Asian Shares Rise But Lag Wall St; Samsung Up After Results

SINGAPORE -- Asian share markets were higher Friday after an encouraging session in the U.S., with Samsung Electronics gaining in South Korea as its third quarter results slightly beat expectations.

The gains in Asia though weren't as large as those made by Wall Street, with some caution before the weekend and as earnings season continued to roll out in the region.

Japan's Nikkei 225 was up 1.2% with Australia's S&P/ASX 200 up 1.2% and South Korea's Kospi Composite adding 0.4%, while New Zealand's NZX-50 was up 0.4%. Dow Jones Industrial Average futures were flat in screen trade.

"The U.S. economy is now (unofficially) out of recession (given the third quarter gross domestic product data Thursday). But it may just come down to the simple fact that after a sell-off in many markets, investors saw it as a good level to step in," said ANZ bank Economist Philip Borkin In Wellington.

Some analysts were doubtful the gains would last. "People still lack confidence about the pace of the economic recovery in the current quarter and the first quarter of next year," said Min Sang-il at E*Trade Securities in Seoul.

Samsung Electronics was supporting in Korea, rising 2.0% after its third quarter results. Net profit came in at KRW3.72 trillion, against a Dow Jones Newswires poll forecast of KRW3.37 trillion, with the company saying it expected the fourth quarter to be solid on seasonal demand.

But Song Myung-sub at HI Investment & Securities didn't expect the shares to rise much further. "People will likely continue to worry about a potential slowdown in demand...following an end to various stimulus programs. There's no sign of a brisk recovery in U.S. consumer spending in the near term."

In Australia, materials stocks recovered after their recent declines, with Rio Tinto rising 4.4% and Woodside up 2.3%. Some defensive stocks fell with Telstra off 0.3% and Amcor down 1.1%.

Tokyo shares were also led by economy-sensitive stocks such as energy, steel and trading houses. Steel maker JFE Holdings was up 3.4% while Inpex rose 2.1% and Mitsui & Co. added 2.2%.

In New Zealand, courier company Freightways was up 2.0% and rural services company PGG Wrightson tacked on 3.2%.

Casino operator Sky City advanced 1.2% after the company reiterated it expected double-digit earnings growth in the current fiscal year. But a rebound in the New Zealand dollar, along with other risk currencies, hurt exporter Fisher & Paykel Healthcare, which fell 1.6%.

In currency markets the euro was trading in a narrow range against the U.S. dollar. The single currency was at $1.4830, from $1.4835 late in New York, and at Y135.54 against the Japanese yen, from Y135.73. The U.S. dollar was slightly lower against the yen, at Y91.35 from Y91.51.

Traders were awaiting the outcome of the Bank Of Japan meeting, with the bank's board expected later Friday to keep rates at an ultra-low 0.1%. The main factor for markets would be whether the board announces moves to scrap part of its unorthodox steps, including its special lending program to provide three-month funds at a 0.1% rate, outright buying of commercial paper and corporate bonds at the end of December as scheduled.

Earlier, data showed Japan's core consumer price index fell for the seventh-straight month in September, as commodities remained cheaper than a year earlier and consumers continued to limit spending. Core CPI fell 2.3% on year in September, a slightly smaller drop than the 2.4% decline tipped in a poll of economists by Dow Jones Newswires and the Nikkei.

"I believe the current price trend will remain until some time in 2011 at least because we can't expect any near-term pick up in domestic demand. And I think the BOJ has a similar view. It's difficult for anybody to expect that prices will start rising by next year," said Shinko Research Institute economist Norio Miyagawa.

Spot gold was steady from New York, around $1,045.80 a troy ounce.

Crude oil remained supported after rising Thursday on hopes for a U.S. economic recovery. Nymex December crude was up four cents from New York, at $79.91 a barrel on Globex.