Headline equities of the Asia Pacific market closed mostly higher after
recouping early losses on Thursday, 12 February 2015, on tracking cue
from the ceasefire between Russia and Ukraine and a surprisingly
aggressive dose of stimulus from Sweden's central bank.
Regional shares reversed their earlier losses after the leaders of Germany, France, Russia and Ukraine reached a deal to end fighting in eastern Ukraine. The leaders of Russia, Ukraine, France and Germany have reached a ceasefire deal after 17 hours of talks in Minsk, Belarus, on the Ukrainian conflict. The ceasefire will come into force on Sunday as part of a deal that also involves the withdrawal of heavy weapons from the front line. Russian president Vladimir Putin was the first to announce the deal, saying: “We have agreed on a ceasefire from midnight 15 February.”
Also, surprisingly aggressive dose of stimulus from Sweden's central bank on Thursday injected life back into world markets. Sweden's central bank cut its main interest rate below zero and unexpectedly unveiled plans to start buying government bonds to jolt the largest Nordic economy out of a deflationary spiral. The Riksbank lowered its repo rate to minus 0.10% from zero.
Despite a market recovery, risk sentiments remain subdued as investors were keeping a close eye on Greece's negotiations with EU finance ministers. Eurozone finance ministers were struggling to find a clear line on how to deal with Greece's financial issues. The uncertainty likely to linger into next week after talks in Brussels between Greece and its creditors failed to produce even a joint statement on the next steps.
Among Asian bourses
Japan shares rally to seven-year high
Japanese share market advanced to their highest settlement in more than seven years, on the back of greenback strength against the yen and generally sound corporate earnings results. Also helping support the sentiment was a more-than-expected rise in Japan's core machinery orders in December. The Nikkei Stock Average rose 327.04 points, or 1.9%, to 17979.72, its highest closing level since July 2007. The broader Topix also advanced 21.67 points, or 1.52%, to 1449.39. Japanese markets were closed on Wednesday for a national holiday.
Official data showed Japanese core machinery orders rose more than expected 8.3% in December from November, suggesting companies are more willing to spend after an April sales tax increase pushed the economy into recession. The figures are widely regarded as a leading indicator of capital expenditure, but are also known for their volatility.
Shares of export related companies gained the most in Tokyo, benefiting from the dollar's rise against the yen. The yen weakened 05% to 120.31 per dollar, compared with 118.69 at Tokyo's stock close on Tuesday. Investors generally prefer a higher dollar-yen value, as exporters can price their goods more competitively overseas and earn more yen when they send the profits back home.
Electronics giant Panasonic Corp jumped 4.1% to 1372 yen. Auto maker Nissan Motor Co gained 2% to 1127 yen and rival Toyota Motor Corp rose 1.8% to 7851 yen. Industrial-robot manufacturer Fanuc Corp soared 6.2% to 22045 yen on news that an U.S. hedge fund run by Daniel Loeb had bought a stake in the company.
Canon Inc rose 1.7% to 3835 yen following news that it plans to buy Swedish network video solutions provider Axis for around 333.7 billion yen. Sony Corp surged 5.1% to 3231.50 yen, after the company announced before the holiday that it had reached a deal with Walt Disney to co-produce a new Spider-Man movie, which will be released in 2017.
Showa Shell Sekiyu fell 6.2% to 1087 yen after the company reported a net loss of 9.7 billion yen due to lower oil prices.
Australia stocks decline for fourth day
The Australian share market continued its slide for a fourth straight day, as sentiments remains subdued amid lingering uncertainty over the health of the nation's economy after disappointed January jobs figures. The S&P/ASX200 closed 25.50 points, or 0.44%, lower at 5743.6, while the All Ordinaries tracked closely behind, down 24 points, or also 0.42%, to 5707.7.
The Australian Bureau of Statistics reported on Thursday that Australia's estimated seasonally adjusted unemployment rate for January 2015 was 6.4%, compared with 6.1% for December 2014.
