculation over a possible merger in the industry. Mitsui Sumitomo Insurance Group Holdings Inc., Aioi Insurance Co. and Nissay Dowa General Insurance Co. are reportedly in talks to create Japan's largest non-life insurer, with a merger likely as early as next autumn. Mitsui Sumitomo rose 8.3%, Aioi Insurance jumped 19.2% and Nissay Dowa General Insurance climbed 14.9%.
In the banking space, Mitsubishi UFJ declined 0.71%, while Mizuho Financial, Resona Holdings and Sumitomo Mitsui Financial remained unchanged. Automaker Toyota gained 1.21%, Honda edged down 0.05% and Mazda remained unchanged.
Among export-oriented stocks, Komatsu eased 0.64%, Nikon shed 3.73%, and Canon lost 0.92%. Sony rose 2.81%. In the tech space, Advantest eased 0.14% and Fanuc gave away 0.65%, while Kyocera added 0.16%. Chipmaker Elpida rose 13% after the company said it has commenced merger talks with Taiwanese semiconductor companies.
Oil stocks gained on higher oil prices. Nippon Oil jumped 6.47%, Inpex Holdings gained 6.41% and Showa Shell advanced 1.18%. Trading house Itochu rose 2.84%, Sojitz added 0.68% and Marubeni gained 0.92%. NEC Corp. gained 7.51% after the Nikkei newspaper reported that the company and Nissan Motor plan to invest more than 100 billion yen to manufacture large-capacity lithium ion batteries. Nissan advanced 0.96%.
Papermaker Oji slid 2.41% after the Nikkei newspaper reported that the company is likely to post a profit for the nine months to December 31 that will be almost unchanged with the prior year.
The South Korean market closed lower for the fifth straight day as investors dumped tech, banking and telecom stocks. The benchmark Korea Composite Stock Price Index, or KOSPI, declined 0.27 points, or 0.02%, to settle at 1,117.59.
Among economic news on Monday, a survey conducted by Bank of Korea showed that consumer confidence in South Korea reached a ten-year low in December. The consumer sentiment index dropped to 81 in December from 84 recorded in the previous month. A reading below 100 suggests that pessimists outnumber optimists. The survey was conducted between December 12 and 19 covering 2,200 households in 56 cities.
Meanwhile, the National Pension Service, the country's largest institutional investor, said it will trim its investment ratio in equity markets by nearly 20 percentage points for 2009, reflecting worldwide bearish stocks.
Market heavyweight Samsung Electronics eased 0.44%, Hynix Semiconductor shed 4.18%, and LG. Display shed 3.23%, while LG Electronics rose 3.31%
Automaker Hyundai Motor rose 3.95% and affiliate Kia Motors gained 3.32%, while steel maker POSCO eased 0.13%. Ssangyong Motor Co. eased 0.49% after its largest creditor Korea Development Bank said that the company may face liquidation if its Chinese parent SAIC Motor Corp. does not provide 320 billion won in new financing to the company.
Oil issue SK remained unchanged, S-Oil fell 5.08% and energy stock KEPCO eased 0.50%. Among banks, Korea Exchange Bank slipped 2.90% and Hana Financial Group dropped 2.31%. Woori Finance remained unchanged.
Telecom issue SK Telecom gave away 1.87% and KT slipped 1.05%. Among airline stocks, Asiana Air Line slipped 3.52%.
The Australian stock market closed higher on Monday as higher commodity prices lifted mining and oil stocks. Retailers advanced on hopes of strong post-Christmas sales.
The benchmark S&P/ASX 200 Index gained 38.90 points, or 1.09%, to close at 3,621.10 and the broader All Ordinaries Index gained 39.20 points, or 1.12%, to finish at 3,554.20. However, the benchmark index is down about 43% in 2008 and is headed for its worst yearly drop.
In the mining space, BHP Billiton added 0.24% and Rio Tinto remained unchanged. However, gold miners Lihir Gold rose 6.05%, Newmont Mining gained 4.74% and Newcrest mining advanced 1.9% after spot gold reached $US882.3 per ounce in Sydney, up from Wednesday's close of $US840.65 as fighting in the Middle East and higher oil prices spurred demand for the metal as a hedge against inflation.
Among banks, Commonwealth Bank rose 3.79%, ANZ gained 2.89%, National Australia Bank surged 3.78% and Westpac advanced 1.52%.
In the oil sector, Woodside Petroleum rose 5.68% and Oil Search gained 4.27%, while Santos eased 0.42%. Retailers advanced on hopes of strong post-Christmas sales. David Jones rose 2.03%, Harvey Norman gained 2.5% and Coles-owned Wesfarmers gained 2.25%.
Shares of Oz Minerals remained in a trading halt as the company failed to update the market on its progress to refinance debt facilities totaling US$560 million before they expired today.
Shares of Macquarie Office Trust fell 12% as it negotiates to refinance a A$74.5 million loan.
The New Zealand stock market closed higher amid thin trading. The benchmark NZX 50 Index gained 9.58 points, or 0.36%, to close at 2,677.64 and the broader NZX All Capital Index advanced 3.66 points, or 0.14%, to settle at 2,695.57.
Among the top stocks, Telecom advanced 0.88% and Contact Energy gained 1.71%, while Fletcher Building slipped 3.45%.
In the retail sector, Pumpkin Patch rose 4.00%, Hallenstein Glasson added 0.46% and The Warehouse Group added 0.58%. Jeweler Michael Hill remained unchanged.
Among other stocks, Sky City advanced 0.99%, Nuplex eased 0.68% and Steel & Tube remained unchanged. Air New Zealand lost 2.27%, while NZ Oil & Gas closed unchanged. Energy scrip TrustPower gained 0.86%, while Vector eased 0.47%.
Among dual-listed stocks, Westpac Banking rose 2.43%, while AMP lost 2.34% and ANZ Banking declined 1.12%.
The Hong Kong stock market closed higher for the first time in five sessions. However, financial stocks declined on concerns over banks' earnings. The benchmark Hang Seng Index gained 144.34 points, or 1.02%, to close at 14,328.48.
Offshore oil producer CNOOC gained 3.91%, refiner Sinopec gained 1.72% and PetroChina rose 3.14% on higher crude oil prices. Shares in Citic Pacific jumped 7.4% after the company confirmed that Citic Group became its majority shareholder, holding 57.56% of its shares.
However, HSBC Holdings, accounting for the largest weighting for the Hang Seng Index, eased 0.60% on credit deterioration and recapitalization worries. China Construction Bank declined 1.39% and Industrial & Commercial Bank of China ended flat.
Property developer Sun Hung Kai Properties gave away 0.68%. Market heavyweight China Mobile rose 3.22%.
The Chinese stock market closed flat on Monday, following a weak performance by the market heavyweights. The benchmark Shanghai Composite Index closed down 1.04 points, or 0.06%, to 1,850.48.
Market heavyweight and China's top oil producer PetroChina eased 0.20%, China Life Insurance Co. declined 1.20% and Ping An Insurance lost 1.27%. China Merchants Bank, the country's fifth-largest bank by market value, gave away 1.43%. However, Asia's largest oil refiner Sinopec gained 0.71%.
Other Asian markets:
Singapore's Straits Times Index gained 55 points, or 3.18%, to close at 1,781 and India's BSE 30 Index rose 205 points, or 2.19%, to settle at 9,534, while Taiwan's Weighted Index lost 9 points, or 0.20%, to settle at 4,416.
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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.