Headline equities of the Asia Pacific market mostly advanced on
Thursday, 26 February 2015, as appetite for risk assets grew after
comments from Federal Reserve Chair Janet Yellen pushed back
expectations for the first U.S. rate hike in nearly a decade to later in
the year. However, gain on the upside was limited as lack of positive
market moving news kept cautious investors on the side-lines. The MSCI
Asia Pacific Index gained 0.4% to 146.80.
Markets in the region mostly gained on optimism over the U.S. Federal Reserve delaying the tightening of interest rates further. On Tuesday, Fed Chair Janet Yellen signalled that the Fed would not rush into raising interest rates. Since Yellen's congressional testimony, some analysts shifted expectations for the first U.S. rate hike since 2006 to happen in September or later this year instead of June previously.
Standard & Poor's Ratings Services has revised down its economic growth forecasts for China and Japan, while raising the outlook for India on Thursday. For China, S&P now sees 2015 gross domestic product rising 6.9%, down from a previous projection of 7.1% growth. For 2016, it cut China's GDP expansion to 6.6% from 6.7%. For Japan, it trimmed the 2015 forecast to just 0.7% growth from 1.3%, while for next year, it sees 1.3% growth, down from 2.1%. S&P expects Indian economy to grow 7.9% in the fiscal year ending March 2016, up from a previous forecast of 6.2%. For the year ending March 2017, it sees 8.2% growth, vs. 6.6% previously.
Among Asian bourses
Nikkei rises to seven-year high
Japanese share market advanced to a seven-year high, on tracking greenback strength against the yen triggered by receding hopes for a midyear U.S. interest rate increase. Meanwhile, buying pressure accelerated on news that a Japanese pension fund manager will increase its target allocation for domestic stocks. The Nikkei Stock Average ended higher by 200.59 points, or 1.08%, to 18785.79. The broader Topix index grew by 14.06 points, or 0.93% to 1521.68.
Shares of export related stocks bumped up, with Sony Corp rising 2% to 3346.50 yen, Hitachi adding 0.1% to 822 yen, and Canon Inc up by 0.3% to 3882 yen. Casio Computer Co added 1.8% to 2116 yen and TDK Corp rose 2.1% to 8180 yen on report it planned to add to production capacity in Japan to take advantage of the forex environment.
Energy stocks closed higher, with Inpex Corp. rising 3.3% to 1446 yen and Japan Petroleum Exploration Co gaining 2.8% to 4085 yen on tracking rebound in crude oil prices.
Financials were also up, with Mizuho Financial Group Inc. climbing 0.6% to 220.10 yen on reports that the megabank was set to purchase Royal Bank of Scotland Group PLC's North American unit for "several hundred billion yen". Larger rival Mitsubishi UFJ Financial Group Inc added 3.2% to 786.90 yen with a separate report saying employees at the company's main banking unit were looking for a 2% pay raise this year, compared to a requested 1.5% hike by the unions at Mizuho and Sumitomo Mitsui Financial Group Inc (up 1.9% to 4702 yen).
Australia stocks fall for first time in four days
The Australian share market ended lower for the first time in four consecutive sessions, as a broad-based sell-off in key mining and financial companies overshadowing some scattered good news on the earnings front. The benchmark S&P/ASX 200 Index declined 36.40 points, or 0.61%, to 5908.50, while the broader All Ordinaries Index was down 30.70 points, or 0.52%, to 5877.90. Market turnover was relatively healthy, with 1.8 billion shares changing hands worth of A$4.95 billion.
Financials were also broadly weaker, with Australia & New Zealand Banking Group and National Australia Bank both falling 0.4% to A$35.16 and A$37.62, respectively.
Commonwealth Bank of Australia, the nation's largest lender, fell 0.5% to A$90.42 and Westpac Banking Corporation fell 0.5% to A$37.68. Bank of Queensland declined by 0.8% to A$14.20 after announcing a write-down on its customer-relationship management system.
A drop for spot iron-ore prices tormenting the relevant miners, with Atlas Iron down by 5% to A$0.19 and Mount Gibson Iron lower by 2% to A$0.25 while Fortescue Metals Group closed steady at A$2.48. Other mining names were more mixed, with BHP Billiton added 0.2% to A$33.56 and Rio Tinto rose 0.2% to A$63.70, while Newcrest Mining fell 0.6% to A$13.93.
