Headline shares of the Asia Pacific market climbed up on Wednesday, 28
May 2014, as strong US data fuelled confidence in the recovery of world
largest economy. The MSCI Asia Pacific Index gained 0.5% to 141.93.
Regional market commenced trading with firm footing, on tracking another record-breaking performance on Wall Street overnight. The US stock market rallied on Tuesday on reinforcing confidence over the recovery of world largest economy after an unexpected rise in durable goods orders in April and higher home prices for March. Services industries, which dominate the economy, also grew at a rapid clip in May.
Meanwhile, buying pressure accelerated after the China, world's second-largest economy, reported stable growth in industrial profits. , the National Bureau of Statistics said on Wednesday that Chinese industrial businesses saw their profits rise by 10% year on year in the first four months of 2014. Total profits of industrial companies with annual business revenue of more than 20 million yuan (US$3.2 million) reached 1.76 trillion yuan from January to April. The profits growth remained almost the same compared with a 10.1-percent increase recorded in the first three months.
Among Asian bourses, Australian share market advanced today, as investors' sentiment boosted-up on tracking strong offshore gain overnight. Most of sectors closed higher with consumer discretionary, financial and mining blue chip stocks leading gains. Though overall gains were capped by a slide in gold producers after bullion prices dropped overnight. The benchmark S&P/ASX200 and the broader All Ordinaries each rose by 0.3% to 5527.20 and 5506.70, respectively.
Financials stocks were higher, with top four lenders led rally. Commonwealth Bank of Australia rose 0.3% to A$81.94, Westpac Banking Corp 0.5% to A$34.50, ANZ Banking Group 0.4% to A$33.69 and National Australia Bank 0.7% to A$33.51.
Shares of precious metal producers declined inline with drop in bullion prices. The upbeat sentiment eroded the safe-haven appeal of gold, which extended sharp overnight losses and fell to a fresh 3-1/2 month low amid the strong US economic data and a drop in imports by top consumer China. Spot gold slipped to a low of $1,260.74 an ounce, its weakest since February 7. Among gold miners, Newcrest Mining lost 4.2% to A$9.82, Evolution Mining 4.8% to A$0.79 and Resolute Mining 5.7% to A$0.58.
In Japan, Japanese share market finished higher for fifth consecutive session, a fresh two months high, supported by gaining confidence in the U.S. economic recovery after strong economic data. However, overall gains were capped after Bank of Japan governor Haruhiko Kuroda signalled current monetary policy is appropriate, dashing hopes for more easing by the central bank in the near future. The Nikkei 225 index gained 0.24% to finish at 14670.95, while the Topix index of all first-section issues was up 0.26% at 1198.17.
Shares of general contractors companies climbed up following an announcement from the state Reconstruction Agency it will go ahead with rebuilding homes damaged and destroyed in the aftermath of the March 2011 earthquake and tsunami that devastated Japan's northeast. Major builders Shimizu Corp. added 5.6%, Taisei Corp. gained 3.4%, and Obayashi Corp. rose 3.4%.
Yamada Denki shares jumped 6.4% as appliance retailer Y100 billion euro-yen convertible bond offer was greeted warmly by investors. The company said it plans to use half of the raised funds for share buybacks.
Shares of Nippon Kayaku rose 4.7% after Nomura Securities upgrade its rating for drug maker to Buy from Neutral. Nomura cited faster-than-expected approval of the company's Remicade biosimilar CT-P13 treatment by a government committee the prior day.
Food products maker Ajinomoto added 1.9% after announcing Tuesday it will retire almost 20 million of its own shares, 3.2% of the total, by June 6.
Mitsui Fudosan has said on Tuesday it would raise up to Y325 billion via a global share offering. Shares closed down 4.7% as the dilution rate for the offer came to 12.5%. The firm is slated to complete multiple large-scale projects over the next few years in prior to the 2020 Tokyo Summer Olympic Games.
In China, Mainland China share market finished the session modest higher, , with technology stocks leading gains amid speculation of benefit from the government's dispute with the US over cyber-spying. The benchmark Shanghai Composite ended 0.66% higher at 2050.23, on turnover of 68.60 billion yuan.
In an escalation of China's dispute with the United States over spying claims, the Chinese Government is pushing domestic banks to remove high-end servers made by International Business Machines Corp. (IBM) and replace them with a local brand, according to media reports.
