Asia Pacific market advanced on Friday, 23 May 2014, lifted by signs of
growth in the world's largest economies. But, concerns over tensions in
Ukraine, conflicts between North and South Korea, and a Thai military
coup limited the move on the upside. The MSCI Asia Pacific Index added
0.4% to 140.90.
The U.S. stocks rose overnight on the coattails of solid economic indicators coupled with ongoing expectations for the Federal Reserve to keep benchmark interest rates at rock-bottom levels for a considerable time period after monetary stimulus programs wrap up. The Dow 30 rose 0.06%, the S&P 500 index rose 0.24%, while the NASDAQ Composite Composite index rose 0.55%.
A report released on Thursday showed that U.S. manufacturing activity expanded at a faster fastest pace since February 2011 this month. London-based Markit Economics reported that its preliminary U.S. manufacturing purchasing managers' index rose to 56.2 in May from a final reading of 55.4 in April.
On Wednesday, the Federal Reserve released the minutes of its April policy meeting, which revealed the U.S. central bank plans to continue tapering its monthly bond-buying program and rely on other tools to normalize monetary policy, though actual rate hikes won't come for a considerable amount of time.
Further support came from upbeat Chinese factory activity data. The HSBC Flash Manufacturing PMI for April reflected a rise to 49.7, a five-month high and up from final April reading of 48.1. A breakdown of the survey results showed the handful of closely-followed indices that measure output, domestic and foreign demand all improved substantially in May to rise above the 50-point mark, from sub-50 levels in April.
However gains on the upside was limited, on caution ahead of critical elections in Ukraine this Sunday, as the region has been a source of risk-off geopolitical tension with Russia numerous times over the past few months Investors were also eyeing regional tensions in Asia.
Thailand's army chief seized power in a military coup on Thursday, deposing its beleaguered civilian government in a bid to end deadly political turmoil but triggering U.S.-led international censure. Two days after declaring martial law and saying there was no coup, army chief Prayuth Chan-Ocha announced on national television alongside senior military officials yesterday that he was seizing control to restore peace.
Also on Thursday North Korea fired shells into waters near a South Korean warship on patrol south of the disputed Yellow Sea border, prompting an evacuation of residents on a nearby island.
Among Asian bourses, Australian share market extended winning streak or fourth day today, on the back of strong lead from Wall Street overnight and better than expected signs for China's and US manufacturing industry. The benchmark S&P/ASX200 and the broader All Ordinaries each rose by 0.2% to 5492.80 and 5470.30, respectively. The S&P/ASX 200 Index added 0.3% and the broader All Ordinaries Index gained 0.2% over the week.
Treasury Wine Estates shares rose 4.7% to A$5.17, extending recent gain, amid speculation a bidding war could erupt for the world's biggest listed pure-play winemaker. The company rejected A$3.05 billion takeover offer from Kohlberg Kravis Roberts & Co on Tuesday (20 May 2014). . Speculation has since surfaced China's Bright Food is mulling its own bid to buy the company.
Fisher & Paykel Healthcare Corp (FPH) rose by % to A$3.94 after reporting a record full year net profit. The medical device manufacturer said net profit rose 26% on a 13% rise in operating revenues. The result was driven by rising sales to hospital clinicians and homecare providers.
Cleaning and catering services firm Spotless Group (SPO) returned to the Australian Securities Exchange on Friday. SPO opened at A$1.75, 15 cents above their issue price of A$1.60, and ended at A$1.71 a gain of more than 7%. The group was bought by private equity group Pacific Equity Partners in August 2012 for A$720 million.
In Japan, Japanese share market ended higher for second day in row, as positive global markets cues, halt in yen appreciation and Japan Post Insurance Co announcement to increase investment in domestic stocks buoyed up risk sentiments. But, lingering concerns over tensions in Ukraine and a Thai military coup capped gained. The benchmark Nikkei 225 index added 0.9% to 14462.17, while the Topix index of all first-section shares climbed 0.95% to 1180.44. For the week, the Nikkei added 2.6%, giving it a year-to-date performance of minus 11%.