Qantas Airways rallied 1.4% to A$2.85 after its pretax profit beat its previous guidance, as its international division returned to profit.
Media company Nine Entertainment Co. Holdings surged 9.4% to A$2.03 after its results, as the company announced a share buyback and kept its full-year outlook unchanged. The Sydney-based television broadcaster announced it would buy back up to A$150 million of its own shares. It reaffirmed guidance for profit to grow by about 10% for the full year and for earnings before interest, tax, depreciation and amortization at least in line with the A$311 million reported last year.
Billabong International ended 3.9% lower at A$0.615 despite opening with solid gains after reporting a return to profit in the second half of 2014.
China stocks surge 2.2% on easing speculation
Mainland China share market skyrocketed, on renewed speculation of further monetary easing after S&P cuts GDP outlook for China and Premier Li Keqiang called for more active fiscal policy, while a central bank publication urged for additional monetary easing. The Shanghai Composite Index rose 2.2% to 3,298.36 at the close, the highest since Jan. 28.
All ten SSE industry groups advanced, with industrial issue leading rally, up by 3.8%, followed by financial (up 3.2%), materials (up 2.5%), energy (up 2.2%), utilities (up 1.8%), consumer discretionary (up 1.3%), consumer staples (up 0.8%), information technology (up 0.6%), telecommunication services (up 0.4%), and healthcare (up 0.3%).
Shares of financial and industrial firms were responsible for the bulk of Thursday's rise, with Bank Of China up 2.2% to 4.14 yuan and Agriculture Bank of China up 1.8% to 3.35 yuan. China State Construction Engineering Corp was up 8.7% to 6.47 yuan and Power Construction Corp of China added 9.9% to 7.52 yuan. Ping An Insurance Group of China added 2.5% to 69.87 yuan. Citic Securities Co. and Haitong Securities Co. climbed more than 4%.
Hang Seng ends 0.5% up
Hong Kong share market advanced in volatile trade on Thursday, 26 February 2015, on tracking sharp rebound in the Mainland A-share market triggered by hopes of further easing from and good news coming out from the upcoming annual NPC and CPPCC meetings. The Hang Seng Index ended up 123.78 points or 0.5% to 24902.06, off an intra-day high of 24998.64 and day low of 24709.56. Turnover rose to HK$82.72 billion from HK$71.38 billion on Wednesday.
Shares of energy players went up inline with rebound in crude oil prices. Brent crude oil futures surged 5% on comments from Saudi Arabia's oil minister, who said oil demand was growing. CNOOC (00883) added 2.4% to HK$11.16. PetroChina (00857) put on 2% to HK$9.02.
Shares of infrastructure railway players were also higher ahead of both the NPC and CPPCC meetings next week. Investors expect details of "One Belt, One Road" plan will be announced. China Rail Cons (01186) jumped 4% to HK$9.46. China Railway (00390) shot up 2.8% to HK$6.28.
Shares of casino players recorded broad declines after brokerage houses prediction that Macau's gambling revenue may plunge about 54% this month as number of mass tables empty on the third and fourth days of Lunar New Year holidays. The selloff accelerated by reports stating Macau's government is seeking plans to curb mainland Chinese visitors due to increasing pressure by some of the city's residents. Melco Crown Entertainment dropped 2.7% to HK$63.40, Sands China lost 3.1% to HK$34.60, and Galaxy Entertainment Group fell 0.6% to HK$38.55. SJM Holdings traded 0.4% lower at HK$11.08 after it recorded a 12.7% drop in its earnings for last year.
Shares of Hong Kong retailers were also weaker, after Hong Kong's government said it too would speak with mainland Chinese authorities about restricting the number of tourists from the rest of China. Department-store operator Lifestyle International Holdings shed 1.8% to HK$14.40 and jeweller Luk Fook Holdings International declined 4.8% to HK$26.90. Clothing retailer Esprit Holdings tumbled 4.6% to HK$8.30, after its net profit shrank by half for the second half of 2014.
