Asian markets, cloudy with a ray of sunshine
Hong Kong's market rebounded, in large part, thanks to Goldman Sachs' upgrade of HSBC Holdings from "neutral" to "buy." The banking goliath rose 1.6 percent for the day. Meanwhile, BNP Paribas SA raised its rating on Li & Fung Ltd. and the stock shot up 4.7 percent.Losers included footwear manufacturer Yue Yuen, which dropped 6.3 percent on UBS's downgrading of the stock to "sell," in anticipation of a decrease in shoe sales in the U.S. Citic Pacific Ltd. sank 4.4 percent on news that it has agreed to sell shares in Cathay Pacific Airways, Ltd.
The Nikkei closed marginally up by .16 percent at 10,284, with Casio Computers leading the positive performers. The stock surged 7.1 percent after Credit Suisse raised its rating on the electronics maker to "outperform."
The Shanghai Composite Index inched up .23 percent, but that glacial rise didn't reflect the excitement over the hottest sector of the day. IPO shares in China Everbright Securities surged 30 percent in its first day of trading as investors piled into the first Chinese brokerage to go public in seven years. While it's nice to be in positive territory (the stock closed at 27.40 yuan and raised $1.6 billion), this is still the year's weakest performance of a Chinese IPO. Seven other companies, including China State Construction Engineering Corp., have listed shares since the end of an eight-month moratorium on IPOs, which expired last month, and on average, they have skyrocketed 109 percent on their first day of trading.
Still, on a day with little action, at least Everbright offered a ray of sunshine.