Asian markets trade higher

Written by InsiderAsia
Monday, 07 September 2009 17:24

Asian stocks started trading for the new week on a firmer footing. Sentiment was strengthened by Wall Street’s gains last Friday. Most bellwether indices in key regional markets opened and stayed in positive territory throughout the trading day. Although gains were fairly modest, investor confidence appears stronger coming off last week’s jittery mood.

The local bourse too opened stronger. The FBM KLCI added almost 12 points to close at 1,190.4. Some of the big gainers include Genting, Watta, Proton, HL Bank and KL Kepong. Market breadth was positive for the entire trading day. At the close, there were about nine gaining stocks for every four losing ones. Trading volume was higher at 709 million shares compared to last week’s average of 554 million shares. KNM was the most actively traded stock for the day.

Investors were reassured by a slightly better than expected US jobs market report released last Friday. The pace of job losses in the world’s largest economy continues to slow in August, with job losses totaling 216,000. This was lower than the revised 276,000 job cuts in July and well below levels recorded in the earlier part of the year. Unemployment rate climbed to 9.7%, the highest level since 1983. The US stock market will be closed for a public holiday Monday and will resume trading Tuesday.

The latest easing of investing rules by the Chinese government, which allows a higher foreign equity holding, also calmed some nerves. Chinese stocks have come under selling pressure in recent weeks on concerns that tighter credit will weigh on growth. The Shanghai Composite Index ended 0.7% higher for the day.

In other developments, crude oil futures in electronic trading on the New York Mercantile Exchange hovered around US$68 per barrel. OPEC (Organisation of the Petroleum Exporting Countries) members are scheduled to meet later this week and are widely expected to keep current production output unchanged.