Asia Pacific stocks closed mixed after reversing most of early gains on
Thursday, 16 January 2014, as investors locked profit after yesterday's
impressive rally.
Asian investors were initially taking their lead from record close on Wall Street overnight in response to an upbeat report on the US economy and after strong earnings from Bank of America. The rally was helped along by Bank of America, the country's No. 2 bank, reporting that quarterly profits quadrupled.
In the latest US economic data, the seasonally adjusted Producer Price Index rose 0.4% last month, the biggest increase since June, although inflation pressures remained benign. The Federal Reserve Bank of New York's "Empire State" index of general business conditions climbed to its highest level in 20 months. The data reassured investors that the economy is able to stand on its own even as the Federal Reserve begins to slow its massive stimulus programs, which contributed to huge equity gains in 2013.
In its latest Beige Book report on business activity, the Fed said the economy grew at a moderate pace from late November through the end of 2013, with some regions of the country expecting a pickup in growth.
A Federal Reserve survey that showed economic growth remained healthy also bolstered sentiment, as did optimistic comments about the state of the global economy by the World Bank and the head of the International Monetary Fund.
Asia markets were relatively muted as they closed, after they failed to sustain gains earlier in the day.
Among Asian bourses, Japan's share market finished the session tad below the neutral line as the dollar's early rally against the Japanese yen faded, triggering profit taking in the last hour. The benchmark Nikkei 225 index fell 61.53 points to 15,747.20, while the Topix index of all first-section shares slipped 0.13 point to 1,294.39.
Tokyo market commenced trading with positive note on tracking record close on Wall Street overnight and the dollar's gain against the yen. Meanwhile, better than expected Japanese core machinery also aided buying pressure in early trading hours. But, the market washed out entire gains during the last hour of trading as investors locked in profits.
According to Japanese government data released Thursday, core machinery orders went up unexpectedly by 9.3% in November from the previous month as demand picked up ahead of an upcoming sales tax hike. Also in the morning, Bank of Japan Governor Haruhiko Kuroda said that the Japanese economy is expected to continue a moderate recovery. Speaking during BOJ branch managers meeting in Tokyo, Kuroda said, "Japan's economy is on steady track toward the 2% price target."
Shares of financial companies declined, with Japan Exchange Group Inc., operator of the country's biggest stock market, down 3.6% to 2720 yen. Orix Corp. slid 0.8% to 1,733 yen and consumer lender Credit Saison Co. declined 2% to 2,683 yen.
Pulp and paper makers also tumbled, with Daio Paper losing 3.7% to 967 yen. Oji Holdings Corp. slumped 1.1% to 525 yen and Nippon Paper Industries Co. lost 1.7% to 1,886 yen.
Shares of machinery companies rose after data from the Cabinet Office showed core machinery orders for November jumped 9.3% month on month. Tsurumi Manufacturing Co., which makes submersible pumps, surged 13% to 1,301 yen to lead gains on the measure. Disco Corp., which produces precision cutting machinery, added 4.2% to 7,230 yen.
In Australia, shares of the Australian stock market continued northward journey for second day in row, sending the benchmark S&P/ASX 200 index higher by 1.21% to 5309.10. All sectors ended higher, with shares in bullion, mining, resources, industrial, energy, healthcare and retailer companies were leading advances.
Shares of Australia's miners rallied, with Rio Tinto leading rally after a positive production report. Shares of Rio Tinto advanced 2.1% to A$65.58 after reporting record high iron-ore shipments for 2013 and a solid gain for copper output. BHP Billiton jumped 2.5% to HK$36.82. Fortescue Metals added 3.8% to A$5.53 despite news on Thursday that four incidents involving worker safety were being investigated by the West Australian Department of Mines and Petroleum.
Australia's financials stocks were stronger, with Australia & New Zealand Banking Group up 0.4% to A$31.83, National Australia Bank 0.8% to A$34.09 and Westpac Banking Corp 0.4% to A$31.83. Commonwealth Bank shed 0.55% to $75.80, Bendigo Bank (BEN) jumped 0.3% to A$11.79 and Bank of Queensland 0.7% to A$11.97.
Bega Cheese (BGA) announced it would be selling its 18.8% stake in Warrnambool Cheese and Butter (WCB) to Canadian dairy giant Saputo, putting Saputo in the prime position to take complete control of WCB following a lengthy takeover battle. BGA shares rose 0.2% today to close at A$4.62 while WCB rose 1.3% to A$9.40.
Australia Bureau of Statistics said on Thursday that domestic employment fell by 22,600 in December after a revised 10,500 gain in jobs in November (previously reported as a 21,000 increase in jobs). Full-time jobs fell by 31,600 in December and part-time jobs rose by 9,000. In the 2013 calendar year just 54,600 jobs were created, marking the weakest result for a calendar year since 1996. Part time employment lifted by almost 122,100 workers over 2013 compared with 67,500 full-time jobs lost. The unemployment rate in Australia is currently at 5.8%.
