Headline equities of the Asia Pacific market closed mixed on Wednesday,
18 March 2015, as investor risk sentiment was cautious ahead of the US
Federal Reserve monetary policy statement later in the global day.
The Federal Reserve kicked off its two-day policy meeting on Tuesday. Investors are awaiting a Federal Reserve policy statement expected later Wednesday after the central bank wraps up a two-day meeting to discuss rates. Investors are looking for clues from the central bank on the timing of interest-rate increases, including the possibility that it removes its promise to be “patient” before raising interest rates.
Among Asian bourses
Nikkei ends 0.55% up
Japanese share market closed higher for the fifth time in the last six sessions, on the back of gain in the shares of electric appliances & precision instruments, IT & services, transportation & logistics, foods, retail trade, financials and banks sectors. But, gains on the indices were limited on caution ahead of the outcome of a closely watched U.S. Federal Open Market Committee meeting later in the day. The Nikkei Stock Average advanced 107.48 points, or 0.55%, to close at 19544.48. The broader Topix index grew 11.96 points, or 0.76%, to 1582.46.
Shares of game console maker Nintendo, which were untraded during the day, surged by its daily price limit of 3000 yen, or 21% above yesterday's close, to 17080 yen at the closing auction in Tokyo, after the company said it will team up with DeNA Co. to develop new games for mobile devices made by others. DeNA also surged 21% to 1,707 yen. Bank of Kyoto, which has a 4.4% stake in Nintendo, jumped 15% to 1,421 yen.
Shares of Sony Corp surged 5.4% to 3410 yen after the company third quarter results showed its sales, operating profits, and net profits all coming in ahead of expectations. The disclosure deadline had been extended to end-March due to the impact of an earlier high-profile cyber-attack on Sony Pictures Entertainment. Sony management left its full-year guidance intact.
Toyota Motor Corp jumped 1.5% to 8463 yen after the company hiked monthly pay for its unionized workers by an average of 3.2% from April--its biggest wage hike since 2002. Toyota workers will also get a one-time bonus worth 6.8 months of their monthly salaries, around Y2.46 million.
The finance ministry said on Wednesday that the trade deficit fell 47% from a year earlier to 424.6 billion yen ($3.5 billion) last month, compared with a gap of 1.18 trillion yen in January. The value of overseas shipments rose 2.4% from a year earlier, while imports declined 3.6%.
Australia market ends flat
The Australian share market finished the session virtually flat on Wednesday, 18 March 2015, as sentiment was cautious ahead of the US Federal Reserve monetary policy statement later in the global day. The benchmark S&P/ASX 200 Index advanced edge 0.20 point, or 0.00%, to 5842.30 while the broader All Ordinaries Index shed 3 points, or 0.05%, to 5808. Market turnover was relatively healthy, with 1.99 billion shares changing hands worth of A$4.98 billion. Rising stocks underperformed by declining ones, with total of 590 stocks up, while remaining 721 down.
Mining stocks were mostly higher, with BHP Billiton up 1.4% to A$30.20 after news that spin-off company South32. Rio Tinto was up 0.7% to A$58.22. Iron ore producer. Fortescue Metals Group fell 5.3% to A$1.865 after scrapping a planned A$3.3 billion loan, looking instead to raise that debt by selling bonds.
Sirtex bounced strongly 19.5% to A$20.95 after a Tuesday's 55% slump triggered by the failure of a clinical drug trial.
Orica fell 5.3% to A$18.20 after the announcement that chief executive Ian Smith will step down from the explosives giant.
Boral added 1.6% to A$6.12 after launching a buyback program to repurchase up to A$236 million of its own shares to reflects Boral's commitment with effective capital management and delivering improved returns to shareholders. The Australia's biggest construction materials and building products group announced a plan on Wednesday to buy back up to 5% of its issued capital, or 39 million shares, on market during the next 12 months.
China market extends rally on stimulus hopes
Mainland China share market advanced to highest in almost seven years, powered by cyclical sectors such as steel, highways and property, amid growing hopes of more stimulus measures from Beijing,. The Shanghai Composite Index closed up 74.45 points, or 2.13%, to 3577.30, the highest level since May 2008. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, rose 88.94 points, or 2.37%, to 3846.06.
All ten SSE industry groups advanced, with industrial issue leading the rally, up 2.9%, followed by materials (up 2.6%), financial (up 2.5%), consumer discretionary (up 2.5%), energy (up 1.7%), information technology (up 1.7%), consumer staples (up 1.6%), healthcare (up 1.6%), utilities (1.5%), and telecommunication services (up 0.8%).
