Headline shares of the Asia Pacific market closed mostly higher on
Thursday, 25 September 2014, following solid gains on the Wall Street
overnight and hopes for additional monetary stimulus in China and
Europe.
US stock market finished with solid gains on Wednesday as a strong housing report helped equities regain territory after losses earlier this week. The Commerce Department reported that sales of new single-family houses surged 18% in August to an annual rate of 504,000, their fastest pace in more than six years.
The Wall Street Journal reported overnight that Chinese President Xi Jinping is considering replacing its reform-minded central bank governor, Zhou Xiaochuan, which could mean a more accommodative monetary policy to support a slowing economy. If the report is confirmed, the move could be positive for the world's second-largest economy, as increased liquidity would help lower funding costs for companies. A change of the guard at the People's Bank of China might mean a more aggressively loose monetary policy going forward to help counter-act the growth slowdown.
European Central Bank chief Mario Draghi repeated his commitment to use additional unconventional instruments to support economic growth during an interview with Lithuanian media on Thursday. His remarks follow Germany's disappointing Ifo business climate index on Wednesday and fueled expectations for more stimulus to be announced at the bank's October meeting.
Among Asian bourses
Aussie shares shine
Australian share market closed slight higher, as caution seeped back after data from the Australia Bureau of Statistics showed that job vacancies fell 0.7% in the three months through August from the prior quarter. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both rose by 0.12% to 5382.20 and 5382.40, respectively. Turnover was relatively light with 1.86 billion shares worth of A$4.13 billion traded today.
The financial stocks ended mixed, with Commonwealth Bank of Australia adding 0.3% to A$76.65 and National Australia Bank adding 0.2% to A$33.11, while Westpac Banking Corp fell 0.8% to A$32.21 and ANZ Banking Group shed 0.2% to A$31.32. Brickworks were up five cents at A$13.55 after the building products maker achieved 21% profit growth.
Materials and resources stocks also closed mixed as the spot iron-ore price still hovering at five-year lows and with worries over China's appetite for the commodity. Resources giant BHP Billiton rose 0.3% to A$34.79 and main rival Rio Tinto gained 1.2% to A$61.50. Iron ore miner Fortescue Metals Group shed 1.1% to A$3.62. BC Iron fell 3.5% and Atlas Iron dropped 2%.
Nikkei closes at seven-year high
Japanese share market closed higher, as a rebound in the dollar against the yen sparked interest in shares of exporters and other currency-sensitive companies. The Nikkei 225 index at the Tokyo Stock Exchange gained 1.28%, or 206.69 points to finish at 16374.14, its highest close since November 2007. The Topix index of all first-section issues was up 1.53%, or 20.25 points, at 1346.43.
The yen's depreciated to the lower 109-mark against the US dollar after data showed US new home sales hit a six-year high in August. The greenback was changing hands at 109.21 yen, up from 109.04 yen in U.S. trade and 108.52 yen in Tokyo on Wednesday. A weaker yen inflates the profitability of Japanese exporters.
Shares of Exporters and other currency-sensitive companies were the main beneficiaries in Tokyo as the yen depreciated against greenback. Canon Inc, the world's biggest camera maker, added 0.3% to 3595 yen. Toyota Motor Corp, the world's biggest automaker, rose 2% to 6550 yen. Honda Motor Co, a car maker that gets 84% of sales abroad, rose 1.2% to 3816 yen. Sony Corp., which gets 72% of its sales abroad, rose 1.4% to 1,901 yen. Inpex Corp., an oil explorer that gets 91% of its revenue from outside Japan, gained 4.9% to 1,585.5 yen.
Shares of Daiichi Sankyo fell 1.2% to 1,835 yen after Mizuho cut its rating on the stock to neutral from buy and also reduced its target price.
Shares of Minebea rose 5.1% to 1,484 yen after the Nikkei newspaper reported operating profit is likely to reach 17 billion yen, compared with the company's forecast of 12.9 billion yen.
