Headline shares of the Asia Pacific market closed slight higher in
subdued trading on Friday, 09 May 2014, as investors weighing a fall in
Chinese inflation and renewed jitters about Ukraine as pro-Russian
militants pressed ahead with plans for an independence referendum.
The April inflation data from China's offered a mixed picture as slowing prices signal slumping consumption demand, while giving the government more leeway to stimulate the slowing Chinese economy if needed. China's consumer-price index rose 1.8% in April from a year earlier, slower than a 2.4% on-year rise in March, data from the National Bureau of Statistics showed on Friday. The CPI declined 0.3% in April compared with March. In March, it dropped 0.5% from the preceding month. China's producer-price index fell 2.0% in April from a year earlier, compared with a 2.3% on-year decrease in March, the same data showed. The PPI also declined 0.2% in April from March. In March, it fell 0.3% from the preceding month.
Ukraine continued to loom large for investors. Insurgents in the country's east are preparing for a weekend referendum on independence, a vote similar to the plebiscite that paved the way for Moscow's annexation of Crimea in March. Preparations have continued despite a call by Russian President Vladimir Putin to put off the vote amid negotiations with the West over Ukraine's future.
Among Asian bourses, Japanese share market finished higher for second day in row on subdued volume, as solid earnings results from bellwether companies cheer investors. However, stronger yen against the dollar capped upside. The Nikkei 225 index gained 0.25% to 14199.59, while the Topix index of all first-section shares climbed 0.47% to 1165.51.
Tokyo stocks had opened lower as the yen gained ground against the dollar in early trading. A strong yen is negative for Japanese exporters, making them less competitive overseas and eroding repatriated profits. But investors bought on dips, as solid earnings results from bellwether companies, sending the Nikkei index back into positive territory by noon. Of the companies on the Topix that have posted quarterly results since 1 April 2014, nearly 55% beat earnings expectations as of yesterday.
Mitsubishi Heavy jumped 6.8% to 566 yen after targeting a net income of 130 billion yen for the current fiscal year.
Ebara soared 7.5% to 644 yen after saying full-year net income will grow 5.4% to 20 billion yen ($197 million).
Mitsumi Electric Co. soared 5.8% to 691 yen after the maker of electronic parts reported preliminary net income of 3.2 billion yen.
Toshiba Corp added 1.3% to 399 yen after its earnings were in line with revisions. Initial guidance for the current period calls for an operating profit rise of 14%, and well over a doubling of net profit.
Diversified leasing agent Orix rose 5.0% after it booked a 67% net profit rise for the last business year. It is aiming for a 12% net profit rise this year.
Shinsei Bank gained 4.9% after announcing full-year guidance for a 35.5% increase in net operating profit this year.
Canon rose 1.9% to 3,252 yen. The camera maker plans to buy back as many as 17 million shares between today and July 29.
Rakuten slumped 5.5% to 1,228 yen after announcing its quarterly operating profit fell 1.5% to 22.6 billion yen from a year earlier.
In Australia, headline shares of Australian market declined on Friday, 09 May 2014, as investors booked profit made previous session on caution ahead of next week's Federal Budget, with the government having flagged it may hike taxes and cut spending. The benchmark S&P/ASX200 declined by 0.29% to close at 5460.80 and the broader All Ordinaries lost by 0.25%% to 5442. For the week, the benchmark S&P/ASX 200 Index eked out a gain of just 0.06%, while the broader All Ordinaries Index edged 0.07%. Market turnover was relatively thin with 1.42 billion shares changed hands worth of A$3.27 billion in Australia.
Financials stocks finished higher, with Commonwealth Bank of Australia adding 0.5% to A$79.50, National Australia Bank 0.7% to A$34.38 and Westpac Banking Corp 0.1% to A$34.94. ANZ Banking Group fell by 3.2% to A$32.72 as the major bank traded ex-dividend.
Materials and resources stocks were broadly lower, BHP Billiton down by 0.8% to A$37.34, while Rio Tinto lost 0.8% to A$60.95. Iron ore miner Fortescue Metals Group shed 0.2% to A$4.81.
Envestra surged 18% to A$1.335 after billionaire Li Ka-shing's Cheung Kong Group joined the battle for the Australian natural-gas distributor with cash bid that values the firm at A$2.4 billion
Reserve Bank issued its latest Statement on Monetary Policy today, which included updates on the central bank's forecasts. The central bank has slightly upgraded its economic growth expectations to 3% by June 2014. Its inflation expectations have been slightly lowered.
