Headline indices of the Asia Pacific financial market advanced on
Tuesday, 21 January 2014, lifted by calming jitters about China's
liquidity squeeze after China's central bank injected extra credit into
its financial system, helping to offset concern about slower Chinese
growth.
Bargain buying spread across the regional market after China's short-term interest rates fell after China's central bank pumped in usually large amount of funds into the money markets to pre-empt a potential liquidity crisis, as demand for cash rises ahead of the Lunar New Year holiday.
The People's Bank of China pledged after an injection to the big banks earlier Monday that it would continue further liquidity support to cash-strapped smaller banks for the rising cash demand ahead of the Chinese New Year.
The People's Bank of China supplied money to the largest commercial banks through its Standing Lending Facility yesterday and conducted 255 billion yuan of reverse-repurchase agreements today. Small- and medium-sized banks will also be able to tap the SLF for loans.
The PBOC did not give many details, but said the facility has maturities of overnight, seven and 14 days. Small banks could use treasury bonds, bonds issued by policy banks and the China Development Bank and high-rated corporate bonds as collateral. The central bank will set different collateral ratios to control credit risks. It said the move was aimed to address the impact of rising cash demand ahead of the holiday which begins on January 31. The nation's financial markets are closed from Jan. 31 through to Feb. 6 for the Lunar New Year holidays.
Asian markets were uneasy on Monday after China's fourth-quarter growth declined slightly from the previous quarter but confidence rebounded after the Chinese central bank promised extra liquidity in the financial system.
Back to country wise, Japan's share market advanced as risk appetite lifted by a US dollar appreciation against the yen. The benchmark Nikkei225 index advanced 154.28 points to 15795.96 while the Topix index of all first-section shares rose 2.09 points to 1295.95.
Tokyo market commenced trade with firm footing as traders took advantage of the weaker yen after the Bank of Japan kicked off a two-day policy meeting, which will be watched for any changes or announcements regarding its stimulus program. The dollar bought 104.50 yen, compared with 104.10 yen in London late Monday.
Inflation-sensitive stocks with land assets such as Sumitomo Realty & Development and Tokyu Fudosan Holdings were also bid up. The pair rose 1.4% and 2.8%.
Strengthening in the dollar aided exporters, with shares of Nikon Corp. rising 1.73%,Kyocera Corp. gaining 1.38% and Suzuki Motor Corp adding 0.68%.
Shares of shipper Mitsui OSK Lines also gained 2.8% after a Nomura Securities upgrade to buy from neutral, citing a halt in the longstanding fall in rates for tankers and container ships.
Shares of NEC Corp gained 1.5% to 276 yen on report that the company is in late-stage discussions to sell Internet service provider Biglobe for roughly 70 billion yen ($666 million) to investment fund Industrial Partners.
In Australia, Australian stock market finished higher, on the back of strong gain in the stocks of financial, industrial, tech, healthcare and consumer & media counters. However, weakness in metal & mining and energy blue chips capped upside.
The Australian benchmark S&P/ASX 200 index advanced 36.50 points, or 0.69%, to 5331.50. The broader All Ordinaries grew 34.40 points, or 0.65%, to 5342
Financials were sharp higher in Australia, with top four banks helped drive the rally. Among top four lenders, Australia & New Zealand Banking Group advanced 0.9% to A$31.15, National Australia Bank 1% to A$33.99, Westpac Banking Corp 0.8% to A$31.79 and Commonwealth Bank 1% to $76.10. Bendigo Bank (BEN) jumped 1% to A$11.72 and Bank of Queensland 1.8% to A$12.03.
Industrials also posted some solid gains, with Leighton shares up 0.6% to A$16.06 and Bramble 1.8% to A$9.06. Toll Holdings advanced 1.7% to A$5.87 and Downer EDI 2.2% to A$5.02.
Consumer and media companies performed strongly. Kitchen appliances maker Breville rose 2.7% while Fairfax gained 2.3% to A$0.675 and Ten network 1.5% to A$0.35.
Shares of metal & mining companies recorded some heavy losses, on the back of softer iron ore prices which fell 2.0% in the previous day to $124.80/t (CFR China) with Chinese steel mills citing a weaker steel market and tighter credit conditions. Fortescue Metals was down 4.6% to A$5.41. Rio Tinto fell 1% to A$65.80 while rival BHP Billiton limited its losses to 0.1%.
Diversified industrial group GUD Holdings (GUD) kicked off the start to the reporting season today. The group reported an underlying net profit after tax for the six months to the end of December of A$14.9 million, down 31% from the previous corresponding period. The result was hampered by restructuring costs at the groups Sunbeam and Dexion operations. An interim dividend of 18 cents per share fully franked will be paid on March 6. GUD shares were higher by 0.35% to A$5.74.
