Asia Pacific share market mostly advanced on Wednesday, 03 December
2014, as record finish on Wall Street overnight and speculation of the
European Central Bank stimulus expansion boosted sentiment in the
region.
The Dow Jones Industrial Average rose to a record finish on Tuesday after data showed November U.S. auto sales clocked their best month since 2003.
ECB President Mario Draghi and his ECB colleagues meet tomorrow in Frankfurt to discuss monetary policy. There is speculation that the European central bank may broaden its asset-buying program to include government bonds.
Among Asian bourses
Nikkei hits new seven-year high on weak yen
Japanese stock market finished session at new seven year peak today, as risk appetite buying continued getting support from yen depreciation to lower-109 level against the greenback and falls in crude oil prices. The benchmark Nikkei Stock Average rose 57.21 points, or 0.32%, to 17,720.43, the highest level since July 2007.
Exporters shares were mostly higher as the yen softening to as low as 119.44 against the greenback, the weakest since August 2007, elevating the overseas earnings when repatriate them home. Industrial robot maker Fanuc Corp slipped 0.9% to 18665 yen, while chip testing equipment maker Advantest Corp rose 1.1% to 1427 yen. Toyota Motor Corp, the world's biggest automaker, added 0.9% to 7592 yen. Honda Motor Co, a carmaker that gets 84% of sales abroad, added 0.7% to 3652 yen. Olympus Corp., the world's largest maker of endoscopes, rose 0.9% to 4580 yen.
Otsuka Holdings Co. fell 5.0% to 3671.5 yen following news that its unit Otsuka Pharmaceutical agreed to buy Avanir Pharmaceuticals for $3.5 billion. The deal is the largest ever by Otsuka Holdings.
Aussie stocks rises 0.8%
Australian share market closed higher for second consecutive day, as investors continued value buying across the board following steep losses last week. The local market withstood despite disappointing economic growth figures and weak commodity prices. The benchmark S&P/ASX 200 index and the broader All Ordinaries index both rose 0.8% to 5321.80 and 5301.20, respectively.
Australian Bureau of Statistics data that showed that gross domestic product grew by just 0.3% in the September quarter over the three-month period. Net exports contributed 0.8 percentage points to GDP growth. Household final consumption expenditure contributed 0.3 percentage points to GDP growth and Government final consumption expenditure contributed 0.1 percentage points to GDP growth. This was offset by a -0.7 percentage point contribution to GDP growth from total Gross fixed capital formation and a -0.1 percentage point contribution from Changes in inventories.
The battered energy sector was broadly higher despite Brent crude oil slipping 2.2% to $71 a barrel overnight. After Monday's sharp sell-off across the energy sector, investors are re-evaluating the value of oil and gas producers on a case-by-case basis. Australia's biggest oil producer Woodside Petroleum lifted 2.2% to A$35.64, and Oil Search added 0.3% to A$7.72, while Santos dropped 1.2% to A$9.08. Liquified Natural Gas was up 13.9% to A$2.86.
Troubled broadcaster Ten Network fell 1.5 cents to A$0.225 after it received a number of non-binding proposals it says could lead to a takeover or a debt refinancing.
Supermarket giant Woolworths 2.2% to A$30.90 after it announced the acquisition of China's largest alcoholic drinks distributor Summergate. Rival Coles' owner Wesfarmers was up 1.6% at A$41.64.
Shanghai Composite advances 40-month highs
Mainland China share market advanced to 40-month highs, as central bank efforts to bolster China's economic growth has revived optimism for cyclical stocks. The benchmark Shanghai Composite Index advanced 15.98 points, or 0.58%, to 2779.53 at the close, the highest close since July 20, 2011, when it finished at 2794.21. Full-day turnover swelled to an all-time high, with 562.12 billion shares changed hand worth of 529.78 billion yuan.
The benchmark index has gained 14% over the past month through yesterday, as People Bank of China efforts to bolster China's economic growth, including lowering borrowing costs, are reviving optimism in the $4.5 trillion stock market.
Shares of consumer discretionary companies advanced after report from the National Bureau of Statistics and the China Federation of Logistics and Purchasing suggests China's services gauge climbed for the first time in three months in November. The official non-manufacturing Purchasing Managers' Index, or PMI, rose to 53.9 in November from October's 53.8, hovering comfortably above the 50-point line that separates growth from contraction on a monthly basis. Gree Electric Appliances Inc., a maker of air conditioners, rallied 6.6% to a record 35.21 yuan. Citic Guoan Information Industry Co. added 5.4% to 9.97 yuan.
Hang Seng falls 0.95%
Hong Kong share market closed lower in volatile trade, as profit booking resumed following yesterday rebound. The benchmark index opened 101 points higher and saw its gains gradually widen to 267 points at one stage in tandem with early rally of the Shanghai market.