These are signs that the RBA is feeling more comfortable with the way the Australian economy is improving but also that it isn't as concerned with inflation. The market is currently factoring in a 2% chance of a rate cut next month. An interest rate hike in the latter part of this year is still a possibility; however the RBA doesn't seem in any hurry to raise rates.
In China, Mainland China share market finished the session slight weaker in choppy trade, on concern over domestic economic growth slowdown and IPO sales will divert funds. The Shanghai Composite Index slipped 0.2% to 2,011.14 at the close, extending this week's loss to 0.8%.
China money market rates were spiked on Friday on concerns about tight liquidity availability in the system due to issue of new shares. The seven-day repo rate, a gauge of interbank liquidity conditions, quoted at 6% late afternoon, higher by 275 bps from previous session's closure.
The total number of companies seeking to go public has climbed to 307 after nine more prospectuses were posted on the website of the China Securities Regulatory Commission yesterday.
Shares of property developers were mostly lower, with Poly Real Estate Group Co declining 1.3% to 7.10 yuan after China's second-largest developer by market value stated its contract sales dropped 12% from a year earlier in April. China Vanke was down 1.2% to 7.26 yuan and Gemdale Corp 0.1% to 7.75 yuan.
Material stocks advanced the most in shanghai, with Jinduicheng Molybdenum Co rising by 10% daily limit to 6.44 yuan, while China Molybdenum Co. locked 10% upper circuit to 6.51 yuan.
Shares of water treatment firms were higher on reports that an eastern Chinese city had suspended water supplies over suspected pollution. Water purifier maker Shanghai Canature Environmental Products gained 4.88% to 13.98 yuan and Shanghai Safbon Water Service advanced 3.12% to 13.20 yuan.
Agricultural Bank of China shares gained 0.4% to 2.40 yuan after the lender said in a statement yesterday that its board approved a plan to sell as many as 800 million preferred shares through private transactions.
Great Wall Motor Co plunged 10% daily limit to 28.69 yuan after China's biggest maker of sport utility vehicles pushed back sales of its new flagship Haval H8 SUV.
In Hong Kong, shares in city's market finished slight higher in extremely narrow trade, with the benchmark index moving within 80 points for a day, as investors weighed a fall in Chinese inflation against a negative cue from Wall Street overnight. The benchmark Hang Seng index was up 0.12% to 21862.99. Turnover reduced to HK$53.6 billion from HK$65.2 billion on Thursday.
Shares in Macau casino operators rebounded on bargain hunting in Hong Kong after brokerage houses said worries over a crackdown on illegal money transfers may be overblown and won't affect gambling demand. Beijing is concerned that billions of yuan in illicit funds are being channelled out of mainland China and into casinos. Galaxy Entertainment jumped 5.6 percent to HK$58.50 and Sands China advanced 5.8 percent to HK$55.60.
Shares of telecom carriers met profit taking today. China Mobile (00941) edged down 0.9% to HK$74.5. China Unicom (00762) slipped 2.7% to HK$12.38. China Telecom (00728) sank 1.4% to HK$4.13.
Great Wall tumbled 17 percent to HK$27.25fter the auto maker delayed again the launch of its high-end SUV, the H8. The carmaker, led by billionaire Chairman Wei Jianjun, said yesterday it suspended sales of the H8 model after customers reported hearing “knocking noises” in the transmission when driving at high speeds.
In India, key benchmark indices surged on speculation the Bharatiya Janata Party (BJP) led National Democratic Alliance (NDA) will be able to form the next government at the centre after Lok Sabha elections which conclude early next week. The market sentiment was also boosted by data showing that foreign funds remained net buyers of Indian stocks on Thursday, 8 May 2014. The S&P BSE Sensex garnered 650.19 points or 2.91% to settle at 22,994.23, a record closing high for the index. The CNX Nifty garnered 198.95 points or 2.99% to settle at 6,858.80, a record closing high for the index.
