Asia Pacific share market closed higher in tepid trade on Thursday, 22
January 2015, as investors awaited a European Central Bank (ECB) meeting
decision today at which investors expect President Mario Draghi to
announce quantitative easing (QE) strategy.
There is speculation in the markets that ECB would likely announce a new
round of QE measures including government bond purchases after a policy
meeting later in the global day to revive euro-zone economy. Over the
past week, the consensus was that the worth of the program would be
around 500 billion euro. Yet, there have been heightening speculations
that the central bank would propose spending of 50 billion euro a month,
through December 2016, on bond buying.
Among Asian bourses
Australia market extends gain on ECB hopes
Headline equities of the Australian market modestly higher, with the S&P/ASX 200 gaining 0.5%, on the top of its 1.6% rally a day earlier, on growing expectation of fresh monetary easing from the European Central Bank later in the global day.
Shares of energy companies advanced the most in Sydney market, on the back of sizeable advance for crude-oil futures overnight. Australia's biggest oil producer Woodside Petroleum climbed up 3.1% to A$33.62. Origin Energy grew 1.3% to A$10.53 and Santos jumped 1.2% to A$7.42.
Material and resources stocks mostly higher, with heavyweight BHP Billiton gaining 2.9% to A$28.85 and Rio Tinto rising 2.6% to A$56.50. But, iron ore miners declined heavily, as profit taking triggered in reaction to drop in metal prices today. Among the pure iron-ore plays, Atlas Iron fell 5.7% to A$0.165, while and BC Iron dropped 5.9% to A$0.475.
Australia's third largest iron ore miner Fortescue Metals Group fell 6.5% to A$2.17.
Financial stocks closed higher, with Westpac Banking Corp leading the rally, up 1.4% to A$33.86. Meanwhile ANZ Banking Group rose 0.4% to A$31.77, National Australia Bank added 0.7% to A$34.33 and Commonwealth Bank of Australia jumped 0.7% to A$85.23. The rally in lenders came despite a UBS assessment that their share prices could be weakened if the global banking regulator goes through with plans to standardise banks' approach to risk.
Japan market closed mixed
Japanese share market closed mixed after bobbling between gains and losses, after the Bank of Japan's cut its near-term consumer-price forecast. The Nikkei Stock Average ended higher 0.28% at 17329.02, while the broader Topix lost 0.08% to 1389.43.
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 on Wednesday. A continued slide in oil prices is making it even more difficult for the central bank to achieve its 2% inflation target anytime soon.
Telecoms were broadly higher after Standard & Poor's cut the credit ratings for DoCoMo and parent NTT, citing increased competition facing DoCoMo in the wireless arena. Softbank Corp was up 2.8% to 7056 yen, KDDI Corp rose 1.3% to 8230 yen and Nippon Telegraph & Telephone Corp climbed 3.3% to 6724 yen.
Shares of currency-sensitive companies were mixed, as the yen was weakened a little against the US dollar (Y118.07 vs. Y117.67 at end of Wednesday trade), with Hitachi down 0.7% to 883.80 yen and TDK Corp down 0.7% to 7280 yen, but and Sharp Corp was 1.4% to 224 yen and Sony Corp rose 0.5% to 2610.50 yen. Auto makers were also mixed, with Isuzu Motors down 1.6% to 1515.50 yen but Nissan Motor Co up 1.1% to 1032.50 yen as reports said it would move some production back to Japan to take advantage of the weaker yen.
Shares of tyre-makers declined the most in the Tokyo market, hurt by rebound in rubber prices, a key raw material. The rubber prices for June delivery rose as much as 2.1% to 200 yen a kilogram on the Tokyo Commodity Exchange. Bridgestone lost 1.7% to 4,622 yen.
China market extends gain for third day
Mainland China share market advanced for third consecutive session, on easing liquidity pressure after the People Bank of China injected cash into the money markets. The benchmark Shanghai Composite Index rose 0.6% to close at 3343.34, 4.7% to close at 3323.61, on the top of yesterday's 4.7% advance and 1.8% advance prior to that. The market has recovered 7.2% over the last three sessions, after it suffered 7.7% plunge on Monday.
Market sentiment was supported by a move by the People's Bank of China to offer 50 billion yuan ($8 billion) worth of seven-day reverse repos - the first time that it has used this short-term lending facility to commercial banks in a year in its open-market operation Thursday. The central bank offered the reverse repos at 3.85%, compared with the 4.08% seven-day repo rate in the interbank bond market. The central bank's move came just days after data showed that the world's second-largest economy grew at its slowest rate in more than two decades, and fed speculation that further monetary policy easing could be on the way.
The move to keep the banks flush with cash comes ahead of the Lunar New Year holiday next month when demand for funds normally increases substantially as people spend on gifts and dining. The injection of funds into the country's money markets came after the central bank said on Wednesday that it rolled over three-month loans of 269.5 billion yuan ($43.5 billion) and offered 50 billion yuan of medium-term loans to designated commercial banks. The PBOC said that it extended its medium-term lending facility to banks, a new monetary instrument used to extend liquidity into the nation's financial system, at an interest rate of 3.5%.
