Asia Pacific share market traded higher on Wednesday, 21 January 2015,
as risk sentiments boosted up on hopes stimulus from central banks to
bolster uneven global growth. The MSCI Asia Pacific Index added 0.9% to
139.8.
Investors were looking forward to the European Central Bank (ECB) policy statement tomorrow for any stimulus measures. Many in the regional markets are betting that the ECB President Mario Draghi probably throw the continent's stricken economy another lifeline, a 550 billion-euro ($635 billion) program of quantitative easing.
Markets also expects China's to roll out more support measures after reporting on Tuesday that its economy grew at its slowest pace in 24 years in 2014.
The Bank of Japan ended a two-day meeting on Wednesday. The Bank of Japan cut its inflation forecast for fiscal 2015 to 1% from 1.7% previously, but left its target for the monetary base unchanged in its policy decision today, citing brighter economic growth that could eventually help put prices back on a firm upward path. A continued slide in oil prices is making it even more difficult for the central bank to achieve its 2% inflation target anytime soon, but the absence of extra easing measures suggests the BOJ remains optimistic that underlying inflation remains in place and the economy could grow faster down the line.
Among Asian bourses
Australia market climbs 1.61%
Australian share market closed sharply higher, as risk sentiments boosted up on growing expectations of a larger stimulus program from the European Central Bank. All ASX sectoral indices advanced with mining stocks were leading the gains. The benchmark S&P/ASX 200 Index advanced 85.70 points to 5393.40 and the broader All Ordinaries Index grew 80.60 points to 5367.40.
Shares of material and resources companies advanced the most in Sydney market, with heavyweight BHP Billiton improving 2.1% to A$28.05 after it reported a 16% quarterly gain in iron-ore output but also warned of up to A$250 million in oil-asset write-downs. Rio Tinto gained 2.6% to A$55.09 as J.P. Morgan affirmed its overweight rating, citing likely buybacks and/or special dividends. Among the pure iron-ore plays, Atlas Iron rallied 2.8% to A$0.18 as Deutsche Bank raised its price target on the shares, while and BC Iron rose 2% to A$0.51. Australia's third largest iron ore miner Fortescue Metals Group fell 0.4% to A$2.32.
Senex Energy shares lost 1.9% to A$0.26 after slashing its capital expenditure by 20% to between A$85-90 million for the 2015 financial year.
APA Group shares pushed 2.9% higher to A$7.87 after finishing a A$1.838 billion equity raising to help fund to acquire a A$6 billion pipeline. APA sold 57.3 million shares in its retail shortfall bookbuild, for A$7.60 per share.
Nikkei falls 0.5% on stronger yen
Japanese share market closed down in volatile trade, on profit taking as yen appreciated against greenback after the Bank of Japan failed to announce any new measures to stimulate its economy at a policy meeting. The Nikkei Stock Average ended down 0.5% at 17280.48, while the broader Topix lost 0.5% to 1390.61.
There was some market speculation that the BOJ could do something to front run the European Central Bank's likely quantitative easing this week and potentially match the Swiss National Bank's move last week and cut its own deposit rate. This speculation was not realized, triggering significant appreciation in yen against the greenback since the BOJ announcement and also accelerated profit-taking into stock market. The yen added 0.8% to 117.84 per dollar after weakening for three days.
Shares of insurers declined the most in Tokyo market, hurt by profit booking following yesterday rally, with Dai-Ichi Life falling 3.4% to 1,572 yen, while MS&AD Insurance Group Holdings Inc. slipped 2.9% to 2,676.5 yen.
Shares of currency-sensitive exporters declined on profit taking after yen appreciated against the US dollar. A weaker dollar erodes exporter profits as companies have less latitude to cut prices on goods they sell overseas, and earns them less yen with the profits they send back home. Shares of Toshiba fell 2.3% to 469.50 yen, while Hitachi lost 0.4% to 889.80 yen and chip-testing equipment maker Advantest slipped 0.7% to 1352 yen.
Fujikura shares retreated 4.5% to 472 yen after a report the cable maker's operating profit likely dropped 40% as sales at cable makers are affected by slower car production in Japan.
