Headline indices of the Asia Pacific share market mostly advanced on
Monday, 21 July 2014, on hopes of better earnings after upbeat U.S.
corporate results. But gain on the upside was limited on lingering
geopolitical concerns. MSCI's broadest index of Asia-Pacific shares
outside Japan rose 0.3%.
Global earnings are expected to improve on the back of gradually improving economic growth and monetary conditions. Thomson Reuters data showed that of 82 companies in the S&P 500 that had reported earnings through Friday, 68% beat Wall Street's expectations. US companies ranging from Apple Inc to McDonald's Corp, Coca-Cola Co and Caterpillar Inc are due to publish their results this week.
But, upward movement of the regional bourses were capped on ongoing geopolitical concerns in Ukraine and the Middle East.
Russian President Vladimir Putin is facing intensified international pressure to respond to claims that Malaysia Airlines flight MH17 was downed using a missile system supplied by his nation's military.
The U.N. Security Council is due to vote Monday on a resolution that would condemn the downing of a Malaysian passenger plane.
U.S. Secretary of State John Kerry on Sunday laid out what he said was overwhelming evidence of Russian complicity in the downing of the airliner.
In Gaza, Hamas's armed wing said on Sunday it had captured an Israeli soldier in a nearly two-week military offensive that has killed hundreds of Palestinians and 13 Israeli soldiers. Kerry will travel to Cairo on Monday to meet with Egyptian officials about the crisis.
Among Asian bourses
Australia shares rises to six year high
Australian stock market closed at highest level in six year today, thanks to strength in shares of consumer discretionary, energy and realty companies. But gain on the upside was limited on caution ahead of domestic CPI inflation numbers for the June quarter due out on Wednesday and Chinese manufacturing data out later this week. The benchmark S&P/ASX 200 Index rose 8.20 points, or 0.15% to 5539.90, a highest closing level since June 2008, while the broader All Ordinaries Index added 9.50 points, or 0.17%, to 5528.70.
Consumer discretionary was the best-performing sector in Sydney on Monday, up 0.8%, led by a 1.3% lift in Crown Resorts to A$15.48. The casino operator has struck a deal with China's Greenland Holdings Group to develop the Queen's Wharf casino and resort project in Brisbane.
Country Road share price rose 1.2% to A$16.75 after the Company board has recommended the A$17.00 (cash) a share off from South African retailer Woolworths. The offer comes to a total of A$213 million for the rest of the CTY Woolworths Limited does not already own.
Energy stocks were mostly higher, led by Caltex Australia, with gain of 4.1% to A$24 after its latest refiner margin update. Oil and gas junior Antares Energy jumped 8.5% to A$0.64 after emerging from a trading halt to reveal it has issued a new terms sheet to a confidential takeover bidder.
New Zealand shares rise
New Zealand stock market rose, as investors gauged the potential for listed companies to deliver earnings growth when results season kicks off next month. Air New Zealand led gainers, having sold off on Friday after a Malaysian passenger plane was shot down. Sky Network Television and Telecom paced the advance. The NZX 50 Index rose 17.973 points, or 0.4%, to 5126.899. Within the index, 24 stocks rose, 18 fell and eight were unchanged. Turnover was NZ$102.7 million.
China stocks fall on earnings, new IPO
Mainland China share market closed weaker on lingering concerns new share sales will divert funds from existing equities. Meanwhile fears of corporate earnings also weighed on local shares. The benchmark Shanghai Composite declined 4.59 points, or 0.22%, to 2054.48. Trading turnover declined to 75.70 billion yuan from yesterday's 82.51 billion yuan.
Concerns that new-share sales may divert funds from existing stocks also weighed on the market. Eleven companies will start to sell new shares this week after successful debut of Shanghai Beite Metal Works Co., an auto-parts maker, last week. New IPOs are expected to siphon off 766.5 billion yuan in funds, according to a Securities Daily report.
Shares of realty companies extended gain on speculation government would remove restrictions on home purchases after official data today showed prices fell in a record number of cities last month. Wuhan, the capital of Hubei province, excluded homes larger than 140 square meters from purchase restrictions, the Xinhua News Agency said on July 18. Suzhou city eased purchase restrictions for homes above 90 square meters, Sina.com.cn reported today. Hohhot and Jilin cities have already eased their property curbs.
