Asia Pacific Stock markets were mostly in green on Tuesday, November 27,
2012, as news of a successful agreement on Greek bailout deal had
provided floor to the investors. The news sparked a wave of relief
buying across regional markets on sentiments that Greece will avoid a
messy default and exit from the eurozone for now.
The so-called troika (Euro-zone finance ministers, ECB and IMF have agreed on a plan to cut Greece ‘s sovereign debt to 124% of gross domestic product by 2020 and to less than 110% of GDP by 2022, clearing the way for the cash-strapped country to receive its next installment of a bailout loan.
Greece will receive up to EUR 44 billion in stages as it fulfills various conditions. The December installment will comprise of EUR 23.8 billion allocated for the banks and EUR 10.6 billion in budget assistance. Further, EUR 9.3 billion will be disbursed in installments during the first quarter of 2013 if Greece meets reform standards set by the EU.
The IMF Managing Director Christine Lagarde said in a statement that the initiatives include Greek debt buybacks and a lowering of some of the interest Greece pays on its aid. Taken together, these measures will help to bring back Greece ‘s debt ratio to a sustainable path and facilitate a gradual return to market financing.
Adding to bull, investment rationale also supported by ongoing ceasefire between Israel and Hamas. In the meantime, tensions have also eased in Egypt, wherein President Mursi is now negotiating with protesting judges in order to defuse the crisis over the contentious power seize.
However, rally on the upside were subdued across the regional bourses, as ambiguity over US fiscal cliff has dissuaded the traders from venturing in to aggressive positions. Investors shifted focus again on the US fiscal cliff, as negotiations have resumed after the Thanksgiving holiday, however the two political parties have not made any substantial breakthrough yet on the same.
Meanwhile, some investors opted sideline ahead of key US economic data later Tuesday, including durable goods orders as well as industry data on house price inflation. In addition, the Conference Board scheduled to publish data on U.S. consumer confidence, while Federal Reserve Chairman Ben Bernanke is to deliver brief remarks at the National College Fed Challenge Finals, in Washington D.C.
In the Asia Pacific markets on Tuesday, Australia ‘s All Ordinaries was up 0.7% and Japan ‘s Nikkei 225 Index rose 0.4%, while China ‘s Shanghai Composite fell 1.3% and Hong Kong ‘s Hang Seng fell marginal 0.1%. South Korea ‘s Kospi Composite jumped 0.9%, Singapore Strait Time ‘s index rose 0.3%, and Taiwan ‘s Taiex index rose 0.3%, while Indonesia ‘s Jakarta Composite dropped 0.9% and Malaysia ‘s KLSE Composite shed 0.6%. New Zealand ‘s NZX50 was edge 0.06% down. India ‘s BSE Sensex rose 1.6%.
Back to country wise performances, Australian shares rallied to a two-week high today after eurozone finance ministers and the International Monetary Fund agreed to release EUR 43.7 billion in loans to Greece. The benchmark S&P/ASX 200 index rose 32.6 points, or 0.7%, to 4456.8, its highest close since November 9 and building on a 0.3% gain on Monday, while the broader All Ordinaries index had firmed 29.9 points, or 0.67%, to 4473.4 points.
CSL surged 6.9% to a record close of A$50.01 after it forecast a 20% rise in full-year net profit, up from an earlier estimate of 12%, helped by a stronger sales as well as royalty income from cervical cancer vaccine Gardasil. The gain - the largest one-day rise for CSL in four years - made it the best performer among the ASX 200 companies and brings its year-to-date climb to 56%.
Qantas added 2.3%, extending gains for a second day on reports that a group of influential investors who have taken a small stake in the airline will meet with pilots to discuss an alternative growth strategy to the one being pursued by current management.
South Korea ‘s stocks closed higher too, with the KOSPI Composite index advanced 0.87% to 1,925.20, after the government ‘s decision to cut the limit on foreign-exchange forward positions in a move that would discourage taking on short-term foreign currency debt and could help stem the won ‘s appreciation, helping exporters. Kia Motors Corp rose 2.9% and Hyundai Motor Co. jumped 3.7%, while Samsung Electronics Co added 0.9%.