Konami Corp. gained 6.8% to 2144 yen after Goldman Sachs Group Inc. raised its rating on the game developer to buy from neutral, citing bright sales prospects for the firm's “Metal Gear Solid V: The Phantom Pain” title, scheduled for launch this year.
China market surges 4.74%
Mainland China share market advanced for second consecutive session, as investors continued bargain hunting after the worst fall in more than six years early in the week. Risk sentiments underpinned after the stock regulator denied speculation it had intentionally sought to suppress the market's rally that sent the Shanghai market up more than 50% in 2014. The market also took some comfort from China's fourth-quarter growth data, which came in better than expected. The benchmark Shanghai Composite Index surged 4.7% to close at 3323.61, on the top of yesterday's 1.8% advance.
Shares of financial companies advanced the most in Beijing market, with brokerages houses being major gainers, after securities regulator statement that the regulatory actions against rule-violating brokers do not suggest a cool down of stock markets. Citic Securities gained 7.7%. Haitong Securities climbed 10% daily upper limit. Bank of China soared 9.9% and Agricultural Bank of China jumped 5.6%.
China's production of crude steel, an indicator of its industrial demand, fell to its slowest pace of growth on record last year, according to data released yesterday by the National Statistics Bureau. Output of the metal rose just 0.9% from 2013 to 822.7 million metric tons, underscoring how China's vast steel complex, which produces half the world's steel, has fallen to the government's push for a cleaner, consumption-led economy.
Hang Seng lifts 1.8% up
Hong Kong share market advanced for second consecutive session, tracking rally on the Mainland A-share market after comments by the China's securities regulator that the regulatory actions against rule-violating brokers do not suggest a cool down of stock markets. The Hang Seng Index ended higher by 401.42 points or 1.68% to 24352.58, off an intra-day high of 24373.28 and day low of 24016.63. Turnover increased to HK$104.29 billion from HK$88.49 billion on Tuesday.
Within HK 50 blue chips, 42 stocks rose and 7 fell, while remaining 1 stock unchanged. CHINA MER HOLD (0144) rose 6% to HK$27.60, while SWIRE PACIFIC A (0019) dipped 1.5% to HK$101.90, making themselves the biggest blue chip winner and loser.
Shares of insurance companies advanced after Morgan Stanley statement on Monday's market that slide has limited impact on insurers. CPIC (02601) soared 5.9% to HKK$38.9.
Ping An (02318) added 3.6% to HK$86.6. China Life (02628) put on 3.1% to HK$31.8.
China Mobile (00941) stock jumped 4% to HK$102.1 after releasing strong December operating data, triggering fund houses purchases.
China Telecom (00728) also soared 5% to HK$4.53 on reports that its parent company plans to bid mobile broadband network project in Mexico.
Sensex, Nifty attain record closing high
Indian stock market registered modest gains amid divergent trend among various constituents of the index. The S&P BSE Sensex garnered 104.19 points or 0.36% to settle at 28,888.86, a record closing high for the index. The CNX Nifty gained 33.90 points or 0.39% to settle at 8,729.50, a record closing high for the index.
Capital goods stocks gained. Shares of public sector banks were in demand. Shares of private sector banks were mixed. Index heavyweights HDFC, Infosys, and L&T edged higher. Shares of pharmaceutical and FMCG companies were mixed. Shares of media major Zee Entertainment Enterprises edged lower on profit taking after the company reported strong Q3 December 2014 earnings.
Foreign portfolio investors (FIIs) bought Indian shares worth a net Rs 1320.42 crore from the secondary equity markets yesterday, 20 January 2015, as per data from the National Securities Depository (NSDL).
In the foreign exchange market, Indian rupee edged higher against the dollar on optimism demand for local assets will increase as plunging oil prices improve India's economic outlook.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index added 0.74% to 9319.71. South Korea KOSPI was up 0.15% to 1921.23. New Zealand's NZX50 added 0.7% at 5672.85. Singapore's Straits Times index advanced 0.23% at 3341.58. Indonesia's Jakarta Composite index was up 0.01% to 5166.72. Malaysia's KLCI added 0.35% to 1756.23.
