Asia Pacific shares closed mostly higher on Wednesday, 12 November 2014,
following another record close on Wall Street overnight and surge in
Tokyo and Chinese bourses today. The MSCI Asia Pacific Index added 0.2%
to 141.23
Japanese share market advanced to seven-year high, amid speculation, Prime Minister Shinzo Abe may postpone a planned sales tax hike and call an election, while Chinese share market rallied to fresh three-year peak today amid optimism for next week's exchange link with Hong Kong.
Among Asian bourses
Resources, lenders drag Aussie market 1% down
Australian share market closed steep lower today4, pulled back by weakness across the sectors, with big banks and the major miners being major losers, after extremely bearish forecasts for the long-term price of the metal. Poor consumer confidence data also weighed on the market as well. The benchmark S&P/ASX 200 Index declined 0.98% to 5463.10 and the broader All Ordinaries Index fell by 0.93% to 5443.
Shares of materials and resources companies extended losses for second day in row amid extremely bearish forecasts for the long-term price of the metal. A number of banks from Australia and New Zealand Banking Group to Citigroup have predicted further sharp falls in the bulk commodity's price as supply expands while demand shrivels. Among the major miners, Resources giant BHP Billiton fell 2.8% to A$33.20, as it scrapped the sale of its Western Australian Nickel West business after failing to attract a buyer, while main rival Rio Tinto slipped 1.8% to A$59.41 and Fortescue Metals sagged 2% to A$2.96. Atlas Iron dumped 14.3% to A$0.21 and BC Iron tanked 10.4% to A$0.775.
Energy producers were down on continued weakness in oil prices. Oil prices also fell amid signs that Organisation of the Petroleum Exporting Countries members will keep up supply despite falling prices. Australia's biggest oil producer Woodside Petroleum erased 0.02% to A$40.24, Origin Energy shed 1.4% to A$13.92 and Santos fell 1% to A$12.45.
Financial stocks were down, with top four lenders leading losses. Among the major banks, National Australia Bank was lower by 0.9% to A$32.65 as it moved towards settling a multi-million-dollar class action over unfair fees. Commonwealth Bank shed 1.4% to A$81.85 as chairman David Turner expressed cautious optimism about 2015, predicting slight rises in consumer spending and demand for credit from businesses. ANZ backtracked 0.9% to A$32.21 and Westpac surrendered 0.9% to A$33.33.
Nikkei hits seven-year high on tax hike delay hopes
Japanese share market advanced to seven-year high, as risk appetite buying propelled by tracking strong cues from offshore market overnight and speculation, Prime Minister Shinzo Abe may postpone a planned sales tax hike and call an election. The Nikkei 225 Stock Average surged 0.43% to 17197.05, extending a seven-year high. The Topix index rose 0.1% to 1377.05, its highest since June 2008.
Tokyo investors continued hunting for riskier assets across the board after local media report that government will postpone a planned tax increase and call a general election for December in an effort to lock in his grip on power before his voter ratings slide further.
Japan's national consumption tax is scheduled to be raised to 10% from 8% in October 2015. Prime Minister Abe is seen interested in delaying the hike and calling for snap lower house elections to capitalize on the public appeal of such a move and bolster his flagging support figures.
Shares of realty players gained the most in Tokyo on speculation a delay of another tax increase. Mitsui Fudosan climbed 2.7% to 3,577 yen. Mitsubishi Estate Co., the second-biggest developer in Japan, added 2.3% to 2,757.5 yen.
Seino surged 13% to 1,056 yen after saying it will buy back as much as 3% of its shares. Nomura Holdings Inc. raised the company's rating to buy from neutral.
Fujifilm Holdings rose 1.7% to 3903 yen after the firm said on Tuesday that its Avigan anti-influenza drug likely to be get formally approval by early next year for treating patients with the Ebola virus. It also said it will allocate some Y500 billion for mergers and acquisitions, with the aim of returning Y200 billion to shareholders through dividends and buybacks.
Shanghai Composite hits fresh 3-year high
Mainland China share market closed at fresh three-year high, as investors continued to chase brokerages shares on hopes it will benefits from exchange link between Hong Kong and Shanghai. The benchmark Shanghai Composite Index, which tracks both A and B shares, surged 1% at 2494.48, the highest close since Nov. 15, 2011, when it closed at 2529.76.