New Zealand ‘s shares fell marginally today despite some strong share price gains in certain stocks. Domestic share PGG Wrightson rose to the highest in more than a month after the sale of Fonterra units underlined the appeal of the rural sector, while Kiwi Income Property Trust fell after shedding its dividend. The NZX 50 Index fell 2.41 points, or 0.1%, to 4009.60, holding above 4000 for a third session. Within the index, 20 stocks rose, 18 fell and 12 were unchanged.
China ‘s stocks suffered heavy losses today, dragging the benchmark Shanghai Composite Index 1.3% down at1,991.17, while the Shenzhen Component Index dropped 2.3% to 771.28, with technology, industrials, realty, and resource related stocks led retreat, even after data showed acceleration in industrial profits growth last month, hurt by weak showing of Chinese ADR in the NYSE overnight and concerns about market liquidity.
The China ‘s Bureau of Statistics said on Tuesday morning that net earnings among Chinese industrial companies rose 20.5% from a year earlier last month to 500.1 billion yuan, registering a second month of gain in row. The profits in September rose by 7.8% on year, the first increase in six months. In the first 10 months, profits of Chinese industrial companies managed to grow 0.5% to 4.02 trillion yuan, reversing the contraction of 1.8% in the first three quarters.
Industrial companies and property developers tumbled today, with Sany Heavy slid 3.1% to 8.33 yuan. Yanzhou Coal Mining Co fell 4% to 16.06 yuan. Gemdale Corp lost 1% to 5.16 yuan.
Several chemical and pharmaceutical stocks too lost ground, with Harbin Pharmaceutical Group Co. was down 5.6% to 5.74 yuan. Zhejiang Xinan Chemical Industrial Group Co dropped 8.8% to 6.60 yuan and Chongqing Brewery Co skidded 6% to 14.52 yuan.
JiuGuiJiu locked 10% lower circuit for third straight day, falling to 34.69 yuan on reports liquor maker will suspend all production lines to replace equipment.
Hong Kong ‘s stocks closed lackluster trade slight weaker, with the benchmark Hang Seng index settled 0.1% down at 21,844.03 after moving in and out of boundary line, as negativity on tracking steep losses in Chinese bourses were more than offset by so-called Trioka approval for much awaited deal on Greece financial aid. Investors returned to the market with cheerful note today after talks over Greece ‘s financial crisis ended with an agreement on how to reduce its debt load, clearing the way for the cash-strapped country to receive the next installment of a bailout loan. But benchmark index steamed out earlier gains on tracking weakness in Chinese bourses, which fell steeply today despite official data showed industrial companies net profit accelerated sharply last month.
Among the 49 Hang Seng blue chips, 27 declined and 18 advanced, while 4 unchanged. Belle International Holdings declined 2.2% to HK$15.82, while China Resources Enterprise advanced 2.8% to HK$27.70 on prospect of JV with France-based Carrefour, making them the top blue-chip loser and gainer respectively. Market heavyweights were mixed, with HSBC Holdings was up 0.1% to HK$77.20. China Mobile was 0.1% down at HK$87.45. Esprit Holdings fell 2.1% to HK$12.32 on profit taking after consecutive days of gain.
India ‘s benchmark BSE Sensex closed 1.7% higher at 18,842.08, powered by heavy buying by funds and retail investors on the back of global cues. Positive statement from the Prime Minister on FDI in retail also provided support. The market sentiment was also boosted after credit rating agency Moody's said that the outlook on its Baa3 rating for India is stable. All BSE sectoral indices were in the green. Among them, Realty index, Consumer Durables, FMCG, and Bankex led the rally.
The logjam in the Parliament over FDI in retail stalled the winter session of Parliament for the fourth day. While the BJP and the Left were adamant on vote on FDI in retail under Rule 184, government allies Samajwadi Party, Bahunjan Samaj Party and DMK decided not to vote against FDI. Prime Minister Manmohan Singh said he was confident of getting support on FDI vote in Parliament.
