Asia Pacific share market advanced on Friday, 22 August 2014, on
tracking positive cues from record high close of the Wall Street
overnight. But, overall gain was limited on caution before US Federal
Reserve chair Janet Yellen speech later in the global day. The MSCI Asia
Pacific Index added 0.2% to 148.75, on course for a 0.5% gain this
week.
The regional stock market opened higher after the S&P index logged
another record close on Wall Street overnight after reports on US
housing to manufacturing showed the world's largest economy is
strengthening and after minutes from the Federal Reserve's last meeting
reinforced the central bank's commitment to supporting the economic
recovery.
The minutes from the Federal Reserve's meeting showed members debated
the possibility of an earlier interest rate rise, leading to speculation
the rate could rise as early as March next year. The Fed is on pace to
end its monthly bond purchases in October, and plans to keep rates low
for a "considerable time" after that.
However, gain on the upside was limited due to lack of trading
incentives, combined with reticence before US Federal Reserve chair
Janet Yellen speech later in the global day. Yellen is to deliver a
keynote speech later Friday at the Fed's annual conference in Jackson
Hole, Wyoming, as investors speculate on the direction of U.S. interest
rates. In addition to the Fed chair's speech, traders are also focusing
on how willing European Central Bank head Mario Draghi is to take
further easing action.
Among Asian bourses
Australia stocks rise for the seventh day in a row
Australian share market advanced for seventh consecutive session to a
fresh six-year high, as gain in industrial, energy and retailer stocks
were more than offset by losses in materials and resources stocks. The
benchmark S&P/ASX 200 Index and the broader All Ordinaries Index
each rose by 0.12% to 5645.60 points and 5640.50 points, respectively.
The benchmark S&P/ASX 200 Index added 1.4% and the broader All
Ordinaries Index advanced 1.5% over the week.
Shares of energy companies advanced, with Santos rising 3.9% to A$15.16
after increasing its interim dividend. Iluka jumped 3.4% after
signalling an improved outlook for rutile, one of its key commodities
used in paints and plastics.
Materials and resources stocks stumbled after base metal prices closed
mixed on Thursday on weak Chinese manufacturing and trade data.
Resources giant BHP Billiton fell 0.6% to A$37.80. Main rival Rio Tinto
fell 0.3% to A$65.40 and Fortescue Metals sank 1.3% to A$4.42 after iron
ore dropped below $US92 a tonne to its lowest since June on Thursday
amid pressure from plentiful supply and tougher credit conditions. Iron
ore for immediate delivery to China dropped 0.4% to $US91.90 a tonne on
Thursday, its lowest since June 19. The price has fallen 1.6% so far
this week. Iron ore fell to $US89 in June, its weakest since September
2012.
Crown Resorts gained 1.3% to A$16.18 after striking a deal with the
Victorian government to pay less tax on VIP gaming, increase its table
games and poker machines, and extend its Melbourne casino licence. Rival
Echo Entertainment shed 2.5% to A$3.15.
Nikkei snaps nine days rally on profit booking
Japanese share market declined for the first time in ten straight
sessions, amid profit booking on caution ahead of a key speech by U.S.
Federal Reserve chief Janet Yellen. The benchmark Nikkei 225 index
closed down 47.01 points to 15539.19, after nine consecutive days of
gains. The Topix index of all first-section issues was down 5.12 points,
at 1286.07.
Shares of builders and steelmaker companies were top decliners in the
Tokyo market after reports that Tokyo Metropolitan Government will
consider investing part of its 4 trillion yen ($39 billion) of public
funds in the stock market. An advisory board of asset management experts
will be created as early as next month, according to the report. The
Topix Construction Index fell 1.5%, the most among the gauge's 33
industry groups, with Toyo Construction losing 5% to 476 yen. Yurtec
Corp., which builds power distribution lines, lost 4.2% to 546 yen.
Maeda lost 3.8% to 928 yen after Daiwa reduced its rating to neutral
from outperform.
Japan Steel Works slid 2.5% to 436 yen after SMBC Nikko Securities Inc.
said the company is likely to miss full-year targets for operating
profit and orders.
Bridgestone gained 1.4% to 3688 yen after a Deutsche Bank upgrade to buy
from hold, citing weaker operational headwinds such as domestic demand
distortions around the April 1 consumption tax increase, and risk in the
market for tires used in mining operations.
Shares of Shinsei Bank rose 0.9% to 220 yen on reports that it is
planning to bid for Citigroup's Japanese retail banking operations,
hoping to take over its wealthy clientele.
Citigroup has sounded out a
total of nine banks on the sale and will hold an initial round of
bidding next month, the report said. Citibank Japan has Y4.7 trillion in
total assets and 33 branch locations in Japan.
Apparel retailer Adastria Holdings fell 2.8% to 2139 yen after lowering
its fiscal first half business forecast from a 500 million yen profit to
a 400 million yen loss.