In Thailand, shares in Thai market rose as expectations of interest rate cut bolstered broader sentiment. The key SET index was up 3.11 points to 1293.10. The Bank of Thailand's monetary policy committee is expected to cut its benchmark interest rate by 25 basis points on Wednesday to help the economy cope with prolonged political unrest.
The nation's army chief called for calm after attacks on anti-government rallies in Bangkok injured 70 people, prompting authorities to consider declaring a state of emergency for the first time since 2010.
Shares of airport operator Airports of Thailand climbed 3.8% after a 5% drop over the past two sessions and telecom operator Advanced Info Service rose 1.4%, recouping some losses over the past two days.
In China, headline indices of the China's stock market rebounded today, lifted by calming a bit uneasiness liquidity strain after the central bank pumped funds into the financial system. The Shanghai benchmark ended higher 17.06 higher at 2008.31, while CSI 300 Index inclined 21.42 points to 2187.41.
Bargain buying in the Mainland China market lifted after the People's Bank of China moved to offer funds to big lenders on Monday after short-term borrowing costs leapt amid an increase in demand for cash ahead of the Lunar New Year holiday.
Among SSE sectors, 9/10 sectors of the SSE index inclined, with information technology sector outperformed amongst the SSE sectoral peers, adding 2.7, followed by consumer discretionary up 1.9%, telecommunication services up 1.9%, utilities up 1.5%, materials up 1.2%, financial up 1% healthcare up 1%, industrials up 0.9% and energy up 0.7%.
In Hong Kong, shares in city's market climbed, with mainland China banks and financials blue chips leading rally after the PBoC injected liquidity into the market. The benchmark Hang Seng Index provisionally finished 104 points higher at 23033.12.
Among the HK 50 blue chips33 rose and 12 fell, with five stocks remaining steady. CNOOC (00883) slid 6.3% to HK$13.08 on lower-than-expected 2014 output guidance. It became the worst blue-chip loser. But Sinopec (00386) jumped 4.1% to HK$6.37 and was the best blue-chip performer.
Chinese banks were higher on PBoC's injection. CCB (00939) rose 3% to HK$5.55. ICBC (01398) added 2.7% to HK$4.91. Both ABC (01288) and BOC (03988) gained 2% to HK$3.46 and HK$3.43.
Lenovo Group Ltd. jumped 2.8% to HK$10.46, as the world's largest maker of personal computers is said to be in discussions to acquire International Business Machines Corp.'s low-end server business.
Hong Kong's overall consumer prices rose 4.3% in December 2013 over the same month a year earlier, same as that in November 2013, data from the Census and Statistics Department showed. After netting out the effects of all Government's one-off relief measures, the year-on-year rate of increase in the Composite CPI (i.e. the underlying inflation rate) in December 2013 was 3.9%, slightly smaller than November's 4%, mainly due to the smaller increases in the prices of fresh vegetables.
In India, key benchmark indices finished higher on sustained buying by funds in blue chips led by banks ahead of the RBI monetary policy meet amid a firming global trend. The market sentiment was also boosted by data showing that foreign funds were net buyers of Indian stocks on Monday, 20 January 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 403.20 crore from the secondary equity markets on Monday, 20 January 2014, as per data from Securities & Exchange Board of India.
The S&P BSE Sensex garnered 46.07 points or 0.22% to settle at 21,251.12, its highest closing level since 16 January 2014.
Asian Paints declined 2.16% on weak Q3 result. The company after market hours on Monday, 20 January 2014, reported 1.75% fall in consolidated net profit to Rs 329.35 crore on 13.03% rise in total income to Rs 3481.99 crore in Q3 December 2013 over Q3 December 2012. Asian Paints said that results for Q3 December 2013 include unaudited consolidated financials of Sleek International in which the company acquired 51% stake on 8 August 2013.
In view of this, the results for Q3 December 2013 are not comparable with the corresponding previous periods, Asian Paints said.
Emami rose 0.71% on strong Q3 result. The company's consolidated net profit rose 31.1% to Rs 150.68 crore on 6.6% increase in net sales to Rs 584.67 crore in Q3 December 2013 over Q3 December 2012. The result was announced after market hours on Monday, 21 January 2014.
Hindustan Zinc rose 2.15% to Rs 135.40 after hitting a 52-week high of Rs 141.80 in intraday trade. Trade minister Anand Sharma on Monday, 20 January 2014, said that Union Cabinet has approved divestment of government's residual stake in Hindustan Zinc. He said the method and timing of the stake sale would be decided later.
Elsewhere in the Asia Pacific region, New Zealand's NZX50 index rose 0.64%. South Korea's KOSPI added 0.52%. Indonesia's Jakarta Composite index added 0.47%. Taiwan's Taiex index sank 0.25%. Malaysia's KLSE Composite rose 0.43%. Singapore's Straits Times index rose 0.16%.
