Asia Pacific share market ended mixed on Friday, 27 February 2015, on
tracking weak lead from Wall Street overnight. The risk sentiments also
softened after US data on Thursday which were seen supporting a move for
the Federal Reserve to raise interest rates in the second quarter.
The relative outperformance of the US economy and consequent expectations the Fed will begin raising borrowing costs this summer reducing appetite for risk assets. Investors are now waiting for revised fourth quarter U.S. gross domestic product data due later on Friday for another health check of the world's largest economy.
Among Asian bourses
Australia stocks end 0.34% higher
The Australian share market finished the session higher, recouping early losses, on the back of broad-based gains in key bullion, technology, industrial, telecom, financial, realty and mining companies overshadowing losses on the consumer staples front. The benchmark S&P/ASX 200 Index advanced 20.30 points, or 0.34%, to 5928.80, while the broader All Ordinaries Index was up 20.30 points, or 0.35%, to 5898.50. Market turnover was relatively healthy, with 1.97 billion shares changing hands worth of A$6.63 billion. Rising stocks outnumbered declining ones, with total of 768 stocks up, while remaining 597 down.
Newcrest Mining jumped 3.3% to A$14.39 after trimming its stake in rival Evolution Mining (down 9.6% to A$0.85) to just below 15%, selling the shares at a discount to the previous closing price.
Rio Tinto rose 1.1% to A$64.41 after announcing a restructuring that would shrink its total number of divisions to four, merging its uranium unit with that for diamonds and its coal unit with copper.
Qantas Airways jumped by 1.4% to A$2.89after J.P. Morgan raised its target price for the shares, and Moody's removed the negative outlook on the airline's credit rating following the latest earnings results.
Woolworths fell 9.5% to A$30.71 after it reported a modest (3%) drop in first-half profit, but also cutting its full-year guidance at the low end of the expected range.
GrainCorp tool a 2% loss at A$9.87 as it warned on its full-year result, citing a smaller crop. The company forecast profit before one-time items of between A$45 million and A$60 million in the year through September, a sharp fall from A$95 million the previous year.
Earnings before interest, tax, depreciation and amortization are expected to be between A$240 million and A$270 million, down from A$293 million in the 2014 financial year.
Shares of Harvey Norman advanced 1.6% to A$4.42 after the company posted net profit rose to A$142 million in the six months through December, from A$111.4 million a year earlier. Sales for the period were 3.2% higher at A$3.09 billion, and 3.4% higher on a like-for-like same-store basis. Australian electronics, white goods and furniture retailer expects positive trends in its business to continue as consumer sentiment looks set to remain stable, even as the broader Australian economy struggles to transition away from resources investment-led growth.
Nikkei edges up
Japanese share market ended marginally higher in volatile trade, as raft of data painting diverging pictures of Japan's economy. The Nikkei Stock Average ended higher by 12.15 points, or 0.06%, to 18797.94. The broader Topix index grew by 2.17 points, or 0.14%, to 1523.85.
The Ministry of Economy, Trade and Industry (METI) said on Friday that Japanese industrial production rose 4.0% in January, the second straight on-month increase, an indication that industrial activity is continuing its gradual recovery on the back of strong exports to Asia and the US. Looking ahead, the METI projects output will rise 0.2% in February from the previous month and then decrease 3.2% in March, based on surveys of companies. The ministry maintained its assessment of production activity, saying that output is on a gradual recovery path.
Separately, the data released by the Ministry of Economy Trade and Industry showed Japanese retail sales fell 2.0% in January from a year earlier, marking first decline in seven months, as bad weather and a continued decline in real incomes kept workers from spending.
Government data released Friday showed that on-year growth in the core consumer price index--stripping out volatile fresh-food prices and an increase in the sales tax last year--slowed to a 0.2% increase in January from a 0.5% rise in the previous month.
Shares of Fast Retailing Co added 0.7% to 46330 yen after Chief Financial Officer Takeshi Okazaki said at a Hong Kong news conference Thursday that the broad slowdown in consumer spending in China--one of the firm's fastest growing markets--isn't harming sales.