Shanghai Composite closes at 18-months high
Headline shares of the Mainland China market advanced for third straight day, sending the benchmark indices to highest level in more than 18 months, thanks to better than expected China's manufacturing data for September and bets that further gains would be fueled by increased liquidity. The benchmark Shanghai Composite index advanced 1.53 points, or 0.07%, to finish at 2345.10, the highest close since Mar. 6, 2013, when it finished at 2347.18.
Shares of defense related companies were top gainers amid hopes for asset injections from Beijing's. Zhonghang Heibao jumped 7.0% to 13.58 yuan, Beijing Aerospace Changfeng added 6.6% to 23.76 yuan and AVIC Aero-Engine Controls gained 6.1% to 17.80 yuan.
Power equipment manufacturers surged on hopes that Beijing will soon restart the construction of nuclear power plants following years in hiatus due to safety concerns.
Shanghai Electric Group rose by the 10% upper limit to 4.97 yuan, Dongfang Electric Corp. climbed 6.5% to 14.50 yuan and Sungrow Power Supply advanced 6.1% to 19.51 yuan.
Hang Seng ends 0.64% down
Hong Kong share market finished lower, as risk aversion selling fuelled on concerns over unrest in the territory as pro-democracy activists prepare for a major protest in their "Occupy Central" campaign on Oct. 1. The Hang Seng Index closed 153.48 points, or 0.64%, up at 23768.13. The China Enterprises Index fell 76.67 points, or 0.72%, to 10640.09. Market turnover increased to HK$80.83 billion, from Wednesday's turnover of HK$75.24 billion.
Shares of Macau's gaming stocks closed lower on anticipation of a drop in Macau gaming revenue in September. Macau's casino junket operators are feeling the squeeze as China's anti-corruption drive has blown a hole in the world's biggest gambling hub. The decline was also fuelled after Wynn Resorts said Macau's anti-corruption investigations have ended, but the authorities refuted the comment. Galaxy Ent (00027) slipped 3.5% to HK$46.35, followed by Sands China (01928), which declined 2.9% to HK$41.3. SJM (00880) fell 2.6% to HK$15.16. Wynn Macau (01128) plunged 4% to HK$24.35.
Shares of China staple players continued yesterday's rally after an investment bank's bullish comments. Want Want (00151) added 2.3% to HK$10.18. Tingyi (00322) put on 0.96% to HK$21.1. It was the second-best blue-chip winner.
Sensex, Nifty hit lowest closing level in more than 4 weeks
Indian stocks fell in choppy trade after the government once again deferred a decision on revising gas prices and as investors accessed the repercussion of previous day's Supreme Court verdict cancelling most coal block allocations made since 1993 due to irregularities in the allotment. Banking, oil and gas and metal stocks led the decline. The Sensex shed 276.33 points or 1.03% to settle at 26,468.36, its lowest closing level since 26 August 2014. The CNX Nifty shed 90.55 points or 1.13% to settle at 7,911.85.
IT stocks edged higher on weak rupee. Most pharma stocks were up as rupee weakened against the dollar. Capital goods stocks edged lower. Bank stocks extended Wednesday's losses on concerns of bad loans due to their exposure to coal mines after the Supreme Court's decision cancelling most coal block allocations since 1993. Shares of gas production firms fell after the government once again deferred a decision on revising gas prices. PSU OMCs dropped. Jindal & Steel and Power and Hindalco Industries which have been hit adversely by yesterday's decision of the Supreme Court to cancel most coal block allocations since 1993 tumbled.
Meanwhile, Prime Minister Narendra Modi today, 25 September 2014, launched the Make in India initiative with an aim to boost India's manufacturing sector. Addressing at the event, Modi said that gloom prevalent among India's business community over the last few years has lifted in the past few months. The Prime Minister said that no Indian business should feel a compulsion to leave the country under any circumstances.
Elsewhere in the Asia Pacific region-- Taiwan's Taiex index fell 0.96% to 9011.59. South Korea's KOSPI index eased 0.08% to 2034.11. Indonesia's Jakarta Composite index rose 0.53% to 5201.38. Malaysia's KLCI added 0.16% to 1843.11. New Zealand's NZX50 jumped 0.37% to 5277.86. Singapore's Straits Times index fell 0.06% at 3290.99.