ASX shares closed down 1.2% to A$39.60. The Australia's main stock exchange operator posted a 4.7% rise in net profit to A$198.6 million for the six months through December. Operating revenue was 5.9% higher at A$348.7 million.
Telstra shares ended 0.6% down at A$6.45 despite announcing a better-than-expected 22% rise in net profit to A$2.1 billion in the six months to December 31. Chief executive David Thodey said the company had reintroduced a dividend reinvestment plan for the first time in seven years in response to demand from institutional investors.
The ghosts of earnings past also haunted the market, as Commonwealth Bank of Australia fell 0.7% to A$91.18 on the second day after its earnings announcement, as J.P. Morgan and Bell Potter both cut their ratings on the name. Likewise, Macquarie's downgrade of Oz Minerals to neutral from outperform appeared a factor in that stock's 6.9% fall to A$3.52.
Meanwhile, Santos was down 1.6% to A$7.59 after announcing a A$1.2 billion write-down as oil prices slump.
China stocks extend gain on policy easing hopes
Mainland China share market advanced for fourth consecutive session, helped by central bank moves to improve short-term liquidity and growing expectations of an impending interest rate cut after the central bank vowed to support growth of the world's second-biggest economy. The Shanghai Composite Index climbed up 0.5%, or 15.71 points, to 3173.42 at the close.
Chinese investors are hoping the authorities introduce another round of measures to boost the slowing economy after China's central bank cut the reserve requirement ratio (RRR) last week and November's interest rate cut and conducted a large amount of reverse repos before the Chinese New Year.
The People's Bank of China has injected a net 205 billion yuan ($32.82 billion) into the money market this week, the biggest weekly injection since January. The central bank said on Wednesday that it would increase credit to some financial institutions through a lending facility to ameliorate short-term cash shortages ahead of the Lunar New Year holiday.
The People's Bank of China also commented on Tuesday that it would ready to fight any downturn in the world's second-largest economy, but added it would avoid "pumping out" too much cash. The comments reinforced expectations that more policy easing is on the cards.
Shares of telecom companies climbed the most in Beijing, on speculation of a merger within the industry, with China Unicom surging 8.4% on rumour that the firm could merge with China Telecom Corp. Nanjing Panda Electronics Co. was up 4.3% and Datang Telecom Technology Co. rose 2.8%.
Shares of discretionary companies also climbed up, on prospects for increased sales during the Chinese New Year holiday. Hisense Electric Co. jumped by the maximum daily limit of 10%. Beingmate Baby & Child Food Co. jumped 5.5% on Fonterra Cooperative Group plan to buy a stake.
Financial shares fell before January data on money supply and new lending. China Minsheng Banking Corp. slid 0.5%, Industrial Bank Co. declined 1.8% and Haitong Securities Co. retreated 1.2%.
China Railway Group, the nation's biggest construction company by total assets, climbed 2.2% after saying it won 33 projects for a combined 49.3 billion yuan ($7.9 billion).
Hang Seng jumps 0.44% as financials rally
Hong Kong share market ended higher, helped by tracking gain on the Mainland A-share market, with shares of financial companies being major gainers. The Hang Seng Index ended higher by 107.13 points or 0.44% to 24422.15, off an intra-day high of 24514.90 and day low of 24226.29. Turnover increased to HK$73.28 billion from HK$64.66 billion on Wednesday.
Financial shares advanced the most in Hong Kong market, led by Mainland Chinese banks on reports that the People's Bank of China had pumped another 160 billion yuan ($26 billion) into the banking system, leading to a net weekly injection of more than 200 billion yuan, the highest in over a year. China Construction Bank Corp added 1.8% to HK$6.34, Bank of Communications Co rose 2.2% to HK$6.50 and Agricultural Bank of China rose 1.1% to HK$3.82, and Bank of China added 1.6% to HK$4.34. Among Hong Kong's local lenders, Bank of East Asia grew 0.5% to HK$32.35. London-based banking majors HSBC Holdings PLC gained 0.8% to HK$70.80 and Standard Chartered PLC edged up 0.1% to HK$108.20, after heavy losses the previous day.