Government agencies, including the People's Bank of China and the Ministry of Finance, are reviewing whether Chinese commercial banks' reliance on the IBM servers compromises the country's financial security, the report said. China on Monday accused the United States of unscrupulous cyber surveillance that included large-scale computer attacks against the Chinese Government and Chinese firms. China told its State-owned enterprises to sever links with American consulting firms just days after the United States charged five Chinese military officers with hacking U.S. companies, the Financial Times reported Sunday. The sources said China's government is concerned that IBM may be a security threat following Edward Snowden's revelations of a U.S. National Security Agency spying program, though it also believes IBM servers are more expensive in China than in other regions.
Shares of technology companies extended gains for second day in row amid speculation they will benefit from the government's dispute with the U.S. over cyber-spying. On media reports, Chinese government is pushing domestic banks to remove high-end servers made by IBM and replace them with a local brand, in an escalation of the dispute with the U.S. over spying claims. Yonyou Software Co rose 7.8% to 15.31 yuan and Aisino Co jumped 6.9% to 20.08 yuan. Inspur Electronic Information Industry Co surged 10% to 33.99 yuan. ZTE Corp., China's second-biggest maker of phone-network equipment, rallied 4.4% to 13.18 yuan in Shenzhen.
Shares of precious metal producers declined inline with drop in bullion prices. Among gold miners, Shandong Gold, China's second-largest bullion producer, fell 0.7% to 15.67 yuan and Zhongjin Gold Co, the third biggest, lost 0.4% to 7.74 yuan.
In Hong Kong, HK share market ended higher, supported by another record-close for the S&P 500 overnight and interest in banking stocks, though overall gains were capped by a slide in casino and retailers. The benchmark Hang Seng Index was up 0.59% or 135.73 points to finish at 23080.30. The benchmark index soared 260 points at one stage before paring its gains by market close. Turnover rose to HK$71.9 billion from HK$42.4 billion on Tuesday.
Mainland lenders listed in HSI bourse showed their muscles. ICBC rose 1.6% to HK$5.04. China Construction Bank Corp gained 1.4% to HK$5.68. Agricultural Bank of China added 1.5% to HK$3.44.
Technology stocks rose amid speculation of benefit from the Chinese government's dispute with the US over cyber-spying. Lenovo added 1% to HK$9.84. Inspur International surged 9.9% to HK$1.67 after jumping 9.4% yesterday.
Shares of casino companies declined, with Sands China leading losses, down by 2% to HK$57.05, after Waddell & Reed, a holder of Sands, disposed of a big chunk of its stake in the casino operator. Galaxy Ent (00027), Wynn Macau (01128) and Melco (00200) all declined, ranging between 0.8% and 1.2%.
Retailers extended losses on speculation a potential curb on tourist arrivals from China announced yesterday may put pressure on the earnings and asset values of shopping-mall operators and retailers in the city. Belle (01880) slid 3% to HK$7.8 after the company reduced its SSSG guidance, which triggered a slew of brokerage downgrades. Anta Sports Products dipped 2.1% to HK$11.46. Hengdeli Holdings fell 3.3% to HK$1.45.
In India, key benchmark indices eked out marginal gain in volatile trade today, as traders roll over positions in the futures & options (F&O) segment from the near month May 2014 series to June 2014 series. The near month May 2014 derivatives contract expire tomorrow, 29 May 2014. The Sensex provisionally closed 0.03% higher, while the Nifty gained 0.16%.
Cement stocks rose after their recent relative underperformance. UltraTech Cement provisionally rose 5.7% while Ambuja Cements ended higher 5.5%.
Hawkins Cookers jumped 18.6% after net profit rose 12.42% to Rs 13.12 crore on 14.82% growth in total income from operations to Rs 141.86 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced after market hours on Tuesday, 27 May 2014. Hawkins Cookers' net profit rose 12.25% to Rs 38.28 crore on 7.62% growth in total income from operations to Rs 457.08 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
Elsewhere in the Asia Pacific region, Taiwan's Taiex index rose 0.73%. South Korea's KOSPI index was down 0.97%. New Zealand's NZX50 fell 0.69%. Indonesia's Jakarta Composite Index rose 0.44%. Malaysia's KLSE Composite rose 0.22%. Singapore's Straits Times index lost 0.07%.