US stock market finished with solid gains on Wednesday as a strong housing report helped equities regain territory after losses earlier this week. The Commerce Department reported that sales of new single-family houses surged 18% in August to an annual rate of 504,000, their fastest pace in more than six years.
The Wall Street Journal reported overnight that Chinese President Xi Jinping is considering replacing its reform-minded central bank governor, Zhou Xiaochuan, which could mean a more accommodative monetary policy to support a slowing economy. If the report is confirmed, the move could be positive for the world's second-largest economy, as increased liquidity would help lower funding costs for companies. A change of the guard at the People's Bank of China might mean a more aggressively loose monetary policy going forward to help counter-act the growth slowdown.
European Central Bank chief Mario Draghi repeated his commitment to use additional unconventional instruments to support economic growth during an interview with Lithuanian media on Thursday. His remarks follow Germany's disappointing Ifo business climate index on Wednesday and fueled expectations for more stimulus to be announced at the bank's October meeting.
Among Asian bourses
Aussie shares shine
Australian share market closed slight higher, as caution seeped back after data from the Australia Bureau of Statistics showed that job vacancies fell 0.7% in the three months through August from the prior quarter. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both rose by 0.12% to 5382.20 and 5382.40, respectively. Turnover was relatively light with 1.86 billion shares worth of A$4.13 billion traded today.
The financial stocks ended mixed, with Commonwealth Bank of Australia adding 0.3% to A$76.65 and National Australia Bank adding 0.2% to A$33.11, while Westpac Banking Corp fell 0.8% to A$32.21 and ANZ Banking Group shed 0.2% to A$31.32. Brickworks were up five cents at A$13.55 after the building products maker achieved 21% profit growth.
Materials and resources stocks also closed mixed as the spot iron-ore price still hovering at five-year lows and with worries over China's appetite for the commodity. Resources giant BHP Billiton rose 0.3% to A$34.79 and main rival Rio Tinto gained 1.2% to A$61.50. Iron ore miner Fortescue Metals Group shed 1.1% to A$3.62. BC Iron fell 3.5% and Atlas Iron dropped 2%.
Nikkei closes at seven-year high
Japanese share market closed higher, as a rebound in the dollar against the yen sparked interest in shares of exporters and other currency-sensitive companies. The Nikkei 225 index at the Tokyo Stock Exchange gained 1.28%, or 206.69 points to finish at 16374.14, its highest close since November 2007. The Topix index of all first-section issues was up 1.53%, or 20.25 points, at 1346.43.
The yen's depreciated to the lower 109-mark against the US dollar after data showed US new home sales hit a six-year high in August. The greenback was changing hands at 109.21 yen, up from 109.04 yen in U.S. trade and 108.52 yen in Tokyo on Wednesday. A weaker yen inflates the profitability of Japanese exporters.
Shares of Exporters and other currency-sensitive companies were the main beneficiaries in Tokyo as the yen depreciated against greenback. Canon Inc, the world's biggest camera maker, added 0.3% to 3595 yen. Toyota Motor Corp, the world's biggest automaker, rose 2% to 6550 yen. Honda Motor Co, a car maker that gets 84% of sales abroad, rose 1.2% to 3816 yen. Sony Corp., which gets 72% of its sales abroad, rose 1.4% to 1,901 yen. Inpex Corp., an oil explorer that gets 91% of its revenue from outside Japan, gained 4.9% to 1,585.5 yen.
Shares of Daiichi Sankyo fell 1.2% to 1,835 yen after Mizuho cut its rating on the stock to neutral from buy and also reduced its target price.
Shares of Minebea rose 5.1% to 1,484 yen after the Nikkei newspaper reported operating profit is likely to reach 17 billion yen, compared with the company's forecast of 12.9 billion yen.
Shanghai Composite closes at 18-months high
Headline shares of the Mainland China market advanced for third straight day, sending the benchmark indices to highest level in more than 18 months, thanks to better than expected China's manufacturing data for September and bets that further gains would be fueled by increased liquidity. The benchmark Shanghai Composite index advanced 1.53 points, or 0.07%, to finish at 2345.10, the highest close since Mar. 6, 2013, when it finished at 2347.18.