Sony Corp rose 2% to 3414.50 yen, benefiting from an SMBC Nikko Securities target price increase to Y4,000 from Y3,200. The brokerage cited restructuring benefits, mainly in the firm's electronics businesses, and the emergence of growth-driving products, particularly image sensors and the PlayStation 4 game console. Shares of Sumitomo Mitsui Financial Group Inc added 1.2% to 4759.50 yen, as its banking unit began offering reverse mortgages in Japan's largest cities, while Mizuho Financial Group Inc rose 0.2% to 220.50 yen after confirmation of its purchase of Royal Bank of Scotland's North American loan portfolio.
Oriental Land Corp., operator of theme parks such as Tokyo Disneyland and Disney Sea, gained 2.0% after Morgan Stanley MUFG Securities raised its target price to Y31,000 from Y22,000, citing the company's transformation in the past few years to a high-margin structure, as well as prospects for increased inbound tourism.
Shares of bankrupt Skymark Airlines Inc took another dive, plummeting 46.2% to 14 yen as ANA Holdings Inc.'s president told the media that his airline didn't want to take a majority stake in Skymark, even if it's selected to sponsor its ailing rival's rehabilitation.
Shares of motorcycle maker Yamaha Motor Co rallied 2% to 2972 yen after its president said that the company plans to make and sell small cars in Europe, beginning "around 2019.
China market rises 0.4% up on easing speculation
Mainland China share market finished higher in volatile trade, with investors looking ahead to the annual sessions of China's two key legislative bodies next week, where Communist Party leaders likely to unveil key policies to support the economy. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, rose 0.2% to 3,572.84, gaining 1.4% for the week, while the Shanghai Composite Index gained 0.4% to 3,310.30 points, up 2% for the week. For the month, the CSI300 gained 4.0% and the Shanghai Composite added 3.1%.
Total of seven out of ten SSE industry groups advanced, with telecommunication service issue leading rally, up by 2.8%, followed by information technology (up 0.9%), energy (up 0.7%), consumer staples (up 0.7%), materials (up 0.6%), industrials (up 0.5%), and consumer discretionary (up 0.3%).
Among the most active stocks- Bank of China was down 0.7% to 4.11 yuan, China Petroleum rose 2.9% to 6.31 yuan and United Network gained 5.6% to 5.65 yuan. TCL Corp gained 7.0% to 5.02 yuan, BOE Technology climbed 2.3% to 3.16 yuan and Shantui Construction added 1.6% to 7.62 yuan.
Hang Seng falls 0.32%
Hong Kong share market ended down in volatile trade on Friday, 27 February 2015, reversing the previous day's gains, amid concerns about possible tightening measures on Hong Kong's housing markets.
The benchmark index opened unchanged but saw its gains widen by midday after the Shanghai market broke above 3,300 mark. But it pared all its gains in late afternoon on talks of potential measures to curb property market by the government. The Hang Seng Index ended down 78 points or 0.3% to 24,823, off an intra-day high of 25,101 and day low of 24,815. The H-share index fell 41 points or 0.3% to 12,185. Turnover reduced to HK$76.6 billion from HK$82.7 billion on Thursday.
Shares of property developers bore the brunt of selling afternoon on talks of potential measures to curb property market by the government. The Hong Kong Monetary Authority was scheduled to hold a press meeting later in the day, amid expectations it might unveil policies to cool down real-estate markets. Major local developers mostly declined, as Wharf Holdings tumbled 2.9%, both Sun Hung Kai Properties and Henderson Land Development Co. skidded 1.6%, and Wheelock & Co shed 1.5%. However, Cheung Kong (Holdings), owned by Hong Kong tycoon Li Ka-shing, rose 0.3%, after its 2014 net profit surged 53%. Its sister conglomerate Hutchison Whampoa advanced 0.6%, as its earnings more than doubled in the last year.
The China's Ministry of Industry and Information Technology was reportedly to issue FDD 4G licenses today. China Unicom (00762) and China Telecom (00728) rose 1.7% and 0.4% to HK$13.06 and HK$5.02 respectively. But China Mobile (00941) softened 1.5% to HK$105.4.
Macau gaming stocks rebounded after government officials said the fine-tuning of the "individual visit scheme" does not mean to set tourist quota. Sands China (01928) and Galaxy Ent (00027) gained 2.3% and 2.2% to HK$35.4 and HK$39.9 respectively.