Shanghai Composite bounces 0.46%
Mainland China share market advanced on speculation of more policy
support from the government, with shares of telecom, utilities,
healthcare technology, financial and industrial companies being the
bigger gainers. The benchmark Shanghai Composite rose 0.5% to 2,240.81
at the close. Turnover increased to 140.35 billion yuan from yesterday's
140.09 billion yuan. The benchmark measure climbed 0.6% this week.
The mainland market opened lower after a closely watched survey showed
Chinese factory activity at a three-month low. The HSBC/Markit Flash
China Manufacturing Purchasing Managers' Index (PMI) fell to 50.3 from
July's 18-month high of 51.7. It was the lowest reading since May,
though the PMI stayed above the 50-point level that separates growth in
activity from contraction for a third consecutive month.
But the mainland market picked up gain late afternoon on hopes
government would continue accommodative liquidity conditions, faster
fiscal spending, and additional policy support, including support for
social housing and more widespread relaxation of local property
restrictions until there is a more sustainable rebound in economic
activity.
The State Council, China's Cabinet, said on Wednesday that China
lowering taxes for high-tech companies and cutting red tape in its
latest bid to help businesses operate in the world's second-largest
economy. China will also abolish the need for firms to seek approvals in
68 areas when conducting commerce, the government said in an online
statement. The right to grant approvals for business projects in 19
other areas would also be devolved to lower levels of government, the
statement said. Companies identified as high-tech services firms would
enjoy lower corporate income tax rates of 15%, the government said.
Hang Seng jumps 0.47%
Hong Kong share market closed higher on tracking gain on the Wall Street
overnight, with shares of financials, utilities and realty companies
being biggest gainers. The Hang Seng Index rose 0.47%, or 118.13 points,
to 25112.23. Market turnover stood at HK$63.67 billion, down from
HK$75.52 billion on Thursday. The measure advanced 0.6% this week,
trading near a six-year high.
Hang Lung Properties (00101) put on 3.2% to HK$25.45. It was today's
blue-chip top performer. China Resources (00291) plunged 5.6% to
HK$21.95, making itself the top loser as a slew of research houses have
lowered their target prices for the stock post its earnings
announcement.
HK Market heavyweights were firmer. HSBC (00005) gained 0.9% to HK$83.2.
China Mobile (00941) and AIA (01299) edged up 0.6% and 0.5% to HK$95
and HK$43.35 respectively.
Li & Fung (00494) fell 4.6% to HK$10 as a number of investment banks
downgraded the stock post earnings results. Its spin-off Global Brands
(00787) plunged 8.3% to HK$1.87.
China Rongsheng jumped 7.9% to HK$1.50 after the shipbuilder agreed to
buy a 60% stake in an oilfield project in Kyrgyzstan for HK$2.18 billion
($281.3 million) in an all-stock deal.
Bank of Communications added 1.4% to HK$5.76 after announcing a rise in
net income by 5.6% to 18.1 billion yuan ($2.9 billion) from a year
earlier. The bank also said it planned to be the nation's first listed
lender to offer stock incentives to management.
Indian market gains for second day in a row
Indian stock market closed higher in a volatile trading session as
speculation of an upward revision of India's sovereign rating outlook by
global rating agency S&P resurfaced after data on Thursday, 21
August 2014, showed foreign funds bought Indian bonds worth a staggering
Rs 16071.97 crore (net) in a single trading session on Wednesday, 20
August 2014. As per provisional figures, the S&P BSE Sensex was up
59.44 points or 0.23% at 26419.55, while the CNX Nifty was up 22.10
points or 0.28% to 7913.20.
IT stocks rose on positive economic data in US, the biggest outsourcing
market for the Indian IT firms. Tech Mahindra scaled record high. TCS
rose 1.11% after the company said that its TCS BaNCS customer, National
Employment Savings Trust (NEST) in the UK, has crossed the 1 million
member mark. HCL Technologies rose 2.59% on reports that a foreign
brokerage has maintained a buy rating on the stock.
Most hospitality stocks gained after the Ministry of Tourism said it has
decided to simplify the hotel classification and re-classification
procedure. Taj GVK Hotels (up 11.49%), Indian Hotels (up 0.35%), and
Royal Orchid Hotel (up 1.73%) gained. EIH (down 1.25%) and EIH
Associated Hotels (down 0.85%) declined.
Elsewhere in the Asia Pacific region-- South Korea's KOSPI index
rose 0.61% to 2056.70. Taiwan's Taiex index gained 1.4% to 9380.10.
Malaysia's KLCI fell 0.2% to 1870.99. New Zealand's NZX50 added 0.27% to
5167. Singapore's Straits Times index rose 0.04% to 3325.50.
Indonesia's Jakarta Composite index declined 0.14% to 5198.90.