Investors were looking forward to the European Central Bank (ECB) policy statement tomorrow for any stimulus measures. Many in the regional markets are betting that the ECB President Mario Draghi probably throw the continent's stricken economy another lifeline, a 550 billion-euro ($635 billion) program of quantitative easing.
Markets also expects China's to roll out more support measures after reporting on Tuesday that its economy grew at its slowest pace in 24 years in 2014.
The Bank of Japan ended a two-day meeting on Wednesday. The Bank of Japan cut its inflation forecast for fiscal 2015 to 1% from 1.7% previously, but left its target for the monetary base unchanged in its policy decision today, citing brighter economic growth that could eventually help put prices back on a firm upward path. A continued slide in oil prices is making it even more difficult for the central bank to achieve its 2% inflation target anytime soon, but the absence of extra easing measures suggests the BOJ remains optimistic that underlying inflation remains in place and the economy could grow faster down the line.
Among Asian bourses
Australia market climbs 1.61%
Australian share market closed sharply higher, as risk sentiments boosted up on growing expectations of a larger stimulus program from the European Central Bank. All ASX sectoral indices advanced with mining stocks were leading the gains. The benchmark S&P/ASX 200 Index advanced 85.70 points to 5393.40 and the broader All Ordinaries Index grew 80.60 points to 5367.40.
Shares of material and resources companies advanced the most in Sydney market, with heavyweight BHP Billiton improving 2.1% to A$28.05 after it reported a 16% quarterly gain in iron-ore output but also warned of up to A$250 million in oil-asset write-downs. Rio Tinto gained 2.6% to A$55.09 as J.P. Morgan affirmed its overweight rating, citing likely buybacks and/or special dividends. Among the pure iron-ore plays, Atlas Iron rallied 2.8% to A$0.18 as Deutsche Bank raised its price target on the shares, while and BC Iron rose 2% to A$0.51. Australia's third largest iron ore miner Fortescue Metals Group fell 0.4% to A$2.32.
Senex Energy shares lost 1.9% to A$0.26 after slashing its capital expenditure by 20% to between A$85-90 million for the 2015 financial year.
APA Group shares pushed 2.9% higher to A$7.87 after finishing a A$1.838 billion equity raising to help fund to acquire a A$6 billion pipeline. APA sold 57.3 million shares in its retail shortfall bookbuild, for A$7.60 per share.
Nikkei falls 0.5% on stronger yen
Japanese share market closed down in volatile trade, on profit taking as yen appreciated against greenback after the Bank of Japan failed to announce any new measures to stimulate its economy at a policy meeting. The Nikkei Stock Average ended down 0.5% at 17280.48, while the broader Topix lost 0.5% to 1390.61.
There was some market speculation that the BOJ could do something to front run the European Central Bank's likely quantitative easing this week and potentially match the Swiss National Bank's move last week and cut its own deposit rate. This speculation was not realized, triggering significant appreciation in yen against the greenback since the BOJ announcement and also accelerated profit-taking into stock market. The yen added 0.8% to 117.84 per dollar after weakening for three days.
Shares of insurers declined the most in Tokyo market, hurt by profit booking following yesterday rally, with Dai-Ichi Life falling 3.4% to 1,572 yen, while MS&AD Insurance Group Holdings Inc. slipped 2.9% to 2,676.5 yen.
Shares of currency-sensitive exporters declined on profit taking after yen appreciated against the US dollar. A weaker dollar erodes exporter profits as companies have less latitude to cut prices on goods they sell overseas, and earns them less yen with the profits they send back home. Shares of Toshiba fell 2.3% to 469.50 yen, while Hitachi lost 0.4% to 889.80 yen and chip-testing equipment maker Advantest slipped 0.7% to 1352 yen.
Fujikura shares retreated 4.5% to 472 yen after a report the cable maker's operating profit likely dropped 40% as sales at cable makers are affected by slower car production in Japan.
