Market Update
Strong oil and commodity prices ensured a positive close for Asian markets after shares mostly fell this week.
The Shanghai Composite was the only index that closed in the red for the sixth straight session, down 0.2%, unable to shake off domestic concerns about an economic slowdown. The S&P/ASX 200 ended up 1.6% while the Nikkei climbed 1.5%, its biggest increase in more than three weeks. The Hang Seng closed 0.7% higher, and India's Sensex ended up 1.1%, regaining the 18,000 level towards the end of the day's trade.
Regional oil stocks gained ground on higher crude prices that topped $101 a barrel, after two US investment banks forecast a sharp rise in oil prices.
Stocks on the Move
Japan Petroleum Exploration Co jumped 4.9% after JP Morgan raised its rating on the company to 'outperform.' Japan's largest oil-driller, Inpex Corp., rose 3.1%. Sumitomo Metal Mining gained almost 2%.
Among news driven stocks, copier and printer maker Ricoh ended up 4.1% after it said it would slash almost 10,000 of its workforce worldwide. Auto majors were in high gear after Deutsche bank said sales incentives carmakers paid to car dealers declined in May. Mazda Motor Corp. recorded the biggest gain on the index, driving up almost 6.9%. Toyota rose 1.2%.
Camera-maker Canon ended up 5.8% after it said it is planning a share buyback. In a report released yesterday, Citigroup said Canon's profits are likely to rebound in the year ending December 2012.
In China, trading volumes remained low, reflecting lack of investor interest in the market. Chinese airlines were unable to get off the ground despite many of the major carriers saying they would increase fuel surcharges for a third time this year. China Southern Airlines closed 0.1% lower and Hainan Airlines Co ended down just over 1%.
On the S&P/ASX200, BHP Billiton rose 2.2% and Rio Tinto gained 1.9% after London Metal Exchange copper rose 2.3%, zinc rose 2.5% and aluminum rose 1.4% overnight. Graincorp also ended 8% higher after reporting a 66% rise in first-half net profit, and raising its full-year profit guidance.
Energy stocks ended on a powerful note, with Santos closing up 3.9% and Woodside Petroleum ending 1.9% higher.
In deal driven news, Austar gained 7.9% after Foxtel made a bid to buy the company for $1.52 a share, in a potential deal worth $2 billion. Linc Energy also rose 7.9% after it said it has received a non-binding offer from a Hong Kong-based company for its Teresa coal asset in Queensland, and is waiting for more bids before it announces a sale.
Metal and oil & gas stocks lifted India's Sensex towards the close of trade as petroleum major and index heavyweight Reliance Industries closed 2.9% higher. State-run ONGC was up 4.4%. Tata Steel, ICICI Bank and Tata Motors were the other major gainers on the Sensex, closing up 1.98%, 1.55% and 2.45% respectively.