Investment rationale underpinned after official reports that bourses in the two cities will begin trading through the program, which allows a net 23.5 billion yuan a day in cross-border purchases, on November 17. The exchange link between Hong Kong and Shanghai will give foreign investors unprecedented access to China's $US4.2 trillion equity market.
The exchange link marks one of China's biggest steps toward opening up its capital account, boosting global use of the yuan and turning Shanghai into an international financial centre.
Shares of brokerages were advanced the most in China market on hopes the start of the stock-trading link between Shanghai and Hong Kong will draw more investors in and lead to an increase in their revenues. Citic Securities jumped 7.9% to 15.38 yuan, Haitong Securities gained 5.9% to 12.35 yuan and Huatai Securities rose 5.6% to 12.93 yuan.
Shares of transportation companies advanced on hopes that the setting up of more free trade zones will boost traffic. Zhuhai Port closed 10% daily upside limit at 7.12 yuan, Shenzhen Yan Tian Port Holdings added 6.3% to 8.09 yuan, while Shanghai International Airport advanced 5.1% to 16.99 yuan.
Banks succumbed to profit taking after the recent rally. Bank of China lost 2.2% to 3.08 yuan, while Industrial & Commercial Bank of China slid 1.3% to 3.76 yuan.
Hang Seng extends gain for third day on stock connect news
Hong Kong share market advanced for third consecutive session, following another record close on Wall Street overnight and optimism over next week start of the cross-trading link with Shanghai's exchange. The Hang Seng Index rose 0.55%, or 129.90 points, to 23938.18. Turnover decreased to HK$74.39 billion from HK$95.95 billion on Tuesday.
BOCHK (02388) shot up 3.8% to HK$27.35 after the HKMA announced the removal of resident RMB conversion cap of RMB20,000 effective 17 November. It was the best blue chip performer in the day.
Mengniu Dairy (02319) dipped 1.8% to HK$30.4 after China Modern Dairy (01117) confirmed that the government authority is investigating the alleged bovine tuberculosis disease incident. It was the worst blue chip loser today.
Tencent (00700) added 1.3% to HK$129.2 ahead of its earnings report. AIA (01299) rose 1.5% to HK$44.5.
Elsewhere, China's domestic media reported that China and South Africa have signed a framework agreement on nuclear cooperation, which ensures Chinese nuclear enterprises to share the RMB570bn nuclear market in South Africa. Shanghai Electric (02727) soared 7% to HK$4.51.
China's major electrical appliance retailer Gome Electrical Appliances tumbled 6.6% to HK$1.14 after the company said it would purchase a 5.4% stake in Chinese lender Huishang Bank Corporation for over HK$24 billion.
Sensex settles above 28,000 for first time in its history
Amid a mixed trend in various constituents of the index, Indian benchmark indices registered modest gains. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit record high on intraday basis as well as closing basis. The Sensex settled above the psychological 28,000 level for the first time in its history. The Sensex gained 98.84 points or 0.35% to settle at 28,008.90.
Prime Minister Narendra Modi today, 12 November 2014, said that a new era of economic development, industrialization and trade has begun in India.
Global crude oil prices edged lower. Fall in crude oil prices augur well for India as the country imports 80% of its oil requirement. Data after trading hours today, 12 November 2014, is likely to show consumer price inflation falling further in October 2014 and growth in industrial production remaining muted in September 2014.
Meanwhile, the empowered committee of state finance ministers on goods & services tax (GST) at its meeting held yesterday, 11 November 2014, reportedly agreed on the 'place of supply' rules that form the backbone of proposed GST. Foreign portfolio investors (FPIs) bought shares worth a net Rs 454.52 crore from the secondary equity market yesterday, 11 November 2014. On the political front, the Devendra Fadnavis-led BJP government today, 12 November 2014, won the trust vote in Maharashtra assembly.
Shares of private sector banks rose. PSU bank stocks were mixed. Shares of non-banking financial companies extended Tuesday's gains triggered by the Reserve Bank of India's announcement of revised regulatory framework for Non-banking Finance Companies (NBFCs), with Shriram Transport Finance Corporation hitting record high. Auto stocks rose on hopes further fuel price cut may trigger pick-up in demand after reports PSU OMCs are likely to reduce price of petrol and diesel by about Rs 1 per litre each in mid-November 2014. Tyre stocks advanced on renewed buying.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 1.28% to 8918.05. South Korea KOSPI rose 0.22% to 1967.27. New Zealand's NZX50 fell 0.05% to 5487.89. Singapore's Straits Times index fell 0.26% at 3283.71. Indonesia's Jakarta Composite index rose 0.33% to 5048.84. Malaysia's KLCI fell 0.49% to 1816.24.