Regional market commenced trading with firm footing, on tracking another record-breaking performance on Wall Street overnight. The US stock market rallied on Tuesday on reinforcing confidence over the recovery of world largest economy after an unexpected rise in durable goods orders in April and higher home prices for March. Services industries, which dominate the economy, also grew at a rapid clip in May.
Meanwhile, buying pressure accelerated after the China, world's second-largest economy, reported stable growth in industrial profits. , the National Bureau of Statistics said on Wednesday that Chinese industrial businesses saw their profits rise by 10% year on year in the first four months of 2014. Total profits of industrial companies with annual business revenue of more than 20 million yuan (US$3.2 million) reached 1.76 trillion yuan from January to April. The profits growth remained almost the same compared with a 10.1-percent increase recorded in the first three months.
Among Asian bourses, Australian share market advanced today, as investors' sentiment boosted-up on tracking strong offshore gain overnight. Most of sectors closed higher with consumer discretionary, financial and mining blue chip stocks leading gains. Though overall gains were capped by a slide in gold producers after bullion prices dropped overnight. The benchmark S&P/ASX200 and the broader All Ordinaries each rose by 0.3% to 5527.20 and 5506.70, respectively.
Financials stocks were higher, with top four lenders led rally. Commonwealth Bank of Australia rose 0.3% to A$81.94, Westpac Banking Corp 0.5% to A$34.50, ANZ Banking Group 0.4% to A$33.69 and National Australia Bank 0.7% to A$33.51.
Shares of precious metal producers declined inline with drop in bullion prices. The upbeat sentiment eroded the safe-haven appeal of gold, which extended sharp overnight losses and fell to a fresh 3-1/2 month low amid the strong US economic data and a drop in imports by top consumer China. Spot gold slipped to a low of $1,260.74 an ounce, its weakest since February 7. Among gold miners, Newcrest Mining lost 4.2% to A$9.82, Evolution Mining 4.8% to A$0.79 and Resolute Mining 5.7% to A$0.58.
In Japan, Japanese share market finished higher for fifth consecutive session, a fresh two months high, supported by gaining confidence in the U.S. economic recovery after strong economic data. However, overall gains were capped after Bank of Japan governor Haruhiko Kuroda signalled current monetary policy is appropriate, dashing hopes for more easing by the central bank in the near future. The Nikkei 225 index gained 0.24% to finish at 14670.95, while the Topix index of all first-section issues was up 0.26% at 1198.17.
Shares of general contractors companies climbed up following an announcement from the state Reconstruction Agency it will go ahead with rebuilding homes damaged and destroyed in the aftermath of the March 2011 earthquake and tsunami that devastated Japan's northeast. Major builders Shimizu Corp. added 5.6%, Taisei Corp. gained 3.4%, and Obayashi Corp. rose 3.4%.
Yamada Denki shares jumped 6.4% as appliance retailer Y100 billion euro-yen convertible bond offer was greeted warmly by investors. The company said it plans to use half of the raised funds for share buybacks.
Shares of Nippon Kayaku rose 4.7% after Nomura Securities upgrade its rating for drug maker to Buy from Neutral. Nomura cited faster-than-expected approval of the company's Remicade biosimilar CT-P13 treatment by a government committee the prior day.
Food products maker Ajinomoto added 1.9% after announcing Tuesday it will retire almost 20 million of its own shares, 3.2% of the total, by June 6.
Mitsui Fudosan has said on Tuesday it would raise up to Y325 billion via a global share offering. Shares closed down 4.7% as the dilution rate for the offer came to 12.5%. The firm is slated to complete multiple large-scale projects over the next few years in prior to the 2020 Tokyo Summer Olympic Games.
In China, Mainland China share market finished the session modest higher, , with technology stocks leading gains amid speculation of benefit from the government's dispute with the US over cyber-spying. The benchmark Shanghai Composite ended 0.66% higher at 2050.23, on turnover of 68.60 billion yuan.
In an escalation of China's dispute with the United States over spying claims, the Chinese Government is pushing domestic banks to remove high-end servers made by International Business Machines Corp. (IBM) and replace them with a local brand, according to media reports.