Shares of financial companies advanced the most in Beijing, with China Everbright Bank leading the way, up 9.5% on reports the company is considering spinning off its wealth-management business, Brokerage houses were also up on report that the government may allow brokerages to offer investment consulting and manage accounts of their clients.
Haitong Securities Co. increased 2.8% and Huatai Securities Co. rallied 5.2%. Real estate stocks jumped, on speculation the government will take measures to bolster the property market, including lower taxes and looser requirements for mortgage lending after data showing home prices fell in more cities last month. Poly Real Estate Group Co. rose 5.1%, while China Vanke Co. climbed 4%.
Hong Kong market rises 0.91% at close
Hong Kong stocks closed the session with gain, as risk sentiment powered by tracking gain on the Mainland A-share market which hit 7-year high on hopes of further measures to stimulate the Chinese economy. But, gains on the indices were limited on caution ahead of the outcome of a closely watched U.S. Federal Open Market Committee meeting later in the day. The Hang Seng Index was up 218.59 points, or 0.91%, to close at 24120.08, off an intra-day high of 24210.75 and day low of 23938.63. Turnover increased to HK$96.25 billion from HK$80.09 billion on Tuesday.
Among HSI blue chips- CKH Holdings (00001) gained 0.9% to HK$151.5 in its debut on the local bourse. Hutchison Whampoa (00013) put on 0.6% to HK$103.9. Want Want (00151) ended down 2% to HK$7.82 after bearish comments from investment banks. HSBC (00005) put on 1.3% to HK$65.9. HKEx (00388) edged up 0.3% to HK$175.9. China Resources (00291) soared 4.6% to HK$14.96. Tencent (00700) added 1.6% to HK$135.9 ahead of earnings report after market close. China Mobile (00941), which reports its earnings tomorrow, also gained 1.3% to HK$103.5.
Cathay Pacific Airways closed 0.6% down at HK$16.94 after the company posted 20.2% rise in net profit to HK$3,150 million on the back of 5.4% gain in turnover to HK$105,991 million for the year ended 31 December 2014.The group's passenger revenue for 2014 grew 5.4% to HK$75,734 million. Capacity increased by 5.9% as a result of the introduction of new routes (to Doha, Manchester and Newark) and increased frequencies on some existing routes. The load factor increased by 1.1%age points to 83.3% and the number of passengers carried increased by 5.5% to 31.6 million. Yield decreased by 1.8% to HK67.3 cents despite an improvement in the second half compared to the first half of the year.
Sensex slides before Fed statement
IT stocks led decline as key benchmark indices edged lower amid concerns the US Federal Reserve will indicate at the conclusion of a two-day monetary policy meeting later in the global day today that it will begin raising interest rates in the United States this summer. Higher US borrowing costs could damp inflows into emerging-market equities. As per provisional closing, the S&P BSE Sensex was down 144.34 points or 0.5% to 28,592.04. The CNX Nifty was down 37.40 points or 0.43% at 8,685.90.
ICICI Bank fell 0.16% to Rs 333.75. The bank announced during trading hours that it has completed the sale of its non-material wholly-owned banking subsidiary in Russia to Sovcombank -- a Russian bank. The sale was concluded yesterday, 17 March 2015.
Meanwhile, as per reports, ICICI Bank's advance tax payment rose 32.14% to Rs 1295 crore in Q4 March 2015 over Q4 March 2014.
IT stocks edged lower. Tech Mahindra (down 2.05%), HCL Technologies (down 1.62%), CMC (down 1.28%), Infosys (down 0.98%) and Oracle Financial Services Software (down 0.84%), edged lower. MphasiS (up 0.06%), MindTree (up 0.82%) and Hexaware Technologies (up 2.01%), edged higher. TCS declined 0.78%. As per reports the company's advance tax payment rose 0.88% to Rs 1140 crore in Q4 March 2015 over Q4 March 2014.
Wipro fell 1.87%. Wipro after market hours yesterday, 17 March 2015, said that the company and Drivestream Inc. have signed an agreement to enter into a strategic partnership to build an integrated Cloud Solutions stack for customers. As part of this arrangement, Wipro is investing $5 million in Drivestream Inc., a leading Oracle cloud applications systems integrator. This is part of Wipro's strategic drive to actively participate in the external innovation eco-system, for which the company has set up Wipro Ventures, a $100 million fund focused on investing in disruptive start-ups, Wipro said.
Elsewhere in the Asia Pacific region: South Korea KOSPI fell 0.07% to 2028.45. Taiwan's Taiex grew 1.2% to 9653.43. New Zealand NZX50 was down 1% to 5846.66. Indonesia's Jakarta Composite index added 0.5% to 5413.15. Singapore's Straits Times index fell 0.14% at 3365.37. Malaysia's KLCI added 0.54% to 1797.57.