Poly Real Estate Group Co., the second-largest developer, gained 2.7%. China Vanke Co., the biggest, added 0.6%.
Shares of China Eastern, the nation's second-largest carrier, lost 1.3% after the company said first-half profit may be less than 50 million yuan, compared with 763 million yuan a year ago.
China Coal, the second-biggest coal producer, dropped 1% after saying profit may drop by as much as 75% in the first six months. Yunnan Chihong Zinc lost 3.4%.
Inner Mongolia Yili, the biggest dairy producer by sales, advanced 4.6% on expectation shares to benefit from the Shanghai-Hong Kong connect as foreign investors take advantage of cheaper prices. The government plans to connect the stock exchanges of Hong Kong and Shanghai to promote trading volumes and the use of the yuan.
Hong Kong stocks fall on geopolitical concerns
Hong Kong share market declined in quiet and narrow trade, marking third straight day of losses, as investors remained cautious amid ongoing geopolitical concerns in Ukraine and the Middle East. The benchmark Hang Seng Index closed 67.65 points, or 0.29%, down at 23387.14, the lowest settlement in about a week. The benchmark index moved between the ranges of 23372.63-23498.35 during the session. Turnover decreased to HK$42.90 billion from Friday's HK$48.72 billion.
Shares of tech companies were weak, with online game developer Forgame Holdings sinking 6.5% to HK$20.95, while rival NetDragon Websoft slid 4.25% to HK$13.52 and Chinese Internet giant Tencent Holdings lost 1.14% to HK$121.50.
Automakers shares dropped on profit taking. Dongfeng Motor dropped 5.1% to HK$13.72. Guangzhou Automobile Group Co., a Toyota Motor Corp. partner, retreated 3.2% to HK$8.76.
Shares of casino players ended higher. MGM China Holdings jumped 4.2% to HK$27.30, Wynn Macau rose 3.1% to HK$29.95, Galaxy Entertainment Group added 3.09% to HK$63.30 and SJM Holdings jumped 2.81% to HK$20.15.
Semiconductor Manufacturing International Corp rose 2.7% to HK$0.77 after raising its second-quarter gross margin guidance to 27% to 29%, from 22% to 24%.
China Unicom slipped 1.3% to HK$12.64 after the mobile carrier said it added fewer customers in June than in the month before.
China Coal retreated 1.2% to HK$4.07 after saying first-half profit will fall on lower prices and sluggish demand.
Sensex rises for fifth consecutive day
Indian stock market rose for a fifth consecutive session on sustained buying by foreign funds and retail investors after Reliance Industries reported encouraging earnings. Besides, progress of monsoon also influenced the trading sentiment. The 30-share index advanced 73.61 points, or 0.29%, to 25715.17. The broader National Stock Exchange Nifty advanced 20.30 points, or 0.26%, to 7684.20.
The market sentiment was also boosted by provisional data showed that foreign portfolio investors were buyers of Indian stocks during the previous trading session. Foreign portfolio investors (FPIs) bought shares worth a net Rs 574.47 crore on Friday, 18 July 2014, as per provisional data from the stock exchanges.
Buying activity gathered momentum after Reliance Industries, operator of the world's largest single location refinery complex, reported a 13.7% rise in April-June quarter consolidated net profit at Rs. 5,957 crore. Shares of Reliance Industries climbed provisionally gained 1.97%.
Merger-related news led to gains in shares of some companies such as Kotak Mahindra Bank which ended 0.7% higher after the company said it would buy a 15% stake in MCX.
Elsewhere in the Asia Pacific region-- Taiwan's Taiex index rose 0.43% to 9440.97. New Zealand's NZX50 added 0.35% to 5126.90. Singapore's Straits Times index added 0.08% to 3313.14. Indonesia's Jakarta Composite Index rose 0.78% to 5126.45 on speculation final election results due this week will confirm Joko Widodo as Indonesia's next president.
