Mainly led by the Chinese banks and the gold producers, most of the Asian stocks have surged today. The overall trading volume was low ahead of the Christmas holidays and also because of the speculation that the lawmakers of US are going to miss the deadline on budget talks. The MSCI Asia Pacific Index showed a slight decline of 0.1%. This benchmark stock index of the Asian shares have surged ahead by 13% in this year, mainly because the country wise Central Banks of Asia took positive steps to boost the economic growth of the respective countries in context. Incidentally, the equity markets in Japan are closed for the day. The markets in other countries such as Singapore, Australia and Hong Kong also were shut down early today.
According to the Portfolio Manager of IG Investment, Tim Leung, the ongoing negotiations to properly tackle the so called fiscal cliff is not going anywhere. Tim added that this situation has made a relatively uncertain environment for the Asian equity markets because none of the investors want to open up new positions.
The benchmark stock index of Australia gained around 0.3% as the metal prices have advanced in this country. The trading volume was around 60% lower than the 30-day average. The NZX 50 index of New Zealand also added 0.1% to finish at 4057.82. The Straits Times Index of Singapore increased by 0.2%, whereas the Kospi index of South Korea surged by 0.1%. The fate was not same for the Taiex Index of Taiwan, as the same plummeted by 0.1%.
Among the Chinese lenders, the China Construction Bank surged by 1.1% and the 5th biggest lender by assets in China, Bank of Communications Co., also went ahead by 0.4%. The fate for Bank of China Ltd. wasn’t bad either, as the same marched ahead by 0.3%.
Gold, the precious metal is now being considered as an investment haven by many investors and hence the demands have increased as well. Integra Mining Ltd. surged by 2.6% and is at 49.75 Australian Cents per share. Alacer Gold has also climbed up by 4.7% and is at A$4.71. The biggest gold producer of China, Zijin Mining Group Co. has also advanced by 2.4%. In addition, the gold prices have also gained around 0.6%, thereby rising from a 4-month low value.