Asia makes small gains on energy stocks

Most Asia-Pacific markets managed small gains on Thursday helped by energy-related stocks as oil prices rose.

However, gains were muted and with earnings in full flow the push-pull of good and disappointing results gave markets little direction.

Nintendo investors though, sent a clear message, sending the stock down 8.7 per cent to Y52,800, even after its quarterly profits jumped by a third. However, investors weren’t happy with disappointing DS results.

Expectations had been high for the maker of Wii console and the stock had risen in the days leading up to the results.

“It’s the old chestnut of earnings that wouldn’t have been bad on any other day but the shares had been run up beforehand,” said Pelham Smithers, Asian equities manager at Pali International. “People were disappointed there wasn’t an upward revision. There’s a huge gap between reality versus expectations. The stock still has a way to go.”

The Nikkei traded lower all morning but once again pharmaceutical stocks saved the day, helping drag the Nikkei out of the doldrums to close up barely 0.1 per cent at 13,376.81. The broader Topix gained 0.05 per cent to 1,303.62.

TDK was also in the limelight after it said it is making an offer of 1.2bn euros for German company Epcos. TDK shares closed down 1.5 per cent at Y6,500, while Epcos shares surged nearly 30 per cent.

Disappointing earnings projections from exporters weighed on sentiment in Japan, highlighting the grim economic outlook for the companies’ main markets.

Shares of Japan’s largest auto-parts maker Denso tanked for a second day after revising down its full-year profit forecast on slowing car sales, becoming one of the biggest weights down on the Nikkei. The shares slumped 6.5 per cent to Y2,815.

Yamaha Motor shares also plunged, losing 6.2 per cent to Y1,830, after it revised down its full-year operating profit forecast by nearly a quarter.

In Hong Kong, shares gained 0.2 per cent to 22,731.10, while the index of mainland shares traded in the territory rose 0.3 per cent to 12,506.74. Cnooc, China’s largest oil and gas explorer led the market higher, gaining 3.7 per cent to HK$11.74, after oil rose overnight and remained trading above $125 per barrel in Asian trading.

HSBC rose 0.3 per cent to HK$128.90, and refiner Sinopec, lost 1.8 per cent to HK$8.1.

In Australia, energy-related stocks were in play following the rise in oil prices, with BHP Billiton jumping 1.2 per cent to A$39.71, while Rio Tinto rose 3.2 per cent to A$125.40. Woodside Petroleum surged 3.9 per cent to A$53.80. The S&P/ASX 200 closed 0.8 per cent higher to 4,977.4.

The Kospi edged higher, but gained momentum during the day, thanks to gains in technology stocks. The market closed up 1.1 per cent at 1,594.67. Hynix Semiconductor rallied 2.6 per cent to Won21,650 after it announced a smaller loss than expected. Samsung Electronics gained 2.9 per cent to Won564,000.

Singapore stocks were 0.3 per cent higher at 2,934.06. The Sensex was trading 0.3 per cent lower at 14,249.34, while Taiwanese stocks were 0.7 per cent down at 7,024.06.

In Shanghai, the Composite Index shed 2.2 per cent to 2,775.717, weighed down heavily by Sinopec, after oil gained significantly overnight. Shares of the refiner, while showing milder declines in Hong Kong, tumbled 5.3 per cent to Rmb11.20 in Shanghai.