Asia pacific share market advanced on Thursday, 18 December 2014, as
appetite for riskier assets underpinned after the U.S. Federal Reserve
signalled it wasn't rushing to lift short-term interest rates. The MSCI
Asia Pacific Index climbed 0.8% to 134.69, after falling 2.5% the
previous three sessions as a plunge in oil and Russia's currency stoked
concern about global growth.
The rise in the regional markets echoed a jump in U.S. stocks overnight after the US Federal Reserve pledged patience on interest-rate increases after the conclusion of its two-day monetary policy meeting yesterday, 17 December 2014, a potentially longer timeline than some investors had anticipated.
The Federal Reserve said it will be "patient" on the timing of interest-rate increases - a subtle hint that the US central bank will not rush into its first interest-rate increase in seven years, which market participants believe will happen mid-2015. A longer timeline for rate increases in the United States implies that equities will continue to be more appealing to investors, including those in riskier emerging markets.
Among Asian bourses
Australia market rises for second day
Australian share market advanced for second consecutive session, as investors continued hunting for riskier assets after signals that the US Federal Reserve's isn't in a hurry to raise interest rates. The benchmark S&P/ASX 200 index advanced 48.90 points, or 0.95%, to close at 5210.80, while the broader All Ordinaries index added 49.10 points, or 0.96%, to 5189.70. Market turnover was relatively healthy, with 1.83 billion shares changed hands worth of A$6.42 billion.
Shares of energy companies advanced the most in Sydney market today, as world oil prices jumped as much as 6% overnight before closing off their peaks as weeks of nearly non-stop selling abruptly halted. Among energy stocks, Woodside Petroleum added 3.1% to A$36.60, while Santos rose 5% to A$7.96 and Oil Search added 4.4% to A$7.62.
Shares in Flight Centre slumped 9.1% toA$31.87 in the wake of the profit downgrade. The nation's largest travel agency has forecast underlying profits before tax of between A$360 million and A$390 million this financial year. The bottom of the range represents a 4% decline on last financial year when it made a record A$376.5m profit, while the top is a 4% rise.
Budget jewellery retailer Lovisa has seen its shares debut at a premium after the company raised A$102 million in an initial public offering. Issued at A$2.00 each, the shares closed 7% higher at A$2.14.
Nikkei rises 2.32% on Fed, yen
Japanese market closed sharp higher on Thursday, 18 December 2014, as signals that the U.S. isn't in a hurry to raise interest rates encouraged investors to take on more risk. Meanwhile, yen depreciation against basket of major currencies accelerated risk appetite buying into stocks. The benchmark Nikkei Stock Average advanced 2.32% to end at 17210.05.
Shares of export-related companies advanced the most in Tokyo, as the weakening yen boost overseas earnings prospect at Japanese exporters when repatriated, with auto makers among the biggest gainers. Toyota Motor Corp, which gets about 31% of its revenue from North America, gained 1.5% to 7,250 yen. Honda Motor Co, which gets about 80% of its revenue abroad, rose 1.2% to 3,495 yen. Mazda Motor Corp added 2.4% to 2892.50 yen and Nissan Motor Co jumped 0.9% to 1024.50 yen. Among tech exporters, camera maker Olympus Corp leap 3% to 4420 yen, electronics giant Toshiba Corporation climbed 0.7% to 499.40 yen, and semiconductor firm Renesas Electronics Corp headed 1% higher at 806 yen.
Dairei Co., which makes specialized frozen foods for restaurant chains and supermarkets, slid 7.5% to 1,665 yen, compared with its initial public offer price of 1,800 yen. Gumi Inc., a mobile game application developer, lost 4.1% to 3,165 yen, below its IPO price of 3,300 yen.
China stocks mixed before new listings
Mainland China stock market closed slight lower after fluctuating in and out of the neutral line, as investors shifted interest to coming listings. The benchmark Shanghai Composite was down 3.50 points, or 0.11%, to finish at 3057.52.
China's benchmark money market rate rose above 4% today, in part indicating investors are hoarding cash for initial public offerings. Seven IPOs began fundraising this week after China's securities regulator unexpectedly approved 12 initial public offerings on Dec. 10, a move which could cool a blistering rally in the country's stock markets. The 12 firms included Spring Airlines, medium-sized Chinese brokerage Guosen Securities as well as a textile maker and environmental technology services provider.
