5 Nov 2008

NZ and Australian markets up

8:46 pm on 5 November 2008

The NZX 50 index was up 42 points on Wednesday to close at 2886 on turnover of $41 million.

Telecom was down 1 cent at $2.36, Contact Energy rose 4c to $7.39 and Fletcher Building was up 40c at $6.24.

Pumpkin Patch was up 8c at $1.08 after the clothing retailer said it had reduced bank debt.

Sky City Entertainment group rose 6c at $3.18, while Vector was up 2c to $2.00 after securing LPG supplies in a deal with New Zealand Oil and Gas which gained 8c to $1.40.

In currency markets the dollar is trading at 60.34 US cents, 87.46 Australian, 37.98 pence, 60.11 Yen, and 0.4677 euro. The Trade Weighted Index stands at 60.64.

The Australia share market closed almost 3% higher after a surge in commodity prices caused strong gains in local resources stocks.

The benchmark S&P/ASX200 index was 121.5 points, or 2.88%, higher at 4336.6, while the broader All Ordinaries gained 117.5 points, or 2.82% to 4287.3.

Obama's win impacts on international markets

After Barack Obama's presidential election Wall Street turned toward new difficulties to come.

Dow Jones futures slipped nine points, or 0.09%, on Wednesday, following a surge on the Democrat's triumph at the polls.

The Nasdaq gained 39 points, or 2.2%, while the S&P 500 Index lost 1.10 points, or 0.1%.

"The stock market is a great machine to anticipate," said Gregori Volokhine, head of the stocks department at Meeschaert New York.

"The market leans to the right, but it really prepared for a democratic victory."

Highs in Asia

Asian shares hit a three-week high and the dollar extended gains after Barack Obama became the next US president.

Japan's Nikkei stock index closed up 4.46% on Wednesday, led by exporters such as Honda Motor Co that were bolstered by a softer yen, while energy-linked firms such as Mitsubishi Corp gained on the oil price rally.

Markets in Shanghai, Hong Kong and Singapore rose more than 4%each, while South Korea, India and Taiwan saw more muted gains.

"The knee-jerk complacency rally in Asia to an Obama win is likely creating an opportunity to sell," said Kirby Daley, a senior strategist for the Newedge Group in Hong Kong.

"The bottom line is economic fundamentals in the US are deteriorating faster than the market can keep up with. And there is very little an Obama administration can do to shield Asia from the effects of this downturn."