But the mainland market reversed its path in afternoon session and pulled the local market lower to 275 points at one point. The Hang Seng Index ended down 225 points to 23,428, off an intra-day high of 23,921 and low of 23,378. Turnover surged to HK$123.2 billion, the highest level since February, from HK$104 billion on Tuesday.
As for the Shanghai-HK stock connect flow, the northbound quota balance was RMB9.139 billion, while the southbound quota balance was RMB10.043 billion, accounting for 70% and 96% of the daily allowed quotas respectively.
Shares of casino companies continued its weakness after a senior official from the NPC standing committee said the dominance of gaming industry does not serve the best interest of Macau. Both Sands China (01928) and Galaxy Ent (00027) plunged 5.1% to HK$42 and HK$48.8. SJM (00880) slid 5.8% to HK$14.2. Melco Crown (06883) slipped 2.6% to HK$63.3.
Shares of energy renewed downtrend after Iraq and semi-autonomous Kurdistan Region in the north have reached agreement on oil exports, which may lead to increased output from the OPEC. CNOOC (00883) dipped 3.3% to HK$10.48. PetroChina (00857) fell 3.1% to HK$7.94. Sinopec (00386) slipped 1.3% to HK$6.06. Kunlun Energy (00135) declined 4% to HK$7.72.
Indian market closed mixed in lacklustre trade
Indian stock market closed mixed after alternately swinging between positive and negative zone in intraday trade. After alternately swinging between positive and negative zone, the BSE Sensex ended at 28,442.71, down 1.30 points. On the other hand, the 50-share NSE index Nifty after moving reacting to alternate bouts of buying and selling, ended 12.95 points, or 0.15% higher at 8,537.65.
Shares of a number of side counters rose. Shares of construction firms, hospitality shares and auto component makers were in demand. Shares of companies whose fortunes are linked to orders from Indian Railways were also in demand.
Auto stocks were in demand on renewed buying. Eicher Motors scaled a record high after a foreign brokerage reportedly resumed coverage on the stock with a 'buy' rating, citing strong demand for Royal Enfield. TVS Motor Company jumped after a foreign brokerage reportedly resumed coverage on the stock with a 'buy' rating and added it to conviction list.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index 1.55% to 9175.26. South Korea KOSPI was up 0.21% to 1969.91. New Zealand's NZX50 rose 1.3% to 5503. Singapore's Straits Times index fell 0.57% at 3303.39. Malaysia's KLCI slipped 1.56% to 1758.15. Indonesia's Jakarta Composite index dropped 0.19% to 5166.04.
The Dow Jones Industrial Average rose to a record finish on Tuesday after data showed November U.S. auto sales clocked their best month since 2003.
ECB President Mario Draghi and his ECB colleagues meet tomorrow in Frankfurt to discuss monetary policy. There is speculation that the European central bank may broaden its asset-buying program to include government bonds.
Among Asian bourses
Nikkei hits new seven-year high on weak yen
Japanese stock market finished session at new seven year peak today, as risk appetite buying continued getting support from yen depreciation to lower-109 level against the greenback and falls in crude oil prices. The benchmark Nikkei Stock Average rose 57.21 points, or 0.32%, to 17,720.43, the highest level since July 2007.
Exporters shares were mostly higher as the yen softening to as low as 119.44 against the greenback, the weakest since August 2007, elevating the overseas earnings when repatriate them home. Industrial robot maker Fanuc Corp slipped 0.9% to 18665 yen, while chip testing equipment maker Advantest Corp rose 1.1% to 1427 yen. Toyota Motor Corp, the world's biggest automaker, added 0.9% to 7592 yen. Honda Motor Co, a carmaker that gets 84% of sales abroad, added 0.7% to 3652 yen. Olympus Corp., the world's largest maker of endoscopes, rose 0.9% to 4580 yen.
Otsuka Holdings Co. fell 5.0% to 3671.5 yen following news that its unit Otsuka Pharmaceutical agreed to buy Avanir Pharmaceuticals for $3.5 billion. The deal is the largest ever by Otsuka Holdings.
Aussie stocks rises 0.8%
Australian share market closed higher for second consecutive day, as investors continued value buying across the board following steep losses last week. The local market withstood despite disappointing economic growth figures and weak commodity prices. The benchmark S&P/ASX 200 index and the broader All Ordinaries index both rose 0.8% to 5321.80 and 5301.20, respectively.
Australian Bureau of Statistics data that showed that gross domestic product grew by just 0.3% in the September quarter over the three-month period. Net exports contributed 0.8 percentage points to GDP growth. Household final consumption expenditure contributed 0.3 percentage points to GDP growth and Government final consumption expenditure contributed 0.1 percentage points to GDP growth. This was offset by a -0.7 percentage point contribution to GDP growth from total Gross fixed capital formation and a -0.1 percentage point contribution from Changes in inventories.