Konami Corp. gained 6.8% to 2144 yen after Goldman Sachs Group Inc. raised its rating on the game developer to buy from neutral, citing bright sales prospects for the firm's “Metal Gear Solid V: The Phantom Pain” title, scheduled for launch this year.
China market surges 4.74%
Mainland China share market advanced for second consecutive session, as investors continued bargain hunting after the worst fall in more than six years early in the week. Risk sentiments underpinned after the stock regulator denied speculation it had intentionally sought to suppress the market's rally that sent the Shanghai market up more than 50% in 2014. The market also took some comfort from China's fourth-quarter growth data, which came in better than expected. The benchmark Shanghai Composite Index surged 4.7% to close at 3323.61, on the top of yesterday's 1.8% advance.
Shares of financial companies advanced the most in Beijing market, with brokerages houses being major gainers, after securities regulator statement that the regulatory actions against rule-violating brokers do not suggest a cool down of stock markets. Citic Securities gained 7.7%. Haitong Securities climbed 10% daily upper limit. Bank of China soared 9.9% and Agricultural Bank of China jumped 5.6%.
China's production of crude steel, an indicator of its industrial demand, fell to its slowest pace of growth on record last year, according to data released yesterday by the National Statistics Bureau. Output of the metal rose just 0.9% from 2013 to 822.7 million metric tons, underscoring how China's vast steel complex, which produces half the world's steel, has fallen to the government's push for a cleaner, consumption-led economy.
Hang Seng lifts 1.8% up
Hong Kong share market advanced for second consecutive session, tracking rally on the Mainland A-share market after comments by the China's securities regulator that the regulatory actions against rule-violating brokers do not suggest a cool down of stock markets. The Hang Seng Index ended higher by 401.42 points or 1.68% to 24352.58, off an intra-day high of 24373.28 and day low of 24016.63. Turnover increased to HK$104.29 billion from HK$88.49 billion on Tuesday.
Within HK 50 blue chips, 42 stocks rose and 7 fell, while remaining 1 stock unchanged. CHINA MER HOLD (0144) rose 6% to HK$27.60, while SWIRE PACIFIC A (0019) dipped 1.5% to HK$101.90, making themselves the biggest blue chip winner and loser.
Shares of insurance companies advanced after Morgan Stanley statement on Monday's market that slide has limited impact on insurers. CPIC (02601) soared 5.9% to HKK$38.9.
Ping An (02318) added 3.6% to HK$86.6. China Life (02628) put on 3.1% to HK$31.8.
China Mobile (00941) stock jumped 4% to HK$102.1 after releasing strong December operating data, triggering fund houses purchases.
China Telecom (00728) also soared 5% to HK$4.53 on reports that its parent company plans to bid mobile broadband network project in Mexico.
Sensex, Nifty attain record closing high
Indian stock market registered modest gains amid divergent trend among various constituents of the index. The S&P BSE Sensex garnered 104.19 points or 0.36% to settle at 28,888.86, a record closing high for the index. The CNX Nifty gained 33.90 points or 0.39% to settle at 8,729.50, a record closing high for the index.
Capital goods stocks gained. Shares of public sector banks were in demand. Shares of private sector banks were mixed. Index heavyweights HDFC, Infosys, and L&T edged higher. Shares of pharmaceutical and FMCG companies were mixed. Shares of media major Zee Entertainment Enterprises edged lower on profit taking after the company reported strong Q3 December 2014 earnings.
Foreign portfolio investors (FIIs) bought Indian shares worth a net Rs 1320.42 crore from the secondary equity markets yesterday, 20 January 2015, as per data from the National Securities Depository (NSDL).
In the foreign exchange market, Indian rupee edged higher against the dollar on optimism demand for local assets will increase as plunging oil prices improve India's economic outlook.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index added 0.74% to 9319.71. South Korea KOSPI was up 0.15% to 1921.23. New Zealand's NZX50 added 0.7% at 5672.85. Singapore's Straits Times index advanced 0.23% at 3341.58. Indonesia's Jakarta Composite index was up 0.01% to 5166.72. Malaysia's KLCI added 0.35% to 1756.23.