Takeda Pharmaceutical Co., Asia's largest drugmaker, added 1.6% to 4,594 yen after it was found not liable for the bladder cancer of two women who used its Actos diabetes medication.
Toshiba Corp added 0.8% to 389 yen after the company was seen setting high but potentially achievable targets for itself. With NAND flash memory as its growth driver, the firm targeted sales to grow to 2.2 trillion yen in the fiscal year ending March 2017, up from a target of 1.7 trillion yen this year.
Sony Corp declined 0.8% to 1632 yen after Chief Executive Kazuo Hirai ruled out radical new measures to overhaul the company's troubled consumer electronics arm. The company targeted an operating profit of over 400 billion yen over the next two years, as well as the completion of restructuring its electronics business. But market pundit panned the numbers, noting that the reliability of structural reforms at the company has been historically low.
Toray Industries Inc advanced 1.1% to 643 yen after the firm announced a 100 yen zero coupon convertible bond sale that was praised for devoting a good portion for the sale proceeds into buying back its own stock--the company's first-ever stock repurchase.
In China, Mainland China share market finished the session modestly higher, , with shares of financials, developers and materials & resources companies leading gains, amid better than expected flash reading on Chinese manufacturing for May and on speculation of easing curbs for the property sectors. The benchmark Shanghai Composite ended 13.28 points higher at 2034.57, on turnover of 51.46 billion yuan. The benchmark index touched intraday low of 2017.74.
Shares of property developers ended higher on speculation the government is easing property curbs to prevent the economy from missing its growth target for this year. China Vanke gained 3.3% in Shenzhen while Poly Real Estate advanced 4.3% in Shanghai.
Chinese newspaper reported that China housing ministry will remove restrictions on home purchases depending on market condition to prevent the economy from missing its growth target for this year. The separate report stated that government has allowed cities to adjust home-buying curbs except for Beijing, Shanghai, Guangzhou and Shenzhen.
In Hong Kong, HK share market closed slight higher after fluctuating in and out of the boundary line, as strong lead from global markets overnight largely offset by concerns over tensions in Ukraine, conflicts between North and South Korea, and a Thai military coup. The benchmark Hang Seng Index was up 12.10 points to 22965.86 on turnover of HK$51.40 billion.
Shares of Mainland developers listed in HK rallied on talks that more than 30 cities will lift restriction on home purchase. COLI (00688) jumped 5.5% to HK$20. Both CR Land (01109) and China Resources (00291) rose 4% to HK$15.34 and HK$23.9 KWG Property (01813) and Country Garden (02007) shot up 5.8% and HK$4.9%. CC Land (01224) soared 10% to HK$1.5.
Chinese telcos are in discussions to establish a TowerCo, with China Mobile (00941) offering to inject its 2G, 3G, and 4G base stations, plants and land into the new company. China Mobile dipped 1% to HK$77.25. China Unicom (00762) fell 1.03% to HK$11.56. China Telecom (00728) was down by 2% to HK$3.86.
In India, key benchmark indices closed sharp higher on strong buying in power, oil & gas, capital goods and realty sector stocks amidst positive trends at other Asian bourses. As per provisional closing, the 30-share BSE index Sensex surged 318.95 points to end at 24,693.35 and the 50-share NSE index Nifty rose 98.85 points to end at 7,375.25.
Reliance Communications rose 5.7% to Rs 144.35 on reports that the Indian company was in talks with China's Citic Telecom over an undersea cable joint venture, citing unnamed people familiar with the talks.
Coal India gained 2% to Rs 397.55, adding to Thursday's 5.1% surge, after media reports that prime minister-designate Narendra Modi was exploring an overhaul of the state behemoth, a step that an investor said would unlock more value in the firm.
Elsewhere in the Asia Pacific region, Taiwan's Taiex index jumped 0.43%. South Korea's KOSPI index was up 0.08%. New Zealand's NZX50 added 0.44%. Singapore's Straits Times index rose 0.38%. Indonesia's Jakarta Composite Index added 0.06%. Malaysia's KLSE Composite declined 0.31%.
