Key benchmark indexes of the Asia Pacific market climbed up on Friday,
07 February 2014, as hopes for a solid US economic recovery lifted risk
sentiment, helping shares regain some of the losses sustained earlier in
the week.
The MSCI Asia Pacific Index added 1.4% to 133.36. The measure has pared its weekly drop to 1.1%. The MSCI Asia-Pacific gauge dropped 4.6% in January for its worst start to a year since 2009. Stock buying was enthusiastic during the session after overnight U.S. indexes booked some of their best points gains of the year following data that revealed a bigger-than-expected drop in January U.S. weekly jobless claims last week. Initial jobless claims dropped for the first time in three weeks, falling 20,000 to 331,000 in the period ended Feb. 1, according to the Labor Department.
Among Asian market, Japan's market advanced sharply, on the back of positive cues from Wall Street overnight and yen depreciation against major currencies. The benchmark Nikkei-225 index advanced 307.29 points to finish at 14462.41, while the Topix index of all first-section shares rose 26.77 point to 1189.14.
The dollar was at 102.14 yen in the currency market today, hardly changed from 102.10 yen in New York on Thursday but well above the mid-101 yen range in Tokyo earlier Thursday.
Shares of currency-sensitive exporters led the market higher Friday, with silicon wafer-maker Shin-Etsu Chemical adding 3.9% to 5703 yen and Honda Motor gaining 2.9% to 3680 yen.
Sony Corp climbed 4.1% to 1691 yen after announcing an aggressive restructuring plan that offset disappointment over its forecast cut. Sony warned on Thursday that it would book a 110 billion yen annual loss as it cuts 5,000 jobs and exits the stagnant PC market this year
Nikon Corp gained 5.5% to 1765 yen after booking a sharply higher third-quarter operating profit aided by the weaker yen. Its digital camera sales continued to slip, however.
Renesas Electronics also ended up 4.7% to 540 yen after a favorable third quarter. But it said that its full-year results will remain in the red due to early retirement expenses.
In Australia, Australian stock market advanced for second consecutive session, on the back of solid performance from bullion, energy, mining, and industrial blue chips. The benchmark S&P/ASX 200 index was up 35.10 points to 5166.50. Over the course of the week however the benchmark index lost 23.5 points or 0.4%.
The Sydney share market commenced trading firmly higher on tracking strong cues from Wall Street overnight. Meanwhile, better than anticipated quarterly result from News Corp also underpinned buying activities on the domestic market.
Shares of Australian mining companies surged, on tracking gain in base metal prices. Base metal prices advanced on the London Metal Exchange yesterday with zinc (up 2.1%) leading the gains. Other metals lifted between 0.2-1.7%. BHP Billiton was up 1.5% to A$36.09 while Rio Tinto rose 0.5% to A$65.96. Junior iron ore miner Fortescue Metals Group added 3.1% to A$5.60.
Australia's biggest goldminer, Newcrest Mining, added 2% to A$10.37 as the precious metal's spot price rose over the week to $1260.61 per ounce.
Shares of Australian media companies rallied, with News Corp leading the rally, up 8.2% to A$18.61 after reporting better than expected net income. News Corporation beat expectations with its second quarter profit, which came in at US$151 million thanks to lower legal costs associated with the News of the World phone hacking scandal, its acquisition of Fox Sports Australia and strong sales from its publishing business. Revenue fell 4% as expected to US$2.24 billion due to lower advertising sales.
Woodside Petroleum declined 0.1% to A$37.58 after inking a deal to buy Israeli natural-gas licenses for more than $1 billion plus revenue sharing.
Billabong International shares surged 13.2% to A$0.685 after saying it may sell its e-commerce businesses.
Shares of Aurora Oil and Gas spiked 56.11% to A$4.09 after North American-listed Baytex Energy Corp has agreed to buy Australian-listed Aurora through a scheme of arrangement at A$4.10 per share in cash, a 56% premium to Thursday's closing price of A$2.62.
In New Zealand, equities on the New Zealand share market climbed on tracking higher Asian stocks. The local market caught up after yesterday's holiday on account of Waitangi Day. By the provisional closing, the NZX 50 index gained 32.845 points, or 0.7%, to 4840.788. Within the index 28 stocks rose, 12 fell and 10 were unchanged.