Shares of telecom players advanced on speculation of a merger activity in the industry. China Unicom (00762) put on 4.2% to HK$12.96 after rising more than 7% at one point. China Telecom (00728) gained 2.9% to HK$4.97 after hitting an intra-day high of HK$5.2, which was not seen since March 2008.
Shares of casino players declined after Macau government official yesterday said the gaming industry will see its February gross gaming revenue grow lower than year earlier. SJM Holdings (00880) fell 3.3% to HK$11.22. Sand China (01928) softened 1.6% to HK$37.45. Galaxy Ent (00027) dipped 2.3% to HK41.8.
Sensex, Nifty attains one-week closing high
Indian stock market witnessed a sharp pull-back rally in the last hour of trade in line with other European markets following reports that Russia has agreed for a cease-fire with Ukraine. All the sectoral indices, barring FMCG sector, closed in the positive terrain with capital goods, power and IT sectors leading the rally. The S&P BSE Sensex advanced 271.13 points or 0.95% to settle at 28,805.10, its highest closing level since 5 February 2015. The CNX Nifty rose 84.15 points or 0.98% to settle at 8,711.55, its highest closing level since 5 February 2015.
Bank stocks were mixed. Bank of India tumbled after poor Q3 numbers. Realty stocks advanced. Bharat Heavy Electricals (Bhel) edged higher. MRF advanced after strong Q1 earnings. Reliance Power rose after the company said it has signed a memorandum of understanding with the Government of Rajasthan to develop 6,000 megawatts (MW) of solar power projects in Rajasthan over the period of next 10 years.
Foreign portfolio investors sold shares worth a net Rs 351.86 crore into the secondary equity market yesterday, 11 February 2015, as per data from Central Depository Services. Domestic institutional investors (DIIs) bought shares worth a net Rs 147.49 crore yesterday, 11 February 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index added 0.36% to 9496.31. South Korea KOSPI shed 0.2% to 1941.63. New Zealand market fell 0.7% to 5749.31. Indonesia's Jakarta Composite index added 0.13% to 5343.41. Singapore's Straits Times index was down 0.74% at 34419.17. Malaysia's KLCI was down 0.55% to 1789.07.
Regional shares reversed their earlier losses after the leaders of Germany, France, Russia and Ukraine reached a deal to end fighting in eastern Ukraine. The leaders of Russia, Ukraine, France and Germany have reached a ceasefire deal after 17 hours of talks in Minsk, Belarus, on the Ukrainian conflict. The ceasefire will come into force on Sunday as part of a deal that also involves the withdrawal of heavy weapons from the front line. Russian president Vladimir Putin was the first to announce the deal, saying: “We have agreed on a ceasefire from midnight 15 February.”
Also, surprisingly aggressive dose of stimulus from Sweden's central bank on Thursday injected life back into world markets. Sweden's central bank cut its main interest rate below zero and unexpectedly unveiled plans to start buying government bonds to jolt the largest Nordic economy out of a deflationary spiral. The Riksbank lowered its repo rate to minus 0.10% from zero.
Despite a market recovery, risk sentiments remain subdued as investors were keeping a close eye on Greece's negotiations with EU finance ministers. Eurozone finance ministers were struggling to find a clear line on how to deal with Greece's financial issues. The uncertainty likely to linger into next week after talks in Brussels between Greece and its creditors failed to produce even a joint statement on the next steps.
Among Asian bourses
Japan shares rally to seven-year high
Japanese share market advanced to their highest settlement in more than seven years, on the back of greenback strength against the yen and generally sound corporate earnings results. Also helping support the sentiment was a more-than-expected rise in Japan's core machinery orders in December. The Nikkei Stock Average rose 327.04 points, or 1.9%, to 17979.72, its highest closing level since July 2007. The broader Topix also advanced 21.67 points, or 1.52%, to 1449.39. Japanese markets were closed on Wednesday for a national holiday.
Official data showed Japanese core machinery orders rose more than expected 8.3% in December from November, suggesting companies are more willing to spend after an April sales tax increase pushed the economy into recession. The figures are widely regarded as a leading indicator of capital expenditure, but are also known for their volatility.
