Asia Pacific shares ended mostly higher after recouping early losses on
Thursday, 30 October 2014, thanks to solid earnings from some of the
region's bellwether companies.
Regional shares commenced trading with soft tone on tracking a weak lead from offshore after the U.S. Federal Reserve expectedly ended its massive quantitative easing programme and issued an upbeat assessment of the American employment market.
The US Federal Reserve's decision to end its quantitative easing stimulus measure was not well received on Wall Street overnight, and also same trend followed by the regional bourses.
The statement, issued after the Federal Reserve's two-day policy meeting, said the jobs market had enjoyed "substantial improvement" and the Fed expected its underlying strength to continue. The Fed reiterated that it will not raise the Federal Fund rate for a "considerable time", but a key change was that it said that was conditional on incoming information. As was widely expected, the US central bank said it will end its economic stimulus program at the end of October. The Fed has been tapering its bond purchase program from $US85 billion a month last December to just $US15 billion this month.
Among Asian bourses
Nikkei jumps on solid earnings, yen depreciation
Japanese share market closed the session higher, as risk appetite buying underpinned on tracking yen depreciation against greenback and rosy earnings results from Keyence, Central Japan Railway and other closely watched firms. The Nikkei 225 index advanced 0.67%, or 104.29 points, to 15658.20, while the Topix index of all first-section issues was up 0.65 %, or 8.26 points, at 1,278.90.
Shares of Nintendo Co climbed 1% to 11235 yen after the game maker booked a surprising net profit of Y24.22 billion for the July-September quarter, roughly four times more than market expectations.
Sensor manufacturer Keyence Corp added 5.8% to 50362 yen after posted a first half operating profit of 82.2 billion yen and raised its full-year dividend per share forecast to 200 yen, up from 60 yen.
Machinery maker Makita Corp gained 2.6% to 5920 yen after raising its first half operating profit guidance to 37.9 billion yen from 31 billion yen, citing weaker yen benefits, solid sales volumes in key markets, and other benefits.
Central Japan Railway Co rose 1.5% to 15415 yen after booking a first-half operating profit of 278.9 billion yen, much higher than guidance, and bumped up its full financial year forecast.
Banks lead Aussie market rally
Australian share market finished the session modestly higher, as strength in in financial, property trusts and consumer staple counters helped to overshadow losses elsewhere. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both advanced by 0.5% to 5476.20 and 5457.10, respectively.
Shares of banks and financial companies advanced, with National Australia Bank raising 0.8% to A$34.64 as investors responded positively to corporate updates. National Australia Bank profits were down 10% to A$5.2 billion in the year to September, in line with previous guidance. Australia and New Zealand Banking Group, due to report on Friday, pushed 1% higher to A$33.26. Westpac Banking Corp, reporting Monday, rose 0.8% to A$34.46 and Commonwealth Bank of Australia, which will provide a quarterly earnings update on Tuesday, gained 0.7% to A$80.17.
Wesfarmers shares jumped 1.3% to A$43.92 after the conglomerate announced it had lifted total retail sales across its business by 4.6% in the first quarter of the 2014-15 financial year. The boost was led by better-than-expected sales at supermarket Coles, which recorded same-store sales growth of 4.3%.
Shares in Coca-Cola Amatil pushed 4.5% higher to A$9.07 after the beverage maker announced its parent company Coca-Cola Co would purchase a 29.4% stake in its Indonesian business for $US500 million and that the company would return to profit growth in 2015.
Shanghai Composite rises 0.76% on Govt investment plans
Mainland China share market advanced to almost 20 months peak, on speculation of benefit from Beijing's investment plans and as regulators signalled work was almost complete for the start of a planned trading link between the two cities bourses. The benchmark Shanghai Composite Index, which tracks both A and B shares, ended higher 0.76%, or 18.05 points, at 2391.08.
Beijing has given the green light to 64 railway projects, Xinhua News Agency reported on Wednesday, adding that China has set its 2014 investment target for the railway sector at 800 billion yuan.
Shanghai Stock Exchange will conduct a test on a planned stock-trading connection between the bourse and its Hong Kong counterpart on Nov. 1, rekindling hopes that the link may be back on track following a delay.
Shares of construction related companies advanced on hopes that Beijing will boost investment in infrastructure construction projects, while expectations of reforms in state-owned enterprises also buoyed sentiment in the sector. China Railway Group hit its 10% daily upside limit at 4.20 yuan, China National Chemical Engineering surged 8% to 6.64 yuan and China Railway Construction Corp. added 7.7% to 6.68 yuan.
Banks strengthened after a string of lenders reported better than expected earnings. Industrial and Commercial Bank of China rose 1.4% to 3.59 yuan, after the country's largest lender by assets announced that its third quarter net profit rose 8% from a year earlier. China Merchants Bank gained 0.9% to 10.47 yuan after reporting a 16% on-year rise in its third-quarter net profit.