Investors are hoping that a BJP-led government will give a boost to India's policy reforms, helping the economy recover from a slowdown. The BJP in its Lok Sabha polls manifesto has promised more business-friendly policies if the party comes to power after elections. The BJP has said that measures for the revival of the economy are its priority if the party comes to power after elections. India's GDP growth has slowed to a decade low of below 5%. The GDP grew 4.7% in Q3 December 2013. Narendra Modi, the prime ministerial candidate from the NDA, is perceived as being more business-friendly and decisive by the business community. As chief minister for the fast-growing state of Gujarat, Modi has built a reputation for getting things done.
Foreign institutional investors (FIIs) bought Indian shares worth a net Rs 518.50 crore from the secondary equity markets on Thursday, 8 May 2014, as per the data from the Securities & Exchange Board of India (Sebi).
Tech Mahindra rose 1.73%. The company today, 9 May 2014, announced its foray into Mexico as part of its expansion strategy in the American region. Tech Mahindra said it will offer an array of innovative solutions and consulting services in Mexico focused on meeting the needs of customers in various industries such as telecom, banking, energy, manufacturing and retail distribution among others. The company will establish partnerships with local universities, business schools and trade bodied to enable creation of 500 jobs in the next 24 months.
Infosys rose 1.39%. The company said after market hours that the final dividend of Rs 43 per share for the year ended 31 March 2014, as recommended by the board of directors, if declared, at the annual general meeting, will be paid on 16 June 2014 to those members whose names appear on the Register of Members as on 30 May 2014.
HCL Technologies gained 2.39% after the company after market hours on Thursday, 8 May 2014, said it has partnered with LinkedIn to launch an application aimed at encouraging users to go above and beyond the scope of their existing contracts.
Steel stocks gained after ArcelorMittal, the world's biggest steelmaker by volume, reported a 12% increase in first-quarter earnings before interest, taxes, depreciation and amortization (EBITDA) and reiterated its full-year EBITDA target. Steel Authority of India (Sail) (up 4.31%), Bhushan Steel (up 0.51%), Tata Steel (up 3.64%), JSW Steel (up 3.38%), and Jindal Steel & Power (up 2.3%) gained.
Elsewhere in the Asia Pacific region, Taiwan's Taiex index declined 0.46%. South Korea's KOSPI index was up 0.31%. New Zealand's NZX50 fell 0.17%. Singapore's Straits Times index added 0.14%. Indonesia's Jakarta Composite Index added 0.77%. Malaysia's KLSE Composite closed 0.21% higher.
The April inflation data from China's offered a mixed picture as slowing prices signal slumping consumption demand, while giving the government more leeway to stimulate the slowing Chinese economy if needed. China's consumer-price index rose 1.8% in April from a year earlier, slower than a 2.4% on-year rise in March, data from the National Bureau of Statistics showed on Friday. The CPI declined 0.3% in April compared with March. In March, it dropped 0.5% from the preceding month. China's producer-price index fell 2.0% in April from a year earlier, compared with a 2.3% on-year decrease in March, the same data showed. The PPI also declined 0.2% in April from March. In March, it fell 0.3% from the preceding month.
Ukraine continued to loom large for investors. Insurgents in the country's east are preparing for a weekend referendum on independence, a vote similar to the plebiscite that paved the way for Moscow's annexation of Crimea in March. Preparations have continued despite a call by Russian President Vladimir Putin to put off the vote amid negotiations with the West over Ukraine's future.
Among Asian bourses, Japanese share market finished higher for second day in row on subdued volume, as solid earnings results from bellwether companies cheer investors. However, stronger yen against the dollar capped upside. The Nikkei 225 index gained 0.25% to 14199.59, while the Topix index of all first-section shares climbed 0.47% to 1165.51.
Tokyo stocks had opened lower as the yen gained ground against the dollar in early trading. A strong yen is negative for Japanese exporters, making them less competitive overseas and eroding repatriated profits. But investors bought on dips, as solid earnings results from bellwether companies, sending the Nikkei index back into positive territory by noon. Of the companies on the Topix that have posted quarterly results since 1 April 2014, nearly 55% beat earnings expectations as of yesterday.
Mitsubishi Heavy jumped 6.8% to 566 yen after targeting a net income of 130 billion yen for the current fiscal year.
Ebara soared 7.5% to 644 yen after saying full-year net income will grow 5.4% to 20 billion yen ($197 million).
Mitsumi Electric Co. soared 5.8% to 691 yen after the maker of electronic parts reported preliminary net income of 3.2 billion yen.
