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Asian Shares End Mixed; Maxis Makes Solid Debut In Malaysia

SINGAPORE (Dow Jones)--Asian stock markets ended mixed Thursday, with some investors apparently pausing for breath after recent gains in the absence of clear cues from Wall Street.

"It looks as though the market is going to consolidate for a little bit until we start to get some firmer positive direction out of the U.S.," said Wilson HTM client advisor Joseph Pagliaro.

Japan's Nikkei 225 Average finished 1.3% lower at 9549.47, while the broader Topix index fell for the seventh straight session, by 1.5%. South Korea's Kospi rose 1.0%, with Australia's S&P/ASX 200 rising 0.2%, and Taiwan's Taiex slipping 0.1%.

China's Shanghai Composite advanced 0.5% but Hong Kong's Hang Seng Index gave up 0.9% to finish at 22,643.16.

"People are looking to lock in profits. It's still a rational consolidation after the Hang Seng Index reached 23,000 recently, but we could still see the market at a higher level by the end of the year," said Steve Cheng, associate director at Shenyin Wanguo.

Dow Jones Industrial Average futures were recently down 49 points in screen trade, after losing 11 points overnight.

In afternoon trading, the Sensex fell 1.3% in Mumbai, while the Straits Times Index advanced 0.5%.

Japanese investors were fretting about a recent spate of capital raisings in a weak market, said Shinichiro Matsushita, market analyst at Daiwa Securities. Mitsubishi UFJ Financial Group fell 3.7% after the bank Wednesday said it planned to bolster its capital base by issuing 1 trillion yen ($11.1 billion) in new shares. Some other banks fell on concerns they may soon announce similar capital-raising plans, with Mizuho Financial Group skidding 6.6% and Sumitomo Mitsui Financial Group shedding 4.6%.

Exporters also lost ground as the yen strengthened against the U.S. dollar, with Sony Corp. falling 2.2% and Toyota Motor Corp. giving up 1.7%.

Elsewhere, a set of strong share debuts came under the spotlight in the region.

Maxis Bhd, Malaysia's biggest mobile phone operator by subscribers, made a solid debut on the Malaysian stock exchange as institutional investors snapped up the shares betting on dividends.

The company, which relisted without its overseas operations after a two-year hiatus, closed 8.4% higher at MYR5.42. Maxis had earlier raised $3.3 billion for its parent Maxis Communications Bhd., which will use the money to expand operations in India and Indonesia.

Market participants said the listing of Maxis will likely boost the market's liquidity and may spur greater interest from foreign investors and elevate Bursa Malaysia's status in the International arena.

In Hong Kong, shares of Longfor Properties Co. performed better than expected, ending at HK$8.01 ($1.03) after heavy trading. The stock started trade at HK$7.20, compared with its IPO at HK$7.07. The listing was keenly watched as the company counts Government of Singapore Investment Corp., Temasek Holdings and Ping An Insurance among its investors, and reportedly drew subscriptions from billionaire investor George Soros and sovereign fund China Investment Corp.

In Seoul, shares of casino operator Grand Korea Leisure Co. ended at 15,850 won ($13.7) compared with its IPO at 12,000 won.

South Korean exporters also paced gains in Seoul, with Samsung Electronics rising 1.2% and Hyundai Motor up 1.5%. "Exporters' shares struggled (over the last few weeks) due to concerns about the possible adverse effects of the won's strength against the U.S. dollar on profits. But I think investors have become less sensitive to such concerns," said Kwak Byung-ryel at Eugene Investment & Securities.

KB Financial added 1.8% and Shinhan Financial Group gained 1.6% on hopes for improved earnings next year.

In Sydney, gold stocks rose after the precious metal hit another record high Wednesday. Newcrest Mining added 1.6% and Lihir Gold climbed 1.1%. Spot gold was recently trading $6.70 lower from the New York close at $1,136.70 per ounce, after touching a new peak of $1,153 Wednesday.

Elsewhere in the region, New Zealand's NZX 50 gained 0.4%, Philippine shares rose 1.0%, and Thailand's SET Index fell 1.0%.

In New Zealand, Fisher & Paykel Healthcare ended flat despite lowering its full-year guidance after posting a 31% rise in net profit to NZ$37 million for the six months to Sept. 30. Hamilton Hindin Greene broker Grant Williamson said investors were not surprised by the lower guidance; "Overall, I think investors will be quite pleased with the result and you will see a nice move up in the share price once that currency starts to fall back."

In the foreign exchange market, retreating equities and a decline in the price of gold from its recent record high helped lift the dollar against the euro. The euro was recently buying $1.4873 compared with $1.4946 in late New York trade, and 132.32 yen from 133.77 yen. The U.S. dollar was at 88.94 yen from 89.44 yen.

Japanese government bonds were lower, tracking the fall in U.S. Treasurys Wednesday. Mizuho Securities senior market analyst Makoto Noji said concerns over the possibility of higher long-term interest rates in the future lingered as the new government's stance on debt issuance remained unclear, which could discourage investors from buying longer-term JGBs.

The lead December JGB futures contract was down 0.05 point at 139.25 while the benchmark 10-year cash bond was yielding 1.300%, up 0.5 basis point as investors turned their attention to the results from the 20-year JGB tender later Thursday.

The Nymex December crude oil contract was 42 cents lower at $79.16 per barrel, after settling 44 cents higher Wednesday.

-Dow Jones Newswires; +65-6415-4140; markettalk@dowjones.com

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November 19, 2009 05:45 ET (10:45 GMT)


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