The Japanese market performed well on the back strong finish on Wall Street and due to rumors of a cut in corporate tax on Wednesday. While the Commonwealth Bank of Australia dropped after posting positive results.
Aug. 15, 2013 - CHUO-KU, Japan -- In Tokyo the Nikkei Stock Average gained 1.3% boosted by strong buying the afternoon, after faltering in morning trading. Matthew Stevens, an Analyst at TCL Associates attributed the gains in Japan to rumours that Prime Minister Abe is considering lowering corporate tax rates to counter act the rise in sales tax.
South Korea’s Kospi rose 0.6% while, the Chinese Shanghai Composite fell 0.3%. Australia´s S&P/ASX 200 ended with a marginal loss. Trading in Hong Kong was suspended due to a typhoon which generated a force 8 warning from the Hong Kong Observatory.
The Commonwealth Bank of Australia declined 1.2%, even though the bank reported record profits for the year ending June 30th and increased dividend pay outs. TCL Associates' analysts believe investors were disappointed that the bank did not raise its dividends payments to the top end of its 70% to 80% range. Other Australian banks rose, National Australia Bank Ltd. gained 0.8% and Westpac Banking Corp. climbed 1.1%.
In Shanghai construction related stocks lost some of their recent gains. Anhui Conch Cement Co. dropped 1.7%, property developer Gemdale Corp. gave up 0.7% and Citic Securities Co. declined 0.9%. But auto-manufactures helped to boost the market, SAIC Motor Corp. climbed 2.9%.
In Tokyo, JFE Holdings climbed 3%, Kobe Steel Ltd. gained 3.7% and Mazda Motor Corp. took 2.1%. Wednesday´s Asian stock performance followed the strong finish on Tuesday on Wall Street, where the markets were boosted by Carl Ichan statements about Apple and his disclosure of a large stake in the company. American data was also released showing the retail sales in the country increased for a third straight month.