Hang Seng falls 0.5%
Hong Kong equity market closed weaker for the first time in three consecutive sessions, as investors' opted booking profit on tracking weakness in the Wall Street overnight after the US Federal Reserve ended its massive quantitative easing programme, and spiked its economic assessment with a tinge of hawkishness. The Hang Seng Index declined 0.5%, or 117.83 points, to 23702.04. Turnover decreased to HK$67.58 billion from HK$79.60 billion on Wednesday.
Shares of utilities companies advanced sharply in Hong Kong on reports that a reform package for the China power industry might be announced soon. CR Power (000836) put on 2.8% to HK$22.25, becoming top blue chip winner. Datang Power (00991) gained 3.8% to HK$4.07. Huadian Power (01071) soared 5.2% to HK$5.89. Huaneng Power (00902) added 2.6% to HK$9.35. China Power (02380) rose 2% to HK$3.51.
Belle (01880) gained 1% to HK$9.78, extending a 3-day rally. The stock has registered a combined 15% gains over the past three trading days.
Sensex hits record high on economic reforms
Indian stock market closed at new life highs on increased buying by investors on bet an improving economy and government reforms would allow the country to better withstand potential rate hikes in the US. The benchmark BSE Sensex provisionally closed 0.92% higher at 27346.33, while the broader Nifty gained 0.97% to 8169.20, rising for eight sessions in nine.
Continued reform push by the government has boosted sentiments. On Wednesday, the government relaxed rules for foreign direct investment (FDI) in construction development. The new rules make it easier for foreign companies to invest in India and many projects will now qualify for FDI through automatic route (no FIPB clearance will be required).
Lower-than-expected increase in wheat support prices also aided sentiment. Lower increase in minimum support prices bodes well for the food price inflation outlook and thus should help lower headline inflation in the coming quarter.
Exporters led gainers on the increased Fed optimism about the U.S. economy, with Infosys provisionally ending up 1.6% while rival Tata Consultancy Services gaining 2.3%. Shares in realty and construction companies also rallied with DLF advancing 5%.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index declined 0.18% to 8888.07. South Korea KOSPI slipped 0.11% to 1958.93. Malaysia's KLCI rose 0.18% to 1842.78. New Zealand's NZX50 rose 0.27% to 5370.18 after New Zealand's central bank held its benchmark rate at a five-and-a-half-year high. Singapore's Straits Times index grew 0.4% at 3224.03. Indonesia's Jakarta Composite index fell 0.3% to 5058.85.
Regional shares commenced trading with soft tone on tracking a weak lead from offshore after the U.S. Federal Reserve expectedly ended its massive quantitative easing programme and issued an upbeat assessment of the American employment market.
The US Federal Reserve's decision to end its quantitative easing stimulus measure was not well received on Wall Street overnight, and also same trend followed by the regional bourses.
The statement, issued after the Federal Reserve's two-day policy meeting, said the jobs market had enjoyed "substantial improvement" and the Fed expected its underlying strength to continue. The Fed reiterated that it will not raise the Federal Fund rate for a "considerable time", but a key change was that it said that was conditional on incoming information. As was widely expected, the US central bank said it will end its economic stimulus program at the end of October. The Fed has been tapering its bond purchase program from $US85 billion a month last December to just $US15 billion this month.
Among Asian bourses
Nikkei jumps on solid earnings, yen depreciation
Japanese share market closed the session higher, as risk appetite buying underpinned on tracking yen depreciation against greenback and rosy earnings results from Keyence, Central Japan Railway and other closely watched firms. The Nikkei 225 index advanced 0.67%, or 104.29 points, to 15658.20, while the Topix index of all first-section issues was up 0.65 %, or 8.26 points, at 1,278.90.
Shares of Nintendo Co climbed 1% to 11235 yen after the game maker booked a surprising net profit of Y24.22 billion for the July-September quarter, roughly four times more than market expectations.
Sensor manufacturer Keyence Corp added 5.8% to 50362 yen after posted a first half operating profit of 82.2 billion yen and raised its full-year dividend per share forecast to 200 yen, up from 60 yen.
Machinery maker Makita Corp gained 2.6% to 5920 yen after raising its first half operating profit guidance to 37.9 billion yen from 31 billion yen, citing weaker yen benefits, solid sales volumes in key markets, and other benefits.
Central Japan Railway Co rose 1.5% to 15415 yen after booking a first-half operating profit of 278.9 billion yen, much higher than guidance, and bumped up its full financial year forecast.
Banks lead Aussie market rally
Australian share market finished the session modestly higher, as strength in in financial, property trusts and consumer staple counters helped to overshadow losses elsewhere. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both advanced by 0.5% to 5476.20 and 5457.10, respectively.