The Federal Reserve kicked off its two-day policy meeting on Tuesday. Investors are awaiting a Federal Reserve policy statement expected later Wednesday after the central bank wraps up a two-day meeting to discuss rates. Investors are looking for clues from the central bank on the timing of interest-rate increases, including the possibility that it removes its promise to be “patient” before raising interest rates.
Among Asian bourses
Nikkei ends 0.55% up
Japanese share market closed higher for the fifth time in the last six sessions, on the back of gain in the shares of electric appliances & precision instruments, IT & services, transportation & logistics, foods, retail trade, financials and banks sectors. But, gains on the indices were limited on caution ahead of the outcome of a closely watched U.S. Federal Open Market Committee meeting later in the day. The Nikkei Stock Average advanced 107.48 points, or 0.55%, to close at 19544.48. The broader Topix index grew 11.96 points, or 0.76%, to 1582.46.
Shares of game console maker Nintendo, which were untraded during the day, surged by its daily price limit of 3000 yen, or 21% above yesterday's close, to 17080 yen at the closing auction in Tokyo, after the company said it will team up with DeNA Co. to develop new games for mobile devices made by others. DeNA also surged 21% to 1,707 yen. Bank of Kyoto, which has a 4.4% stake in Nintendo, jumped 15% to 1,421 yen.
Shares of Sony Corp surged 5.4% to 3410 yen after the company third quarter results showed its sales, operating profits, and net profits all coming in ahead of expectations. The disclosure deadline had been extended to end-March due to the impact of an earlier high-profile cyber-attack on Sony Pictures Entertainment. Sony management left its full-year guidance intact.
Toyota Motor Corp jumped 1.5% to 8463 yen after the company hiked monthly pay for its unionized workers by an average of 3.2% from April--its biggest wage hike since 2002. Toyota workers will also get a one-time bonus worth 6.8 months of their monthly salaries, around Y2.46 million.
The finance ministry said on Wednesday that the trade deficit fell 47% from a year earlier to 424.6 billion yen ($3.5 billion) last month, compared with a gap of 1.18 trillion yen in January. The value of overseas shipments rose 2.4% from a year earlier, while imports declined 3.6%.
Australia market ends flat
The Australian share market finished the session virtually flat on Wednesday, 18 March 2015, as sentiment was cautious ahead of the US Federal Reserve monetary policy statement later in the global day. The benchmark S&P/ASX 200 Index advanced edge 0.20 point, or 0.00%, to 5842.30 while the broader All Ordinaries Index shed 3 points, or 0.05%, to 5808. Market turnover was relatively healthy, with 1.99 billion shares changing hands worth of A$4.98 billion. Rising stocks underperformed by declining ones, with total of 590 stocks up, while remaining 721 down.
Mining stocks were mostly higher, with BHP Billiton up 1.4% to A$30.20 after news that spin-off company South32. Rio Tinto was up 0.7% to A$58.22. Iron ore producer. Fortescue Metals Group fell 5.3% to A$1.865 after scrapping a planned A$3.3 billion loan, looking instead to raise that debt by selling bonds.
Sirtex bounced strongly 19.5% to A$20.95 after a Tuesday's 55% slump triggered by the failure of a clinical drug trial.
Orica fell 5.3% to A$18.20 after the announcement that chief executive Ian Smith will step down from the explosives giant.
Boral added 1.6% to A$6.12 after launching a buyback program to repurchase up to A$236 million of its own shares to reflects Boral's commitment with effective capital management and delivering improved returns to shareholders. The Australia's biggest construction materials and building products group announced a plan on Wednesday to buy back up to 5% of its issued capital, or 39 million shares, on market during the next 12 months.
China market extends rally on stimulus hopes
Mainland China share market advanced to highest in almost seven years, powered by cyclical sectors such as steel, highways and property, amid growing hopes of more stimulus measures from Beijing,. The Shanghai Composite Index closed up 74.45 points, or 2.13%, to 3577.30, the highest level since May 2008. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, rose 88.94 points, or 2.37%, to 3846.06.
All ten SSE industry groups advanced, with industrial issue leading the rally, up 2.9%, followed by materials (up 2.6%), financial (up 2.5%), consumer discretionary (up 2.5%), energy (up 1.7%), information technology (up 1.7%), consumer staples (up 1.6%), healthcare (up 1.6%), utilities (1.5%), and telecommunication services (up 0.8%).
Shares of financial companies advanced the most in Beijing, with China Everbright Bank leading the way, up 9.5% on reports the company is considering spinning off its wealth-management business, Brokerage houses were also up on report that the government may allow brokerages to offer investment consulting and manage accounts of their clients.