Life insurer AIA Group rose 0.1% to HK$45.75 after its 2014 net profit jumped 22% from the previous year. The life insurer recorded a net profit of US$3.45 billion in the year ended Nov. 30, up from US$2.8 billion. AIA said its new-business value, a measure of insurers' profitability, rose to a record US$1.8 billion, a 24% jump from a year earlier. The value of new-business margins grew by 5%age points to 49.1%, while annualized new premium sales--a measure of new business activity--rose 11% to US$3.7 billion.
Sensex slips below 29000
Volatility ruled the roost as key benchmark indices in mid-afternoon trade amid caution ahead of the expiry of derivative contracts due later in the day and Union budget on Saturday. At 14.30IST, the 30-share S&P BSE Sensex was down 0.62%, or 180.97 points, at 28,827.02, while the National Stock Exchange's broader 50-share Nifty was down 0.65%, or 56.55 points, at 8,710.70.
The government left passenger fares unchanged in Railway Budget 2015-16 presented in Parliament by Railway Minister Suresh Prabhu today, 26 February 2015. The Railways has announced rationalisation of freight rates for FY 2016. This will mean increase some freight rates for FY 2016, according to media reports.
The Railways will invest Rs 8.5 lakh crore over the next 5 years. The Sensex was currently off 169.34 points or 0.58% at 28,838.65. The market breadth indicating the overall health of the market was weak.
Coal India fell on reports railway freight rates have been hiked by 6.3% for coal from 1 April 2015. Cement stocks declined on reports railway freight rates have been hiked by 2.7% on transport of cement. Capital goods stocks declined.
Meanwhile, global rating agency Standard & Poor's Ratings Services today, 26 February 2015, reportedly raised its economic growth forecast for India even as the rating agency cut its economic growth forecasts for China and Japan.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 516.06 crore yesterday, 25 February 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 19.70 crore yesterday, 25 February 2015, as per provisional data.
Elsewhere in the Asia Pacific region: South Korea KOSPI rose 0.13% to 1993.08. Taiwan's Taiex fell 0.8% to 9622.10. New Zealand NZX50 added 0.33% to 5861.68. Indonesia's Jakarta Composite index grew 0.12% to 5451.42. Singapore's Straits Times index declined 0.43% at 3426.18. Malaysia's KLCI was up 0.28% to 1820.87.
Markets in the region mostly gained on optimism over the U.S. Federal Reserve delaying the tightening of interest rates further. On Tuesday, Fed Chair Janet Yellen signalled that the Fed would not rush into raising interest rates. Since Yellen's congressional testimony, some analysts shifted expectations for the first U.S. rate hike since 2006 to happen in September or later this year instead of June previously.
Standard & Poor's Ratings Services has revised down its economic growth forecasts for China and Japan, while raising the outlook for India on Thursday. For China, S&P now sees 2015 gross domestic product rising 6.9%, down from a previous projection of 7.1% growth. For 2016, it cut China's GDP expansion to 6.6% from 6.7%. For Japan, it trimmed the 2015 forecast to just 0.7% growth from 1.3%, while for next year, it sees 1.3% growth, down from 2.1%. S&P expects Indian economy to grow 7.9% in the fiscal year ending March 2016, up from a previous forecast of 6.2%. For the year ending March 2017, it sees 8.2% growth, vs. 6.6% previously.
Among Asian bourses
Nikkei rises to seven-year high
Japanese share market advanced to a seven-year high, on tracking greenback strength against the yen triggered by receding hopes for a midyear U.S. interest rate increase. Meanwhile, buying pressure accelerated on news that a Japanese pension fund manager will increase its target allocation for domestic stocks. The Nikkei Stock Average ended higher by 200.59 points, or 1.08%, to 18785.79. The broader Topix index grew by 14.06 points, or 0.93% to 1521.68.
Shares of export related stocks bumped up, with Sony Corp rising 2% to 3346.50 yen, Hitachi adding 0.1% to 822 yen, and Canon Inc up by 0.3% to 3882 yen. Casio Computer Co added 1.8% to 2116 yen and TDK Corp rose 2.1% to 8180 yen on report it planned to add to production capacity in Japan to take advantage of the forex environment.