Government agencies, including the People's Bank of China and the Ministry of Finance, are reviewing whether Chinese commercial banks' reliance on the IBM servers compromises the country's financial security, the report said. China on Monday accused the United States of unscrupulous cyber surveillance that included large-scale computer attacks against the Chinese Government and Chinese firms. China told its State-owned enterprises to sever links with American consulting firms just days after the United States charged five Chinese military officers with hacking U.S. companies, the Financial Times reported Sunday. The sources said China's government is concerned that IBM may be a security threat following Edward Snowden's revelations of a U.S. National Security Agency spying program, though it also believes IBM servers are more expensive in China than in other regions.
Shares of technology companies extended gains for second day in row amid speculation they will benefit from the government's dispute with the U.S. over cyber-spying. On media reports, Chinese government is pushing domestic banks to remove high-end servers made by IBM and replace them with a local brand, in an escalation of the dispute with the U.S. over spying claims. Yonyou Software Co rose 7.8% to 15.31 yuan and Aisino Co jumped 6.9% to 20.08 yuan. Inspur Electronic Information Industry Co surged 10% to 33.99 yuan. ZTE Corp., China's second-biggest maker of phone-network equipment, rallied 4.4% to 13.18 yuan in Shenzhen.
Shares of precious metal producers declined inline with drop in bullion prices. Among gold miners, Shandong Gold, China's second-largest bullion producer, fell 0.7% to 15.67 yuan and Zhongjin Gold Co, the third biggest, lost 0.4% to 7.74 yuan.
In Hong Kong, HK share market ended higher, supported by another record-close for the S&P 500 overnight and interest in banking stocks, though overall gains were capped by a slide in casino and retailers. The benchmark Hang Seng Index was up 0.59% or 135.73 points to finish at 23080.30. The benchmark index soared 260 points at one stage before paring its gains by market close. Turnover rose to HK$71.9 billion from HK$42.4 billion on Tuesday.
Mainland lenders listed in HSI bourse showed their muscles. ICBC rose 1.6% to HK$5.04. China Construction Bank Corp gained 1.4% to HK$5.68. Agricultural Bank of China added 1.5% to HK$3.44.
Technology stocks rose amid speculation of benefit from the Chinese government's dispute with the US over cyber-spying. Lenovo added 1% to HK$9.84. Inspur International surged 9.9% to HK$1.67 after jumping 9.4% yesterday.
Shares of casino companies declined, with Sands China leading losses, down by 2% to HK$57.05, after Waddell & Reed, a holder of Sands, disposed of a big chunk of its stake in the casino operator. Galaxy Ent (00027), Wynn Macau (01128) and Melco (00200) all declined, ranging between 0.8% and 1.2%.
Retailers extended losses on speculation a potential curb on tourist arrivals from China announced yesterday may put pressure on the earnings and asset values of shopping-mall operators and retailers in the city. Belle (01880) slid 3% to HK$7.8 after the company reduced its SSSG guidance, which triggered a slew of brokerage downgrades. Anta Sports Products dipped 2.1% to HK$11.46. Hengdeli Holdings fell 3.3% to HK$1.45.
In India, key benchmark indices eked out marginal gain in volatile trade today, as traders roll over positions in the futures & options (F&O) segment from the near month May 2014 series to June 2014 series. The near month May 2014 derivatives contract expire tomorrow, 29 May 2014. The Sensex provisionally closed 0.03% higher, while the Nifty gained 0.16%.
Cement stocks rose after their recent relative underperformance. UltraTech Cement provisionally rose 5.7% while Ambuja Cements ended higher 5.5%.
Hawkins Cookers jumped 18.6% after net profit rose 12.42% to Rs 13.12 crore on 14.82% growth in total income from operations to Rs 141.86 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced after market hours on Tuesday, 27 May 2014. Hawkins Cookers' net profit rose 12.25% to Rs 38.28 crore on 7.62% growth in total income from operations to Rs 457.08 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
Elsewhere in the Asia Pacific region, Taiwan's Taiex index rose 0.73%. South Korea's KOSPI index was down 0.97%. New Zealand's NZX50 fell 0.69%. Indonesia's Jakarta Composite Index rose 0.44%. Malaysia's KLSE Composite rose 0.22%. Singapore's Straits Times index lost 0.07%.