The U.S. stocks rose overnight on the coattails of solid economic indicators coupled with ongoing expectations for the Federal Reserve to keep benchmark interest rates at rock-bottom levels for a considerable time period after monetary stimulus programs wrap up. The Dow 30 rose 0.06%, the S&P 500 index rose 0.24%, while the NASDAQ Composite Composite index rose 0.55%.
A report released on Thursday showed that U.S. manufacturing activity expanded at a faster fastest pace since February 2011 this month. London-based Markit Economics reported that its preliminary U.S. manufacturing purchasing managers' index rose to 56.2 in May from a final reading of 55.4 in April.
On Wednesday, the Federal Reserve released the minutes of its April policy meeting, which revealed the U.S. central bank plans to continue tapering its monthly bond-buying program and rely on other tools to normalize monetary policy, though actual rate hikes won't come for a considerable amount of time.
Further support came from upbeat Chinese factory activity data. The HSBC Flash Manufacturing PMI for April reflected a rise to 49.7, a five-month high and up from final April reading of 48.1. A breakdown of the survey results showed the handful of closely-followed indices that measure output, domestic and foreign demand all improved substantially in May to rise above the 50-point mark, from sub-50 levels in April.
However gains on the upside was limited, on caution ahead of critical elections in Ukraine this Sunday, as the region has been a source of risk-off geopolitical tension with Russia numerous times over the past few months Investors were also eyeing regional tensions in Asia.
Thailand's army chief seized power in a military coup on Thursday, deposing its beleaguered civilian government in a bid to end deadly political turmoil but triggering U.S.-led international censure. Two days after declaring martial law and saying there was no coup, army chief Prayuth Chan-Ocha announced on national television alongside senior military officials yesterday that he was seizing control to restore peace.
Also on Thursday North Korea fired shells into waters near a South Korean warship on patrol south of the disputed Yellow Sea border, prompting an evacuation of residents on a nearby island.
Among Asian bourses, Australian share market extended winning streak or fourth day today, on the back of strong lead from Wall Street overnight and better than expected signs for China's and US manufacturing industry. The benchmark S&P/ASX200 and the broader All Ordinaries each rose by 0.2% to 5492.80 and 5470.30, respectively. The S&P/ASX 200 Index added 0.3% and the broader All Ordinaries Index gained 0.2% over the week.
Treasury Wine Estates shares rose 4.7% to A$5.17, extending recent gain, amid speculation a bidding war could erupt for the world's biggest listed pure-play winemaker. The company rejected A$3.05 billion takeover offer from Kohlberg Kravis Roberts & Co on Tuesday (20 May 2014). . Speculation has since surfaced China's Bright Food is mulling its own bid to buy the company.
Fisher & Paykel Healthcare Corp (FPH) rose by % to A$3.94 after reporting a record full year net profit. The medical device manufacturer said net profit rose 26% on a 13% rise in operating revenues. The result was driven by rising sales to hospital clinicians and homecare providers.
Cleaning and catering services firm Spotless Group (SPO) returned to the Australian Securities Exchange on Friday. SPO opened at A$1.75, 15 cents above their issue price of A$1.60, and ended at A$1.71 a gain of more than 7%. The group was bought by private equity group Pacific Equity Partners in August 2012 for A$720 million.
In Japan, Japanese share market ended higher for second day in row, as positive global markets cues, halt in yen appreciation and Japan Post Insurance Co announcement to increase investment in domestic stocks buoyed up risk sentiments. But, lingering concerns over tensions in Ukraine and a Thai military coup capped gained. The benchmark Nikkei 225 index added 0.9% to 14462.17, while the Topix index of all first-section shares climbed 0.95% to 1180.44. For the week, the Nikkei added 2.6%, giving it a year-to-date performance of minus 11%.