Chorus climbed 8% to NZ$1.49 after a research note by JP Morgan speculated the telecommunications network operator will seek to raise NZ$300 million from investors at a discounted price. Separately, the Commerce Commission outlined its proposed process to determine final pricing for services on Chorus's regulated copper network.
Online Auction site Trade Me Group dropped 4% to an 18-month low NZ$3.80 amid reports the website is in a spat with real estate agents over lifting the price of its property listings.
In China, shares in Mainland China market finished higher on first working day after weeklong holiday for the Lunar New Year, with technology and small-company shares leading rally. The Shanghai Composite Index provisionally ended 0.6% higher at 2044.50 after reversing a loss of as much as 0.9%.
China share market commenced first trading session after a weeklong Chinese New Year holiday deeply lower as China's service sector reported poor retail sales during the holiday. However, the market recouped lost ground to finish higher, thanks to rallies in technology and small-company shares overshadowed manufacturing and services data signaling an economic slowdown.
China's service services Purchasing Managers' Index slid to 50.7% in January, according to a report by HSBC Holdings Inc on Friday. China's official Purchasing Managers' Index fell to a six-month low of 50.5 in January as output and orders slowed, Feb. 1 data showed. The non-manufacturing PMI dropped to 53.4, the lowest since at least March 2011, according to a Feb. 4 report.
Retail and catering sales grew 13.3% year-on-year during the seven-day holiday, compared with 14.7 in 2013 and 16.2% in 2012, according the Ministry of Commerce on Friday.
Shares of Chinese tech players advanced sharply, with Goertek paced gains for technology shares, rising 5.6% to 30.50 yuan. Sanan Optoelectronics Co. jumped 9.8% to 26.21 yuan.
Financial companies shares were weak. Ping An Insurance, the second-biggest Chinese insurer, lost 2.4% to 38.21 yuan. Citic Securities Co., the nation's biggest-listed brokerage, fell 0.9% to 11.48 yuan
Chinese mainland's 2013 gold imports from Hong Kong more than doubled from the previous year to reach a record of more than 1,000 tons as a sharp fall in prices led to unprecedented demand. The mainland imported about 1,158.162 tons of gold from Hong Kong, compared with 557.478 tons in 2012, overtaking India to become the world's biggest gold buyer.
The State Administration of Foreign Exchange said on Friday that China's current account--its broadest measure of trade with the outside world--was in a surplus of $49.8 billion in September-December, compared with a $40.4 billion surplus over June-September. The capital and financial account was in a surplus of $81.0 billion in the fourth quarter, indicating net inflows of investment funds. The capital and financial account was in a surplus of $80.5 billion in the third quarter. Foreign exchange reserves rose $131.0 billion in the fourth quarter, compared with an increase of $97.6 billion in the third quarter.
For the full year of 2013, China reported a surplus of $188.6 billion on its current account, compared with a surplus of $193.1 billion in 2012, and a surplus of $242.7 billion on its capital and financial account, compared with a deficit of $16.8 billion in 2012.
In Hong Kong, shares of city's market advanced for second consecutive session on tracking strong cues from Wall Street overnight. Meanwhile, positive trade on the Mainland bourses also underpinned buying activities on the city's market. The benchmark Hang Seng Index provisionally finished 213.72 points higher at 21636.85.
Among the HK 50 blue chips, 39 stocks rose and 9 stocks fell, while remaining 2 closed steady. China Merchants Holdings (International) Co advanced 4.6% to HK$26.35, while Sands China fell 2.3% to HK$59.20, making themselves the biggest blue-chip gainer and loser.
Shares of mobile carriers rose, with China Unicom (Hong Kong) grew 2.55% to HK$10.46 and China Mobile added 0.83% to HK$73.10. China Telecom Corp. closed 0.27% down at HK$3.71 despite Credit Suisse raise its rating for the company to outperform.