The battered energy sector was broadly higher despite Brent crude oil slipping 2.2% to $71 a barrel overnight. After Monday's sharp sell-off across the energy sector, investors are re-evaluating the value of oil and gas producers on a case-by-case basis. Australia's biggest oil producer Woodside Petroleum lifted 2.2% to A$35.64, and Oil Search added 0.3% to A$7.72, while Santos dropped 1.2% to A$9.08. Liquified Natural Gas was up 13.9% to A$2.86.
Troubled broadcaster Ten Network fell 1.5 cents to A$0.225 after it received a number of non-binding proposals it says could lead to a takeover or a debt refinancing.
Supermarket giant Woolworths 2.2% to A$30.90 after it announced the acquisition of China's largest alcoholic drinks distributor Summergate. Rival Coles' owner Wesfarmers was up 1.6% at A$41.64.
Shanghai Composite advances 40-month highs
Mainland China share market advanced to 40-month highs, as central bank efforts to bolster China's economic growth has revived optimism for cyclical stocks. The benchmark Shanghai Composite Index advanced 15.98 points, or 0.58%, to 2779.53 at the close, the highest close since July 20, 2011, when it finished at 2794.21. Full-day turnover swelled to an all-time high, with 562.12 billion shares changed hand worth of 529.78 billion yuan.
The benchmark index has gained 14% over the past month through yesterday, as People Bank of China efforts to bolster China's economic growth, including lowering borrowing costs, are reviving optimism in the $4.5 trillion stock market.
Shares of consumer discretionary companies advanced after report from the National Bureau of Statistics and the China Federation of Logistics and Purchasing suggests China's services gauge climbed for the first time in three months in November. The official non-manufacturing Purchasing Managers' Index, or PMI, rose to 53.9 in November from October's 53.8, hovering comfortably above the 50-point line that separates growth from contraction on a monthly basis. Gree Electric Appliances Inc., a maker of air conditioners, rallied 6.6% to a record 35.21 yuan. Citic Guoan Information Industry Co. added 5.4% to 9.97 yuan.
Hang Seng falls 0.95%
Hong Kong share market closed lower in volatile trade, as profit booking resumed following yesterday rebound. The benchmark index opened 101 points higher and saw its gains gradually widen to 267 points at one stage in tandem with early rally of the Shanghai market.
But the mainland market reversed its path in afternoon session and pulled the local market lower to 275 points at one point. The Hang Seng Index ended down 225 points to 23,428, off an intra-day high of 23,921 and low of 23,378. Turnover surged to HK$123.2 billion, the highest level since February, from HK$104 billion on Tuesday.
As for the Shanghai-HK stock connect flow, the northbound quota balance was RMB9.139 billion, while the southbound quota balance was RMB10.043 billion, accounting for 70% and 96% of the daily allowed quotas respectively.
Shares of casino companies continued its weakness after a senior official from the NPC standing committee said the dominance of gaming industry does not serve the best interest of Macau. Both Sands China (01928) and Galaxy Ent (00027) plunged 5.1% to HK$42 and HK$48.8. SJM (00880) slid 5.8% to HK$14.2. Melco Crown (06883) slipped 2.6% to HK$63.3.
Shares of energy renewed downtrend after Iraq and semi-autonomous Kurdistan Region in the north have reached agreement on oil exports, which may lead to increased output from the OPEC. CNOOC (00883) dipped 3.3% to HK$10.48. PetroChina (00857) fell 3.1% to HK$7.94. Sinopec (00386) slipped 1.3% to HK$6.06. Kunlun Energy (00135) declined 4% to HK$7.72.
Indian market closed mixed in lacklustre trade
Indian stock market closed mixed after alternately swinging between positive and negative zone in intraday trade. After alternately swinging between positive and negative zone, the BSE Sensex ended at 28,442.71, down 1.30 points. On the other hand, the 50-share NSE index Nifty after moving reacting to alternate bouts of buying and selling, ended 12.95 points, or 0.15% higher at 8,537.65.
Shares of a number of side counters rose. Shares of construction firms, hospitality shares and auto component makers were in demand. Shares of companies whose fortunes are linked to orders from Indian Railways were also in demand.
Auto stocks were in demand on renewed buying. Eicher Motors scaled a record high after a foreign brokerage reportedly resumed coverage on the stock with a 'buy' rating, citing strong demand for Royal Enfield. TVS Motor Company jumped after a foreign brokerage reportedly resumed coverage on the stock with a 'buy' rating and added it to conviction list.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index 1.55% to 9175.26. South Korea KOSPI was up 0.21% to 1969.91. New Zealand's NZX50 rose 1.3% to 5503. Singapore's Straits Times index fell 0.57% at 3303.39. Malaysia's KLCI slipped 1.56% to 1758.15. Indonesia's Jakarta Composite index dropped 0.19% to 5166.04.