Shares of export related companies gained the most in Tokyo, benefiting from the dollar's rise against the yen. The yen weakened 05% to 120.31 per dollar, compared with 118.69 at Tokyo's stock close on Tuesday. Investors generally prefer a higher dollar-yen value, as exporters can price their goods more competitively overseas and earn more yen when they send the profits back home.
Electronics giant Panasonic Corp jumped 4.1% to 1372 yen. Auto maker Nissan Motor Co gained 2% to 1127 yen and rival Toyota Motor Corp rose 1.8% to 7851 yen. Industrial-robot manufacturer Fanuc Corp soared 6.2% to 22045 yen on news that an U.S. hedge fund run by Daniel Loeb had bought a stake in the company.
Canon Inc rose 1.7% to 3835 yen following news that it plans to buy Swedish network video solutions provider Axis for around 333.7 billion yen. Sony Corp surged 5.1% to 3231.50 yen, after the company announced before the holiday that it had reached a deal with Walt Disney to co-produce a new Spider-Man movie, which will be released in 2017.
Showa Shell Sekiyu fell 6.2% to 1087 yen after the company reported a net loss of 9.7 billion yen due to lower oil prices.
Australia stocks decline for fourth day
The Australian share market continued its slide for a fourth straight day, as sentiments remains subdued amid lingering uncertainty over the health of the nation's economy after disappointed January jobs figures. The S&P/ASX200 closed 25.50 points, or 0.44%, lower at 5743.6, while the All Ordinaries tracked closely behind, down 24 points, or also 0.42%, to 5707.7.
The Australian Bureau of Statistics reported on Thursday that Australia's estimated seasonally adjusted unemployment rate for January 2015 was 6.4%, compared with 6.1% for December 2014.
ASX shares closed down 1.2% to A$39.60. The Australia's main stock exchange operator posted a 4.7% rise in net profit to A$198.6 million for the six months through December. Operating revenue was 5.9% higher at A$348.7 million.
Telstra shares ended 0.6% down at A$6.45 despite announcing a better-than-expected 22% rise in net profit to A$2.1 billion in the six months to December 31. Chief executive David Thodey said the company had reintroduced a dividend reinvestment plan for the first time in seven years in response to demand from institutional investors.
The ghosts of earnings past also haunted the market, as Commonwealth Bank of Australia fell 0.7% to A$91.18 on the second day after its earnings announcement, as J.P. Morgan and Bell Potter both cut their ratings on the name. Likewise, Macquarie's downgrade of Oz Minerals to neutral from outperform appeared a factor in that stock's 6.9% fall to A$3.52.
Meanwhile, Santos was down 1.6% to A$7.59 after announcing a A$1.2 billion write-down as oil prices slump.
China stocks extend gain on policy easing hopes
Mainland China share market advanced for fourth consecutive session, helped by central bank moves to improve short-term liquidity and growing expectations of an impending interest rate cut after the central bank vowed to support growth of the world's second-biggest economy. The Shanghai Composite Index climbed up 0.5%, or 15.71 points, to 3173.42 at the close.
Chinese investors are hoping the authorities introduce another round of measures to boost the slowing economy after China's central bank cut the reserve requirement ratio (RRR) last week and November's interest rate cut and conducted a large amount of reverse repos before the Chinese New Year.
The People's Bank of China has injected a net 205 billion yuan ($32.82 billion) into the money market this week, the biggest weekly injection since January. The central bank said on Wednesday that it would increase credit to some financial institutions through a lending facility to ameliorate short-term cash shortages ahead of the Lunar New Year holiday.
The People's Bank of China also commented on Tuesday that it would ready to fight any downturn in the world's second-largest economy, but added it would avoid "pumping out" too much cash. The comments reinforced expectations that more policy easing is on the cards.
Shares of telecom companies climbed the most in Beijing, on speculation of a merger within the industry, with China Unicom surging 8.4% on rumour that the firm could merge with China Telecom Corp. Nanjing Panda Electronics Co. was up 4.3% and Datang Telecom Technology Co. rose 2.8%.