Shares of defense related companies were top gainers amid hopes for asset injections from Beijing's. Zhonghang Heibao jumped 7.0% to 13.58 yuan, Beijing Aerospace Changfeng added 6.6% to 23.76 yuan and AVIC Aero-Engine Controls gained 6.1% to 17.80 yuan.
Power equipment manufacturers surged on hopes that Beijing will soon restart the construction of nuclear power plants following years in hiatus due to safety concerns.
Shanghai Electric Group rose by the 10% upper limit to 4.97 yuan, Dongfang Electric Corp. climbed 6.5% to 14.50 yuan and Sungrow Power Supply advanced 6.1% to 19.51 yuan.
Hang Seng ends 0.64% down
Hong Kong share market finished lower, as risk aversion selling fuelled on concerns over unrest in the territory as pro-democracy activists prepare for a major protest in their "Occupy Central" campaign on Oct. 1. The Hang Seng Index closed 153.48 points, or 0.64%, up at 23768.13. The China Enterprises Index fell 76.67 points, or 0.72%, to 10640.09. Market turnover increased to HK$80.83 billion, from Wednesday's turnover of HK$75.24 billion.
Shares of Macau's gaming stocks closed lower on anticipation of a drop in Macau gaming revenue in September. Macau's casino junket operators are feeling the squeeze as China's anti-corruption drive has blown a hole in the world's biggest gambling hub. The decline was also fuelled after Wynn Resorts said Macau's anti-corruption investigations have ended, but the authorities refuted the comment. Galaxy Ent (00027) slipped 3.5% to HK$46.35, followed by Sands China (01928), which declined 2.9% to HK$41.3. SJM (00880) fell 2.6% to HK$15.16. Wynn Macau (01128) plunged 4% to HK$24.35.
Shares of China staple players continued yesterday's rally after an investment bank's bullish comments. Want Want (00151) added 2.3% to HK$10.18. Tingyi (00322) put on 0.96% to HK$21.1. It was the second-best blue-chip winner.
Sensex, Nifty hit lowest closing level in more than 4 weeks
Indian stocks fell in choppy trade after the government once again deferred a decision on revising gas prices and as investors accessed the repercussion of previous day's Supreme Court verdict cancelling most coal block allocations made since 1993 due to irregularities in the allotment. Banking, oil and gas and metal stocks led the decline. The Sensex shed 276.33 points or 1.03% to settle at 26,468.36, its lowest closing level since 26 August 2014. The CNX Nifty shed 90.55 points or 1.13% to settle at 7,911.85.
IT stocks edged higher on weak rupee. Most pharma stocks were up as rupee weakened against the dollar. Capital goods stocks edged lower. Bank stocks extended Wednesday's losses on concerns of bad loans due to their exposure to coal mines after the Supreme Court's decision cancelling most coal block allocations since 1993. Shares of gas production firms fell after the government once again deferred a decision on revising gas prices. PSU OMCs dropped. Jindal & Steel and Power and Hindalco Industries which have been hit adversely by yesterday's decision of the Supreme Court to cancel most coal block allocations since 1993 tumbled.
Meanwhile, Prime Minister Narendra Modi today, 25 September 2014, launched the Make in India initiative with an aim to boost India's manufacturing sector. Addressing at the event, Modi said that gloom prevalent among India's business community over the last few years has lifted in the past few months. The Prime Minister said that no Indian business should feel a compulsion to leave the country under any circumstances.
Elsewhere in the Asia Pacific region-- Taiwan's Taiex index fell 0.96% to 9011.59. South Korea's KOSPI index eased 0.08% to 2034.11. Indonesia's Jakarta Composite index rose 0.53% to 5201.38. Malaysia's KLCI added 0.16% to 1843.11. New Zealand's NZX50 jumped 0.37% to 5277.86. Singapore's Straits Times index fell 0.06% at 3290.99.