In China, shares in Mainland China market closed tad above the neutral line after swinging between gains and losses. The benchmark Shanghai Composite index provisionally closed 0.35 point higher at 2023.70.
Among SSE sectors, 6/10 sectors of the SSE index advanced, with material sector was best performer amongst the SSE sectoral peers, adding 1.1%, while information technology sector had worst showing, falling 0.9%.
Shares of utilities companies advanced, with Guangdong Electric Power Development Co leading a rally, up 1.5% to 4.63 yuan after power producer said 2013 profit may have jumped as much as 100% because of lower fuel prices and investment gains. Huadian Power International Corp rose 1.1% to 2.90 yuan after it reported a 12% jump in electricity output. Shanghai Electric Power Co., supplier of a third of the city's electricity, climbed 3.6% to 4.66 yuan.
Shares of materials and resources were also higher. Chalco, the listed unit of nation's biggest maker of the lightweight metal, gained 1.5% to 3.29 yuan. Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co., China's biggest producer of rare earth, added 2.6% to 22.01 yuan.
CHINA'S annual steel output growth is expected to slow in 2014 to around 3% and reach 810 million tons as a result of changes in its economic strategy, the head of the country's steel association said in comments published late Monday. Chinese steel production has surged to nearly half the world's total in the past two decades as a result of breakneck economic growth, but the government is now determined to slash the excess capacity weighing down the sector as well as reduce the country's overall dependence on heavy industry.
CHINA'S cotton imports dropped 19.2% during calendar 2013 to 4.15 million tons, the industry website CnCotton.com reported yesterday, citing customs data. The government's tight control on imported cotton fiber through quotas has seen the textile sector import rising volumes of cotton yarn last year to substitute the raw material. Imports of the fiber in December reached 609,000 tons, up 14.4% on the same month in 2012.
In Hong Kong, shares in city's financial market advanced, with the benchmark Hang Seng Index up 0.37% to finish at 22986.41 on Thursday, January 16, 2014, taking their lead from record close on Wall Street overnight in response to an upbeat report on the US economy. Among the HK 50 blue chips, 23 rose and 21 fell, with six stocks remaining steady. Lenovo (00992) became the top blue-chip winner, jumping 6% to HK$10.46, while Belle (01880) slipped 4.7% to HK$9.1, becoming the biggest blue-chip loser.
Shares of Tencent Holdings propped up 0.4% to HK$512.50 as investors cheered the Chinese internet giant's HK$1.5 billion ($193.5 million) investment in logistics and warehouse firm China South City Holdings. On Wednesday, Tencent said it had agreed to buy 680.3 million new shares in China South City, representing around 9.9% of that firm's enlarged share capital. China South City spiked 60.8% to HK$3.49.
The volume of Hong Kong's re-exports of goods rose 3.6% in November 2013 from a year earlier, whereas that of domestic exports dropped 10.4%. Taken together, the volume of total exports and imports of goods grew 3.4% and 4.8%, data from the Census and Statistics Department showed. Comparing the first eleven months of 2013 with the same period in 2012, the volume of Hong Kong's re-exports of goods expanded 3.5%, whereas that of domestic exports fell 9.6%. Taken together, the volume of total exports and imports of goods rose 3.2% and 4.2%.
In India, key benchmark indices edged lower in choppy trade amid profit booking and a mixed trend in overseas stock markets. As per provisional figures, the S&P BSE Sensex was down 24.31 points or 0.11% to 21,265.18.
In the 30-share barometer, 16 stocks declined led by Bharti Airtel, Cipla, Dr Reddy's Laboratories, HDFC Bank, Hero MotoCorp and ITC. Tata Consultancy Services (TCS) closed nearly flat ahead of earnings release expected after market hours. However, Coal India, Hindalco Industries and HDFC led 14 Sensex gainers higher.
Telecom stocks faced heavy selling pressure and plunged over 7% amid concerns that Reliance Jio Infocomm's participation in the upcoming spectrum auction will hurt market share and profitability of existing telecom players. Shares of Idea Cellular tanked 7.25%, Bharti Airtel tumbled 4.84% and Reliance Communications lost 4.18%. Bucking the overall downtrend, stocks of HCL Technologies spurted by 4.23% after company reported 58.4% growth in quarterly profit for the period ended December 31.
Elsewhere in the Asia Pacific region, New Zealand's NZX50 index rose 0.17%. South Korea's KOSPI added 0.21%. Indonesia's Jakarta Composite index shed 0.66%. Taiwan's Taiex index added 0.11%. Malaysia's KLSE Composite lost 0.6%. Singapore's Straits Times index shed 0.1%.