Sensex rally before Union Budget 2015-16
Indian stocks surged after the Economic Survey 2014-15 tabled in parliament by Finance Minister Arun Jaitley today, 27 February 2015, stated that the government remains committed to fiscal consolidation and said that there is a scope for Big Bang economic reforms. The Survey stated that the government has undertaken several reforms and more are on the anvil. The rally on the bourses was broad based. The S&P BSE Sensex gained 473.47 points or 1.65% to settle at 29,220.12, while the CNX Nifty gained 160.75 points or 1.85% to settle at 8,844.60.
The Economic Survey 2014-15 was presented a day before the Finance Minister Arun Jaitley presents Union Budget 2015-16 in the parliament tomorrow, 28 February 2015. Meanwhile, Prime Minister Narendra Modi today, 27 February 2015, said in Lok Sabha that if there is anything against farmers in the Land Acquisition Bill, the government is ready to change it.
Banking, auto, capital goods, metals and mining and power generation stocks rose. Index heavyweight and cigarette major ITC slipped on high volume after multiple bulk deals were executed on the counter. Realty stocks edged higher amid expectations that there will be clarity with regard to taxation of Real Estate Investment Trust (REIT) structure in Union Budget 2015-16 tomorrow, 28 February 2015. Infrastructure stocks rose on hopes of sops for the sector in the Union Budget 2015-16 tomorrow, 28 February 2015. Jewellery stocks rose after the Economic Survey 2014-15 tabled in Parliament today, 27 February 2015, stated that India's overall trade performance signals an opportune time for withdrawal of restrictions on gold.
The Indian stock exchanges have decided to keep the stock market open tomorrow, 28 February 2015, just like any other normal trading session when the Finance Minister Arun Jaitley presents the first full-fledged Budget of the Narendra Modi government. Trading will start at 9:15 IST and conclude at 15:30 IST.
Foreign portfolio investors (FPIs) bought Indian shares worth a net Rs 2489.79 crore from the secondary equity market yesterday, 26 February 2015, as per data from Central Depository Services. Domestic institutional investors (DIIs) bought shares worth a net Rs 340.79 crore yesterday, 26 February 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: South Korea KOSPI fell 0.37% to 1985.80. New Zealand NZX50 added 0.29% to 5878.47. Indonesia's Jakarta Composite index edged down 0.02% to 5450.29. Singapore's Straits Times index declined 0.68% at 3402.86. Malaysia's KLCI was up 0.02% to 1821.21.
The relative outperformance of the US economy and consequent expectations the Fed will begin raising borrowing costs this summer reducing appetite for risk assets. Investors are now waiting for revised fourth quarter U.S. gross domestic product data due later on Friday for another health check of the world's largest economy.
Among Asian bourses
Australia stocks end 0.34% higher
The Australian share market finished the session higher, recouping early losses, on the back of broad-based gains in key bullion, technology, industrial, telecom, financial, realty and mining companies overshadowing losses on the consumer staples front. The benchmark S&P/ASX 200 Index advanced 20.30 points, or 0.34%, to 5928.80, while the broader All Ordinaries Index was up 20.30 points, or 0.35%, to 5898.50. Market turnover was relatively healthy, with 1.97 billion shares changing hands worth of A$6.63 billion. Rising stocks outnumbered declining ones, with total of 768 stocks up, while remaining 597 down.
Newcrest Mining jumped 3.3% to A$14.39 after trimming its stake in rival Evolution Mining (down 9.6% to A$0.85) to just below 15%, selling the shares at a discount to the previous closing price.
Rio Tinto rose 1.1% to A$64.41 after announcing a restructuring that would shrink its total number of divisions to four, merging its uranium unit with that for diamonds and its coal unit with copper.
Qantas Airways jumped by 1.4% to A$2.89after J.P. Morgan raised its target price for the shares, and Moody's removed the negative outlook on the airline's credit rating following the latest earnings results.
Woolworths fell 9.5% to A$30.71 after it reported a modest (3%) drop in first-half profit, but also cutting its full-year guidance at the low end of the expected range.
GrainCorp tool a 2% loss at A$9.87 as it warned on its full-year result, citing a smaller crop. The company forecast profit before one-time items of between A$45 million and A$60 million in the year through September, a sharp fall from A$95 million the previous year.
Earnings before interest, tax, depreciation and amortization are expected to be between A$240 million and A$270 million, down from A$293 million in the 2014 financial year.