Toshiba Corp added 1.3% to 399 yen after its earnings were in line with revisions. Initial guidance for the current period calls for an operating profit rise of 14%, and well over a doubling of net profit.
Diversified leasing agent Orix rose 5.0% after it booked a 67% net profit rise for the last business year. It is aiming for a 12% net profit rise this year.
Shinsei Bank gained 4.9% after announcing full-year guidance for a 35.5% increase in net operating profit this year.
Canon rose 1.9% to 3,252 yen. The camera maker plans to buy back as many as 17 million shares between today and July 29.
Rakuten slumped 5.5% to 1,228 yen after announcing its quarterly operating profit fell 1.5% to 22.6 billion yen from a year earlier.
In Australia, headline shares of Australian market declined on Friday, 09 May 2014, as investors booked profit made previous session on caution ahead of next week's Federal Budget, with the government having flagged it may hike taxes and cut spending. The benchmark S&P/ASX200 declined by 0.29% to close at 5460.80 and the broader All Ordinaries lost by 0.25%% to 5442. For the week, the benchmark S&P/ASX 200 Index eked out a gain of just 0.06%, while the broader All Ordinaries Index edged 0.07%. Market turnover was relatively thin with 1.42 billion shares changed hands worth of A$3.27 billion in Australia.
Financials stocks finished higher, with Commonwealth Bank of Australia adding 0.5% to A$79.50, National Australia Bank 0.7% to A$34.38 and Westpac Banking Corp 0.1% to A$34.94. ANZ Banking Group fell by 3.2% to A$32.72 as the major bank traded ex-dividend.
Materials and resources stocks were broadly lower, BHP Billiton down by 0.8% to A$37.34, while Rio Tinto lost 0.8% to A$60.95. Iron ore miner Fortescue Metals Group shed 0.2% to A$4.81.
Envestra surged 18% to A$1.335 after billionaire Li Ka-shing's Cheung Kong Group joined the battle for the Australian natural-gas distributor with cash bid that values the firm at A$2.4 billion
Reserve Bank issued its latest Statement on Monetary Policy today, which included updates on the central bank's forecasts. The central bank has slightly upgraded its economic growth expectations to 3% by June 2014. Its inflation expectations have been slightly lowered.
These are signs that the RBA is feeling more comfortable with the way the Australian economy is improving but also that it isn't as concerned with inflation. The market is currently factoring in a 2% chance of a rate cut next month. An interest rate hike in the latter part of this year is still a possibility; however the RBA doesn't seem in any hurry to raise rates.
In China, Mainland China share market finished the session slight weaker in choppy trade, on concern over domestic economic growth slowdown and IPO sales will divert funds. The Shanghai Composite Index slipped 0.2% to 2,011.14 at the close, extending this week's loss to 0.8%.
China money market rates were spiked on Friday on concerns about tight liquidity availability in the system due to issue of new shares. The seven-day repo rate, a gauge of interbank liquidity conditions, quoted at 6% late afternoon, higher by 275 bps from previous session's closure.
The total number of companies seeking to go public has climbed to 307 after nine more prospectuses were posted on the website of the China Securities Regulatory Commission yesterday.
Shares of property developers were mostly lower, with Poly Real Estate Group Co declining 1.3% to 7.10 yuan after China's second-largest developer by market value stated its contract sales dropped 12% from a year earlier in April. China Vanke was down 1.2% to 7.26 yuan and Gemdale Corp 0.1% to 7.75 yuan.
Material stocks advanced the most in shanghai, with Jinduicheng Molybdenum Co rising by 10% daily limit to 6.44 yuan, while China Molybdenum Co. locked 10% upper circuit to 6.51 yuan.
Shares of water treatment firms were higher on reports that an eastern Chinese city had suspended water supplies over suspected pollution. Water purifier maker Shanghai Canature Environmental Products gained 4.88% to 13.98 yuan and Shanghai Safbon Water Service advanced 3.12% to 13.20 yuan.
Agricultural Bank of China shares gained 0.4% to 2.40 yuan after the lender said in a statement yesterday that its board approved a plan to sell as many as 800 million preferred shares through private transactions.
Great Wall Motor Co plunged 10% daily limit to 28.69 yuan after China's biggest maker of sport utility vehicles pushed back sales of its new flagship Haval H8 SUV.