Shares of materials and telecom companies advanced the most in Beijing market, with Zijin Mining Group Co. climbing 4% and Datang Telecom Technology Co. rising 2.8%.
Financial stocks remained weak with Bank of China losing 1% and Citic Securities falling 1.1%. Guosen Securities was down 1.1%.
Hang Seng ends 0.7% up
Hong Kong share market traded higher in narrow trade, registering third gains in a row, on tracking gains in mainland A-share market and ahead of the European Central Bank's expected stimulus announcement. The Hang Seng Index ended higher by 170.05 points or 0.7% to 24522.63, off an intra-day high of 24589.62 and day low of 24438.98. Turnover decreased to HK$99.45 billion from HK$104.29 billion on Wednesday.
Within HK 50 blue chips, 29 stocks rose and 19 fell, while remaining 2 stocks unchanged. CHINA RESOURCES (0291) rose 5.1% to HK$16.98 as Deutsche Bank upgraded the stock to "buy", while WANT WANT CHINA dipped 6.5% to HK$9.39 after Nomura downgraded the stock to "reduce", making themselves the biggest blue chip winner and loser.
Shares of Gome (00493) fell 2.5% to HK$1.15 after its shareholder Bain Capital disposed of 900 million shares in the company. Meanwhile, Landing (00582) also softened 1.6% to HK$0.3 on major holder's disposal of nearly 10% stake.
Sensex, Nifty ends on a firm note
Indian stock market closed at record high for the third straight day, led by blue-chips, tracking firm trends across the region and on optimism that the government will continue with the reform agenda. The BSE index gained 0.41% to 29006.02, while the NSE index added 0.37% to 8761.40.
L&T Finance Holdings advanced after the company reported a 66% jump in its consolidated net profit at Rs.182 crore in the December quarter, driven by a 20% rise in advances.
SpiceJet rose after the aviation ministry approved a revival plan for the cash-strapped airline submitted by Ajay Singh and other investors and referred it to the stock market regulator to assess whether the plan will trigger an open offer.
Overseas investors bought Indian shares worth of 20.66 billion rupees ($334.7 million) on Wednesday, extending their buying streak for the fifth straight session, provisional exchange data showed.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index added 0.53% to 9369.51. South Korea KOSPI was down 0.02% to 1920.82. New Zealand's NZX50 fell 0.45% at 5647.15. Singapore's Straits Times index advanced 0.47% at 3370.29. Indonesia's Jakarta Composite index was up 0.73% to 5253.18. Malaysia's KLCI added 0.66% to 1781.75.
Among Asian bourses
Australia market extends gain on ECB hopes
Headline equities of the Australian market modestly higher, with the S&P/ASX 200 gaining 0.5%, on the top of its 1.6% rally a day earlier, on growing expectation of fresh monetary easing from the European Central Bank later in the global day.
Shares of energy companies advanced the most in Sydney market, on the back of sizeable advance for crude-oil futures overnight. Australia's biggest oil producer Woodside Petroleum climbed up 3.1% to A$33.62. Origin Energy grew 1.3% to A$10.53 and Santos jumped 1.2% to A$7.42.
Material and resources stocks mostly higher, with heavyweight BHP Billiton gaining 2.9% to A$28.85 and Rio Tinto rising 2.6% to A$56.50. But, iron ore miners declined heavily, as profit taking triggered in reaction to drop in metal prices today. Among the pure iron-ore plays, Atlas Iron fell 5.7% to A$0.165, while and BC Iron dropped 5.9% to A$0.475.
Australia's third largest iron ore miner Fortescue Metals Group fell 6.5% to A$2.17.
Financial stocks closed higher, with Westpac Banking Corp leading the rally, up 1.4% to A$33.86. Meanwhile ANZ Banking Group rose 0.4% to A$31.77, National Australia Bank added 0.7% to A$34.33 and Commonwealth Bank of Australia jumped 0.7% to A$85.23. The rally in lenders came despite a UBS assessment that their share prices could be weakened if the global banking regulator goes through with plans to standardise banks' approach to risk.
Japan market closed mixed
Japanese share market closed mixed after bobbling between gains and losses, after the Bank of Japan's cut its near-term consumer-price forecast. The Nikkei Stock Average ended higher 0.28% at 17329.02, while the broader Topix lost 0.08% to 1389.43.
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 on Wednesday. A continued slide in oil prices is making it even more difficult for the central bank to achieve its 2% inflation target anytime soon.
Telecoms were broadly higher after Standard & Poor's cut the credit ratings for DoCoMo and parent NTT, citing increased competition facing DoCoMo in the wireless arena. Softbank Corp was up 2.8% to 7056 yen, KDDI Corp rose 1.3% to 8230 yen and Nippon Telegraph & Telephone Corp climbed 3.3% to 6724 yen.