Shares of Harvey Norman advanced 1.6% to A$4.42 after the company posted net profit rose to A$142 million in the six months through December, from A$111.4 million a year earlier. Sales for the period were 3.2% higher at A$3.09 billion, and 3.4% higher on a like-for-like same-store basis. Australian electronics, white goods and furniture retailer expects positive trends in its business to continue as consumer sentiment looks set to remain stable, even as the broader Australian economy struggles to transition away from resources investment-led growth.
Nikkei edges up
Japanese share market ended marginally higher in volatile trade, as raft of data painting diverging pictures of Japan's economy. The Nikkei Stock Average ended higher by 12.15 points, or 0.06%, to 18797.94. The broader Topix index grew by 2.17 points, or 0.14%, to 1523.85.
The Ministry of Economy, Trade and Industry (METI) said on Friday that Japanese industrial production rose 4.0% in January, the second straight on-month increase, an indication that industrial activity is continuing its gradual recovery on the back of strong exports to Asia and the US. Looking ahead, the METI projects output will rise 0.2% in February from the previous month and then decrease 3.2% in March, based on surveys of companies. The ministry maintained its assessment of production activity, saying that output is on a gradual recovery path.
Separately, the data released by the Ministry of Economy Trade and Industry showed Japanese retail sales fell 2.0% in January from a year earlier, marking first decline in seven months, as bad weather and a continued decline in real incomes kept workers from spending.
Government data released Friday showed that on-year growth in the core consumer price index--stripping out volatile fresh-food prices and an increase in the sales tax last year--slowed to a 0.2% increase in January from a 0.5% rise in the previous month.
Shares of Fast Retailing Co added 0.7% to 46330 yen after Chief Financial Officer Takeshi Okazaki said at a Hong Kong news conference Thursday that the broad slowdown in consumer spending in China--one of the firm's fastest growing markets--isn't harming sales.
Sony Corp rose 2% to 3414.50 yen, benefiting from an SMBC Nikko Securities target price increase to Y4,000 from Y3,200. The brokerage cited restructuring benefits, mainly in the firm's electronics businesses, and the emergence of growth-driving products, particularly image sensors and the PlayStation 4 game console. Shares of Sumitomo Mitsui Financial Group Inc added 1.2% to 4759.50 yen, as its banking unit began offering reverse mortgages in Japan's largest cities, while Mizuho Financial Group Inc rose 0.2% to 220.50 yen after confirmation of its purchase of Royal Bank of Scotland's North American loan portfolio.
Oriental Land Corp., operator of theme parks such as Tokyo Disneyland and Disney Sea, gained 2.0% after Morgan Stanley MUFG Securities raised its target price to Y31,000 from Y22,000, citing the company's transformation in the past few years to a high-margin structure, as well as prospects for increased inbound tourism.
Shares of bankrupt Skymark Airlines Inc took another dive, plummeting 46.2% to 14 yen as ANA Holdings Inc.'s president told the media that his airline didn't want to take a majority stake in Skymark, even if it's selected to sponsor its ailing rival's rehabilitation.
Shares of motorcycle maker Yamaha Motor Co rallied 2% to 2972 yen after its president said that the company plans to make and sell small cars in Europe, beginning "around 2019.
China market rises 0.4% up on easing speculation
Mainland China share market finished higher in volatile trade, with investors looking ahead to the annual sessions of China's two key legislative bodies next week, where Communist Party leaders likely to unveil key policies to support the economy. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, rose 0.2% to 3,572.84, gaining 1.4% for the week, while the Shanghai Composite Index gained 0.4% to 3,310.30 points, up 2% for the week. For the month, the CSI300 gained 4.0% and the Shanghai Composite added 3.1%.
Total of seven out of ten SSE industry groups advanced, with telecommunication service issue leading rally, up by 2.8%, followed by information technology (up 0.9%), energy (up 0.7%), consumer staples (up 0.7%), materials (up 0.6%), industrials (up 0.5%), and consumer discretionary (up 0.3%).
Among the most active stocks- Bank of China was down 0.7% to 4.11 yuan, China Petroleum rose 2.9% to 6.31 yuan and United Network gained 5.6% to 5.65 yuan. TCL Corp gained 7.0% to 5.02 yuan, BOE Technology climbed 2.3% to 3.16 yuan and Shantui Construction added 1.6% to 7.62 yuan.
