(RTTNews) - The stock markets across the Asia-Pacific region closed higher on Friday after a bigger-than-expected revision to second quarter U.S. GDP data along with a drop in crude oil prices overnight lifted investor sentiment. The Indian market surged 3.7% and the Japanese market gained 2.4%, its bigger one-day gain in three weeks. The U.S. dollar weakened after oil climbed more than a dollar Friday as Tropical Storm Gustav headed towards the Gulf of Mexico.

The U.S dollar traded in the upper 108-yen levels in late Tokyo deals, nearly flat with the levels late Thursday in Tokyo. The South Korean won fell against the dollar after data showed that the South Korea posted its biggest current account deficit in six months and on importers’ demand for dollar. The won closed at 1,089.0 a dollar. The Australian dollar finished weaker at US$US$0.8622-0.8624 and the kiwi eased to US$7052.

The Japanese market closed sharply higher, ending a two-day losing streak. The market started off on a firm note after Wall Street rallied overnight and extended gains to finish near the day’s high. The key Nikkei index recovered the 13,000 levels. Stocks rose across the board, but steel, real estate and financial stocks were the major gainers.

The benchmark Nikkei 225 index closed up 304.62 points or 2.4% at 13,072.87, its highest close since August 18, when the index finished at 13,165.05. For the week, the index recorded gains of 3.2%. The broader Topix index of all the First Section issues on the Tokyo Stock Exchange gained 35.18 points or 2.9% to finish at 1,254.71.

A moderate rise in Japan’s industrial output and the first rise in housing starts in 13 months also supported sentiment. Industrial production climbed a seasonally adjusted 0.9% in July to 107.9 from 106.9 in June, the Ministry of Economy, Trade and Industry said.

Meanwhile, the Ministry of Land, Infrastructure and Transport said that the Japanese housing starts increased 19% year-over-year in July, after declining 16.7% in June. Economists were looking for a 15% rise in July. Construction orders received by big 50 contractors surged 42.3%, year-on-year, after falling 11.7% in June.

Among other data released today, Japan’s core inflation rate surged to an annualized pace of 2.4% in July from 1.9% in the previous month on the back of soaring energy and raw material costs, while retail sales rose 1.9% in July from a year earlier as consumers paid more for fuel and food. The unemployment rate dipped to 4.0% in July from 4.1% in the previous month.

Among steelmakers, Nippon Steel surged 5.4%, JFE Holdings jumped 4.7%, Kobe Steel jumped 3.9% and Sumitomo Metal Industries advanced 3.4%. In the real estate sector, Mitsubishi Estate gained 4.3%, Mitsui Fudosan rose 3.6% and Sumitomo Realty & Development climbed 3.8%.

Among major financials, gainers included Mizuho Financial Group 4.0%, Mitsubishi UFJ Financial Group 3.6% and Sumitomo Mitsui Financial Group 4.2%.

Game maker Nintendo closed limit-up 8.4% after the company raised its group net profit forecast for this fiscal year ending March to 410 billion yen from 325 billion yen.

Retailers gained on the back of the report that retail sales rose in July. Fast Retailing gained 3.4%, Seven & I Holdings surged 4.6%, and Aeon advanced 2.3%.

The South Korean market finished flat, after closing lower on Thursday. Gains among financials and steelmakers offset losses in Doosan Group. The benchmark Korea Composite Stock Price Index closed up 0.09 point or 0.01% at 1,474.24 points. The index has lost 7.6% during the month and 23% from its mid-May closing high of 1,888.88.

South Korea’s current account shortfall touched US$2.45 billion in July compared to a $1.82 billion surplus in the previous month, the Bank of Korea said in a report. During the first seven months of the year, the country posted a cumulative current account deficit of $7.8 billion, up from a shortfall of $75.5 million a year ago.

Meanwhile, South Korea’s industrial output grew at a faster pace in July due to robust exports and increased sales of consumer goods. However, the outlook remained bleak as runaway inflation and financial market woes weighed on the economy. According to a report by the National Statistical Office, industrial production expanded 9.1% in July from a year earlier, accelerating from the 6.8% on-year gain in June.

Shares in Doosan Group units fell after Doosan Infracore said Thursday that it and its affiliate will pump a combined $1 billion into companies set up to buy Ingersoll-Rand’s business lines last year to pay back their debt. Nomura Securities cut its rating on Doosan Infracore to “Sell” from “Buy” on Friday. Doosan Infracore slumped by the daily 15.0% limit, Doosan Heavy Industries tumbled 15.0% and Doosan Corp plummeted 14.8%.

Financial stocks closed higher. Samsung Securities added 0.7%, Daewoo Securities climbed 1.5%, Woori Investment & Securities advanced 2.1%. Steel maker POSCO rose 1.6% and Hyundai Steel gained 1.8%. Top lender Kook MinBank jumped 2.9%, Shinhan Financial Group rose 1.0% and Woori Financial added 0.4%.

In the tech sector, Hynix Semiconductors added 1.0%, but index leader Samsung Electronics fell 1.0%, LG Display lost 0.4% and LG Electronics plunged 1.9%.

The Chinese market closed higher, led by property stocks, on hopes that the government will announce new measures over the weekend to support the markets. The benchmark Shanghai Composite Index closed up 47.23 points or 2.01% at 2,397.37. The index posted a loss of 0.33% for the week and 13.63% for the month.

Top property developer China Vanke (SZA jumped 5.2% and China Merchants Property Development gained 4.9%.

Steelmakers rose after Baoshan Iron & Steel reported an 18% increase in first-half profit. Baosteel rose 3.8% and Shanxi Taigang Stainless Steel jumped 4.7%.

Brokerages continued their rally, with CITIC Securities advancing 2.7% and Pacific Securities surging by the 10% daily limit.