Energy stocks closed higher, with Inpex Corp. rising 3.3% to 1446 yen and Japan Petroleum Exploration Co gaining 2.8% to 4085 yen on tracking rebound in crude oil prices.
Financials were also up, with Mizuho Financial Group Inc. climbing 0.6% to 220.10 yen on reports that the megabank was set to purchase Royal Bank of Scotland Group PLC's North American unit for "several hundred billion yen". Larger rival Mitsubishi UFJ Financial Group Inc added 3.2% to 786.90 yen with a separate report saying employees at the company's main banking unit were looking for a 2% pay raise this year, compared to a requested 1.5% hike by the unions at Mizuho and Sumitomo Mitsui Financial Group Inc (up 1.9% to 4702 yen).
Australia stocks fall for first time in four days
The Australian share market ended lower for the first time in four consecutive sessions, as a broad-based sell-off in key mining and financial companies overshadowing some scattered good news on the earnings front. The benchmark S&P/ASX 200 Index declined 36.40 points, or 0.61%, to 5908.50, while the broader All Ordinaries Index was down 30.70 points, or 0.52%, to 5877.90. Market turnover was relatively healthy, with 1.8 billion shares changing hands worth of A$4.95 billion.
Financials were also broadly weaker, with Australia & New Zealand Banking Group and National Australia Bank both falling 0.4% to A$35.16 and A$37.62, respectively.
Commonwealth Bank of Australia, the nation's largest lender, fell 0.5% to A$90.42 and Westpac Banking Corporation fell 0.5% to A$37.68. Bank of Queensland declined by 0.8% to A$14.20 after announcing a write-down on its customer-relationship management system.
A drop for spot iron-ore prices tormenting the relevant miners, with Atlas Iron down by 5% to A$0.19 and Mount Gibson Iron lower by 2% to A$0.25 while Fortescue Metals Group closed steady at A$2.48. Other mining names were more mixed, with BHP Billiton added 0.2% to A$33.56 and Rio Tinto rose 0.2% to A$63.70, while Newcrest Mining fell 0.6% to A$13.93.
Qantas Airways rallied 1.4% to A$2.85 after its pretax profit beat its previous guidance, as its international division returned to profit.
Media company Nine Entertainment Co. Holdings surged 9.4% to A$2.03 after its results, as the company announced a share buyback and kept its full-year outlook unchanged. The Sydney-based television broadcaster announced it would buy back up to A$150 million of its own shares. It reaffirmed guidance for profit to grow by about 10% for the full year and for earnings before interest, tax, depreciation and amortization at least in line with the A$311 million reported last year.
Billabong International ended 3.9% lower at A$0.615 despite opening with solid gains after reporting a return to profit in the second half of 2014.
China stocks surge 2.2% on easing speculation
Mainland China share market skyrocketed, on renewed speculation of further monetary easing after S&P cuts GDP outlook for China and Premier Li Keqiang called for more active fiscal policy, while a central bank publication urged for additional monetary easing. The Shanghai Composite Index rose 2.2% to 3,298.36 at the close, the highest since Jan. 28.
All ten SSE industry groups advanced, with industrial issue leading rally, up by 3.8%, followed by financial (up 3.2%), materials (up 2.5%), energy (up 2.2%), utilities (up 1.8%), consumer discretionary (up 1.3%), consumer staples (up 0.8%), information technology (up 0.6%), telecommunication services (up 0.4%), and healthcare (up 0.3%).
Shares of financial and industrial firms were responsible for the bulk of Thursday's rise, with Bank Of China up 2.2% to 4.14 yuan and Agriculture Bank of China up 1.8% to 3.35 yuan. China State Construction Engineering Corp was up 8.7% to 6.47 yuan and Power Construction Corp of China added 9.9% to 7.52 yuan. Ping An Insurance Group of China added 2.5% to 69.87 yuan. Citic Securities Co. and Haitong Securities Co. climbed more than 4%.
Hang Seng ends 0.5% up
Hong Kong share market advanced in volatile trade on Thursday, 26 February 2015, on tracking sharp rebound in the Mainland A-share market triggered by hopes of further easing from and good news coming out from the upcoming annual NPC and CPPCC meetings. The Hang Seng Index ended up 123.78 points or 0.5% to 24902.06, off an intra-day high of 24998.64 and day low of 24709.56. Turnover rose to HK$82.72 billion from HK$71.38 billion on Wednesday.