Hang Seng falls 0.32%
Hong Kong share market ended down in volatile trade on Friday, 27 February 2015, reversing the previous day's gains, amid concerns about possible tightening measures on Hong Kong's housing markets.
The benchmark index opened unchanged but saw its gains widen by midday after the Shanghai market broke above 3,300 mark. But it pared all its gains in late afternoon on talks of potential measures to curb property market by the government. The Hang Seng Index ended down 78 points or 0.3% to 24,823, off an intra-day high of 25,101 and day low of 24,815. The H-share index fell 41 points or 0.3% to 12,185. Turnover reduced to HK$76.6 billion from HK$82.7 billion on Thursday.
Shares of property developers bore the brunt of selling afternoon on talks of potential measures to curb property market by the government. The Hong Kong Monetary Authority was scheduled to hold a press meeting later in the day, amid expectations it might unveil policies to cool down real-estate markets. Major local developers mostly declined, as Wharf Holdings tumbled 2.9%, both Sun Hung Kai Properties and Henderson Land Development Co. skidded 1.6%, and Wheelock & Co shed 1.5%. However, Cheung Kong (Holdings), owned by Hong Kong tycoon Li Ka-shing, rose 0.3%, after its 2014 net profit surged 53%. Its sister conglomerate Hutchison Whampoa advanced 0.6%, as its earnings more than doubled in the last year.
The China's Ministry of Industry and Information Technology was reportedly to issue FDD 4G licenses today. China Unicom (00762) and China Telecom (00728) rose 1.7% and 0.4% to HK$13.06 and HK$5.02 respectively. But China Mobile (00941) softened 1.5% to HK$105.4.
Macau gaming stocks rebounded after government officials said the fine-tuning of the "individual visit scheme" does not mean to set tourist quota. Sands China (01928) and Galaxy Ent (00027) gained 2.3% and 2.2% to HK$35.4 and HK$39.9 respectively.
Sensex rally before Union Budget 2015-16
Indian stocks surged after the Economic Survey 2014-15 tabled in parliament by Finance Minister Arun Jaitley today, 27 February 2015, stated that the government remains committed to fiscal consolidation and said that there is a scope for Big Bang economic reforms. The Survey stated that the government has undertaken several reforms and more are on the anvil. The rally on the bourses was broad based. The S&P BSE Sensex gained 473.47 points or 1.65% to settle at 29,220.12, while the CNX Nifty gained 160.75 points or 1.85% to settle at 8,844.60.
The Economic Survey 2014-15 was presented a day before the Finance Minister Arun Jaitley presents Union Budget 2015-16 in the parliament tomorrow, 28 February 2015. Meanwhile, Prime Minister Narendra Modi today, 27 February 2015, said in Lok Sabha that if there is anything against farmers in the Land Acquisition Bill, the government is ready to change it.
Banking, auto, capital goods, metals and mining and power generation stocks rose. Index heavyweight and cigarette major ITC slipped on high volume after multiple bulk deals were executed on the counter. Realty stocks edged higher amid expectations that there will be clarity with regard to taxation of Real Estate Investment Trust (REIT) structure in Union Budget 2015-16 tomorrow, 28 February 2015. Infrastructure stocks rose on hopes of sops for the sector in the Union Budget 2015-16 tomorrow, 28 February 2015. Jewellery stocks rose after the Economic Survey 2014-15 tabled in Parliament today, 27 February 2015, stated that India's overall trade performance signals an opportune time for withdrawal of restrictions on gold.
The Indian stock exchanges have decided to keep the stock market open tomorrow, 28 February 2015, just like any other normal trading session when the Finance Minister Arun Jaitley presents the first full-fledged Budget of the Narendra Modi government. Trading will start at 9:15 IST and conclude at 15:30 IST.
Foreign portfolio investors (FPIs) bought Indian shares worth a net Rs 2489.79 crore from the secondary equity market yesterday, 26 February 2015, as per data from Central Depository Services. Domestic institutional investors (DIIs) bought shares worth a net Rs 340.79 crore yesterday, 26 February 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: South Korea KOSPI fell 0.37% to 1985.80. New Zealand NZX50 added 0.29% to 5878.47. Indonesia's Jakarta Composite index edged down 0.02% to 5450.29. Singapore's Straits Times index declined 0.68% at 3402.86. Malaysia's KLCI was up 0.02% to 1821.21.
