Asia Pacific share market advanced on Tuesday, 22 July 2014, as
investors resumed focus on corporate earnings and economic indicators
after easing geopolitical tensions. The MSCI Asia Pacific Index gained
0.6% to 147.81, the highest close since June 2008.
Investors took a breather from geopolitical tensions after first signs of cooperation from Ukraine's pro-Russian separatists over the downed Malaysian Airlines plane, and returning their focus to corporate earnings and economic indicators coming out this week.
The slew of economic indicators such as the U.S. consumer price index and home sales data are due out later in the global day, new residential sales out on Thursday and the PMI for the euro zone, also out Thursday.
Geopolitical concerns taking the back seat for the moment after diplomatic-sparring between the West and Russia over Ukraine, particularly after the shooting down of the airplane, could start affecting the activities of the world's major economies.
Russia is locked in its worst diplomatic crisis with the U.S. and its allies since the end of the Cold War. Already sanctioned for his decision to annex Crimea in March, Russian President Vladimir Putin is now facing the prospect of further penalties after the U.S. indicated it believes the Russian military supplied Ukrainian rebels the missile that downed flight MH17 last week.
The United Nations Security Council passed a resolution late Monday condemning the downing of the plane, which was flying from Amsterdam to Kuala Lumpur and crashed in the conflict zone. The resolution called for an independent international investigation. Russia also voted in favor of the probe.
Among Asian bourses
Australia shares close at six year high
Australian stock market closed at six year high after recouping losses late afternoon, on the back of gains in materials and recourses stocks. But, gain was marginal on caution ahead of tomorrow´s June quarter inflation numbers (CPI). The benchmark S&P/ASX 200 Index rose 3.40 points, or 0.06% to 5543.30, a highest closing level since June 2008, while the broader All Ordinaries Index added 5.30 points, or 0.1%, to 5534.
Shares of material & resources companies climbed the most in ASX, led by Western Areas (WSA), up 3.8% after the nickel miner reports better than expected output of nickel over the last half. WSA said nickel output had hit 28,686 tones and also told the market its cash cost was lower than expected at A$2.50 a pound which has improved its profit.
Resources giant BHP Billiton lifted 0.8% to A$38.51 ahead of releasing its quarterly production report on Wednesday. Main rival Rio Tinto rose 0.7% to A$64.13, while iron ore miner Fortescue Metals Group added 0.9% to A$4.61.
Australia's biggest goldminer, Newcrest Mining, fell 0.3% to A$11.43, as the company vowed to vigorously defend a shareholder class action over its handling of continuous disclosure obligations in 2013. Slater & Gordon, the listed law firm that lodged the claim against Newcrest on Monday, was unchanged at A$5.10.
Oil Search (OSH) shared lifted up 0.4% to A$9.54 after the Company reported quarterly production and sales results for the June quarter 2014. OSH said it produced 3.69million metric barrels of oil equivalent (mmboe) for 2Q14 was up 120% over the last quarter, largely due to the early commencement of PNG Liquid natural gas program, which contributed 1.87mmboe.
Nikkei jumps as geopolitical concerns ease
Japan share market advanced for the first time in four consecutive sessions, as bargain hunting resumed across the board on calming geopolitical concerns and yen depreciation against the major rivals. The benchmark Nikkei 225 index climbed 0.84%, or 127.57 points, to 15343.28, while the Topix index of all first-section issues was up 0.79%, or 9.98 points, at 1273.27. Japanese stock market closed on Monday, 21 July 2014, for the Marine Day holiday.
Shares of semiconductor equipment makers rose after industry association SEMI on Monday pointed to an improvement in the semiconductor sector. North America-based manufacturers of semiconductor equipment posted $1.47 billion in orders worldwide in June 2014 and a book-to-bill ratio of 1.09, an improvement from 1.00 in May. Tokyo Electron shares advanced 1.7% to 7142 yen. Other semiconductor-linked firms also rose. Shin-Etsu Chemical Co. rose 1.6% to 6,299 yen. Kyocera Corp. gained 0.8% to 4,907.5 yen.
