Asian Stocks Firmed Amid Oil Price Easing and Softbank's Mobile Market Entry

Strategic Insights -

Asian stocks showed cautious gains today as oil prices moderated after a four-day rally, with Tokyo's Nikkei average rising 0.8% to 15,795.14. Japanese internet group Softbank was poised to enter the mobile market, but gains were tempered by the impact of Intel's weaker-than-expected demand forecast. Oil prices fell to around $63 a barrel, gold rose almost $1.50 an ounce, and the dollar retreated to one-month lows against the euro. Meanwhile, tech stocks such as Tokyo Electron and Hynix Semiconductor initially slipped on Intel's outlook before recovering to post small gains.

Key Takeaways:

  • Asian stocks rose cautiously, with Tokyo's Nikkei average increasing 0.8% to 15,795.14, while South Korea's benchmark Kospi gained 0.5%.
  • Oil prices eased back after a four-day rally, falling to around $63 a barrel, while gold prices rose almost $1.50 an ounce.
  • The dollar hit one-month lows against the euro and was under pressure against the yen ahead of a Bank of Japan meeting to review monetary policy.
  • Intel's weaker-than-expected demand forecast left its largest semiconductor maker exposed to rival Advanced Micro Devices.
  • Tokyo Electron and Hynix Semiconductor initially slipped on Intel's outlook but recovered to post small gains, while Taiwan Semiconductor lost 1% due to weaker demand.
  • Research In Motion (RIM) settled a patent dispute but warned of lower fourth-quarter earnings, leading to an 18% jump in after-hours trading.
  • Japan's Softbank jumped 4.8% after Vodafone Group announced talks to sell its struggling Japanese mobile phone business.
  • Suzuki lost 2% after rumors of General Motors selling a 20% stake in the compact car maker, with GM denying plans to unwind completely.

Statistics:

  • Tokyo's Nikkei average rose by 0.8% to 15,795.14.
  • Oil prices fell to $63 a barrel.
  • Gold prices rose almost $1.50 an ounce.
  • The dollar was at one-month lows against the euro.
  • Intel revised its revenue forecast downward due to weaker demand.
  • RIM stock jumped over 18% in after-hours trading.
  • Softbank jumped 4.8% from its intra-day low.
  • Suzuki lost 2% on rumors of stake sale.

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