Chinese developers listed in Hong Kong were mixed, as a state-run newspaper reported sluggish property-market activity in China's largest cities during the Lunar New Year holiday amid worries that the government may further tighten controls to cool real estate prices. China Overseas Land & Investment rose 0.25% to HK$20.35 while China Resources Land shed 0.22% to HK$17.92
Hong Kong Monetary Authority said that the official foreign currency reserve assets of Hong Kong amounted to US$312.2 billion as at the end of January 2014 (end-December 2013: US$311.2 billion). There were no unsettled foreign exchange contracts both at end-January 2014 and end-December 2013. The total foreign currency reserve assets of US$312.2 billion represent about seven times the currency in circulation or about 50% of Hong Kong dollar M3.
In India, key benchmark indices edged higher in a choppy trading session. Gains in Asian and European stocks and rally in US stocks overnight aided the up move on the domestic bourses on the last trading session of the week.
The S&P BSE Sensex garnered 65.82 points or 0.32% to settle at 20,376.56, its highest closing level since 31 January 2014.
Steel stocks rose after ArcelorMittal, the world's biggest steelmaker, announced strong Q4 December 2013 results and said earnings will continue to climb in 2014. Tata Steel (up 6.39%), Steel Authority of India (Sail) (up 2.26%), JSW Steel (up 3.05%) and Jindal Steel and Power (JSPL) (up 0.37%) gained.
Ambuja Cements rose 4.97% after announcing its year ended 31 December 2013 results. The company's consolidated net profit fell 1.13% to Rs 1278.57 crore on 5.52% fall in total income to Rs 9583.05 crore for the year ending 31 December 2013 (FY 2013) over FY 2012. The result was announced after market hours on Thursday, 6 February 2014.
Reliance Infrastructure rose 2.16%. NTPC gained 1.5%. The Supreme Court reportedly ordered state-run power producer NTPC on Friday not to disconnect power supplies to distribution companies in the capital New Delhi until March 26, averting a potential blackout next week. NTPC had said BSES Yamuna Power, which sells electricity in the central and eastern parts of the city of about 16 million people, must pay its bills or be cut off from February 11. The court asked BSES, part of Reliance Infrastructure, to pay Rs 50 crore to NTPC as part of its outstanding dues.
Elsewhere in the Asia Pacific region, South Korea's KOSPI index added 0.77%. Taiwan's Taiex index grew 0.92%. Malaysia's KLSE Composite rose 0.59%. Singapore's Straits Times index jumped 0.83%
The MSCI Asia Pacific Index added 1.4% to 133.36. The measure has pared its weekly drop to 1.1%. The MSCI Asia-Pacific gauge dropped 4.6% in January for its worst start to a year since 2009. Stock buying was enthusiastic during the session after overnight U.S. indexes booked some of their best points gains of the year following data that revealed a bigger-than-expected drop in January U.S. weekly jobless claims last week. Initial jobless claims dropped for the first time in three weeks, falling 20,000 to 331,000 in the period ended Feb. 1, according to the Labor Department.
Among Asian market, Japan's market advanced sharply, on the back of positive cues from Wall Street overnight and yen depreciation against major currencies. The benchmark Nikkei-225 index advanced 307.29 points to finish at 14462.41, while the Topix index of all first-section shares rose 26.77 point to 1189.14.
The dollar was at 102.14 yen in the currency market today, hardly changed from 102.10 yen in New York on Thursday but well above the mid-101 yen range in Tokyo earlier Thursday.
Shares of currency-sensitive exporters led the market higher Friday, with silicon wafer-maker Shin-Etsu Chemical adding 3.9% to 5703 yen and Honda Motor gaining 2.9% to 3680 yen.
Sony Corp climbed 4.1% to 1691 yen after announcing an aggressive restructuring plan that offset disappointment over its forecast cut. Sony warned on Thursday that it would book a 110 billion yen annual loss as it cuts 5,000 jobs and exits the stagnant PC market this year
Nikon Corp gained 5.5% to 1765 yen after booking a sharply higher third-quarter operating profit aided by the weaker yen. Its digital camera sales continued to slip, however.
Renesas Electronics also ended up 4.7% to 540 yen after a favorable third quarter. But it said that its full-year results will remain in the red due to early retirement expenses.
In Australia, Australian stock market advanced for second consecutive session, on the back of solid performance from bullion, energy, mining, and industrial blue chips. The benchmark S&P/ASX 200 index was up 35.10 points to 5166.50. Over the course of the week however the benchmark index lost 23.5 points or 0.4%.