Tokyo's stock exchange allowed smaller price increments on shares of about 80 of Japan's biggest companies from today. Topix 100 Index (TPX100) members with stock priced between 1,000 yen and 5,000 yen now trade in 0.5 yen price movements, down from 1 yen. Shares priced at less than 1,000 yen can trade in 0.1 yen bands, a tenth of the previous size. Honda advanced 0.5% to 3,585.5 yen. Japan Tobacco added 1% to 3,741 yen.
Tokyo Steel Manufacturing Co. surged 12% to 576 yen after raising its profit target. The company raised its full-year net-income target by 21% to 8.5 billion yen.
Nintendo Co. jumped 3.4% to 12,925 yen after Morgan Stanley upgraded the maker of Wii gaming consoles to equal-weight from underweight.
Chiba Bank climbed 3.8% to 760 yen after the regional lender said it will buy back shares. The lender will spend as much as 10 billion yen to buy back as many as 15 million shares, it said in a statement.
Panasonic Corp. added 1.8% to 1,215 yen on a report it will sell its mobile-phone base station unit to Finland's Nokia Oyj.
China stocks rise on growth hopes
Mainland China share market advanced, after HSBC upgraded GDP forecast and hopes the government will do more to shore up economic growth. The benchmark Shanghai Composite advanced 21 points, or 1.02%, to 2075.48. Trading turnover increased to 98.70 billion yuan from yesterday's 75.70 billion yuan.
HSBC has upgraded its forecast for China's year-on-year gross domestic product growth to 7.5% from 7.4%, saying recovery has been stronger than expected. The Chinese economy expanded 7.5% year on year and 2% quarter to quarter (seasonally adjusted) in the second quarter. In the first half of 2014, China's economy expanded 7.4% from a year earlier.
Shares of materials and resources companies rose, led by Chalco, the nation's biggest producer of aluminum, with rise of 5.3% after Aluminum entered a bull market yesterday amid bets that demand will outstrip supply. Zinc climbed to the highest since 2011 after falling inventory and an improving demand outlook spurred speculation that consumption will exceed supply.
Shares of property developers closed higher, extending react run, on speculation government would remove restrictions on home purchases after official data showed prices fell in a record number of cities last month. Wenzhou, in eastern Zhejiang province, removed its home-purchase restrictions, joining cities including Jinan and Wuhan that have loosened curbs to prevent falling home prices. Vanke, China's biggest listed property developer, added 2.7% in Shenzhen. Poly Real Estate, the second-biggest, rose 1.4%.
Hong Kong stocks rise as geopolitical tensions ease
Hong Kong share market closed sharp higher in heavy trade, registering first gain in four consecutive sessions. Investors took a breather from geopolitical developments in eastern Ukraine and Gaza, and returning their focus to corporate earnings and economic indicators coming out this week. The benchmark Hang Seng Index advanced 394.97 points, or 1.69%, to 23782.11. Turnover increased to HK$71.70 billion from yesterday's HK$48.72 billion.
Shares of energy companies advanced, led by China Petroleum & Chemical Corp, up 3.6% to HK$7.48 after the oil and gas giant reported an 8% year-on-year increase in its oil-gas valent-weight output for the first half of this year. Shares of the other two state giants also popped higher, with PetroChina Co, the country's largest oil producer, gaining 3.2% to HK$10.48 and offshore oil and gas producer Cnooc added 1.93% to HK$13.72.
Telecom stocks climbed up, with HK index heavyweight China Mobile leading rally, up 2.08% to HK$83.35 after data showed 4G subscribers with the world's largest mobile carrier broke through the 10-million mark. Smaller rivals China Telecom Corp gained 2.24% to HK$4.10 and China Unicom (Hong Kong) rose 1.11% to HK$12.78.
Chinese property counters jumped on talks of complete removal of Home Purchase Restrictions (HPR) in Wenzhou. COLI (00688) jumped 4.4% to HK$21.45. CR Land (01109) shot up 3.2% to HK$15.68.