Bucking the trend, South Korea's KOSPI index sank 0.05% to 2018.50 and Malaysia's KLSE Composite was down 0.23% to 1868.64. Japan stock market closed for the Marine Day holiday.
Global earnings are expected to improve on the back of gradually improving economic growth and monetary conditions. Thomson Reuters data showed that of 82 companies in the S&P 500 that had reported earnings through Friday, 68% beat Wall Street's expectations. US companies ranging from Apple Inc to McDonald's Corp, Coca-Cola Co and Caterpillar Inc are due to publish their results this week.
But, upward movement of the regional bourses were capped on ongoing geopolitical concerns in Ukraine and the Middle East.
Russian President Vladimir Putin is facing intensified international pressure to respond to claims that Malaysia Airlines flight MH17 was downed using a missile system supplied by his nation's military.
The U.N. Security Council is due to vote Monday on a resolution that would condemn the downing of a Malaysian passenger plane.
U.S. Secretary of State John Kerry on Sunday laid out what he said was overwhelming evidence of Russian complicity in the downing of the airliner.
In Gaza, Hamas's armed wing said on Sunday it had captured an Israeli soldier in a nearly two-week military offensive that has killed hundreds of Palestinians and 13 Israeli soldiers. Kerry will travel to Cairo on Monday to meet with Egyptian officials about the crisis.
Among Asian bourses
Australia shares rises to six year high
Australian stock market closed at highest level in six year today, thanks to strength in shares of consumer discretionary, energy and realty companies. But gain on the upside was limited on caution ahead of domestic CPI inflation numbers for the June quarter due out on Wednesday and Chinese manufacturing data out later this week. The benchmark S&P/ASX 200 Index rose 8.20 points, or 0.15% to 5539.90, a highest closing level since June 2008, while the broader All Ordinaries Index added 9.50 points, or 0.17%, to 5528.70.
Consumer discretionary was the best-performing sector in Sydney on Monday, up 0.8%, led by a 1.3% lift in Crown Resorts to A$15.48. The casino operator has struck a deal with China's Greenland Holdings Group to develop the Queen's Wharf casino and resort project in Brisbane.
Country Road share price rose 1.2% to A$16.75 after the Company board has recommended the A$17.00 (cash) a share off from South African retailer Woolworths. The offer comes to a total of A$213 million for the rest of the CTY Woolworths Limited does not already own.
Energy stocks were mostly higher, led by Caltex Australia, with gain of 4.1% to A$24 after its latest refiner margin update. Oil and gas junior Antares Energy jumped 8.5% to A$0.64 after emerging from a trading halt to reveal it has issued a new terms sheet to a confidential takeover bidder.
New Zealand shares rise
New Zealand stock market rose, as investors gauged the potential for listed companies to deliver earnings growth when results season kicks off next month. Air New Zealand led gainers, having sold off on Friday after a Malaysian passenger plane was shot down. Sky Network Television and Telecom paced the advance. The NZX 50 Index rose 17.973 points, or 0.4%, to 5126.899. Within the index, 24 stocks rose, 18 fell and eight were unchanged. Turnover was NZ$102.7 million.
China stocks fall on earnings, new IPO
Mainland China share market closed weaker on lingering concerns new share sales will divert funds from existing equities. Meanwhile fears of corporate earnings also weighed on local shares. The benchmark Shanghai Composite declined 4.59 points, or 0.22%, to 2054.48. Trading turnover declined to 75.70 billion yuan from yesterday's 82.51 billion yuan.
Concerns that new-share sales may divert funds from existing stocks also weighed on the market. Eleven companies will start to sell new shares this week after successful debut of Shanghai Beite Metal Works Co., an auto-parts maker, last week. New IPOs are expected to siphon off 766.5 billion yuan in funds, according to a Securities Daily report.
Shares of realty companies extended gain on speculation government would remove restrictions on home purchases after official data today showed prices fell in a record number of cities last month. Wuhan, the capital of Hubei province, excluded homes larger than 140 square meters from purchase restrictions, the Xinhua News Agency said on July 18. Suzhou city eased purchase restrictions for homes above 90 square meters, Sina.com.cn reported today. Hohhot and Jilin cities have already eased their property curbs.