In the banking space, Bank of China climbed 1.4% after the bank reported a 42.8% jump in first-half net profit to 42.18 billion yuan. Ping An Insurance edged up 0.7%.

The Hong Kong stock market closed higher, led by property developers and banks. Positive first-half earnings reported by locally listed stocks added to the positive sentiment. The Hang Seng index closed up 289.6 points or 1.38 pct at 21,261.89, off a low of 21,223,99 and high of 21,474.31, gaining 4.26% for the week and losing 6.47% for the month.

Among property firms, Cheung Kong gained 2.8%, Sino Land surged 6.0% and Sun Hung Kai rose 2.3%.

Bank of China rose 2.1% after after the bank reported a 42.8% jump in first-half profit, while its Hong Kong unit fell 3.3% following a 5.1% drop in first-half earnings.

CLP Holdings fell over 3.5% on fears that a new agreement for China to supply Hong Kong with natural gas will scuttle the power utility’s plans to build a liquefied natural gas terminal in the city.

Among other banks, HSBC climbed 2.8%, ICBC advanced 1.3% and China Construction Bank gained 1.8.

China Mobile lost 0.9%.

The Australian stock market closed higher for the third consecutive session on Friday, led by financials. The benchmark S&P/ASX 200 index closed up 69.1 points or 1.4% at 5,135.6 and the broader All Ordinaries index gained 72.2 points or 1.4% to finish at 5,215.5.

On the economic front, private sector credit in Australia increased a seasonally adjusted 0.5% in July from June, according to data released by the Reserve Bank of Australia. Private sector credit rose 11.2% from a year earlier.

Among banks, ANZ Banking Group added 2.5%, Commonwealth Bank rose 3.2%, National Australia Bank gained 2.1%, and Westpac advanced 1.8%. St. George bank climbed 2.1% and investment bank Macquarie Group surged 4.7%. Westpac said it would take a 33% stake in mortgage broker Aussie Home Loans.

AMP gained 2.1% after the insurer said it scrapped plans to buy property investor MacarthurCook for A$31 million after target shareholders approved an alliance with IOOF Holdings.

In the resources sector, index leader BHP Billiton fell 0.8%, but its takeover target Rio Tinto rose 0.8%. Gold miners finished mixed, with Lihir Gold losing 2.5% and Newcrest Mining gaining 3.0%. Energy stocks also closed mixed. Woodside Petroleum jumped 3.1% and Oil Search edged up 0.2%, while Santos declined 0.5%.

In the retail sector, David Jones rose 2.8% and Woolworths added 0.8%, but Coles owner Wesfarmers fell 2.7%. Electronics and furniture retailer Harvey Norman advanced 1.6% after the company said net profit for full-year 2008 fell 12% to A$358.45 million due to economic turbulence.

Shopping center owner Centro Properties reported an annual loss of over A$2 billion and investment firm Allco Finance Group posted a loss of A$1.73 billion in 2008. Centro Properties plunged 5.4% and Allco Finance lost 2.5%.

The New Zealand market closed higher, extending gains for a second day in a row. The benchmark NZX 50 index closed up 28.45 points or 0.85% at 3,353.24 and the broader NZX All Capital Index rose 34.22 points or 1.00% to finish at 3,405.97.

New Zealand home-building approvals rose in July, recovering slightly from a near 22-year low in June. Approvals rose 4.7% on month to 1,405 on seasonally adjusted terms, the Statistics New Zealand said. In June, the number of approvals totaled 1,341, the lowest since October 1986. Excluding apartments, approvals fell 0.1% in July.

Top stock Telecom edged up 0.3% and Contact Energy added 0.1%, while Fletcher Building jumped 2.5%. In the retail sector, Hallenstein Glasson closed unchanged, but jewelry retailer Michel Hill plunged 4.6% and Pumpkin Patch plummeted 3.1%. The Warehouse Group advanced 0.9%.

Cavalier gained 2.2% after the carpet manufacturer reported a 14% increase in profit for the year to June to NZ$17.9 million, as earnings and revenue were boosted by the NZ$26 million purchase of Norman Ellison Carpets in February.

Pike River Coal closed unchanged after the company reported a loss for the year to June, but said that the outlook for the year to June 2009 was positive with forward orders in place and prices for premium hard coking coal tripling from a year ago.

New Zealand Oil and Gas plunged 2.5%, despite reporting a bumper NZ$97 million annual profit on the back of its huge success from the offshore Tui oil field and rewarding shareholders with an extra 5 cents final dividend.

Guinness Peat Group advanced 1.4%. The company announced that Graeme Cureton would retire a director of the company on August 29, 2008.

Other major gainers included Auckland International Airport 2.9%, AMP 3.7%, ANZ 3.3%, APN News & Media 4.9%, Fisher & Paykel Healthcare 3.3%, Goodman Fielder 2.3%, Infratil 3.1%, The New Zealnd Refining Co 2.8%, Sky Network Television 2.8%, and Steel & Tube Holdings 3.0%.

Among top losers, Tower, Property For Industry, and Port of Tauranga fell 1.8% each, Ryman Healthcare lost 2.3%, Rakon dropped 2.4%, New Zealand Stock Exchange slumped 5.0%, Mainfreight declined 2.1%, ING Medical Properties plunged 3.5%, and Air New Zealand gave away 2.5%.

Other Asian markets:

Taiwan’s Taiex closed up 0.2% at 7,046; Singapore’s STI closed up 1.8% at 2,739; Malaysia’s KLCI closed up 2.8% at 1,100; Indonesia’s Jakarta Composite index closed up 1.0% at 2,165; and India’s Sensex closed up 3.7% at 14,564.

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Posted in Categories: Australia, Economy, Japan, New Zealand, Releases, USA.

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