Haitong Securities Co. increased 2.8% and Huatai Securities Co. rallied 5.2%. Real estate stocks jumped, on speculation the government will take measures to bolster the property market, including lower taxes and looser requirements for mortgage lending after data showing home prices fell in more cities last month. Poly Real Estate Group Co. rose 5.1%, while China Vanke Co. climbed 4%.
Hong Kong market rises 0.91% at close
Hong Kong stocks closed the session with gain, as risk sentiment powered by tracking gain on the Mainland A-share market which hit 7-year high on hopes of further measures to stimulate the Chinese economy. But, gains on the indices were limited on caution ahead of the outcome of a closely watched U.S. Federal Open Market Committee meeting later in the day. The Hang Seng Index was up 218.59 points, or 0.91%, to close at 24120.08, off an intra-day high of 24210.75 and day low of 23938.63. Turnover increased to HK$96.25 billion from HK$80.09 billion on Tuesday.
Among HSI blue chips- CKH Holdings (00001) gained 0.9% to HK$151.5 in its debut on the local bourse. Hutchison Whampoa (00013) put on 0.6% to HK$103.9. Want Want (00151) ended down 2% to HK$7.82 after bearish comments from investment banks. HSBC (00005) put on 1.3% to HK$65.9. HKEx (00388) edged up 0.3% to HK$175.9. China Resources (00291) soared 4.6% to HK$14.96. Tencent (00700) added 1.6% to HK$135.9 ahead of earnings report after market close. China Mobile (00941), which reports its earnings tomorrow, also gained 1.3% to HK$103.5.
Cathay Pacific Airways closed 0.6% down at HK$16.94 after the company posted 20.2% rise in net profit to HK$3,150 million on the back of 5.4% gain in turnover to HK$105,991 million for the year ended 31 December 2014.The group's passenger revenue for 2014 grew 5.4% to HK$75,734 million. Capacity increased by 5.9% as a result of the introduction of new routes (to Doha, Manchester and Newark) and increased frequencies on some existing routes. The load factor increased by 1.1%age points to 83.3% and the number of passengers carried increased by 5.5% to 31.6 million. Yield decreased by 1.8% to HK67.3 cents despite an improvement in the second half compared to the first half of the year.
Sensex slides before Fed statement
IT stocks led decline as key benchmark indices edged lower amid concerns the US Federal Reserve will indicate at the conclusion of a two-day monetary policy meeting later in the global day today that it will begin raising interest rates in the United States this summer. Higher US borrowing costs could damp inflows into emerging-market equities. As per provisional closing, the S&P BSE Sensex was down 144.34 points or 0.5% to 28,592.04. The CNX Nifty was down 37.40 points or 0.43% at 8,685.90.
ICICI Bank fell 0.16% to Rs 333.75. The bank announced during trading hours that it has completed the sale of its non-material wholly-owned banking subsidiary in Russia to Sovcombank -- a Russian bank. The sale was concluded yesterday, 17 March 2015.
Meanwhile, as per reports, ICICI Bank's advance tax payment rose 32.14% to Rs 1295 crore in Q4 March 2015 over Q4 March 2014.
IT stocks edged lower. Tech Mahindra (down 2.05%), HCL Technologies (down 1.62%), CMC (down 1.28%), Infosys (down 0.98%) and Oracle Financial Services Software (down 0.84%), edged lower. MphasiS (up 0.06%), MindTree (up 0.82%) and Hexaware Technologies (up 2.01%), edged higher. TCS declined 0.78%. As per reports the company's advance tax payment rose 0.88% to Rs 1140 crore in Q4 March 2015 over Q4 March 2014.
Wipro fell 1.87%. Wipro after market hours yesterday, 17 March 2015, said that the company and Drivestream Inc. have signed an agreement to enter into a strategic partnership to build an integrated Cloud Solutions stack for customers. As part of this arrangement, Wipro is investing $5 million in Drivestream Inc., a leading Oracle cloud applications systems integrator. This is part of Wipro's strategic drive to actively participate in the external innovation eco-system, for which the company has set up Wipro Ventures, a $100 million fund focused on investing in disruptive start-ups, Wipro said.
Elsewhere in the Asia Pacific region: South Korea KOSPI fell 0.07% to 2028.45. Taiwan's Taiex grew 1.2% to 9653.43. New Zealand NZX50 was down 1% to 5846.66. Indonesia's Jakarta Composite index added 0.5% to 5413.15. Singapore's Straits Times index fell 0.14% at 3365.37. Malaysia's KLCI added 0.54% to 1797.57.