In Hong Kong, shares in city's market finished slight higher in extremely narrow trade, with the benchmark index moving within 80 points for a day, as investors weighed a fall in Chinese inflation against a negative cue from Wall Street overnight. The benchmark Hang Seng index was up 0.12% to 21862.99. Turnover reduced to HK$53.6 billion from HK$65.2 billion on Thursday.
Shares in Macau casino operators rebounded on bargain hunting in Hong Kong after brokerage houses said worries over a crackdown on illegal money transfers may be overblown and won't affect gambling demand. Beijing is concerned that billions of yuan in illicit funds are being channelled out of mainland China and into casinos. Galaxy Entertainment jumped 5.6 percent to HK$58.50 and Sands China advanced 5.8 percent to HK$55.60.
Shares of telecom carriers met profit taking today. China Mobile (00941) edged down 0.9% to HK$74.5. China Unicom (00762) slipped 2.7% to HK$12.38. China Telecom (00728) sank 1.4% to HK$4.13.
Great Wall tumbled 17 percent to HK$27.25fter the auto maker delayed again the launch of its high-end SUV, the H8. The carmaker, led by billionaire Chairman Wei Jianjun, said yesterday it suspended sales of the H8 model after customers reported hearing “knocking noises” in the transmission when driving at high speeds.
In India, key benchmark indices surged on speculation the Bharatiya Janata Party (BJP) led National Democratic Alliance (NDA) will be able to form the next government at the centre after Lok Sabha elections which conclude early next week. The market sentiment was also boosted by data showing that foreign funds remained net buyers of Indian stocks on Thursday, 8 May 2014. The S&P BSE Sensex garnered 650.19 points or 2.91% to settle at 22,994.23, a record closing high for the index. The CNX Nifty garnered 198.95 points or 2.99% to settle at 6,858.80, a record closing high for the index.
Investors are hoping that a BJP-led government will give a boost to India's policy reforms, helping the economy recover from a slowdown. The BJP in its Lok Sabha polls manifesto has promised more business-friendly policies if the party comes to power after elections. The BJP has said that measures for the revival of the economy are its priority if the party comes to power after elections. India's GDP growth has slowed to a decade low of below 5%. The GDP grew 4.7% in Q3 December 2013. Narendra Modi, the prime ministerial candidate from the NDA, is perceived as being more business-friendly and decisive by the business community. As chief minister for the fast-growing state of Gujarat, Modi has built a reputation for getting things done.
Foreign institutional investors (FIIs) bought Indian shares worth a net Rs 518.50 crore from the secondary equity markets on Thursday, 8 May 2014, as per the data from the Securities & Exchange Board of India (Sebi).
Tech Mahindra rose 1.73%. The company today, 9 May 2014, announced its foray into Mexico as part of its expansion strategy in the American region. Tech Mahindra said it will offer an array of innovative solutions and consulting services in Mexico focused on meeting the needs of customers in various industries such as telecom, banking, energy, manufacturing and retail distribution among others. The company will establish partnerships with local universities, business schools and trade bodied to enable creation of 500 jobs in the next 24 months.
Infosys rose 1.39%. The company said after market hours that the final dividend of Rs 43 per share for the year ended 31 March 2014, as recommended by the board of directors, if declared, at the annual general meeting, will be paid on 16 June 2014 to those members whose names appear on the Register of Members as on 30 May 2014.
HCL Technologies gained 2.39% after the company after market hours on Thursday, 8 May 2014, said it has partnered with LinkedIn to launch an application aimed at encouraging users to go above and beyond the scope of their existing contracts.
Steel stocks gained after ArcelorMittal, the world's biggest steelmaker by volume, reported a 12% increase in first-quarter earnings before interest, taxes, depreciation and amortization (EBITDA) and reiterated its full-year EBITDA target. Steel Authority of India (Sail) (up 4.31%), Bhushan Steel (up 0.51%), Tata Steel (up 3.64%), JSW Steel (up 3.38%), and Jindal Steel & Power (up 2.3%) gained.
Elsewhere in the Asia Pacific region, Taiwan's Taiex index declined 0.46%. South Korea's KOSPI index was up 0.31%. New Zealand's NZX50 fell 0.17%. Singapore's Straits Times index added 0.14%. Indonesia's Jakarta Composite Index added 0.77%. Malaysia's KLSE Composite closed 0.21% higher.