The Sydney share market commenced trading firmly higher on tracking strong cues from Wall Street overnight. Meanwhile, better than anticipated quarterly result from News Corp also underpinned buying activities on the domestic market.
Shares of Australian mining companies surged, on tracking gain in base metal prices. Base metal prices advanced on the London Metal Exchange yesterday with zinc (up 2.1%) leading the gains. Other metals lifted between 0.2-1.7%. BHP Billiton was up 1.5% to A$36.09 while Rio Tinto rose 0.5% to A$65.96. Junior iron ore miner Fortescue Metals Group added 3.1% to A$5.60.
Australia's biggest goldminer, Newcrest Mining, added 2% to A$10.37 as the precious metal's spot price rose over the week to $1260.61 per ounce.
Shares of Australian media companies rallied, with News Corp leading the rally, up 8.2% to A$18.61 after reporting better than expected net income. News Corporation beat expectations with its second quarter profit, which came in at US$151 million thanks to lower legal costs associated with the News of the World phone hacking scandal, its acquisition of Fox Sports Australia and strong sales from its publishing business. Revenue fell 4% as expected to US$2.24 billion due to lower advertising sales.
Woodside Petroleum declined 0.1% to A$37.58 after inking a deal to buy Israeli natural-gas licenses for more than $1 billion plus revenue sharing.
Billabong International shares surged 13.2% to A$0.685 after saying it may sell its e-commerce businesses.
Shares of Aurora Oil and Gas spiked 56.11% to A$4.09 after North American-listed Baytex Energy Corp has agreed to buy Australian-listed Aurora through a scheme of arrangement at A$4.10 per share in cash, a 56% premium to Thursday's closing price of A$2.62.
In New Zealand, equities on the New Zealand share market climbed on tracking higher Asian stocks. The local market caught up after yesterday's holiday on account of Waitangi Day. By the provisional closing, the NZX 50 index gained 32.845 points, or 0.7%, to 4840.788. Within the index 28 stocks rose, 12 fell and 10 were unchanged.
Chorus climbed 8% to NZ$1.49 after a research note by JP Morgan speculated the telecommunications network operator will seek to raise NZ$300 million from investors at a discounted price. Separately, the Commerce Commission outlined its proposed process to determine final pricing for services on Chorus's regulated copper network.
Online Auction site Trade Me Group dropped 4% to an 18-month low NZ$3.80 amid reports the website is in a spat with real estate agents over lifting the price of its property listings.
In China, shares in Mainland China market finished higher on first working day after weeklong holiday for the Lunar New Year, with technology and small-company shares leading rally. The Shanghai Composite Index provisionally ended 0.6% higher at 2044.50 after reversing a loss of as much as 0.9%.
China share market commenced first trading session after a weeklong Chinese New Year holiday deeply lower as China's service sector reported poor retail sales during the holiday. However, the market recouped lost ground to finish higher, thanks to rallies in technology and small-company shares overshadowed manufacturing and services data signaling an economic slowdown.
China's service services Purchasing Managers' Index slid to 50.7% in January, according to a report by HSBC Holdings Inc on Friday. China's official Purchasing Managers' Index fell to a six-month low of 50.5 in January as output and orders slowed, Feb. 1 data showed. The non-manufacturing PMI dropped to 53.4, the lowest since at least March 2011, according to a Feb. 4 report.
Retail and catering sales grew 13.3% year-on-year during the seven-day holiday, compared with 14.7 in 2013 and 16.2% in 2012, according the Ministry of Commerce on Friday.
Shares of Chinese tech players advanced sharply, with Goertek paced gains for technology shares, rising 5.6% to 30.50 yuan. Sanan Optoelectronics Co. jumped 9.8% to 26.21 yuan.
Financial companies shares were weak. Ping An Insurance, the second-biggest Chinese insurer, lost 2.4% to 38.21 yuan. Citic Securities Co., the nation's biggest-listed brokerage, fell 0.9% to 11.48 yuan
Chinese mainland's 2013 gold imports from Hong Kong more than doubled from the previous year to reach a record of more than 1,000 tons as a sharp fall in prices led to unprecedented demand. The mainland imported about 1,158.162 tons of gold from Hong Kong, compared with 557.478 tons in 2012, overtaking India to become the world's biggest gold buyer.