The so-called troika (Euro-zone finance ministers, ECB and IMF have agreed on a plan to cut Greece ‘s sovereign debt to 124% of gross domestic product by 2020 and to less than 110% of GDP by 2022, clearing the way for the cash-strapped country to receive its next installment of a bailout loan.
Greece will receive up to EUR 44 billion in stages as it fulfills various conditions. The December installment will comprise of EUR 23.8 billion allocated for the banks and EUR 10.6 billion in budget assistance. Further, EUR 9.3 billion will be disbursed in installments during the first quarter of 2013 if Greece meets reform standards set by the EU.
The IMF Managing Director Christine Lagarde said in a statement that the initiatives include Greek debt buybacks and a lowering of some of the interest Greece pays on its aid. Taken together, these measures will help to bring back Greece ‘s debt ratio to a sustainable path and facilitate a gradual return to market financing.
Adding to bull, investment rationale also supported by ongoing ceasefire between Israel and Hamas. In the meantime, tensions have also eased in Egypt, wherein President Mursi is now negotiating with protesting judges in order to defuse the crisis over the contentious power seize.
However, rally on the upside were subdued across the regional bourses, as ambiguity over US fiscal cliff has dissuaded the traders from venturing in to aggressive positions. Investors shifted focus again on the US fiscal cliff, as negotiations have resumed after the Thanksgiving holiday, however the two political parties have not made any substantial breakthrough yet on the same.
Meanwhile, some investors opted sideline ahead of key US economic data later Tuesday, including durable goods orders as well as industry data on house price inflation. In addition, the Conference Board scheduled to publish data on U.S. consumer confidence, while Federal Reserve Chairman Ben Bernanke is to deliver brief remarks at the National College Fed Challenge Finals, in Washington D.C.
In the Asia Pacific markets on Tuesday, Australia ‘s All Ordinaries was up 0.7% and Japan ‘s Nikkei 225 Index rose 0.4%, while China ‘s Shanghai Composite fell 1.3% and Hong Kong ‘s Hang Seng fell marginal 0.1%. South Korea ‘s Kospi Composite jumped 0.9%, Singapore Strait Time ‘s index rose 0.3%, and Taiwan ‘s Taiex index rose 0.3%, while Indonesia ‘s Jakarta Composite dropped 0.9% and Malaysia ‘s KLSE Composite shed 0.6%. New Zealand ‘s NZX50 was edge 0.06% down. India ‘s BSE Sensex rose 1.6%.
Back to country wise performances, Australian shares rallied to a two-week high today after eurozone finance ministers and the International Monetary Fund agreed to release EUR 43.7 billion in loans to Greece. The benchmark S&P/ASX 200 index rose 32.6 points, or 0.7%, to 4456.8, its highest close since November 9 and building on a 0.3% gain on Monday, while the broader All Ordinaries index had firmed 29.9 points, or 0.67%, to 4473.4 points.
CSL surged 6.9% to a record close of A$50.01 after it forecast a 20% rise in full-year net profit, up from an earlier estimate of 12%, helped by a stronger sales as well as royalty income from cervical cancer vaccine Gardasil. The gain - the largest one-day rise for CSL in four years - made it the best performer among the ASX 200 companies and brings its year-to-date climb to 56%.
Qantas added 2.3%, extending gains for a second day on reports that a group of influential investors who have taken a small stake in the airline will meet with pilots to discuss an alternative growth strategy to the one being pursued by current management.
South Korea ‘s stocks closed higher too, with the KOSPI Composite index advanced 0.87% to 1,925.20, after the government ‘s decision to cut the limit on foreign-exchange forward positions in a move that would discourage taking on short-term foreign currency debt and could help stem the won ‘s appreciation, helping exporters. Kia Motors Corp rose 2.9% and Hyundai Motor Co. jumped 3.7%, while Samsung Electronics Co added 0.9%.