Shares of currency-sensitive companies were mixed, as the yen was weakened a little against the US dollar (Y118.07 vs. Y117.67 at end of Wednesday trade), with Hitachi down 0.7% to 883.80 yen and TDK Corp down 0.7% to 7280 yen, but and Sharp Corp was 1.4% to 224 yen and Sony Corp rose 0.5% to 2610.50 yen. Auto makers were also mixed, with Isuzu Motors down 1.6% to 1515.50 yen but Nissan Motor Co up 1.1% to 1032.50 yen as reports said it would move some production back to Japan to take advantage of the weaker yen.
Shares of tyre-makers declined the most in the Tokyo market, hurt by rebound in rubber prices, a key raw material. The rubber prices for June delivery rose as much as 2.1% to 200 yen a kilogram on the Tokyo Commodity Exchange. Bridgestone lost 1.7% to 4,622 yen.
China market extends gain for third day
Mainland China share market advanced for third consecutive session, on easing liquidity pressure after the People Bank of China injected cash into the money markets. The benchmark Shanghai Composite Index rose 0.6% to close at 3343.34, 4.7% to close at 3323.61, on the top of yesterday's 4.7% advance and 1.8% advance prior to that. The market has recovered 7.2% over the last three sessions, after it suffered 7.7% plunge on Monday.
Market sentiment was supported by a move by the People's Bank of China to offer 50 billion yuan ($8 billion) worth of seven-day reverse repos - the first time that it has used this short-term lending facility to commercial banks in a year in its open-market operation Thursday. The central bank offered the reverse repos at 3.85%, compared with the 4.08% seven-day repo rate in the interbank bond market. The central bank's move came just days after data showed that the world's second-largest economy grew at its slowest rate in more than two decades, and fed speculation that further monetary policy easing could be on the way.
The move to keep the banks flush with cash comes ahead of the Lunar New Year holiday next month when demand for funds normally increases substantially as people spend on gifts and dining. The injection of funds into the country's money markets came after the central bank said on Wednesday that it rolled over three-month loans of 269.5 billion yuan ($43.5 billion) and offered 50 billion yuan of medium-term loans to designated commercial banks. The PBOC said that it extended its medium-term lending facility to banks, a new monetary instrument used to extend liquidity into the nation's financial system, at an interest rate of 3.5%.
Shares of materials and telecom companies advanced the most in Beijing market, with Zijin Mining Group Co. climbing 4% and Datang Telecom Technology Co. rising 2.8%.
Financial stocks remained weak with Bank of China losing 1% and Citic Securities falling 1.1%. Guosen Securities was down 1.1%.
Hang Seng ends 0.7% up
Hong Kong share market traded higher in narrow trade, registering third gains in a row, on tracking gains in mainland A-share market and ahead of the European Central Bank's expected stimulus announcement. The Hang Seng Index ended higher by 170.05 points or 0.7% to 24522.63, off an intra-day high of 24589.62 and day low of 24438.98. Turnover decreased to HK$99.45 billion from HK$104.29 billion on Wednesday.
Within HK 50 blue chips, 29 stocks rose and 19 fell, while remaining 2 stocks unchanged. CHINA RESOURCES (0291) rose 5.1% to HK$16.98 as Deutsche Bank upgraded the stock to "buy", while WANT WANT CHINA dipped 6.5% to HK$9.39 after Nomura downgraded the stock to "reduce", making themselves the biggest blue chip winner and loser.
Shares of Gome (00493) fell 2.5% to HK$1.15 after its shareholder Bain Capital disposed of 900 million shares in the company. Meanwhile, Landing (00582) also softened 1.6% to HK$0.3 on major holder's disposal of nearly 10% stake.
Sensex, Nifty ends on a firm note
Indian stock market closed at record high for the third straight day, led by blue-chips, tracking firm trends across the region and on optimism that the government will continue with the reform agenda. The BSE index gained 0.41% to 29006.02, while the NSE index added 0.37% to 8761.40.
L&T Finance Holdings advanced after the company reported a 66% jump in its consolidated net profit at Rs.182 crore in the December quarter, driven by a 20% rise in advances.
SpiceJet rose after the aviation ministry approved a revival plan for the cash-strapped airline submitted by Ajay Singh and other investors and referred it to the stock market regulator to assess whether the plan will trigger an open offer.
Overseas investors bought Indian shares worth of 20.66 billion rupees ($334.7 million) on Wednesday, extending their buying streak for the fifth straight session, provisional exchange data showed.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index added 0.53% to 9369.51. South Korea KOSPI was down 0.02% to 1920.82. New Zealand's NZX50 fell 0.45% at 5647.15. Singapore's Straits Times index advanced 0.47% at 3370.29. Indonesia's Jakarta Composite index was up 0.73% to 5253.18. Malaysia's KLCI added 0.66% to 1781.75.