Sensex ends near record high
Indian stock market advanced on encouraging corporate earnings and sustained foreign capital inflows coupled with a firming trend on other Asian bourses. The S&P BSE Sensex garnered 310.63 points or 1.21% to settle at 26,025.80, its highest closing level since 7 July 2014, after hitting an intra-day high of 26,050 . The CNX Nifty garnered 83.65 points or 1.09% to settle at 7,767.85, its highest closing level since 7 July 2014, after touching a high of 7,774.
Reliance Industries (RIL) extended Monday's gains triggered by the company's strong Q1 result. IT stocks gained on renewed buying. Tech Mahindra rose after the company announced its plans to significantly expand in Korea. Asian Paints rose on good Q1 result.
Telecom stocks rose after the Telecom Regulatory Authority of India (TRAI) said on Monday, 21 July 2014, in its recommendations on the guidelines on sharing of spectrum by telecom operators that all access spectrum will be shareable provided that both the licensees are having spectrum in the same band. Idea Cellular jumped after strong Q1 results.
Shares of aluminium makers Hindalco Industries and National Aluminum Company edged higher as aluminium prices hit a 16-month high on the London Metal Exchange. Hindustan Zinc rose as zinc price hit a 3-year high on the London Metal Exchange.
HDFC and HDFC Bank gained in volatile trade after both these companies clarified that there is no proposal for the merger of HDFC and HDFC Bank after media reports suggested that there is a buzz of a possible merger between the two.
Sun Pharmaceutical Industries scaled record high and Dishman Pharmaceuticals and Chemicals and Novartis hit 52-week high. Thermax slumped after reporting weak Q1 result.
Elsewhere in the Asia Pacific region-- Taiwan's Taiex index rose 0.62% to 9499.36. New Zealand's NZX50 added 0.14% to 5133.87. South Korea's KOSPI index rose 0.52% to 2028.93. Malaysia's KLSE Composite was up 0.15% to 1871.36. Singapore's Straits Times index added 0.08% to 3316.91. Bucking the trend, Indonesia's Jakarta Composite Index fell 0.85% to 5083.52.
Investors took a breather from geopolitical tensions after first signs of cooperation from Ukraine's pro-Russian separatists over the downed Malaysian Airlines plane, and returning their focus to corporate earnings and economic indicators coming out this week.
The slew of economic indicators such as the U.S. consumer price index and home sales data are due out later in the global day, new residential sales out on Thursday and the PMI for the euro zone, also out Thursday.
Geopolitical concerns taking the back seat for the moment after diplomatic-sparring between the West and Russia over Ukraine, particularly after the shooting down of the airplane, could start affecting the activities of the world's major economies.
Russia is locked in its worst diplomatic crisis with the U.S. and its allies since the end of the Cold War. Already sanctioned for his decision to annex Crimea in March, Russian President Vladimir Putin is now facing the prospect of further penalties after the U.S. indicated it believes the Russian military supplied Ukrainian rebels the missile that downed flight MH17 last week.
The United Nations Security Council passed a resolution late Monday condemning the downing of the plane, which was flying from Amsterdam to Kuala Lumpur and crashed in the conflict zone. The resolution called for an independent international investigation. Russia also voted in favor of the probe.
Among Asian bourses
Australia shares close at six year high
Australian stock market closed at six year high after recouping losses late afternoon, on the back of gains in materials and recourses stocks. But, gain was marginal on caution ahead of tomorrow´s June quarter inflation numbers (CPI). The benchmark S&P/ASX 200 Index rose 3.40 points, or 0.06% to 5543.30, a highest closing level since June 2008, while the broader All Ordinaries Index added 5.30 points, or 0.1%, to 5534.
Shares of material & resources companies climbed the most in ASX, led by Western Areas (WSA), up 3.8% after the nickel miner reports better than expected output of nickel over the last half. WSA said nickel output had hit 28,686 tones and also told the market its cash cost was lower than expected at A$2.50 a pound which has improved its profit.
