Taiex gains on opposition win in parliamentary elections

Most Asia-Pacific equities markets were lower Monday on continuing worries that the US economy is headed for a recession. The main exceptions were the Shanghai Composite and Taiwan’s Taiex index. The Taiex added 1.79 percent to 8,173.41 after the opposition party managed a big win in parliamentary elections. The Kuomintang party, which promotes closer ties with China, won 81 seats in the 113-member parliament. Meanwhile, the Shanghai Composite was up 0.24 percent to 5,497.9.

The least of the declines came in Australia, where the S&P/ASX200 was 0.03 percent lower to 5,980 and the Sydney Ordinaries fell 0.22 percent to 6,040.9. India’s Sensex was down 0.48 percent to 20,728.05. The Kospi index in South Korea dropped 0.92 percent to 1,765.88, a five-month low, on big declines for shipbuilders as investors fear that the US economy will hurt growth globally and affect trade. Hong Kong’s Hang Seng was 1.48 percent lower to 26,468.13 as the oil sector was hurt by demand concerns and the FTSE Straits Times index fell 2.11 percent to 3,218.14. Tokyo’s markets were closed for a holiday.

Europe’s markets were mixed but mostly higher. The FTSE Eurofirst 300 added 0.3 percent to 1,433.2. The Dax was up 0.18 percent to 7,732.02 and the CAC-40 gained 0.6 percent to 5,403.51 but Madrid’s IBEX dropped 0.18 percent to 14,431.9. Utilities led the losers on both the Paris and Frankfurt indices. Suez (Euronext: SZE; NYSE: SZE) fell 1.14 percent to €45.88, Gaz de France (Euronext: GAZ) was down 1.62 percent to €40.09 and EDF (Euronext: EEN) was 1.73 percent lower to €78.92 while Eon (FWB: EOA; LSE: EON; NYSE: EON) fell 2 percent to €145.29 and RWE (FWB: RWE) dropped 2.98 percent to €94.37. The telecommunications sector also saw declines as Deutsche Telekom (FWB: DTE: LSE: DEU; NYSE: DT; TYO: 9496) was down 0.85 percent to €15.21 while France Telecom (Euronext: FTE; NYSE: FTE). The semiconductors sector saw gains on the session. Infineon (FWB: IFX; NSYE: IFX) added 2.51 percent to €6.96 while STMicroelectronics (Euronext: STM; NYSE: STM) jumped 4.35 percent to €8.63. Elsewhere in computer-related shares, software group SAP (FWB: SAP; NYSE: SAP) was up 2.71 percent to €33.79 after it reported that license sales were up 14 percent in the fourth quarter, above predictions. Computer services group Cap Gemini (Euronext: CAP) was 3.22 percent higher to €34.98. In the automobile manufacturing sector, Volkswagen (FWB: VOW; OTC: VLKAY) gained 2.42 percent to €154.07 after Commerzbank raised its recommendation on the carmaker from “reduce” to “hold”. VW’s deliveries rose above 6 million units for the first time last year.

In London, the FTSE 100 added 0.22 percent to 6,215.7 while the FTSE 250 was 2.05 percent higher to 10,031.6. Home builders and property investors and developers were higher on the session. Among builders, Bovis Homes (LSE: BVS) was up 6.9 percent to 582.5p after Citigroup raised its recommendation from “sell” to “hold”, while Persimmon (LSE: PSN) was 6.87 percent higher to 739p. Property investor British Land (LSE: BLND) added 5.06 percent to 944.5p while Liberty International (LSE: LII) was up 6.45 percent to 990p. Hammerson (LSE: HMSO) led the winners on the 100 as it gained 9.27 percent to £10.20. Over on the 250, food processor Premier Foods (LSE: PFD) jumped 20.3 percent to 160p to lead that index. In the retail sector, Debenhams (LSE: DEB) had its biggest 1-day gain ever when it added 12.92 percent to 76.5p after published rumors that the department store chain will report on Tuesday that holiday sales were above expectations. Building materials group Wolseley (LSE: WOS) was lower on the session, falling 2.5 percent to 681.5p. In the pharmaceuticals sector, Shire (LSE: SHP; NAS: SHPGY) was down 3.22 percent to £11.42 while tobacco group Imperial Tobacco (LSE: IMT) was 3.92 percent lower to £26 for the worst day on the 100. Over on the 250, troubled bank Northern Rock (LSE: NRK) dropped 5.44 percent to 82.50.

Wall Street saw significant gains on the session after International Business Machines (NYSE: IBM) said that preliminary numbers show that earnings may have been 24 percent higher in the fourth quarter than they were in the same period the previous year. The Dow Jones Industrial Average added 1.36 percent to 12,778.15 while the Nasdaq Composite was up 1.57 percent to 2,478.3 and the S&P 500 gained 1.09 percent to 1,416.25. IBM led the Dow’s winners for the day with a gain of $5.26 to $102.93. On the other hand, retailers had little to cheer about after Sears Holdings (NAS: SHLD), owner of Sears and K-Mart, issued a warning that its 4th quarter report could show results as much as 57 percent lower than the same period the year before. The department store operator put the blame for the declines on the housing slump and on competition. Sears ended the session $4.79 lower to $91.38. Elsewhere in the sector, Saks (NYSE: SKS) added less than 1 cent to $15.94 while jewelry retailer Zales (NYSE: ZLC) dropped 64 cents to $13.08.