New Zealand ‘s shares fell marginally today despite some strong share price gains in certain stocks. Domestic share PGG Wrightson rose to the highest in more than a month after the sale of Fonterra units underlined the appeal of the rural sector, while Kiwi Income Property Trust fell after shedding its dividend. The NZX 50 Index fell 2.41 points, or 0.1%, to 4009.60, holding above 4000 for a third session. Within the index, 20 stocks rose, 18 fell and 12 were unchanged.
China ‘s stocks suffered heavy losses today, dragging the benchmark Shanghai Composite Index 1.3% down at1,991.17, while the Shenzhen Component Index dropped 2.3% to 771.28, with technology, industrials, realty, and resource related stocks led retreat, even after data showed acceleration in industrial profits growth last month, hurt by weak showing of Chinese ADR in the NYSE overnight and concerns about market liquidity.
The China ‘s Bureau of Statistics said on Tuesday morning that net earnings among Chinese industrial companies rose 20.5% from a year earlier last month to 500.1 billion yuan, registering a second month of gain in row. The profits in September rose by 7.8% on year, the first increase in six months. In the first 10 months, profits of Chinese industrial companies managed to grow 0.5% to 4.02 trillion yuan, reversing the contraction of 1.8% in the first three quarters.
Industrial companies and property developers tumbled today, with Sany Heavy slid 3.1% to 8.33 yuan. Yanzhou Coal Mining Co fell 4% to 16.06 yuan. Gemdale Corp lost 1% to 5.16 yuan.
Several chemical and pharmaceutical stocks too lost ground, with Harbin Pharmaceutical Group Co. was down 5.6% to 5.74 yuan. Zhejiang Xinan Chemical Industrial Group Co dropped 8.8% to 6.60 yuan and Chongqing Brewery Co skidded 6% to 14.52 yuan.
JiuGuiJiu locked 10% lower circuit for third straight day, falling to 34.69 yuan on reports liquor maker will suspend all production lines to replace equipment.
Hong Kong ‘s stocks closed lackluster trade slight weaker, with the benchmark Hang Seng index settled 0.1% down at 21,844.03 after moving in and out of boundary line, as negativity on tracking steep losses in Chinese bourses were more than offset by so-called Trioka approval for much awaited deal on Greece financial aid. Investors returned to the market with cheerful note today after talks over Greece ‘s financial crisis ended with an agreement on how to reduce its debt load, clearing the way for the cash-strapped country to receive the next installment of a bailout loan. But benchmark index steamed out earlier gains on tracking weakness in Chinese bourses, which fell steeply today despite official data showed industrial companies net profit accelerated sharply last month.
Among the 49 Hang Seng blue chips, 27 declined and 18 advanced, while 4 unchanged. Belle International Holdings declined 2.2% to HK$15.82, while China Resources Enterprise advanced 2.8% to HK$27.70 on prospect of JV with France-based Carrefour, making them the top blue-chip loser and gainer respectively. Market heavyweights were mixed, with HSBC Holdings was up 0.1% to HK$77.20. China Mobile was 0.1% down at HK$87.45. Esprit Holdings fell 2.1% to HK$12.32 on profit taking after consecutive days of gain.
India ‘s benchmark BSE Sensex closed 1.7% higher at 18,842.08, powered by heavy buying by funds and retail investors on the back of global cues. Positive statement from the Prime Minister on FDI in retail also provided support. The market sentiment was also boosted after credit rating agency Moody's said that the outlook on its Baa3 rating for India is stable. All BSE sectoral indices were in the green. Among them, Realty index, Consumer Durables, FMCG, and Bankex led the rally.
The logjam in the Parliament over FDI in retail stalled the winter session of Parliament for the fourth day. While the BJP and the Left were adamant on vote on FDI in retail under Rule 184, government allies Samajwadi Party, Bahunjan Samaj Party and DMK decided not to vote against FDI. Prime Minister Manmohan Singh said he was confident of getting support on FDI vote in Parliament.
