Monday, June 21, 2010

Asian markets up on China yuan reform signal

KUALA LUMPUR: Asian stock markets traded higher on Monday, June 21 after China said it would make the yuan more flexible, boosting confidence in its economic growth.

China's central bank said during the weekend it would resume making the yuan more flexible, signalling it would de-peg the country's currency from the US dollar, in effect resuming the floating exchange rate arrangement before the financial crisis, according to Reuters.

At mid-morning, Japan's Nikkei 225 rose 1.77% to 10,172.20, Taiwan's TAIEX Index up 1.4% to 7,597.99, Singapore's Straits Times Index 1.11% to 2,864.16, South Korea's Kospi Index up 1.06% to 1,730.10 while Hong Kong's Hang Seng Index opened 1.9% higher at 20,662.88.

However, the Shanghai Composite Index declined 0.23% to 2,507.50.

At 10am on Bursa Malaysia, the FBM KLCI was up 10.58 points to 1,328.27, lifted by gains including at DiGi, KLK, Hong Leong Bank and Public Bank.

Gainers thumped losers 302 to 68, while 144 counters traded unchanged. Volume was 138.72 million shares valued at RM199.3 million.

Hong Leong Financial Group surged 42 sen to RM8.80 after the company last week said it was selling a 30% stake in Hong Leong Assurance Bhd (HLA) to Japanese insurer Mitsui Sumitomo Insurance Co Ltd (MSI) for RM940 million cash.

Meanwhile, Pos Malaysia added 28 sen to RM3.14, DiGi up 20 sen to RM23.32, Top Glove and KLK 18 sen each to RM13.10 and RM16.28, while Hong Leong Bank and BAT were up RM8.68 and RM44.32.

Meanwhile, Public Bank rose 14 sen to RM11.78 and KFCH 12 sen to RM8.72.

Tenaga was the top loser and shed 20 sen to RM8.60; Shell and Nestle lost 10 sen each to RM10.60 and RM34.40, while Batu Kawan lost eight sen to RM10.80.

Kenmark was the most actively traded counter with 8.6 million shares done. The counter added one sen to 10.5 sen.

Other actives included Transmile, KNM, Scomi, KKB Engineering and MyEG.


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