Poly Real Estate Group Co., the second-largest developer, gained 2.7%. China Vanke Co., the biggest, added 0.6%.
Shares of China Eastern, the nation's second-largest carrier, lost 1.3% after the company said first-half profit may be less than 50 million yuan, compared with 763 million yuan a year ago.
China Coal, the second-biggest coal producer, dropped 1% after saying profit may drop by as much as 75% in the first six months. Yunnan Chihong Zinc lost 3.4%.
Inner Mongolia Yili, the biggest dairy producer by sales, advanced 4.6% on expectation shares to benefit from the Shanghai-Hong Kong connect as foreign investors take advantage of cheaper prices. The government plans to connect the stock exchanges of Hong Kong and Shanghai to promote trading volumes and the use of the yuan.
Hong Kong stocks fall on geopolitical concerns
Hong Kong share market declined in quiet and narrow trade, marking third straight day of losses, as investors remained cautious amid ongoing geopolitical concerns in Ukraine and the Middle East. The benchmark Hang Seng Index closed 67.65 points, or 0.29%, down at 23387.14, the lowest settlement in about a week. The benchmark index moved between the ranges of 23372.63-23498.35 during the session. Turnover decreased to HK$42.90 billion from Friday's HK$48.72 billion.
Shares of tech companies were weak, with online game developer Forgame Holdings sinking 6.5% to HK$20.95, while rival NetDragon Websoft slid 4.25% to HK$13.52 and Chinese Internet giant Tencent Holdings lost 1.14% to HK$121.50.
Automakers shares dropped on profit taking. Dongfeng Motor dropped 5.1% to HK$13.72. Guangzhou Automobile Group Co., a Toyota Motor Corp. partner, retreated 3.2% to HK$8.76.
Shares of casino players ended higher. MGM China Holdings jumped 4.2% to HK$27.30, Wynn Macau rose 3.1% to HK$29.95, Galaxy Entertainment Group added 3.09% to HK$63.30 and SJM Holdings jumped 2.81% to HK$20.15.
Semiconductor Manufacturing International Corp rose 2.7% to HK$0.77 after raising its second-quarter gross margin guidance to 27% to 29%, from 22% to 24%.
China Unicom slipped 1.3% to HK$12.64 after the mobile carrier said it added fewer customers in June than in the month before.
China Coal retreated 1.2% to HK$4.07 after saying first-half profit will fall on lower prices and sluggish demand.
Sensex rises for fifth consecutive day
Indian stock market rose for a fifth consecutive session on sustained buying by foreign funds and retail investors after Reliance Industries reported encouraging earnings. Besides, progress of monsoon also influenced the trading sentiment. The 30-share index advanced 73.61 points, or 0.29%, to 25715.17. The broader National Stock Exchange Nifty advanced 20.30 points, or 0.26%, to 7684.20.
The market sentiment was also boosted by provisional data showed that foreign portfolio investors were buyers of Indian stocks during the previous trading session. Foreign portfolio investors (FPIs) bought shares worth a net Rs 574.47 crore on Friday, 18 July 2014, as per provisional data from the stock exchanges.
Buying activity gathered momentum after Reliance Industries, operator of the world's largest single location refinery complex, reported a 13.7% rise in April-June quarter consolidated net profit at Rs. 5,957 crore. Shares of Reliance Industries climbed provisionally gained 1.97%.
Merger-related news led to gains in shares of some companies such as Kotak Mahindra Bank which ended 0.7% higher after the company said it would buy a 15% stake in MCX.
Elsewhere in the Asia Pacific region-- Taiwan's Taiex index rose 0.43% to 9440.97. New Zealand's NZX50 added 0.35% to 5126.90. Singapore's Straits Times index added 0.08% to 3313.14. Indonesia's Jakarta Composite Index rose 0.78% to 5126.45 on speculation final election results due this week will confirm Joko Widodo as Indonesia's next president.
Bucking the trend, South Korea's KOSPI index sank 0.05% to 2018.50 and Malaysia's KLSE Composite was down 0.23% to 1868.64. Japan stock market closed for the Marine Day holiday.