Japanese share market advanced to seven-year high, amid speculation, Prime Minister Shinzo Abe may postpone a planned sales tax hike and call an election, while Chinese share market rallied to fresh three-year peak today amid optimism for next week's exchange link with Hong Kong.
Among Asian bourses
Resources, lenders drag Aussie market 1% down
Australian share market closed steep lower today4, pulled back by weakness across the sectors, with big banks and the major miners being major losers, after extremely bearish forecasts for the long-term price of the metal. Poor consumer confidence data also weighed on the market as well. The benchmark S&P/ASX 200 Index declined 0.98% to 5463.10 and the broader All Ordinaries Index fell by 0.93% to 5443.
Shares of materials and resources companies extended losses for second day in row amid extremely bearish forecasts for the long-term price of the metal. A number of banks from Australia and New Zealand Banking Group to Citigroup have predicted further sharp falls in the bulk commodity's price as supply expands while demand shrivels. Among the major miners, Resources giant BHP Billiton fell 2.8% to A$33.20, as it scrapped the sale of its Western Australian Nickel West business after failing to attract a buyer, while main rival Rio Tinto slipped 1.8% to A$59.41 and Fortescue Metals sagged 2% to A$2.96. Atlas Iron dumped 14.3% to A$0.21 and BC Iron tanked 10.4% to A$0.775.
Energy producers were down on continued weakness in oil prices. Oil prices also fell amid signs that Organisation of the Petroleum Exporting Countries members will keep up supply despite falling prices. Australia's biggest oil producer Woodside Petroleum erased 0.02% to A$40.24, Origin Energy shed 1.4% to A$13.92 and Santos fell 1% to A$12.45.
Financial stocks were down, with top four lenders leading losses. Among the major banks, National Australia Bank was lower by 0.9% to A$32.65 as it moved towards settling a multi-million-dollar class action over unfair fees. Commonwealth Bank shed 1.4% to A$81.85 as chairman David Turner expressed cautious optimism about 2015, predicting slight rises in consumer spending and demand for credit from businesses. ANZ backtracked 0.9% to A$32.21 and Westpac surrendered 0.9% to A$33.33.
Nikkei hits seven-year high on tax hike delay hopes
Japanese share market advanced to seven-year high, as risk appetite buying propelled by tracking strong cues from offshore market overnight and speculation, Prime Minister Shinzo Abe may postpone a planned sales tax hike and call an election. The Nikkei 225 Stock Average surged 0.43% to 17197.05, extending a seven-year high. The Topix index rose 0.1% to 1377.05, its highest since June 2008.
Tokyo investors continued hunting for riskier assets across the board after local media report that government will postpone a planned tax increase and call a general election for December in an effort to lock in his grip on power before his voter ratings slide further.
Japan's national consumption tax is scheduled to be raised to 10% from 8% in October 2015. Prime Minister Abe is seen interested in delaying the hike and calling for snap lower house elections to capitalize on the public appeal of such a move and bolster his flagging support figures.
Shares of realty players gained the most in Tokyo on speculation a delay of another tax increase. Mitsui Fudosan climbed 2.7% to 3,577 yen. Mitsubishi Estate Co., the second-biggest developer in Japan, added 2.3% to 2,757.5 yen.
Seino surged 13% to 1,056 yen after saying it will buy back as much as 3% of its shares. Nomura Holdings Inc. raised the company's rating to buy from neutral.
Fujifilm Holdings rose 1.7% to 3903 yen after the firm said on Tuesday that its Avigan anti-influenza drug likely to be get formally approval by early next year for treating patients with the Ebola virus. It also said it will allocate some Y500 billion for mergers and acquisitions, with the aim of returning Y200 billion to shareholders through dividends and buybacks.
Shanghai Composite hits fresh 3-year high
Mainland China share market closed at fresh three-year high, as investors continued to chase brokerages shares on hopes it will benefits from exchange link between Hong Kong and Shanghai. The benchmark Shanghai Composite Index, which tracks both A and B shares, surged 1% at 2494.48, the highest close since Nov. 15, 2011, when it closed at 2529.76.
Investment rationale underpinned after official reports that bourses in the two cities will begin trading through the program, which allows a net 23.5 billion yuan a day in cross-border purchases, on November 17. The exchange link between Hong Kong and Shanghai will give foreign investors unprecedented access to China's $US4.2 trillion equity market.
