This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Asian Markets Chase U.S. Rally

Mitsubishi UFJ (MTU) rose 6.26%, to 967 yen, Mizuho Financial (MFG) gained 6.4%, to 550,000 yen, while Sony (SNE), Canon (CAJ), and Toyota (TM) all jumped between 2.3% and 4.5%.

In currency trading, the dollar was buying 111.48 yen vs. 110.90 yesterday, according to Bloomberg.

In Korea, the Kospi finished up 40 points, or 2%, at 1972.

Beijing announced that retail sales in October rose 18.1% on the year. That's a record growth rate for retail sales, prompted in part by investors' stock market gains this year, said the announcement.

With recent falls in the major indices, strategists in Asia have been speculating when Hong Kong hedge funds would resume the practice of borrowing in Tokyo at 0.5% interest rates, and investing on the island, known as the yen carry trade.

Now, some say this may resume, and most agree with a bullish, if volatile, end to the year for Chinese equities, especially if the Federal Reserve cuts rates one more time in December.

"There's room for a U.S. interest rate cut -- that would spill down and create liquidity in Hong Kong and China markets. Secondly, we expect strong earnings at the end of 2007 and probably in 2008, too," says Peter So, head of Hong Kong and China strategy for DBS Vickers in Hong Kong. "That's a good reason for investors to allocate more funds to assets in Hong Kong and China."

So also expects Beijing to begin allowing more Chinese institutions to buy Hong Kong side shares, which would be a plus for most U.S. ADRs. He adds that most of the buying action will be seen in properties, financials and consumer stocks.

"Consumer stocks will benefit from high consumption in China and at the end of the year, when many workers get their bonus payments," says So. "I'm still working on a target but in 2008 the Hang Seng index will reach around 37,000 points. I think this is achievable."

Daniel M. Harrison is a business journalist specialising in European and emerging markets, in particular Asia. He has an MBA from BI, Norway and a blog at He lives in New York.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
HBC $0.00 0.00%
CHEUY $19.80 0.00%
HUWHY $27.49 0.00%
CN $35.33 0.00%
CHA $65.85 0.00%


DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs