Asia Pacific share market advanced on Tuesday, 24 February 2015, amid
collective sigh of relief after Greece secured a four month extension to
its bailout agreement. But, upside move was limited on caution before
the Federal Reserve Chairwoman Janet Yellen's testimony later in the
day.
Greece has submitted a list of reform proposals what it called a "very comprehensive" to its bailout creditors that Athens hopes will secure a four-month extension to its financial lifeline. The measures include combating tax evasion and tackling the smuggling of fuel and tobacco.
A conditional deal that would let Athens pay its bills and avoid a disastrous default is contingent on reforms deemed satisfactory by the so-called "troika" -- the European Commission, the European Central Bank and the International Monetary Fund. Time is of the essence and the stakes are high, with Greece's current 240-billion-euro bailout programme due to expire on Saturday and several European parliaments still needing to approve any extension. If Athens fails to win more time and the bailout expires, Prime Minister Alexis Tsipras's month-old government risks running out of money, triggering a likely run on banks and even possible ejection from the 19-country eurozone.
Market traders continued looking to Federal Reserve Chair Janet Yellen's statement later in the day for signs of when the U.S. central bank would raise interest rates. Yellen will deliver the central bank's semi-annual Monetary Policy Report to the Senate Banking Committee later in the day, in the first of two days of testimony to Congress on the state of the economy. And there is much uncertainty over whether she will echo the dovish tone of the minutes from the Fed's last meeting, or reaffirm June as a window for a first rate hike.
Among Asian bourses
Nikkei hits fresh 15-year highs
Japanese share market advanced to fresh 15-year high, as appetite for riskier assets grew from greenback strength against the yen. But gains on the upside were limited on caution ahead of the Federal Reserve Chairwoman Janet Yellen's testimony later in the day. The Nikkei Stock Average ended up 0.7% at 18,603.48, its highest closing mark since April 20, 2000. The index has risen for a fifth straight session. Meanwhile, the broader Topix index added 0.36% to 1508.28.
Fast Retailing Co added 2.1% to 45300 yen after Macquarie Securities upgraded the firm to neutral from underweight. Asahi Glass Co. added 4.4% to 762 yen as Mizuho Securities Co. raised its target price on the stock by 18% to 650 yen.
Casio Computer Co. jumped 4% to 2,090 yen after reports that the company will boost production of high-end watches.
Oil explorer Inpex Corp. sank 1.9% to 1,356 yen amid worries about oil price gloom. Overnight Brent crude oil lost 2% to $58.82 on the back of investor worries about oversupply and a strong US dollar.
Hitachi fell 0.8% to 828.20 yen on reports that the firm has landed a deal to buy the railway business of Italy's Finmeccanica for over Y250 billion.
Asahi Kasei Corp. slid 1.1% to 1,217 yen after announcing a $2.2 billion takeover of Polypore International Inc to expand its battery and overseas businesses.
Australia stocks advance for second straight day
The Australian share market advanced for second straight day, as investors breathed a collective sigh of relief after Greece secured a four month extension to its bailout agreement. Meanwhile, investor sentiment also received a boost from upbeat earnings results from BHP Billiton and QBE Insurance Group. The benchmark S&P/ASX 200 Index rose 0.32% to 5927 points, its highest close since May 2008, while the broader All Ordinaries Index was up 0.3% to 5890 points. Market turnover was relatively healthy, with 1.72 billion shares changing hands worth of A$5.34 billion.
BHP Billiton rallied 2.9% to close at $33.06 after it posted a profit of US$4.27 billion for the second half of 2014, down by more than 47% from corresponding previous period, with an almost 12% decrease in revenue to US$29.9 billion. However, the result exceeded a forecast US$3.6 billion profit. The slower profit growth came as iron-ore and crude-oil prices fell dramatically over the period. BHP nonetheless raised its interim dividend to 62 cents, up from 59 cents a year earlier.
QBE shares closed up 7.2% to A$12.45 after the insurer posted a net profit of US$742 million in 2014 compared with a loss of US$254 million a year earlier, when it was hurt by restructuring costs and one-off charges at its North American unit. The result also marked a turnaround from the fiscal first-half, when net profit fell 18% to US$392 million on the back of a weaker-than-expected performance in its Latin American operations. QBE's insurance profit margin widened to 7.6% in 2014 from 5.5% the year before and the company said it was targeting 8.5% to 10% this year. But its gross written premium declined 9% in 2014 to US$16.3 billion and is expected to weaken to between US$15.5 billion and US$15.9 billion in 2015. The insurer plans to pay a final dividend of 22 Australian cents a share for an annual payout of 37 cents, up 16% on the year before.
Marine services business MMA Offshore took a hit from its soft outlook due to the plunging oil price, dropping 11.7% to close at A$0.87, despite posting a 55.8% rise in net profit after tax to A$37.7million.
Hang Seng drops 0.35%
Hong Kong share market closed down, snapping 6-sessions of winning streak, dragged down by losses in the index's top-weighted component HSBC Holdings and on caution before the Federal Reserve Chairwoman Janet Yellen's testimony later in the day. Yellen was scheduled to give a testimony before the Senate Banking Committee later in the day, with some investors wary that she could strike a hawkish tone about raising rates. The benchmark index opened 60 points lower and saw its losses widen to 162 points at one stage. The Hang Seng Index ended down 86.69 points or 0.35% to 24750.07, off an intra-day high of 24808.30 and day low of 24673.93. Turnover rose to HK$57.96 billion from HK$49.4 billion on Monday.
Top-weighted Hang Seng component HSBC Holdings PLC tumbled 3.5% to HK$ after a slew of research houses downgraded their target prices for the stock post earnings report. It contributed 102-point loss to the HSI. For the full year, HSBC reported a fall in net profit to $13.7 billion from $16.2 billion the year before, hurt by higher costs and provisions for costs related to allegations of misconduct. Revenue rose slightly to $62 billion from $61.9 billion in 2013. Other lenders also closed down, with Hang Seng Bank down 0.4% to HK$142.2 and StanChart drop 3.9% to HK$111.1.
Power Assets (00006) inched down 0.6% to HK$78.25 despite it said 2014 earnings soared 4.5 times to HK$61 billion. HK Electric-SS (02638) put on 1.3% to HK$5.51.
Shares of casino operators extended losses after research houses are bearish on the gross gaming revenue outlook for Macau gaming industry in February. Macau government said it will review the "Individual Visit Scheme" with mainland government as it sees severe issue in Macau's tourist reception capability. Galaxy Ent (00027) and Sands China (01928) fell 2.7% to HK$40.9 and HK$37.9. MGM China (02282) declined 2% to HK$19.06.
Sensex settles slightly above 29,000 mark
Amid a divergent trend among various index constituents, Indian benchmark indices eked out minuscule gains. High volatility was witnessed during the second half of the trading session as key indices alternately swung between positive and negative zone. The S&P BSE Sensex rose 29.55 points or 0.10% to settle at 29,004.66, its highest closing level since 20 February 2015. The CNX Nifty rose 7.15 points or 0.08% to settle at 8,762.10.
Meanwhile, the BJP has reportedly formed committee to seek farmers' suggestion on land acquisition bill after the government introduced the land acquisition amendment bill in the Lok Sabha today, 24 February 2015, amid uproar by the Opposition. Meanwhile, the Prime Minister's Office (PMO) today, 24 February 2015, said that Prime Minister Narendra Modi has written to Chief Ministers, informing them of the central government's decision to wholeheartedly accept the recommendations of the 14th Finance Commission.
Index heavyweight and cigarette major ITC rose after the company market hours yesterday, 23 February 2015, said it has been declared as the successful bidder for Park Hyatt Hotel located at Cansaulim in Goa along with land and built up area of the hotel together with all buildings and structures and plant & machineries. Shares of FMCG major Hindustan Unilever (HUL) edged higher. Shares of oil exploration & production firms declined as global crude oil prices dropped. Shares of public sector oil marketing companies gained on slide in international crude oil prices.
Foreign institutional investors (FPIs) bought Indian shares worth a net Rs 745.61 crore from the secondary equity markets yesterday, 23 February 2015, as per data released by Central Depository Services (India). Domestic institutional investors (DIIs) sold shares worth a net Rs 163.79 crore yesterday, 23 February 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: South Korea KOSPI rose 0.39% to 1976.12. Taiwan's Taiex rose 1.05% to 9629.37. New Zealand market fell 0.55% to 5722.96. Indonesia's Jakarta Composite index grew 0.26% to 5417.31. Singapore's Straits Times index jumped 0.48% at 3437.61. Malaysia's KLCI was up 0.51% to 1818.68. China stock market closed for holiday.
Greece has submitted a list of reform proposals what it called a "very comprehensive" to its bailout creditors that Athens hopes will secure a four-month extension to its financial lifeline. The measures include combating tax evasion and tackling the smuggling of fuel and tobacco.
A conditional deal that would let Athens pay its bills and avoid a disastrous default is contingent on reforms deemed satisfactory by the so-called "troika" -- the European Commission, the European Central Bank and the International Monetary Fund. Time is of the essence and the stakes are high, with Greece's current 240-billion-euro bailout programme due to expire on Saturday and several European parliaments still needing to approve any extension. If Athens fails to win more time and the bailout expires, Prime Minister Alexis Tsipras's month-old government risks running out of money, triggering a likely run on banks and even possible ejection from the 19-country eurozone.
Market traders continued looking to Federal Reserve Chair Janet Yellen's statement later in the day for signs of when the U.S. central bank would raise interest rates. Yellen will deliver the central bank's semi-annual Monetary Policy Report to the Senate Banking Committee later in the day, in the first of two days of testimony to Congress on the state of the economy. And there is much uncertainty over whether she will echo the dovish tone of the minutes from the Fed's last meeting, or reaffirm June as a window for a first rate hike.
Among Asian bourses
Nikkei hits fresh 15-year highs
Japanese share market advanced to fresh 15-year high, as appetite for riskier assets grew from greenback strength against the yen. But gains on the upside were limited on caution ahead of the Federal Reserve Chairwoman Janet Yellen's testimony later in the day. The Nikkei Stock Average ended up 0.7% at 18,603.48, its highest closing mark since April 20, 2000. The index has risen for a fifth straight session. Meanwhile, the broader Topix index added 0.36% to 1508.28.
Fast Retailing Co added 2.1% to 45300 yen after Macquarie Securities upgraded the firm to neutral from underweight. Asahi Glass Co. added 4.4% to 762 yen as Mizuho Securities Co. raised its target price on the stock by 18% to 650 yen.
Casio Computer Co. jumped 4% to 2,090 yen after reports that the company will boost production of high-end watches.
Oil explorer Inpex Corp. sank 1.9% to 1,356 yen amid worries about oil price gloom. Overnight Brent crude oil lost 2% to $58.82 on the back of investor worries about oversupply and a strong US dollar.
Hitachi fell 0.8% to 828.20 yen on reports that the firm has landed a deal to buy the railway business of Italy's Finmeccanica for over Y250 billion.
Asahi Kasei Corp. slid 1.1% to 1,217 yen after announcing a $2.2 billion takeover of Polypore International Inc to expand its battery and overseas businesses.
Australia stocks advance for second straight day
The Australian share market advanced for second straight day, as investors breathed a collective sigh of relief after Greece secured a four month extension to its bailout agreement. Meanwhile, investor sentiment also received a boost from upbeat earnings results from BHP Billiton and QBE Insurance Group. The benchmark S&P/ASX 200 Index rose 0.32% to 5927 points, its highest close since May 2008, while the broader All Ordinaries Index was up 0.3% to 5890 points. Market turnover was relatively healthy, with 1.72 billion shares changing hands worth of A$5.34 billion.
BHP Billiton rallied 2.9% to close at $33.06 after it posted a profit of US$4.27 billion for the second half of 2014, down by more than 47% from corresponding previous period, with an almost 12% decrease in revenue to US$29.9 billion. However, the result exceeded a forecast US$3.6 billion profit. The slower profit growth came as iron-ore and crude-oil prices fell dramatically over the period. BHP nonetheless raised its interim dividend to 62 cents, up from 59 cents a year earlier.
QBE shares closed up 7.2% to A$12.45 after the insurer posted a net profit of US$742 million in 2014 compared with a loss of US$254 million a year earlier, when it was hurt by restructuring costs and one-off charges at its North American unit. The result also marked a turnaround from the fiscal first-half, when net profit fell 18% to US$392 million on the back of a weaker-than-expected performance in its Latin American operations. QBE's insurance profit margin widened to 7.6% in 2014 from 5.5% the year before and the company said it was targeting 8.5% to 10% this year. But its gross written premium declined 9% in 2014 to US$16.3 billion and is expected to weaken to between US$15.5 billion and US$15.9 billion in 2015. The insurer plans to pay a final dividend of 22 Australian cents a share for an annual payout of 37 cents, up 16% on the year before.
Marine services business MMA Offshore took a hit from its soft outlook due to the plunging oil price, dropping 11.7% to close at A$0.87, despite posting a 55.8% rise in net profit after tax to A$37.7million.
Hang Seng drops 0.35%
Hong Kong share market closed down, snapping 6-sessions of winning streak, dragged down by losses in the index's top-weighted component HSBC Holdings and on caution before the Federal Reserve Chairwoman Janet Yellen's testimony later in the day. Yellen was scheduled to give a testimony before the Senate Banking Committee later in the day, with some investors wary that she could strike a hawkish tone about raising rates. The benchmark index opened 60 points lower and saw its losses widen to 162 points at one stage. The Hang Seng Index ended down 86.69 points or 0.35% to 24750.07, off an intra-day high of 24808.30 and day low of 24673.93. Turnover rose to HK$57.96 billion from HK$49.4 billion on Monday.
Top-weighted Hang Seng component HSBC Holdings PLC tumbled 3.5% to HK$ after a slew of research houses downgraded their target prices for the stock post earnings report. It contributed 102-point loss to the HSI. For the full year, HSBC reported a fall in net profit to $13.7 billion from $16.2 billion the year before, hurt by higher costs and provisions for costs related to allegations of misconduct. Revenue rose slightly to $62 billion from $61.9 billion in 2013. Other lenders also closed down, with Hang Seng Bank down 0.4% to HK$142.2 and StanChart drop 3.9% to HK$111.1.
Power Assets (00006) inched down 0.6% to HK$78.25 despite it said 2014 earnings soared 4.5 times to HK$61 billion. HK Electric-SS (02638) put on 1.3% to HK$5.51.
Shares of casino operators extended losses after research houses are bearish on the gross gaming revenue outlook for Macau gaming industry in February. Macau government said it will review the "Individual Visit Scheme" with mainland government as it sees severe issue in Macau's tourist reception capability. Galaxy Ent (00027) and Sands China (01928) fell 2.7% to HK$40.9 and HK$37.9. MGM China (02282) declined 2% to HK$19.06.
Sensex settles slightly above 29,000 mark
Amid a divergent trend among various index constituents, Indian benchmark indices eked out minuscule gains. High volatility was witnessed during the second half of the trading session as key indices alternately swung between positive and negative zone. The S&P BSE Sensex rose 29.55 points or 0.10% to settle at 29,004.66, its highest closing level since 20 February 2015. The CNX Nifty rose 7.15 points or 0.08% to settle at 8,762.10.
Meanwhile, the BJP has reportedly formed committee to seek farmers' suggestion on land acquisition bill after the government introduced the land acquisition amendment bill in the Lok Sabha today, 24 February 2015, amid uproar by the Opposition. Meanwhile, the Prime Minister's Office (PMO) today, 24 February 2015, said that Prime Minister Narendra Modi has written to Chief Ministers, informing them of the central government's decision to wholeheartedly accept the recommendations of the 14th Finance Commission.
Index heavyweight and cigarette major ITC rose after the company market hours yesterday, 23 February 2015, said it has been declared as the successful bidder for Park Hyatt Hotel located at Cansaulim in Goa along with land and built up area of the hotel together with all buildings and structures and plant & machineries. Shares of FMCG major Hindustan Unilever (HUL) edged higher. Shares of oil exploration & production firms declined as global crude oil prices dropped. Shares of public sector oil marketing companies gained on slide in international crude oil prices.
Foreign institutional investors (FPIs) bought Indian shares worth a net Rs 745.61 crore from the secondary equity markets yesterday, 23 February 2015, as per data released by Central Depository Services (India). Domestic institutional investors (DIIs) sold shares worth a net Rs 163.79 crore yesterday, 23 February 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: South Korea KOSPI rose 0.39% to 1976.12. Taiwan's Taiex rose 1.05% to 9629.37. New Zealand market fell 0.55% to 5722.96. Indonesia's Jakarta Composite index grew 0.26% to 5417.31. Singapore's Straits Times index jumped 0.48% at 3437.61. Malaysia's KLCI was up 0.51% to 1818.68. China stock market closed for holiday.