Shares of discretionary companies also climbed up, on prospects for increased sales during the Chinese New Year holiday. Hisense Electric Co. jumped by the maximum daily limit of 10%. Beingmate Baby & Child Food Co. jumped 5.5% on Fonterra Cooperative Group plan to buy a stake.
Financial shares fell before January data on money supply and new lending. China Minsheng Banking Corp. slid 0.5%, Industrial Bank Co. declined 1.8% and Haitong Securities Co. retreated 1.2%.
China Railway Group, the nation's biggest construction company by total assets, climbed 2.2% after saying it won 33 projects for a combined 49.3 billion yuan ($7.9 billion).
Hang Seng jumps 0.44% as financials rally
Hong Kong share market ended higher, helped by tracking gain on the Mainland A-share market, with shares of financial companies being major gainers. The Hang Seng Index ended higher by 107.13 points or 0.44% to 24422.15, off an intra-day high of 24514.90 and day low of 24226.29. Turnover increased to HK$73.28 billion from HK$64.66 billion on Wednesday.
Financial shares advanced the most in Hong Kong market, led by Mainland Chinese banks on reports that the People's Bank of China had pumped another 160 billion yuan ($26 billion) into the banking system, leading to a net weekly injection of more than 200 billion yuan, the highest in over a year. China Construction Bank Corp added 1.8% to HK$6.34, Bank of Communications Co rose 2.2% to HK$6.50 and Agricultural Bank of China rose 1.1% to HK$3.82, and Bank of China added 1.6% to HK$4.34. Among Hong Kong's local lenders, Bank of East Asia grew 0.5% to HK$32.35. London-based banking majors HSBC Holdings PLC gained 0.8% to HK$70.80 and Standard Chartered PLC edged up 0.1% to HK$108.20, after heavy losses the previous day.
Shares of telecom players advanced on speculation of a merger activity in the industry. China Unicom (00762) put on 4.2% to HK$12.96 after rising more than 7% at one point. China Telecom (00728) gained 2.9% to HK$4.97 after hitting an intra-day high of HK$5.2, which was not seen since March 2008.
Shares of casino players declined after Macau government official yesterday said the gaming industry will see its February gross gaming revenue grow lower than year earlier. SJM Holdings (00880) fell 3.3% to HK$11.22. Sand China (01928) softened 1.6% to HK$37.45. Galaxy Ent (00027) dipped 2.3% to HK41.8.
Sensex, Nifty attains one-week closing high
Indian stock market witnessed a sharp pull-back rally in the last hour of trade in line with other European markets following reports that Russia has agreed for a cease-fire with Ukraine. All the sectoral indices, barring FMCG sector, closed in the positive terrain with capital goods, power and IT sectors leading the rally. The S&P BSE Sensex advanced 271.13 points or 0.95% to settle at 28,805.10, its highest closing level since 5 February 2015. The CNX Nifty rose 84.15 points or 0.98% to settle at 8,711.55, its highest closing level since 5 February 2015.
Bank stocks were mixed. Bank of India tumbled after poor Q3 numbers. Realty stocks advanced. Bharat Heavy Electricals (Bhel) edged higher. MRF advanced after strong Q1 earnings. Reliance Power rose after the company said it has signed a memorandum of understanding with the Government of Rajasthan to develop 6,000 megawatts (MW) of solar power projects in Rajasthan over the period of next 10 years.
Foreign portfolio investors sold shares worth a net Rs 351.86 crore into the secondary equity market yesterday, 11 February 2015, as per data from Central Depository Services. Domestic institutional investors (DIIs) bought shares worth a net Rs 147.49 crore yesterday, 11 February 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index added 0.36% to 9496.31. South Korea KOSPI shed 0.2% to 1941.63. New Zealand market fell 0.7% to 5749.31. Indonesia's Jakarta Composite index added 0.13% to 5343.41. Singapore's Straits Times index was down 0.74% at 34419.17. Malaysia's KLCI was down 0.55% to 1789.07.