Shares of banks and financial companies advanced, with National Australia Bank raising 0.8% to A$34.64 as investors responded positively to corporate updates. National Australia Bank profits were down 10% to A$5.2 billion in the year to September, in line with previous guidance. Australia and New Zealand Banking Group, due to report on Friday, pushed 1% higher to A$33.26. Westpac Banking Corp, reporting Monday, rose 0.8% to A$34.46 and Commonwealth Bank of Australia, which will provide a quarterly earnings update on Tuesday, gained 0.7% to A$80.17.
Wesfarmers shares jumped 1.3% to A$43.92 after the conglomerate announced it had lifted total retail sales across its business by 4.6% in the first quarter of the 2014-15 financial year. The boost was led by better-than-expected sales at supermarket Coles, which recorded same-store sales growth of 4.3%.
Shares in Coca-Cola Amatil pushed 4.5% higher to A$9.07 after the beverage maker announced its parent company Coca-Cola Co would purchase a 29.4% stake in its Indonesian business for $US500 million and that the company would return to profit growth in 2015.
Shanghai Composite rises 0.76% on Govt investment plans
Mainland China share market advanced to almost 20 months peak, on speculation of benefit from Beijing's investment plans and as regulators signalled work was almost complete for the start of a planned trading link between the two cities bourses. The benchmark Shanghai Composite Index, which tracks both A and B shares, ended higher 0.76%, or 18.05 points, at 2391.08.
Beijing has given the green light to 64 railway projects, Xinhua News Agency reported on Wednesday, adding that China has set its 2014 investment target for the railway sector at 800 billion yuan.
Shanghai Stock Exchange will conduct a test on a planned stock-trading connection between the bourse and its Hong Kong counterpart on Nov. 1, rekindling hopes that the link may be back on track following a delay.
Shares of construction related companies advanced on hopes that Beijing will boost investment in infrastructure construction projects, while expectations of reforms in state-owned enterprises also buoyed sentiment in the sector. China Railway Group hit its 10% daily upside limit at 4.20 yuan, China National Chemical Engineering surged 8% to 6.64 yuan and China Railway Construction Corp. added 7.7% to 6.68 yuan.
Banks strengthened after a string of lenders reported better than expected earnings. Industrial and Commercial Bank of China rose 1.4% to 3.59 yuan, after the country's largest lender by assets announced that its third quarter net profit rose 8% from a year earlier. China Merchants Bank gained 0.9% to 10.47 yuan after reporting a 16% on-year rise in its third-quarter net profit.
Hang Seng falls 0.5%
Hong Kong equity market closed weaker for the first time in three consecutive sessions, as investors' opted booking profit on tracking weakness in the Wall Street overnight after the US Federal Reserve ended its massive quantitative easing programme, and spiked its economic assessment with a tinge of hawkishness. The Hang Seng Index declined 0.5%, or 117.83 points, to 23702.04. Turnover decreased to HK$67.58 billion from HK$79.60 billion on Wednesday.
Shares of utilities companies advanced sharply in Hong Kong on reports that a reform package for the China power industry might be announced soon. CR Power (000836) put on 2.8% to HK$22.25, becoming top blue chip winner. Datang Power (00991) gained 3.8% to HK$4.07. Huadian Power (01071) soared 5.2% to HK$5.89. Huaneng Power (00902) added 2.6% to HK$9.35. China Power (02380) rose 2% to HK$3.51.
Belle (01880) gained 1% to HK$9.78, extending a 3-day rally. The stock has registered a combined 15% gains over the past three trading days.
Sensex hits record high on economic reforms
Indian stock market closed at new life highs on increased buying by investors on bet an improving economy and government reforms would allow the country to better withstand potential rate hikes in the US. The benchmark BSE Sensex provisionally closed 0.92% higher at 27346.33, while the broader Nifty gained 0.97% to 8169.20, rising for eight sessions in nine.
Continued reform push by the government has boosted sentiments. On Wednesday, the government relaxed rules for foreign direct investment (FDI) in construction development. The new rules make it easier for foreign companies to invest in India and many projects will now qualify for FDI through automatic route (no FIPB clearance will be required).
Lower-than-expected increase in wheat support prices also aided sentiment. Lower increase in minimum support prices bodes well for the food price inflation outlook and thus should help lower headline inflation in the coming quarter.
Exporters led gainers on the increased Fed optimism about the U.S. economy, with Infosys provisionally ending up 1.6% while rival Tata Consultancy Services gaining 2.3%. Shares in realty and construction companies also rallied with DLF advancing 5%.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index declined 0.18% to 8888.07. South Korea KOSPI slipped 0.11% to 1958.93. Malaysia's KLCI rose 0.18% to 1842.78. New Zealand's NZX50 rose 0.27% to 5370.18 after New Zealand's central bank held its benchmark rate at a five-and-a-half-year high. Singapore's Straits Times index grew 0.4% at 3224.03. Indonesia's Jakarta Composite index fell 0.3% to 5058.85.