Takeda Pharmaceutical Co., Asia's largest drugmaker, added 1.6% to 4,594 yen after it was found not liable for the bladder cancer of two women who used its Actos diabetes medication.
Toshiba Corp added 0.8% to 389 yen after the company was seen setting high but potentially achievable targets for itself. With NAND flash memory as its growth driver, the firm targeted sales to grow to 2.2 trillion yen in the fiscal year ending March 2017, up from a target of 1.7 trillion yen this year.
Sony Corp declined 0.8% to 1632 yen after Chief Executive Kazuo Hirai ruled out radical new measures to overhaul the company's troubled consumer electronics arm. The company targeted an operating profit of over 400 billion yen over the next two years, as well as the completion of restructuring its electronics business. But market pundit panned the numbers, noting that the reliability of structural reforms at the company has been historically low.
Toray Industries Inc advanced 1.1% to 643 yen after the firm announced a 100 yen zero coupon convertible bond sale that was praised for devoting a good portion for the sale proceeds into buying back its own stock--the company's first-ever stock repurchase.
In China, Mainland China share market finished the session modestly higher, , with shares of financials, developers and materials & resources companies leading gains, amid better than expected flash reading on Chinese manufacturing for May and on speculation of easing curbs for the property sectors. The benchmark Shanghai Composite ended 13.28 points higher at 2034.57, on turnover of 51.46 billion yuan. The benchmark index touched intraday low of 2017.74.
Shares of property developers ended higher on speculation the government is easing property curbs to prevent the economy from missing its growth target for this year. China Vanke gained 3.3% in Shenzhen while Poly Real Estate advanced 4.3% in Shanghai.
Chinese newspaper reported that China housing ministry will remove restrictions on home purchases depending on market condition to prevent the economy from missing its growth target for this year. The separate report stated that government has allowed cities to adjust home-buying curbs except for Beijing, Shanghai, Guangzhou and Shenzhen.
In Hong Kong, HK share market closed slight higher after fluctuating in and out of the boundary line, as strong lead from global markets overnight largely offset by concerns over tensions in Ukraine, conflicts between North and South Korea, and a Thai military coup. The benchmark Hang Seng Index was up 12.10 points to 22965.86 on turnover of HK$51.40 billion.
Shares of Mainland developers listed in HK rallied on talks that more than 30 cities will lift restriction on home purchase. COLI (00688) jumped 5.5% to HK$20. Both CR Land (01109) and China Resources (00291) rose 4% to HK$15.34 and HK$23.9 KWG Property (01813) and Country Garden (02007) shot up 5.8% and HK$4.9%. CC Land (01224) soared 10% to HK$1.5.
Chinese telcos are in discussions to establish a TowerCo, with China Mobile (00941) offering to inject its 2G, 3G, and 4G base stations, plants and land into the new company. China Mobile dipped 1% to HK$77.25. China Unicom (00762) fell 1.03% to HK$11.56. China Telecom (00728) was down by 2% to HK$3.86.
In India, key benchmark indices closed sharp higher on strong buying in power, oil & gas, capital goods and realty sector stocks amidst positive trends at other Asian bourses. As per provisional closing, the 30-share BSE index Sensex surged 318.95 points to end at 24,693.35 and the 50-share NSE index Nifty rose 98.85 points to end at 7,375.25.
Reliance Communications rose 5.7% to Rs 144.35 on reports that the Indian company was in talks with China's Citic Telecom over an undersea cable joint venture, citing unnamed people familiar with the talks.
Coal India gained 2% to Rs 397.55, adding to Thursday's 5.1% surge, after media reports that prime minister-designate Narendra Modi was exploring an overhaul of the state behemoth, a step that an investor said would unlock more value in the firm.
Elsewhere in the Asia Pacific region, Taiwan's Taiex index jumped 0.43%. South Korea's KOSPI index was up 0.08%. New Zealand's NZX50 added 0.44%. Singapore's Straits Times index rose 0.38%. Indonesia's Jakarta Composite Index added 0.06%. Malaysia's KLSE Composite declined 0.31%.
