Asian markets rise as credit worries ease

(RTTNews) - The stock markets across the Asia-Pacific region were trading mostly higher on Monday as credit fears eased following lower-than-expected quarterly loss reported by the top U.S. bank Citigroup and a fall in crude oil prices on Friday. However, worries about inflation and slowing economic growth could persist as oil has gained 80 cents on Monday to trade above $129 a barrel after closing down 41 cents at $128.88 a barrel on Friday. Financial stocks rose sharply on easing credit concerns. The Japanese financial markets remained closed on account of a public holiday.

The U.S. market closed Friday's choppy session mixed after Citigroup reported better than expected losses and Microsoft and Google issued dim outlooks that pulled tech stocks down. The Dow gained 0.4% to 11,496 and the S&P 500 edged up 0.03% to 1,260, while the Nasdaq fell 1.3% to 2,282.

On the currency front, the U.S. dollar opened higher at 1,015.0 South Korean won. According to the China Foreign Exchange Trading System, the central bank has set the yuan central parity rate at 6.8271 a dollar. The Australian dollar opened flat at US$0.9727-0.9732 and the Kiwi opened weaker at US$0.7613.

The South Korean market was trading sharply higher, rebounding from Friday's 1% decline. At 9:02 p.m. ET, the benchmark Korea Composite Stock Price Index was up 42.03 points or 2.78% at 1,552.02.

Airlines posted sharp gains in early trade. Korean Air Lines surged 3.8% and Asiana Airlines gained 1.8%. Top shipper Hanjin Shipping advanced more than 2.0%.

Among technology stocks, Hynix Semiconductors jumped 2.9%, market heavyweight Samsung Electronics climbed 1.9%, LG Display advanced 2.0% and LG Electronics rose 3.7%.

Automaker Hyundai Motor surged 2.9% and steel major POSCO soared 3.9%. Leading lender KookMin Bank surged 5.1%, Woori Finance gained 4.9% and Shinhan Financial Group advanced 3.7%. Brokerage Mirae Asset Securities soared 8.7%.

The Australian stock market was trading sharply higher, with big miners and banking stocks leading the gainers. At 8:42 p.m. ET, the benchmark S&P/ASX 200 index was up 108 points or 2.23% at 4,949 and the he broader All Ordinaries index was gaining 101 points or 2.04% to 5,016.

On the economic front, the Australian Bureau of Statistics releases its Producer Price index or PPI for the second quarter. The PPI, which tracks prices paid for the production of goods before they reach the retail level, showed an increase of 1.9% for the first quarter when compared to the fourth of 2007. When compared to the year-ago quarter, the PPI was higher by 4.8%.

Also on Monday, the Bureau releases new motor vehicle sales for June. The data for May showed a decline of vehicle sales by 1.6% from that in April.

Banks were strong in early trade. Commonwealth Bank added 2.56% and Westpac gained 2.33%, while ANZ was up 3.24% and National Australia Bank rose 2.59%. St. George bank increased 2.82%, while investment bank Macquarie Group was up 2.70%.

In the resources sector, index leader BHP Billiton rose 3.66% and its takeover target Rio Tinto added 2.34%. Gold miners were mixed as Lihir Gold edged up 0.66%, while Newcrest Mining edged down 0.65%. Gold prices closed lower on Friday.

Among energy stocks, Woodside gained 2.43%, Oil Search added 1.40%, but Santos edged down 0.11%.

In the retail sector, David Jones climbed 3.45%, while Coles owner Wesfarmer rose 3.65% and Woolworths added 2.54%.

Australia's biggest travel agency Flight Centre climbed 9.3% after it said it expects pre-tax profit for fiscal 2008 to increase 40%, which is within the guidance range.

Platinum Asset Management fell 8.3 after it issued a statement suggesting that the continued uncertainty in share markets and likely increases in costs have made recent brokers' forecasts "optimistic".

The New Zealand stock market was trading higher for the fourth straight session, led by top stocks Contact Energy and Fletcher Building. At 8.13 PM ET, the benchmark NZSX-50 Index was advancing 18.08 points or 0.58% to 3,138.99, while the NZSX All Capital Index was gaining 16.92 points or 0.53% to 3,181.22.

On the economic front, the number of short-term visits to New Zealand declined 2% in June from the same period last year. Statistics New Zealand reported that short-term visitor arrivals last month totaled 142,400, compared to the 145,500 visits recorded in the year-ago period. For the full year through June 2008, there were 2.48 million visits, an increase of 22,000, or 1%, from the previous year. Outbound, New Zealand residents departed on 186,000 short-term trips in June, down 11% from June 2007.

Meanwhile, total electronic card transactions in New Zealand declined by a seasonally adjusted 0.6% in June compared to May, according to data published by Statistics New Zealand. Credit card spending in the retail sector in June was lower by 0.4% from the prior month. The main factors in the decrease were fewer transactions in the durables and consumables industries. Core electronic card transactions, which exclude motor vehicle related industries, were down 1.2% from May.

Among top stocks, Telecom added 0.29%, Contact Energy advanced 1.97% and Fletcher Building rose 2.63%. Fletcher chief executive was reportedly quoted as saying that the company was under pressure to join the Australian stock exchange, with expectations that the move would result in an increase in the company's share price.

In the retail space, Hallenstein Glasson advanced 0.75% and Pumpkin Patch lost 1.41%, while The Warehouse Group and Michael Hill remained unchanged.

Among other stocks, SkyCity gained 1.35% and Steel & Tube climbed 1.51%. Nuplex eased 0.77%, Sky Pike River Coal slid 3.90% and PGG Wrightson lost 2.44%.

Energy scrip TrustPower remained unchanged and Vector gained 0.99%.

Other Asian markets:

Hong Kong's Hang Seng index was 2.8% at 22,480; China's Shanghai composite index was down 0.6% at 2,762; Singapore's Straits Times index was up 2.2% at 2,909; Taiwan's weighted index was up 2.9% at 7,010; Malaysia's KLCI was down 11.4 points at 1,093; and Indonesia's Jakarta composite index was up 1.3% at 2,168.

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