Thursday, December 30, 2010

China stocks up 0.3 pct as banks rebound

SHANGHAI: China's stock market rose 0.3 percent in thin trading on Thursday, Dec 30 buoyed by late afternoon rebounds in banking stocks as some investors took advantage of their battered valuations, but property developers and carmakers continued to sink on policy concerns.

The benchmark Shanghai Composite Index ended at 2,759.6, reversing an earlier loss as fears over monetary tightening eased during the last few days of trading in 2010. ($1 = 6.60 yuan).

In Tokyo, the Nikkei average fell 3% in 2010 as the yen's rise intensified wariness over the outlook for Japan's export-led economy, but shares rebounded from lows by the end of the year on buying led by foreign investors.

The Nikkei's loss for the year compared with a 19% gain in 2009, when high-tech exporters led a rebound rally.

A recovery in Japanese shares has gathered momentum since November following monetary easing by the Federal Reserve and the Bank of Japan.

Foreign investors have been major buyers during the recovery on views that Japanese shares were undervalued compared with those in other developed markets, analysts said.

On the final trading day of the year on Thursday, the Nikkei ended down 1.1 percent, pressured by profit-taking as the yen advanced to a fresh seven-week high against the dollar. The benchmark Nikkei lost 115.62 points to end the session at 10,228.92.

Still, the Nikkei gained about 9.2% in the last quarter of 2010 after slumping to the year's intraday low of 8,796.45 on Sept. 1. The broader Topix slipped 1% on Thursday to 898.80.


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