(RTTNews) - The markets in Asia ended in positive territory on Friday, taking cues from Wall Street where the major averages ended sharply higher after the GDP data for the third quarter came in better-than-expected at 3.5% signaling the end of recession in the world’s largest economy. Optimism about the recovery in global economy lifted market sentiment across the markets. However, the markets in India, South Korea and Taiwan ended in negative territory.

In Japan, the benchmark Nikkei 225 Index gained 143.64 points, or 1.45%, to 10,035, and the broader Topix index of all First Section issues was up 12.41 points, or 1.41%, to 895.

On the economic front, a report released by the Ministry of Health, Labor and Welfare said that average household spending rose 1.0% year-over-year in September, which was in line with expectations. The report further noted that wage earner household spending rose 0.6% year-over-year, and the propensity to consume rose to 86.5% in September in comparison with 81.7% in August.

In a separate report, the Ministry of Internal Affairs and Communications said that the unemployment rate came in at a seasonally adjusted 5.3% in September, down from 5.5% reported for the previous month. Analysts expected the unemployment rate to come at 5.6%.

Almost all the sectors witnessed gains on increasing optimism about global economic recovery.

Among automotive stocks, Toyota Motor gained 2.52%, Suzuki Motor advanced 2.29%, Nissan Motor surged up 4.84%, Isuzu Motors rose 2.59%, Hino Motors added 1.48% and Mazda Motor added 0.96%.

Exporters also ended in positive territory on expectation of recovery in global demand for its products. Canon gained 1.73%, Sharp Corp. advanced 2.48% and Sony Corp. rose 2.77%.

Trading companies also ended in positive territory. Mitsubishi Corp. rose 3.56%, Mitsui & Co., advanced 2.43%, Toyota Tsusho Corp. gained 2.15%, Sumitomo Corp. climbed 2.86% and Marubeni Corp. ascended 3.86%.

Large banks also ended in positive territory on optimism about recovery. Mitsubishi UFJ Financial gained 1.43%, Mizuho Financial rose 1.67%, Resona Holdings added 1.11% and Sumitomo Mitsui Financial edged up 0.32%.

In Australia, the benchmark S&P/ASX200 Index surged up 68.50 points, or 1.50% to close at 4,643, while the All-Ordinaries Index ended at 4,647, representing a gain of 71.70 points, or 1.57%.

On the economic front, data released by the Reserve Bank of Australia revealed that the value of credit extended to the private sector in the country during September declined by a seasonally adjusted 0.2% compared to the previous month. However, on year-over-year basis, credit to the private sector rose 1.7%. The data further revealed that credit extended to the housing sector increased 0.7% month-over-month during September and was up 7.7% from the same period last year.

Almost all the sectors witnessed positive trading with three out of 4 stocks in the index ending with gains from previous close.

Metals and mining stocks led the gains following sharp rise in commodity prices in the international market. BHP Billiton added 0.86%, Rio Tinto surged up 4.59%, Fortescue Metals rose 3.77%, Gindalbie Metals soared 6.63%, Iluka Resources gained 3.55%, Mincor Resources advanced 2.84% and Oz Minerals climbed up 6.67%.

Energy stocks also ended in positive territory after crude oil prices rose in the international market. Woodside Petroleum gained 2.16%, Santos rose 1.50% and Origin Energy climbed 2.55%. However, Oil Search bucked the trend and edged down 0.34%.

Gold stocks ended mixed. Lihir Gold Mining rose 2.35% and Sino Gold Mining climbed 4.23%. However, Newcrest Mining bucked the trend and ended in negative territory with a loss of 0.49%.

Property related stocks also advanced. GPT Group added 1.74%, Mirvac Group soared 6.03%, Stockland climbed 6.50% and Westfield Group advanced 1.32%.

Financial stocks ended in positive territory on US economic data and hopes of recovery. ANZ Bank added 0.92%, Commonwealth Bank of Australia advanced 1.55%, National Australia Bank rose 2.75% and Westpac Banking Corp. ascended 1.03%.

In Hong Kong, the Hang Seng Index surged more than 2.2%, or 487.88 points, to close at 21,753, taking cues from Wall Street following better-than-expected GDP for the third quarter that signals end of recession for the U.S economy. Better than expected earnings reports from Chinese banks also lifted the market sentiment. All the 42 components of the index, except two stocks, ended in positive territory. Banks and property stocks were the major gains. Among banks, Bank of China soared 5.77% and ICBC climbed 3.45%. The major gainer among property stocks is Henderson Land with a gain of 7.51%. Among china-related stocks, China Resources surged up 8.62%.

In South Korea, the KOSPI Index ended in negative territory with a minor loss of 5.16 points, or 0.33%, at 1,581, as large-scale sell-off by institutional investors and weak support from foreign institutional investors more than offset the early gains in the market driven by positive economic data in the U.S. Profit taking at higher levels also contributed to the weakness in the market. Automakers ended in negative territory following by bellwether technology stocks.

The Indian market reversed its initial gains and ended sharply lower on Friday, weighed down by uninspiring earnings from top bluechip firms such as Reliance Industries, ONGC, Tata Power, Bharti Airtel and SAIL. Intensive profit taking ahead of the extended weekend also weighed on market movement. The market will remain closed on Monday on account of Guru Nanak Jayanti. The BSE Sensex closed at 15,896, down 156 points or 0.97% and the S&P CNX Nifty fell 39 points or 0.82% to 4,712.

Among the other major markets in the region, China’s Shanghai Composite Index added 35.38 points, or 1.20% to 2,995, Indonesia’s Jakarta Composite Index advanced 23.67 points, or 1.01% at 2,368 and Singapore’s Strait Times Index rose 18.82 points, or 0.71% to 2,651. However, Taiwan’s Weighted Index bucked the trend and ended in negative territory with a loss of 15.61 points, or 0.21%, at 7,340.

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Posted in Categories: Australia, Japan, Releases, Stocks, USA.

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