SEOUL, Dec 3 — Asian stock markets rose today after a rebound on Wall Street, but pervasive concerns about the dismal outlook for the world economy limited gains.
Japan’s Nikkei 225 stock average rose 1.1 per cent, or 83.43 points, to 7,948.98 and benchmark indexes in Hong Kong, China, Australia and Singapore also crept higher as investors nibbled on shares after broad declines the day before. South Korea bucked the trend with the key index down 0.5 per cent at 1017.82.
“Investors remained cautious due to sustained worries over a prolonged global downturn,” said Masatoshi Sato, market analyst at Mizuho Investors Securities Co Ltd.
In a volatile session yesterday in New York, the Dow Jones industrial average rose 270 points, or 3.3 per cent, to 8,419.09, making back some of Monday’s 7.7 per cent plunge. That decline had sent Asian stocks sharply lower yesterday.
The US market withstood mixed messages from troubled US automakers — Ford Motor Co said it had enough cash to make it through 2009 while General Motors Corp said it needs US$12 billion (RM42 billion) in government loans.
The viability of those two companies along with Chrysler, the third major US auto manufacturer, has weighed on Wall Street in recent weeks amid a debate over whether they should receive government assistance.
Asian automakers were mostly lower today. In Tokyo, Toyota Motor Corp fell 2 per cent and Honda Motor Corp slid 6.4 per cent. South Korea’s Hyundai Motor Co shed 4.1 per cent and Kia Motors Corp dropped 1.1 per cent.
Shares in Australia moved higher after news that the country’s flagship airline Qantas was in merger talks with British Airways.
Stocks pared gains, however, after the Australian government announced the economy slowed to growth of just 0.1 per cent in the third quarter, the slowest pace in eight years. Qantas was up 4.4 per cent after initially jumping 9 per cent.
CMC Markets Stockbroking general manager Andrew West said a tie-up between the carriers would be a positive move for Qantas, particularly in the currently tough airline market.
“If the deal goes through it will create a formidable airline that has a major share of major routes to the US, UK and Asia,” he said.
Shares in Thailand outperformed the rest of the region, rising 2.5 per cent after a court ruling yesterday dissolved the ruling party for electoral fraud, lancing weeks of heightened political tensions that culminated in protesters occupying Bangkok’s two airports.
In currency trading, the Japanese yen stood at 93.24 to the dollar in afternoon trading, compared with 93.13 yen in New York late yesterday.
Oil prices rose slightly today in Asia after hitting a three-year low overnight as investors try to gauge how much the slowing US and Chinese economies will hurt demand for crude.
Light, sweet crude for January delivery was up 74 cents to US$47.70 a barrel in electronic trading on the New York Mercantile Exchange by midday in Singapore.
The outlook for China’s slowing economy was also weighing on markets in Asia, said Mark Tan of UOB Asset Management in Singapore.
“It’s just going to be more bad news,” he said, referring to the release of upcoming economic data such as industrial production and retail sales. — AP
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