Asian investors were initially taking their lead from record close on Wall Street overnight in response to an upbeat report on the US economy and after strong earnings from Bank of America. The rally was helped along by Bank of America, the country's No. 2 bank, reporting that quarterly profits quadrupled.
In the latest US economic data, the seasonally adjusted Producer Price Index rose 0.4% last month, the biggest increase since June, although inflation pressures remained benign. The Federal Reserve Bank of New York's "Empire State" index of general business conditions climbed to its highest level in 20 months. The data reassured investors that the economy is able to stand on its own even as the Federal Reserve begins to slow its massive stimulus programs, which contributed to huge equity gains in 2013.
In its latest Beige Book report on business activity, the Fed said the economy grew at a moderate pace from late November through the end of 2013, with some regions of the country expecting a pickup in growth.
A Federal Reserve survey that showed economic growth remained healthy also bolstered sentiment, as did optimistic comments about the state of the global economy by the World Bank and the head of the International Monetary Fund.
Asia markets were relatively muted as they closed, after they failed to sustain gains earlier in the day.
Among Asian bourses, Japan's share market finished the session tad below the neutral line as the dollar's early rally against the Japanese yen faded, triggering profit taking in the last hour. The benchmark Nikkei 225 index fell 61.53 points to 15,747.20, while the Topix index of all first-section shares slipped 0.13 point to 1,294.39.
Tokyo market commenced trading with positive note on tracking record close on Wall Street overnight and the dollar's gain against the yen. Meanwhile, better than expected Japanese core machinery also aided buying pressure in early trading hours. But, the market washed out entire gains during the last hour of trading as investors locked in profits.
According to Japanese government data released Thursday, core machinery orders went up unexpectedly by 9.3% in November from the previous month as demand picked up ahead of an upcoming sales tax hike. Also in the morning, Bank of Japan Governor Haruhiko Kuroda said that the Japanese economy is expected to continue a moderate recovery. Speaking during BOJ branch managers meeting in Tokyo, Kuroda said, "Japan's economy is on steady track toward the 2% price target."
Shares of financial companies declined, with Japan Exchange Group Inc., operator of the country's biggest stock market, down 3.6% to 2720 yen. Orix Corp. slid 0.8% to 1,733 yen and consumer lender Credit Saison Co. declined 2% to 2,683 yen.
Pulp and paper makers also tumbled, with Daio Paper losing 3.7% to 967 yen. Oji Holdings Corp. slumped 1.1% to 525 yen and Nippon Paper Industries Co. lost 1.7% to 1,886 yen.
Shares of machinery companies rose after data from the Cabinet Office showed core machinery orders for November jumped 9.3% month on month. Tsurumi Manufacturing Co., which makes submersible pumps, surged 13% to 1,301 yen to lead gains on the measure. Disco Corp., which produces precision cutting machinery, added 4.2% to 7,230 yen.
In Australia, shares of the Australian stock market continued northward journey for second day in row, sending the benchmark S&P/ASX 200 index higher by 1.21% to 5309.10. All sectors ended higher, with shares in bullion, mining, resources, industrial, energy, healthcare and retailer companies were leading advances.
Shares of Australia's miners rallied, with Rio Tinto leading rally after a positive production report. Shares of Rio Tinto advanced 2.1% to A$65.58 after reporting record high iron-ore shipments for 2013 and a solid gain for copper output. BHP Billiton jumped 2.5% to HK$36.82. Fortescue Metals added 3.8% to A$5.53 despite news on Thursday that four incidents involving worker safety were being investigated by the West Australian Department of Mines and Petroleum.
Australia's financials stocks were stronger, with Australia & New Zealand Banking Group up 0.4% to A$31.83, National Australia Bank 0.8% to A$34.09 and Westpac Banking Corp 0.4% to A$31.83. Commonwealth Bank shed 0.55% to $75.80, Bendigo Bank (BEN) jumped 0.3% to A$11.79 and Bank of Queensland 0.7% to A$11.97.
Bega Cheese (BGA) announced it would be selling its 18.8% stake in Warrnambool Cheese and Butter (WCB) to Canadian dairy giant Saputo, putting Saputo in the prime position to take complete control of WCB following a lengthy takeover battle. BGA shares rose 0.2% today to close at A$4.62 while WCB rose 1.3% to A$9.40.
Australia Bureau of Statistics said on Thursday that domestic employment fell by 22,600 in December after a revised 10,500 gain in jobs in November (previously reported as a 21,000 increase in jobs). Full-time jobs fell by 31,600 in December and part-time jobs rose by 9,000. In the 2013 calendar year just 54,600 jobs were created, marking the weakest result for a calendar year since 1996. Part time employment lifted by almost 122,100 workers over 2013 compared with 67,500 full-time jobs lost. The unemployment rate in Australia is currently at 5.8%.