Shares of brokerages declined the most in Shanghai market on questions about margin trading after Shanghai Securities News reported that regulators criticised three brokerages for poor margin trading practices while carrying out inspections. Citic Securities Co closed 3.1% down at 31.74 yuan while Haitong Securities Co shed 6.8% to 22.67 yuan.
Railway-related stocks climbed up, with China Railway Construction Corp raising 10% daily limit at 11.85 yuan after Chinese government signed an agreement on Wednesday to build rail links between Belgrade and Budapest by mid-2015.
Hong Kong stocks gain by Fed vow to be patient in raising interest rates
Hong Kong share market finished higher for the first time in six consecutive sessions, as risk appetite buying underpinned on tracking gains in Wall Street overnight and other regional bourses after the Federal Reserve's pledge patience on interest-rate increases. The Hang Seng Index ended higher 246.37 points, or 1.09%, to 22832.21, off an intra-day high of 22935.05 and low of 22736.89. Turnover decreased to HK$99.64 billion from HK$107.78 billion on Wednesday.
As for the Shanghai-HK stock connect flow, the southbound quota balance was 10.102 billion yuan, while the northbound quota balance was 11.092 billion yuan, accounting for 96.2% and 85% of the daily allowed quotas respectively.
Macau gaming counters were higher after J.P. Morgan said the market was overdone to the reported crackdown on illicit money flows into Macau. It even dismissed the report as old and non-significant news. Galaxy Ent (0027) rebounded 3% to HK$43.35. SJM (00880) added 3% to HK$11.92. Sands China (01928) rose 2% to HK$38.75.
Sensex soars as Fed pledges to take 'patient' approach
Indian equity shares were trading higher in mid-afternoon trade after the US Federal Reserve said it would take a "patient" approach on deciding when to raise interest rates. At 14:16 IST, the S&P BSE Sensex was up 372.21 points or 1.39% at 27,082.34. The CNX Nifty was up 115.60 points or 1.44% at 8,145.40.
Auto stocks gained on renewed buying. Shares of power generation and power distribution companies rose after the government said it has decided to set up of Power System Operation Corporation (POSOCO) as an independent government company for reforms in power sector.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 0.57% to 8878.63. South Korea KOSPI was down 0.14% to 1897.50. New Zealand's NZX50 rose 0.4% at 5518. Singapore's Straits Times index rose 0.5% at 3243.65. Indonesia's Jakarta Composite index added 1.54% to 5113.35. Malaysia's KLCI added 1.07% to 1699.95.
The rise in the regional markets echoed a jump in U.S. stocks overnight after the US Federal Reserve pledged patience on interest-rate increases after the conclusion of its two-day monetary policy meeting yesterday, 17 December 2014, a potentially longer timeline than some investors had anticipated.
The Federal Reserve said it will be "patient" on the timing of interest-rate increases - a subtle hint that the US central bank will not rush into its first interest-rate increase in seven years, which market participants believe will happen mid-2015. A longer timeline for rate increases in the United States implies that equities will continue to be more appealing to investors, including those in riskier emerging markets.
Among Asian bourses
Australia market rises for second day
Australian share market advanced for second consecutive session, as investors continued hunting for riskier assets after signals that the US Federal Reserve's isn't in a hurry to raise interest rates. The benchmark S&P/ASX 200 index advanced 48.90 points, or 0.95%, to close at 5210.80, while the broader All Ordinaries index added 49.10 points, or 0.96%, to 5189.70. Market turnover was relatively healthy, with 1.83 billion shares changed hands worth of A$6.42 billion.
Shares of energy companies advanced the most in Sydney market today, as world oil prices jumped as much as 6% overnight before closing off their peaks as weeks of nearly non-stop selling abruptly halted. Among energy stocks, Woodside Petroleum added 3.1% to A$36.60, while Santos rose 5% to A$7.96 and Oil Search added 4.4% to A$7.62.
Shares in Flight Centre slumped 9.1% toA$31.87 in the wake of the profit downgrade. The nation's largest travel agency has forecast underlying profits before tax of between A$360 million and A$390 million this financial year. The bottom of the range represents a 4% decline on last financial year when it made a record A$376.5m profit, while the top is a 4% rise.
Budget jewellery retailer Lovisa has seen its shares debut at a premium after the company raised A$102 million in an initial public offering. Issued at A$2.00 each, the shares closed 7% higher at A$2.14.
