SINGAPORE, Oct. 8 (UPI) -- Asia stock markets showed resilience this week despite crude oil future prices rising to new all time high of $53 per barrel on Thursday. Instead, investors focused on the strong underlying fundamentals which helped support markets throughout most of the week. Yet by Friday, profit-taking set in, pulling many indexes lower.
Some investors believe oil prices could now rise to $60 per barrel, especially as the threat of a labor strike in oil-producing Nigeria continued. The main oil workers' union in Nigeria said Thursday it would join a national strike set to begin next week unless the government agreed to talks on rising fuel prices.
Amid investors' caution, most markets only managed to post small gains this week.
South Korea outperformed the region on hopes the central bank would cut its interest rate one more time this week. In the even, the central bank left its key rate unchanged saying that previous rate cuts had mainly produced asset bubbles, adding to inflationary pressure.
The benchmark Korea Composite Stock Price Index (KOSPI) closed Friday at 881.38, down on the day, but still up 4.1 percent on the week. Tech and financial issues bore the brunt of foreign investors' interest.
Samsung Electronics, the world's largest manufacturer of computer memory chips, lost some ground as investors expect the company to post lower third-quarter results because of a global price decline in display panels. But some analysts are pointing the sector may have already bottomed out, with fourth-quarter performance expected to be better than expected.
Kookmin, the nation's largest lender, rose after its chief executive officer predicted its earnings may exceed $260 million in the third quarter on the back of reduced bad loans.
Hynix also rose on hopes the sale of its non-memory chip division was imminent.
HONG KONG
Profit-taking dominated activity after recent gains and the blue-chip Hang Seng Index closed Friday at 13,241.46, posting a small gain of 0.9 percent on the week.
Earlier on in the week, real estate stocks continue their recent rally supported by news property transactions had increased in September after five months of month-on-month falls. There was also positive news at the high end of the property market, as a luxury apartment in the Mid-Levels district sold for $3,590 per square foot, topping prices seen during the real estate market's 1997 peak.
But there are now rising fears a bubble is developing at the high end of the market. By the end of the week, profit-taking was noted in the sector, despite optimism next week's land auction will receive aggressive bidding and boost overall sentiment for property stocks. Two residential sites will be up for grabs in the third land auction by the government this year.
THAILAND
The benchmark Stock Exchange of Thailand composite index closed the week at 676.15, up 2.2 percent on the week, supported by interest in oil related shares.
Retail investors snapped up the 60 million shares offer by refiner Thai Oil in less than two hours on Thursday. The interest lifted its parent PTT and refinery peer Bangchak.
Otherwise, investors concentrated on individual play and their earning, with companies like channel operator ITV or mobile phone operator United Communication Industry seen benefiting from strong earnings report in the second half of this year.
Thai Petrochemical Industry rose after creditors agreed to the amendment of its debt restructuring plan, and optimism over its robust third-quarter earnings following rising petrochemical prices.
TAIWAN
The main TAIEX share index closed at 6,098.58, up 2.6 percent on the week, close to a 4-month high. Financial stocks continued to underpin the market, after the central bank surprised investors last week by raising interest rates for the first time in four years.
The transports sector was also attracting interest on hopes President Chen Shui-bian may attempt to ease cross-strait tensions in his National Day speech on Sunday, which could lead to direct transportation links.
But selling on technologies was putting a lid on gains.
SINGAPORE
The Straits Times Index closed the week at 2,004.3, up 1.2 percent on the previous Friday and near a four-year high. Technology counters were among the top gainers.
Singapore Airlines rose after announcing it would divest of its 6.3 percent stake in Air New Zealand, while water treatment specialist Hyflux also posted strong gain after announcing it had formed a joint venture with a Dubai-based partner to build facilities there.
Dealers said investors remain confident about the Singapore market on the back of strong economic fundamental, although the third quarter GDP growth is now expected to show a softening of growth.
MALAYSIA
The weighted Composite Index of 100 blue-chip stocks closed at 861.08, up 0.8 percent, in quiet trading.
Investors brushed off comments by the central bank pointing to strong economic growth in the third quarter, and instead worry on the impact of rising oil prices is having on exports. Recent trade data showed export growth has slowed amid rising oil prices.
Proton Holdings posted some gains after Germany's Volkswagen said it was discussing a possible partnership with the Malaysian automaker.
Despite the market continuing to generally under perform the region, many brokerage remains optimistic about prospects. This week, OSK Research forecast a rise to 920 by the year-end, pointing that foreign investors are slowly returning to Malaysia with the increasing popularity of Prime Minister Abdullah Ahmad Badawi's government.
All figures in U.S. dollars