The State Administration of Foreign Exchange said on Friday that China's current account--its broadest measure of trade with the outside world--was in a surplus of $49.8 billion in September-December, compared with a $40.4 billion surplus over June-September. The capital and financial account was in a surplus of $81.0 billion in the fourth quarter, indicating net inflows of investment funds. The capital and financial account was in a surplus of $80.5 billion in the third quarter. Foreign exchange reserves rose $131.0 billion in the fourth quarter, compared with an increase of $97.6 billion in the third quarter.
For the full year of 2013, China reported a surplus of $188.6 billion on its current account, compared with a surplus of $193.1 billion in 2012, and a surplus of $242.7 billion on its capital and financial account, compared with a deficit of $16.8 billion in 2012.
In Hong Kong, shares of city's market advanced for second consecutive session on tracking strong cues from Wall Street overnight. Meanwhile, positive trade on the Mainland bourses also underpinned buying activities on the city's market. The benchmark Hang Seng Index provisionally finished 213.72 points higher at 21636.85.
Among the HK 50 blue chips, 39 stocks rose and 9 stocks fell, while remaining 2 closed steady. China Merchants Holdings (International) Co advanced 4.6% to HK$26.35, while Sands China fell 2.3% to HK$59.20, making themselves the biggest blue-chip gainer and loser.
Shares of mobile carriers rose, with China Unicom (Hong Kong) grew 2.55% to HK$10.46 and China Mobile added 0.83% to HK$73.10. China Telecom Corp. closed 0.27% down at HK$3.71 despite Credit Suisse raise its rating for the company to outperform.
Chinese developers listed in Hong Kong were mixed, as a state-run newspaper reported sluggish property-market activity in China's largest cities during the Lunar New Year holiday amid worries that the government may further tighten controls to cool real estate prices. China Overseas Land & Investment rose 0.25% to HK$20.35 while China Resources Land shed 0.22% to HK$17.92
Hong Kong Monetary Authority said that the official foreign currency reserve assets of Hong Kong amounted to US$312.2 billion as at the end of January 2014 (end-December 2013: US$311.2 billion). There were no unsettled foreign exchange contracts both at end-January 2014 and end-December 2013. The total foreign currency reserve assets of US$312.2 billion represent about seven times the currency in circulation or about 50% of Hong Kong dollar M3.
In India, key benchmark indices edged higher in a choppy trading session. Gains in Asian and European stocks and rally in US stocks overnight aided the up move on the domestic bourses on the last trading session of the week.
The S&P BSE Sensex garnered 65.82 points or 0.32% to settle at 20,376.56, its highest closing level since 31 January 2014.
Steel stocks rose after ArcelorMittal, the world's biggest steelmaker, announced strong Q4 December 2013 results and said earnings will continue to climb in 2014. Tata Steel (up 6.39%), Steel Authority of India (Sail) (up 2.26%), JSW Steel (up 3.05%) and Jindal Steel and Power (JSPL) (up 0.37%) gained.
Ambuja Cements rose 4.97% after announcing its year ended 31 December 2013 results. The company's consolidated net profit fell 1.13% to Rs 1278.57 crore on 5.52% fall in total income to Rs 9583.05 crore for the year ending 31 December 2013 (FY 2013) over FY 2012. The result was announced after market hours on Thursday, 6 February 2014.
Reliance Infrastructure rose 2.16%. NTPC gained 1.5%. The Supreme Court reportedly ordered state-run power producer NTPC on Friday not to disconnect power supplies to distribution companies in the capital New Delhi until March 26, averting a potential blackout next week. NTPC had said BSES Yamuna Power, which sells electricity in the central and eastern parts of the city of about 16 million people, must pay its bills or be cut off from February 11. The court asked BSES, part of Reliance Infrastructure, to pay Rs 50 crore to NTPC as part of its outstanding dues.
Elsewhere in the Asia Pacific region, South Korea's KOSPI index added 0.77%. Taiwan's Taiex index grew 0.92%. Malaysia's KLSE Composite rose 0.59%. Singapore's Straits Times index jumped 0.83%