Nikkei rises 2.32% on Fed, yen
Japanese market closed sharp higher on Thursday, 18 December 2014, as signals that the U.S. isn't in a hurry to raise interest rates encouraged investors to take on more risk. Meanwhile, yen depreciation against basket of major currencies accelerated risk appetite buying into stocks. The benchmark Nikkei Stock Average advanced 2.32% to end at 17210.05.
Shares of export-related companies advanced the most in Tokyo, as the weakening yen boost overseas earnings prospect at Japanese exporters when repatriated, with auto makers among the biggest gainers. Toyota Motor Corp, which gets about 31% of its revenue from North America, gained 1.5% to 7,250 yen. Honda Motor Co, which gets about 80% of its revenue abroad, rose 1.2% to 3,495 yen. Mazda Motor Corp added 2.4% to 2892.50 yen and Nissan Motor Co jumped 0.9% to 1024.50 yen. Among tech exporters, camera maker Olympus Corp leap 3% to 4420 yen, electronics giant Toshiba Corporation climbed 0.7% to 499.40 yen, and semiconductor firm Renesas Electronics Corp headed 1% higher at 806 yen.
Dairei Co., which makes specialized frozen foods for restaurant chains and supermarkets, slid 7.5% to 1,665 yen, compared with its initial public offer price of 1,800 yen. Gumi Inc., a mobile game application developer, lost 4.1% to 3,165 yen, below its IPO price of 3,300 yen.
China stocks mixed before new listings
Mainland China stock market closed slight lower after fluctuating in and out of the neutral line, as investors shifted interest to coming listings. The benchmark Shanghai Composite was down 3.50 points, or 0.11%, to finish at 3057.52.
China's benchmark money market rate rose above 4% today, in part indicating investors are hoarding cash for initial public offerings. Seven IPOs began fundraising this week after China's securities regulator unexpectedly approved 12 initial public offerings on Dec. 10, a move which could cool a blistering rally in the country's stock markets. The 12 firms included Spring Airlines, medium-sized Chinese brokerage Guosen Securities as well as a textile maker and environmental technology services provider.
Shares of brokerages declined the most in Shanghai market on questions about margin trading after Shanghai Securities News reported that regulators criticised three brokerages for poor margin trading practices while carrying out inspections. Citic Securities Co closed 3.1% down at 31.74 yuan while Haitong Securities Co shed 6.8% to 22.67 yuan.
Railway-related stocks climbed up, with China Railway Construction Corp raising 10% daily limit at 11.85 yuan after Chinese government signed an agreement on Wednesday to build rail links between Belgrade and Budapest by mid-2015.
Hong Kong stocks gain by Fed vow to be patient in raising interest rates
Hong Kong share market finished higher for the first time in six consecutive sessions, as risk appetite buying underpinned on tracking gains in Wall Street overnight and other regional bourses after the Federal Reserve's pledge patience on interest-rate increases. The Hang Seng Index ended higher 246.37 points, or 1.09%, to 22832.21, off an intra-day high of 22935.05 and low of 22736.89. Turnover decreased to HK$99.64 billion from HK$107.78 billion on Wednesday.
As for the Shanghai-HK stock connect flow, the southbound quota balance was 10.102 billion yuan, while the northbound quota balance was 11.092 billion yuan, accounting for 96.2% and 85% of the daily allowed quotas respectively.
Macau gaming counters were higher after J.P. Morgan said the market was overdone to the reported crackdown on illicit money flows into Macau. It even dismissed the report as old and non-significant news. Galaxy Ent (0027) rebounded 3% to HK$43.35. SJM (00880) added 3% to HK$11.92. Sands China (01928) rose 2% to HK$38.75.
Sensex soars as Fed pledges to take 'patient' approach
Indian equity shares were trading higher in mid-afternoon trade after the US Federal Reserve said it would take a "patient" approach on deciding when to raise interest rates. At 14:16 IST, the S&P BSE Sensex was up 372.21 points or 1.39% at 27,082.34. The CNX Nifty was up 115.60 points or 1.44% at 8,145.40.
Auto stocks gained on renewed buying. Shares of power generation and power distribution companies rose after the government said it has decided to set up of Power System Operation Corporation (POSOCO) as an independent government company for reforms in power sector.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 0.57% to 8878.63. South Korea KOSPI was down 0.14% to 1897.50. New Zealand's NZX50 rose 0.4% at 5518. Singapore's Straits Times index rose 0.5% at 3243.65. Indonesia's Jakarta Composite index added 1.54% to 5113.35. Malaysia's KLCI added 1.07% to 1699.95.
