(RTTNews) - The stock markets across the Asia-Pacific region have turned mixed on Monday after a firm start. News that the United States will host a summit of Group of Eight and other major economies on the global financial crisis and South Korean government’s $130 billion rescue package for banks and markets initially boosted investor sentiment, but lingering concerns about a global recession put a damper on early gains. Oil rose for a second day on Monday amid hopes that OPEC would slash output to shore up prices.

On Friday, U.S. stocks finished lower, as traders weighed some weaker than expected economic data against better than expected earnings from some big name companies. The Dow closed down 127 points or 1.4% at 8,852, the Nasdaq closed down 6 points or 0.4% at 1,711, and the S&P 500 closed down nearly 6 points or 0.6% at 940.

Light, sweet crude for November delivery rose by $2 to settle at $71.85 a barrel on the New York Mercantile Exchange on Friday. In the Asian session Monday, oil is presently adding $1.14 to trade at $72.99 a barrel.

On the currency front, the U.S. dollar traded in the mid 101-yen levels in early Tokyo deals, up from Friday’s close in the lower 101-yen range in Tokyo. The South Korean won gained against the dollar and traded at 1,268.0 a dollar, after rising to as high as 1,230.0, compared to Friday’s domestic close of 1,334.0. The Australian dollar opened higher at US$0.6971-0.6978, but the New Zealand dollar was weaker US$0.6155 in early local trade.

The Japanese market was trading higher on bargain hunting following recent steep losses. Additionally, a weaker yen boosted exporters. At 8:48 p.m. ET, the benchmark Nikkei-225 index was up 145.02 points or 1.67% at 8,838.84, extending Friday’s 2.78% gains. The broader Topix index climbed 11.21 points to 905.50.

On the economic front, final data for August leading index is due for release today.

Among major gainers, Nippon Steel rose 4.1% and JFE Holdings surged 7.2%. A weaker yen supported exporters. Canon added 0.4%, Honda Motor gained 1.4%, Toyota Motor climbed 4.7%, and Sony jumped 4.9%.

In the banking space, Mizuho Financial Group slipped 0.3% and Sumitomo Mitsui Financial Group declined 1.3%, while Mitsubishi UFJ Financial Group rose 2.0%. Among tech stocks, Advantest gained 1.4%, Fanuc advanced 1.5%, Kyocera added 1.8%, and Fujitsu moved up 0.7%.

Defensive stocks such as drugmakers continued to gain amid worries about the global economy. Takeda Pharmaceutical advanced 0.5% and Astellas Pharma gained 1.0%.

Among commodity-related stocks Mitsui & Co. jumped 4.9%, Mitsubishi Corp rose 2.3%, oil and gas miner Inpex Holdings gained 2.7%, and Nippon Oil jumped 4.0%.

Panasonic soared 6.5% after the Nikkei business daily reported that the electronics maker, which had predicted a drop in operating profit for the first half, might beat its forecast by more than 20 billion yen.

The South Korean stock market was trading lower, giving away the initial gains, despite a $130 billion government rescue package for banks and markets. At 10:13 p.m. ET, the benchmark Korea Composite Stock Price Index or KOSPI was down 22.77 points or 1.93% at to 1,457.90, after rising as much as 2.4% in the opening move.

On the economic front, South Korea’s central bank said Monday that the nation’s economic growth is set to slow in coming months as exports are likely to lose steam due to a global economic downturn amid sluggish domestic demand.

In the tech space, Hynix Semiconductors plunged 3.7%, but market heavyweight Samsung Electronics edged up 0.4%. LG Display was unchanged, while LG Electronics lost 1.8%.

Automaker Hyundai Motor gained 2.6%, while steelmarker POSCO fell 2.0%.

In the financial sector, Shinhan Financial Group gained 0.9%, but Woori Finance tumbled 1.8%. Brokerage Mirae Asset Securities slumped 15%.

The Australian stock market was trading higher on bargain hunting following recent losses. At 9:11 p.m. ET, the benchmark S&P/ASX 200 index was up 109 points or 2.74% at 4,080, after closing down 1.06% on Friday. The broader All Ordinaries index was gaining 98 points or 2.49% to 4,043.