Shares of energy players went up inline with rebound in crude oil prices. Brent crude oil futures surged 5% on comments from Saudi Arabia's oil minister, who said oil demand was growing. CNOOC (00883) added 2.4% to HK$11.16. PetroChina (00857) put on 2% to HK$9.02.
Shares of infrastructure railway players were also higher ahead of both the NPC and CPPCC meetings next week. Investors expect details of "One Belt, One Road" plan will be announced. China Rail Cons (01186) jumped 4% to HK$9.46. China Railway (00390) shot up 2.8% to HK$6.28.
Shares of casino players recorded broad declines after brokerage houses prediction that Macau's gambling revenue may plunge about 54% this month as number of mass tables empty on the third and fourth days of Lunar New Year holidays. The selloff accelerated by reports stating Macau's government is seeking plans to curb mainland Chinese visitors due to increasing pressure by some of the city's residents. Melco Crown Entertainment dropped 2.7% to HK$63.40, Sands China lost 3.1% to HK$34.60, and Galaxy Entertainment Group fell 0.6% to HK$38.55. SJM Holdings traded 0.4% lower at HK$11.08 after it recorded a 12.7% drop in its earnings for last year.
Shares of Hong Kong retailers were also weaker, after Hong Kong's government said it too would speak with mainland Chinese authorities about restricting the number of tourists from the rest of China. Department-store operator Lifestyle International Holdings shed 1.8% to HK$14.40 and jeweller Luk Fook Holdings International declined 4.8% to HK$26.90. Clothing retailer Esprit Holdings tumbled 4.6% to HK$8.30, after its net profit shrank by half for the second half of 2014.
Life insurer AIA Group rose 0.1% to HK$45.75 after its 2014 net profit jumped 22% from the previous year. The life insurer recorded a net profit of US$3.45 billion in the year ended Nov. 30, up from US$2.8 billion. AIA said its new-business value, a measure of insurers' profitability, rose to a record US$1.8 billion, a 24% jump from a year earlier. The value of new-business margins grew by 5%age points to 49.1%, while annualized new premium sales--a measure of new business activity--rose 11% to US$3.7 billion.
Sensex slips below 29000
Volatility ruled the roost as key benchmark indices in mid-afternoon trade amid caution ahead of the expiry of derivative contracts due later in the day and Union budget on Saturday. At 14.30IST, the 30-share S&P BSE Sensex was down 0.62%, or 180.97 points, at 28,827.02, while the National Stock Exchange's broader 50-share Nifty was down 0.65%, or 56.55 points, at 8,710.70.
The government left passenger fares unchanged in Railway Budget 2015-16 presented in Parliament by Railway Minister Suresh Prabhu today, 26 February 2015. The Railways has announced rationalisation of freight rates for FY 2016. This will mean increase some freight rates for FY 2016, according to media reports.
The Railways will invest Rs 8.5 lakh crore over the next 5 years. The Sensex was currently off 169.34 points or 0.58% at 28,838.65. The market breadth indicating the overall health of the market was weak.
Coal India fell on reports railway freight rates have been hiked by 6.3% for coal from 1 April 2015. Cement stocks declined on reports railway freight rates have been hiked by 2.7% on transport of cement. Capital goods stocks declined.
Meanwhile, global rating agency Standard & Poor's Ratings Services today, 26 February 2015, reportedly raised its economic growth forecast for India even as the rating agency cut its economic growth forecasts for China and Japan.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 516.06 crore yesterday, 25 February 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 19.70 crore yesterday, 25 February 2015, as per provisional data.
Elsewhere in the Asia Pacific region: South Korea KOSPI rose 0.13% to 1993.08. Taiwan's Taiex fell 0.8% to 9622.10. New Zealand NZX50 added 0.33% to 5861.68. Indonesia's Jakarta Composite index grew 0.12% to 5451.42. Singapore's Straits Times index declined 0.43% at 3426.18. Malaysia's KLCI was up 0.28% to 1820.87.