The exchange link marks one of China's biggest steps toward opening up its capital account, boosting global use of the yuan and turning Shanghai into an international financial centre.
Shares of brokerages were advanced the most in China market on hopes the start of the stock-trading link between Shanghai and Hong Kong will draw more investors in and lead to an increase in their revenues. Citic Securities jumped 7.9% to 15.38 yuan, Haitong Securities gained 5.9% to 12.35 yuan and Huatai Securities rose 5.6% to 12.93 yuan.
Shares of transportation companies advanced on hopes that the setting up of more free trade zones will boost traffic. Zhuhai Port closed 10% daily upside limit at 7.12 yuan, Shenzhen Yan Tian Port Holdings added 6.3% to 8.09 yuan, while Shanghai International Airport advanced 5.1% to 16.99 yuan.
Banks succumbed to profit taking after the recent rally. Bank of China lost 2.2% to 3.08 yuan, while Industrial & Commercial Bank of China slid 1.3% to 3.76 yuan.
Hang Seng extends gain for third day on stock connect news
Hong Kong share market advanced for third consecutive session, following another record close on Wall Street overnight and optimism over next week start of the cross-trading link with Shanghai's exchange. The Hang Seng Index rose 0.55%, or 129.90 points, to 23938.18. Turnover decreased to HK$74.39 billion from HK$95.95 billion on Tuesday.
BOCHK (02388) shot up 3.8% to HK$27.35 after the HKMA announced the removal of resident RMB conversion cap of RMB20,000 effective 17 November. It was the best blue chip performer in the day.
Mengniu Dairy (02319) dipped 1.8% to HK$30.4 after China Modern Dairy (01117) confirmed that the government authority is investigating the alleged bovine tuberculosis disease incident. It was the worst blue chip loser today.
Tencent (00700) added 1.3% to HK$129.2 ahead of its earnings report. AIA (01299) rose 1.5% to HK$44.5.
Elsewhere, China's domestic media reported that China and South Africa have signed a framework agreement on nuclear cooperation, which ensures Chinese nuclear enterprises to share the RMB570bn nuclear market in South Africa. Shanghai Electric (02727) soared 7% to HK$4.51.
China's major electrical appliance retailer Gome Electrical Appliances tumbled 6.6% to HK$1.14 after the company said it would purchase a 5.4% stake in Chinese lender Huishang Bank Corporation for over HK$24 billion.
Sensex settles above 28,000 for first time in its history
Amid a mixed trend in various constituents of the index, Indian benchmark indices registered modest gains. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit record high on intraday basis as well as closing basis. The Sensex settled above the psychological 28,000 level for the first time in its history. The Sensex gained 98.84 points or 0.35% to settle at 28,008.90.
Prime Minister Narendra Modi today, 12 November 2014, said that a new era of economic development, industrialization and trade has begun in India.
Global crude oil prices edged lower. Fall in crude oil prices augur well for India as the country imports 80% of its oil requirement. Data after trading hours today, 12 November 2014, is likely to show consumer price inflation falling further in October 2014 and growth in industrial production remaining muted in September 2014.
Meanwhile, the empowered committee of state finance ministers on goods & services tax (GST) at its meeting held yesterday, 11 November 2014, reportedly agreed on the 'place of supply' rules that form the backbone of proposed GST. Foreign portfolio investors (FPIs) bought shares worth a net Rs 454.52 crore from the secondary equity market yesterday, 11 November 2014. On the political front, the Devendra Fadnavis-led BJP government today, 12 November 2014, won the trust vote in Maharashtra assembly.
Shares of private sector banks rose. PSU bank stocks were mixed. Shares of non-banking financial companies extended Tuesday's gains triggered by the Reserve Bank of India's announcement of revised regulatory framework for Non-banking Finance Companies (NBFCs), with Shriram Transport Finance Corporation hitting record high. Auto stocks rose on hopes further fuel price cut may trigger pick-up in demand after reports PSU OMCs are likely to reduce price of petrol and diesel by about Rs 1 per litre each in mid-November 2014. Tyre stocks advanced on renewed buying.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 1.28% to 8918.05. South Korea KOSPI rose 0.22% to 1967.27. New Zealand's NZX50 fell 0.05% to 5487.89. Singapore's Straits Times index fell 0.26% at 3283.71. Indonesia's Jakarta Composite index rose 0.33% to 5048.84. Malaysia's KLCI fell 0.49% to 1816.24.
