Asian Markets: Wynn Macau's IPO bet pays off

Markets across Asia closed higher Friday. Refreshed after an eight-day Golden Week holiday, Chinese investors drove the Shanghai Composite up 4.8 percent with the index ending the day at 2,912. In Japan, the Nikkei Index rose 1.9 percent to close at 10,016, and in Hong Kong the Hang Seng Index ended the day fairly flat, closing at 21,499 – an increase of 0.03 percent.

In China, investors who had been vacationing while gold hit new highs plowed into metals stocks. Zijin Mining Group Co. (ZIJMF), Jiangxi Copper Co. (JIXAY) and Zhongjin Gold Corp. all surged to their 10 percent daily limit. Commodities companies were also on the rise with coal producer China Shenhua Energy Co. (CUAEF), spiking 8.3 percent and mammoth oil company PetroChina Co. (PTR) climbing 3.7 percent.Benefiting from the hike in shipping charges, China Cosco Holdings Co. (CICOF), one of the world's biggest shipping companies, leaped to the 10 percent daily limit.

In Tokyo, Nintendo Ltd. (NTDOY), maker of the popular Wii game console, climbed 6.8 percent, after Citigroup raised its rating on the company, and Sony Corp. (SNE) added 2.4 percent. In September Sony slashed the price of its Playstation 3 by 25 percent, and PlayStation 3 sales outpaced those of the Wii for the month.

Japanese consumer lenders performed will with Promise Co. (PMSEY) rising 13 percent after news that they have named their next president, and loan company Takefuji Corp. (TAKAY) soared 9.1 percent.

Fast Retailing Co. (FRCOF), which owns the popular Uniqlo stores, continued its rise adding 2 percent after announcing record operating profits. With skinny jeans and brightly colored affordable cashmere sweaters flying off the shelves in stores from Hong Kong to London, and a newly opened flagship store in Paris, the chain is expecting net profits to climb 25 percent for the year ending August 2010.

In Hong Kong, where the Hang Seng remained flat, Cathay Pacific Airways Ltd. (CPCAF) rose 3.5 percent, and China Shipping Development Co. (CSDXY) increased 4.2 percent.

In the territory's most recent IPO, Wynn Macau Ltd. joined the list of recent successful debuts, closing the day with a 6.9 percent gain. Macau is the only place in China where gambling is legal, and every day Macau is flooded with Chinese high-rollers and tourists who come by the bus and boat load to spend their money – many traveling on specially arranged junkets and tours. Wynn Macau is the first foreign-owned casino company to go public in Hong Kong. According to Bloomberg, the number of visitors to the Portuguese-run island in August were up 6.4 percent from the same time last year, and casino revenue soared 50 percent in September.

All these positive indicators made Wynn Macau a good bet today.
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