On the economic front, the Australian Bureau of Statistics revealed in a report that producer price index for the third quarter rose 5.6% annually, compared to a 4.7% gain in the second quarter. The report added that the producer prices grew 2.0% quarter-to-quarter in the third quarter.

Meanwhile, the Department of Employment announced that annual wages in Australia climbed an average of 4.0% on year in the second quarter of 2008, up from the 3.7% annual increase in the first quarter. Private sector average wages were up 3.9% in the quarter, up from the 3.7% on-year increase in the first quarter. In the public sector, wages were up an average 4.1% in Q2 following the 3.9% annual increase in the previous quarter.

On Saturday, Aussie Home Loans said that it was dropping its standard variable home loan rate by 30 basis points to 7.79% for first homebuyers after the Australian Federal Government announced further assistance to first homebuyers. National Australia Bank, the country’s largest lender, and ANZ cut their standard variable mortgage rates by 0.20% and 0.25%, respectively, after the government guaranteed their deposits and wholesale funding in response to the global financial crisis. This has raised expectations that the other major domestic banks, Commonwealth Bank and St George, will follow suit ahead of the central bank’s next policy meeting on November 4.

Among banking stocks, Commonwealth Bank of Australia gained 1.79%, National Australia Bank added 4.07%, and ANZ Banking Group was up 0.77%. Westpac advanced 3.35%, investment bank Macquarie Group edged up 0.41%, and St. George bank was up 1.79%.

In the resources sector, index leader BHP Billiton rose 4.51% and Rio Tinto added 3.48%. Gold miners were weaker, after gold closed lower, for a seventh straight session, on Friday. Lihir Gold fell 5.33%, and Newcrest Mining edged up 0.13%.

Among energy stocks, Woodside added 3.50%, and Oil Search gained 4.69%, and Santos rose 5.75%.

In the retail sector, David Jones gained 2.58%, giant retailer Woolworths added 3.10%, and Coles’ owner Wesfarmers rose 2.56%.

The New Zealand stock market was trading sharply higher on Monday. At 8.24 P.M. ET, the benchmark NZX 50 Index was advancing 90.74 points or 3.28% to 2,855.43 and the NZX All Capital Index was gaining 93.89 points or 3.34% to 2,901.19.

On the economic front, Statistics NZ reported Monday that the value of credit and debit card spending in New Zealand increased by a seasonally adjusted 0.8% in September compared to August, driven largely by non-retail industries. Retail transactions were flat. The agency noted that there were 84 million electronic transactions in September, valued at a total of NZ$4.5 billion. The core retail total, which excludes motor vehicle related transactions, was down 0.4% in September following a 1.6% increase in August. Increases in motor vehicle-related industries and consumables were offset by decline in the purchases of apparel and durable goods.

Meanwhile, businesses in New Zealand’s services sector reported reduced activity for the third straight month in September, according to the latest Performance of Services Index reading. The Bank of New Zealand/Business New Zealand survey showed a drop of 1.0 point to an index reading of 46.9, with readings below 50.0 indicating contraction in the measured sector. It marked the second lowest reading for the index since the series began in April 2007.

Among the top stocks, Telecom soared 8.97%, Contact Energy added 0.70% and Fletcher Building rose 3.24%.

In the retail space, Pumpkin Patch jumped 7.62% and the Warehouse Group climbed 7.84, while Hallenstein Glasson declined 1.92% and jeweler Michael Hill remained unchanged.

Among other stocks, Sky City rose 7.69%, while Nuplex eased 0.75%. Steel & Tube plunged 22.22% after Australia-based OneSteel said after the market closed Friday that it has terminated its takeover of the company.

Pike River Coal soared 12.40%, extending its gains from Friday, after it said it struck coal at its West Coast mine following two years of tunnelling. NZ Oil & Gas, owning more than 30% of Pike River, rose 2.68%.

Energy stock TrustPower gained 3.65% and Vector added 0.49%.

Other Asian markets

Hong Kong’s Hang Seng index was up 2.2% at 14,873; China’s Shanghai composite index was down 0.4% at 1,923; Singapore’s Straits Times index was up 0.9% at 1,900; Taiwan’s weighted index was down 0.2% at 4,827; Malaysia’s KLCI was down 7 points at 898; and Indonesia’s Jakarta Composite index was down 0.8% at 1,388.

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

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