Resources giant BHP Billiton lifted 0.8% to A$38.51 ahead of releasing its quarterly production report on Wednesday. Main rival Rio Tinto rose 0.7% to A$64.13, while iron ore miner Fortescue Metals Group added 0.9% to A$4.61.
Australia's biggest goldminer, Newcrest Mining, fell 0.3% to A$11.43, as the company vowed to vigorously defend a shareholder class action over its handling of continuous disclosure obligations in 2013. Slater & Gordon, the listed law firm that lodged the claim against Newcrest on Monday, was unchanged at A$5.10.
Oil Search (OSH) shared lifted up 0.4% to A$9.54 after the Company reported quarterly production and sales results for the June quarter 2014. OSH said it produced 3.69million metric barrels of oil equivalent (mmboe) for 2Q14 was up 120% over the last quarter, largely due to the early commencement of PNG Liquid natural gas program, which contributed 1.87mmboe.
Nikkei jumps as geopolitical concerns ease
Japan share market advanced for the first time in four consecutive sessions, as bargain hunting resumed across the board on calming geopolitical concerns and yen depreciation against the major rivals. The benchmark Nikkei 225 index climbed 0.84%, or 127.57 points, to 15343.28, while the Topix index of all first-section issues was up 0.79%, or 9.98 points, at 1273.27. Japanese stock market closed on Monday, 21 July 2014, for the Marine Day holiday.
Shares of semiconductor equipment makers rose after industry association SEMI on Monday pointed to an improvement in the semiconductor sector. North America-based manufacturers of semiconductor equipment posted $1.47 billion in orders worldwide in June 2014 and a book-to-bill ratio of 1.09, an improvement from 1.00 in May. Tokyo Electron shares advanced 1.7% to 7142 yen. Other semiconductor-linked firms also rose. Shin-Etsu Chemical Co. rose 1.6% to 6,299 yen. Kyocera Corp. gained 0.8% to 4,907.5 yen.
Tokyo's stock exchange allowed smaller price increments on shares of about 80 of Japan's biggest companies from today. Topix 100 Index (TPX100) members with stock priced between 1,000 yen and 5,000 yen now trade in 0.5 yen price movements, down from 1 yen. Shares priced at less than 1,000 yen can trade in 0.1 yen bands, a tenth of the previous size. Honda advanced 0.5% to 3,585.5 yen. Japan Tobacco added 1% to 3,741 yen.
Tokyo Steel Manufacturing Co. surged 12% to 576 yen after raising its profit target. The company raised its full-year net-income target by 21% to 8.5 billion yen.
Nintendo Co. jumped 3.4% to 12,925 yen after Morgan Stanley upgraded the maker of Wii gaming consoles to equal-weight from underweight.
Chiba Bank climbed 3.8% to 760 yen after the regional lender said it will buy back shares. The lender will spend as much as 10 billion yen to buy back as many as 15 million shares, it said in a statement.
Panasonic Corp. added 1.8% to 1,215 yen on a report it will sell its mobile-phone base station unit to Finland's Nokia Oyj.
China stocks rise on growth hopes
Mainland China share market advanced, after HSBC upgraded GDP forecast and hopes the government will do more to shore up economic growth. The benchmark Shanghai Composite advanced 21 points, or 1.02%, to 2075.48. Trading turnover increased to 98.70 billion yuan from yesterday's 75.70 billion yuan.
HSBC has upgraded its forecast for China's year-on-year gross domestic product growth to 7.5% from 7.4%, saying recovery has been stronger than expected. The Chinese economy expanded 7.5% year on year and 2% quarter to quarter (seasonally adjusted) in the second quarter. In the first half of 2014, China's economy expanded 7.4% from a year earlier.
Shares of materials and resources companies rose, led by Chalco, the nation's biggest producer of aluminum, with rise of 5.3% after Aluminum entered a bull market yesterday amid bets that demand will outstrip supply. Zinc climbed to the highest since 2011 after falling inventory and an improving demand outlook spurred speculation that consumption will exceed supply.