In China, shares in Mainland China market closed tad above the neutral line after swinging between gains and losses. The benchmark Shanghai Composite index provisionally closed 0.35 point higher at 2023.70.
Among SSE sectors, 6/10 sectors of the SSE index advanced, with material sector was best performer amongst the SSE sectoral peers, adding 1.1%, while information technology sector had worst showing, falling 0.9%.
Shares of utilities companies advanced, with Guangdong Electric Power Development Co leading a rally, up 1.5% to 4.63 yuan after power producer said 2013 profit may have jumped as much as 100% because of lower fuel prices and investment gains. Huadian Power International Corp rose 1.1% to 2.90 yuan after it reported a 12% jump in electricity output. Shanghai Electric Power Co., supplier of a third of the city's electricity, climbed 3.6% to 4.66 yuan.
Shares of materials and resources were also higher. Chalco, the listed unit of nation's biggest maker of the lightweight metal, gained 1.5% to 3.29 yuan. Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co., China's biggest producer of rare earth, added 2.6% to 22.01 yuan.
CHINA'S annual steel output growth is expected to slow in 2014 to around 3% and reach 810 million tons as a result of changes in its economic strategy, the head of the country's steel association said in comments published late Monday. Chinese steel production has surged to nearly half the world's total in the past two decades as a result of breakneck economic growth, but the government is now determined to slash the excess capacity weighing down the sector as well as reduce the country's overall dependence on heavy industry.
CHINA'S cotton imports dropped 19.2% during calendar 2013 to 4.15 million tons, the industry website CnCotton.com reported yesterday, citing customs data. The government's tight control on imported cotton fiber through quotas has seen the textile sector import rising volumes of cotton yarn last year to substitute the raw material. Imports of the fiber in December reached 609,000 tons, up 14.4% on the same month in 2012.
In Hong Kong, shares in city's financial market advanced, with the benchmark Hang Seng Index up 0.37% to finish at 22986.41 on Thursday, January 16, 2014, taking their lead from record close on Wall Street overnight in response to an upbeat report on the US economy. Among the HK 50 blue chips, 23 rose and 21 fell, with six stocks remaining steady. Lenovo (00992) became the top blue-chip winner, jumping 6% to HK$10.46, while Belle (01880) slipped 4.7% to HK$9.1, becoming the biggest blue-chip loser.
Shares of Tencent Holdings propped up 0.4% to HK$512.50 as investors cheered the Chinese internet giant's HK$1.5 billion ($193.5 million) investment in logistics and warehouse firm China South City Holdings. On Wednesday, Tencent said it had agreed to buy 680.3 million new shares in China South City, representing around 9.9% of that firm's enlarged share capital. China South City spiked 60.8% to HK$3.49.
The volume of Hong Kong's re-exports of goods rose 3.6% in November 2013 from a year earlier, whereas that of domestic exports dropped 10.4%. Taken together, the volume of total exports and imports of goods grew 3.4% and 4.8%, data from the Census and Statistics Department showed. Comparing the first eleven months of 2013 with the same period in 2012, the volume of Hong Kong's re-exports of goods expanded 3.5%, whereas that of domestic exports fell 9.6%. Taken together, the volume of total exports and imports of goods rose 3.2% and 4.2%.
In India, key benchmark indices edged lower in choppy trade amid profit booking and a mixed trend in overseas stock markets. As per provisional figures, the S&P BSE Sensex was down 24.31 points or 0.11% to 21,265.18.
In the 30-share barometer, 16 stocks declined led by Bharti Airtel, Cipla, Dr Reddy's Laboratories, HDFC Bank, Hero MotoCorp and ITC. Tata Consultancy Services (TCS) closed nearly flat ahead of earnings release expected after market hours. However, Coal India, Hindalco Industries and HDFC led 14 Sensex gainers higher.
Telecom stocks faced heavy selling pressure and plunged over 7% amid concerns that Reliance Jio Infocomm's participation in the upcoming spectrum auction will hurt market share and profitability of existing telecom players. Shares of Idea Cellular tanked 7.25%, Bharti Airtel tumbled 4.84% and Reliance Communications lost 4.18%. Bucking the overall downtrend, stocks of HCL Technologies spurted by 4.23% after company reported 58.4% growth in quarterly profit for the period ended December 31.
Elsewhere in the Asia Pacific region, New Zealand's NZX50 index rose 0.17%. South Korea's KOSPI added 0.21%. Indonesia's Jakarta Composite index shed 0.66%. Taiwan's Taiex index added 0.11%. Malaysia's KLSE Composite lost 0.6%. Singapore's Straits Times index shed 0.1%.