Bargain buying spread across the regional market after China's short-term interest rates fell after China's central bank pumped in usually large amount of funds into the money markets to pre-empt a potential liquidity crisis, as demand for cash rises ahead of the Lunar New Year holiday.
The People's Bank of China pledged after an injection to the big banks earlier Monday that it would continue further liquidity support to cash-strapped smaller banks for the rising cash demand ahead of the Chinese New Year.
The People's Bank of China supplied money to the largest commercial banks through its Standing Lending Facility yesterday and conducted 255 billion yuan of reverse-repurchase agreements today. Small- and medium-sized banks will also be able to tap the SLF for loans.
The PBOC did not give many details, but said the facility has maturities of overnight, seven and 14 days. Small banks could use treasury bonds, bonds issued by policy banks and the China Development Bank and high-rated corporate bonds as collateral. The central bank will set different collateral ratios to control credit risks. It said the move was aimed to address the impact of rising cash demand ahead of the holiday which begins on January 31. The nation's financial markets are closed from Jan. 31 through to Feb. 6 for the Lunar New Year holidays.
Asian markets were uneasy on Monday after China's fourth-quarter growth declined slightly from the previous quarter but confidence rebounded after the Chinese central bank promised extra liquidity in the financial system.
Back to country wise, Japan's share market advanced as risk appetite lifted by a US dollar appreciation against the yen. The benchmark Nikkei225 index advanced 154.28 points to 15795.96 while the Topix index of all first-section shares rose 2.09 points to 1295.95.
Tokyo market commenced trade with firm footing as traders took advantage of the weaker yen after the Bank of Japan kicked off a two-day policy meeting, which will be watched for any changes or announcements regarding its stimulus program. The dollar bought 104.50 yen, compared with 104.10 yen in London late Monday.
Inflation-sensitive stocks with land assets such as Sumitomo Realty & Development and Tokyu Fudosan Holdings were also bid up. The pair rose 1.4% and 2.8%.
Strengthening in the dollar aided exporters, with shares of Nikon Corp. rising 1.73%,Kyocera Corp. gaining 1.38% and Suzuki Motor Corp adding 0.68%.
Shares of shipper Mitsui OSK Lines also gained 2.8% after a Nomura Securities upgrade to buy from neutral, citing a halt in the longstanding fall in rates for tankers and container ships.
Shares of NEC Corp gained 1.5% to 276 yen on report that the company is in late-stage discussions to sell Internet service provider Biglobe for roughly 70 billion yen ($666 million) to investment fund Industrial Partners.
In Australia, Australian stock market finished higher, on the back of strong gain in the stocks of financial, industrial, tech, healthcare and consumer & media counters. However, weakness in metal & mining and energy blue chips capped upside.
The Australian benchmark S&P/ASX 200 index advanced 36.50 points, or 0.69%, to 5331.50. The broader All Ordinaries grew 34.40 points, or 0.65%, to 5342
Financials were sharp higher in Australia, with top four banks helped drive the rally. Among top four lenders, Australia & New Zealand Banking Group advanced 0.9% to A$31.15, National Australia Bank 1% to A$33.99, Westpac Banking Corp 0.8% to A$31.79 and Commonwealth Bank 1% to $76.10. Bendigo Bank (BEN) jumped 1% to A$11.72 and Bank of Queensland 1.8% to A$12.03.
Industrials also posted some solid gains, with Leighton shares up 0.6% to A$16.06 and Bramble 1.8% to A$9.06. Toll Holdings advanced 1.7% to A$5.87 and Downer EDI 2.2% to A$5.02.
Consumer and media companies performed strongly. Kitchen appliances maker Breville rose 2.7% while Fairfax gained 2.3% to A$0.675 and Ten network 1.5% to A$0.35.
Shares of metal & mining companies recorded some heavy losses, on the back of softer iron ore prices which fell 2.0% in the previous day to $124.80/t (CFR China) with Chinese steel mills citing a weaker steel market and tighter credit conditions. Fortescue Metals was down 4.6% to A$5.41. Rio Tinto fell 1% to A$65.80 while rival BHP Billiton limited its losses to 0.1%.
Diversified industrial group GUD Holdings (GUD) kicked off the start to the reporting season today. The group reported an underlying net profit after tax for the six months to the end of December of A$14.9 million, down 31% from the previous corresponding period. The result was hampered by restructuring costs at the groups Sunbeam and Dexion operations. An interim dividend of 18 cents per share fully franked will be paid on March 6. GUD shares were higher by 0.35% to A$5.74.