Shares of property developers closed higher, extending react run, on speculation government would remove restrictions on home purchases after official data showed prices fell in a record number of cities last month. Wenzhou, in eastern Zhejiang province, removed its home-purchase restrictions, joining cities including Jinan and Wuhan that have loosened curbs to prevent falling home prices. Vanke, China's biggest listed property developer, added 2.7% in Shenzhen. Poly Real Estate, the second-biggest, rose 1.4%.
Hong Kong stocks rise as geopolitical tensions ease
Hong Kong share market closed sharp higher in heavy trade, registering first gain in four consecutive sessions. Investors took a breather from geopolitical developments in eastern Ukraine and Gaza, and returning their focus to corporate earnings and economic indicators coming out this week. The benchmark Hang Seng Index advanced 394.97 points, or 1.69%, to 23782.11. Turnover increased to HK$71.70 billion from yesterday's HK$48.72 billion.
Shares of energy companies advanced, led by China Petroleum & Chemical Corp, up 3.6% to HK$7.48 after the oil and gas giant reported an 8% year-on-year increase in its oil-gas valent-weight output for the first half of this year. Shares of the other two state giants also popped higher, with PetroChina Co, the country's largest oil producer, gaining 3.2% to HK$10.48 and offshore oil and gas producer Cnooc added 1.93% to HK$13.72.
Telecom stocks climbed up, with HK index heavyweight China Mobile leading rally, up 2.08% to HK$83.35 after data showed 4G subscribers with the world's largest mobile carrier broke through the 10-million mark. Smaller rivals China Telecom Corp gained 2.24% to HK$4.10 and China Unicom (Hong Kong) rose 1.11% to HK$12.78.
Chinese property counters jumped on talks of complete removal of Home Purchase Restrictions (HPR) in Wenzhou. COLI (00688) jumped 4.4% to HK$21.45. CR Land (01109) shot up 3.2% to HK$15.68.
Sensex ends near record high
Indian stock market advanced on encouraging corporate earnings and sustained foreign capital inflows coupled with a firming trend on other Asian bourses. The S&P BSE Sensex garnered 310.63 points or 1.21% to settle at 26,025.80, its highest closing level since 7 July 2014, after hitting an intra-day high of 26,050 . The CNX Nifty garnered 83.65 points or 1.09% to settle at 7,767.85, its highest closing level since 7 July 2014, after touching a high of 7,774.
Reliance Industries (RIL) extended Monday's gains triggered by the company's strong Q1 result. IT stocks gained on renewed buying. Tech Mahindra rose after the company announced its plans to significantly expand in Korea. Asian Paints rose on good Q1 result.
Telecom stocks rose after the Telecom Regulatory Authority of India (TRAI) said on Monday, 21 July 2014, in its recommendations on the guidelines on sharing of spectrum by telecom operators that all access spectrum will be shareable provided that both the licensees are having spectrum in the same band. Idea Cellular jumped after strong Q1 results.
Shares of aluminium makers Hindalco Industries and National Aluminum Company edged higher as aluminium prices hit a 16-month high on the London Metal Exchange. Hindustan Zinc rose as zinc price hit a 3-year high on the London Metal Exchange.
HDFC and HDFC Bank gained in volatile trade after both these companies clarified that there is no proposal for the merger of HDFC and HDFC Bank after media reports suggested that there is a buzz of a possible merger between the two.
Sun Pharmaceutical Industries scaled record high and Dishman Pharmaceuticals and Chemicals and Novartis hit 52-week high. Thermax slumped after reporting weak Q1 result.
Elsewhere in the Asia Pacific region-- Taiwan's Taiex index rose 0.62% to 9499.36. New Zealand's NZX50 added 0.14% to 5133.87. South Korea's KOSPI index rose 0.52% to 2028.93. Malaysia's KLSE Composite was up 0.15% to 1871.36. Singapore's Straits Times index added 0.08% to 3316.91. Bucking the trend, Indonesia's Jakarta Composite Index fell 0.85% to 5083.52.