In Thailand, shares in Thai market rose as expectations of interest rate cut bolstered broader sentiment. The key SET index was up 3.11 points to 1293.10. The Bank of Thailand's monetary policy committee is expected to cut its benchmark interest rate by 25 basis points on Wednesday to help the economy cope with prolonged political unrest.
The nation's army chief called for calm after attacks on anti-government rallies in Bangkok injured 70 people, prompting authorities to consider declaring a state of emergency for the first time since 2010.
Shares of airport operator Airports of Thailand climbed 3.8% after a 5% drop over the past two sessions and telecom operator Advanced Info Service rose 1.4%, recouping some losses over the past two days.
In China, headline indices of the China's stock market rebounded today, lifted by calming a bit uneasiness liquidity strain after the central bank pumped funds into the financial system. The Shanghai benchmark ended higher 17.06 higher at 2008.31, while CSI 300 Index inclined 21.42 points to 2187.41.
Bargain buying in the Mainland China market lifted after the People's Bank of China moved to offer funds to big lenders on Monday after short-term borrowing costs leapt amid an increase in demand for cash ahead of the Lunar New Year holiday.
Among SSE sectors, 9/10 sectors of the SSE index inclined, with information technology sector outperformed amongst the SSE sectoral peers, adding 2.7, followed by consumer discretionary up 1.9%, telecommunication services up 1.9%, utilities up 1.5%, materials up 1.2%, financial up 1% healthcare up 1%, industrials up 0.9% and energy up 0.7%.
In Hong Kong, shares in city's market climbed, with mainland China banks and financials blue chips leading rally after the PBoC injected liquidity into the market. The benchmark Hang Seng Index provisionally finished 104 points higher at 23033.12.
Among the HK 50 blue chips33 rose and 12 fell, with five stocks remaining steady. CNOOC (00883) slid 6.3% to HK$13.08 on lower-than-expected 2014 output guidance. It became the worst blue-chip loser. But Sinopec (00386) jumped 4.1% to HK$6.37 and was the best blue-chip performer.
Chinese banks were higher on PBoC's injection. CCB (00939) rose 3% to HK$5.55. ICBC (01398) added 2.7% to HK$4.91. Both ABC (01288) and BOC (03988) gained 2% to HK$3.46 and HK$3.43.
Lenovo Group Ltd. jumped 2.8% to HK$10.46, as the world's largest maker of personal computers is said to be in discussions to acquire International Business Machines Corp.'s low-end server business.
Hong Kong's overall consumer prices rose 4.3% in December 2013 over the same month a year earlier, same as that in November 2013, data from the Census and Statistics Department showed. After netting out the effects of all Government's one-off relief measures, the year-on-year rate of increase in the Composite CPI (i.e. the underlying inflation rate) in December 2013 was 3.9%, slightly smaller than November's 4%, mainly due to the smaller increases in the prices of fresh vegetables.
In India, key benchmark indices finished higher on sustained buying by funds in blue chips led by banks ahead of the RBI monetary policy meet amid a firming global trend. The market sentiment was also boosted by data showing that foreign funds were net buyers of Indian stocks on Monday, 20 January 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 403.20 crore from the secondary equity markets on Monday, 20 January 2014, as per data from Securities & Exchange Board of India.
The S&P BSE Sensex garnered 46.07 points or 0.22% to settle at 21,251.12, its highest closing level since 16 January 2014.
Asian Paints declined 2.16% on weak Q3 result. The company after market hours on Monday, 20 January 2014, reported 1.75% fall in consolidated net profit to Rs 329.35 crore on 13.03% rise in total income to Rs 3481.99 crore in Q3 December 2013 over Q3 December 2012. Asian Paints said that results for Q3 December 2013 include unaudited consolidated financials of Sleek International in which the company acquired 51% stake on 8 August 2013.
In view of this, the results for Q3 December 2013 are not comparable with the corresponding previous periods, Asian Paints said.
Emami rose 0.71% on strong Q3 result. The company's consolidated net profit rose 31.1% to Rs 150.68 crore on 6.6% increase in net sales to Rs 584.67 crore in Q3 December 2013 over Q3 December 2012. The result was announced after market hours on Monday, 21 January 2014.
Hindustan Zinc rose 2.15% to Rs 135.40 after hitting a 52-week high of Rs 141.80 in intraday trade. Trade minister Anand Sharma on Monday, 20 January 2014, said that Union Cabinet has approved divestment of government's residual stake in Hindustan Zinc. He said the method and timing of the stake sale would be decided later.
Elsewhere in the Asia Pacific region, New Zealand's NZX50 index rose 0.64%. South Korea's KOSPI added 0.52%. Indonesia's Jakarta Composite index added 0.47%. Taiwan's Taiex index sank 0.25%. Malaysia's KLSE Composite rose 0.43%. Singapore's Straits Times index rose 0.16%.
