Headline indices of the Asia Pacific share market mostly advanced on
Monday, 23 March 2015, on tracking positive lead from Wall Street last
week, with Tokyo and Shanghai outperforming the region to scale fresh
multi-year highs.
U.S. stocks rallied on Friday, following a pullback in the U.S. dollar after last week's surprisingly dovish Fed statement. The U.S. Federal Reserve last week lowered its growth and inflation forecasts, while staying cautious about the health of the labour market. The Dow Jones Industrial Average and the S&P 500 index closed up 0.9% each, while the Nasdaq gained 0.7%.
However, market gains were limited on caution ahead of key event and economic data this week. For the week ahead, there is plenty of macro data to watch – The main focus will be on Greece still, with German Chancellor Angela Merkel and Greek Prime Minister Alexis Tsipras meeting in Berlin today to discuss conditions around the extension of Greece's bailout plan. On Tuesday, the flash PMIs for the main Eurozone economies as well as for China will be published. With uncertainties around growth in these regions, these numbers should be closely watched.
Among Asian bourses
Nikkei index hit a 15-year high
Japanese share market advanced to 15-year-high, as risk sentiments boosted up by tracking a positive lead from the U.S. market on Friday and as some premarket foreign buying. But, gain on the upside was limited due to US dollar softening to 119.81, almost a full yen lower than the 120.90 yen level seen when Tokyo stocks last traded. The Nikkei Stock Average advanced 194.14 points, or 0.99%, to close at 19754.36, after briefly climbing to 19778.60, the highest intraday level since April 2000. The broader Topix index grew 11.74 points, or 0.74%, to 1592.25.
Shares of blue-chip exporters were mostly higher, with Toshiba Corp rising 1.4% to 513.60 yen and Hitachi added 0.6% to 835.60 yen, and Rohm Co rose 2% to 9060 yen. Sharp Corp jumped 4.6% to 249 yen after media report that Taiwan's Hon Hai Precision Industry Co was looking to buy a stake in the Japanese electronics company after a failed deal in 2012.
Retailers were mixed, with J. Front Retailing Co up 0.6% to 1873 yen and Fast Retailing Co up 0.7% to 47145 yen. Aeon Co was up 5% to 1340 yen.
Shares of Japan Airlines Co gained 1.7% to 3955 yen on reports that the carrier may soon start direct service between Tokyo and Dallas.
Australia stocks down on profit booking
The Australian share market finished the session with losses in light trade, amid profit booking after strong rally last week, with shares of financial, retailer, consumer goods, realty, and technology companies being major losers. The benchmark S&P/ASX 200 Index declined 19.40 points, or 0.32%, to 5956.10, while the broader All Ordinaries Index fell 15.30 points, or 0.26%, to 5921. Market turnover was relatively light, with 1.4 billion shares changing hands worth of A$2.9 billion. Rising stocks outperformed by declining ones, with total of 684 stocks up, while remaining 599 down.
Financial stocks closed mixed, with Commonwealth Bank down 0.9% to A$95.48, National Australia Bank 0.5% to A$39.18, and Westpac Banking Corp 0.4% to A$39.56. ANZ Banking Group was up 0.03% to A$36.80.
Explosives maker Orica added 2.6% to A$19.10 after the company named a former BHP executive as its interim CEO. Rival explosives company Incitec Pivot improved by 1% to A$4.05. Meanwhile, shares of Ten Network lost 4.6% to A$0.23 on reports that it's still in talks to sell itself but that a deal might not materialize, according to CNBC.
China market rises for ninth day in row
Mainland China share market advanced for ninth session in a row, the longest winning streak since April 2007, as risk sentiments buoyant after the China Securities Regulatory Commission signalled recent rally is inevitable and rational. The Shanghai Composite Index closed up 70.41 points, or 1.95%, to 3687.73. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, added 79.42 points, or 2.04%, to 3972.06.
Monday's improvement for the Chinese markets came after statement from a spokesman for the China Securities Regulatory Commission on Friday that the recent gains for Shanghai-listed shares had its own "inevitability and rationality," and was due to China's improving economic conditions. The spokesman also stated that officials had spoken with MSCI Inc. and FTSE International about including Shanghai A-shares on their respective indexes. The CSRC's comments display official support for the market rally.
Shares of iiNet declined 1.1% to A$8.85 after its founder Michael Malone slammed his old company's board of directors and told shareholders to reject TPG Telecom's $1.4 billion takeover bid. TPG shares lost 0.3% to A$8.83.
Shares of technology and telecommunication sectors advanced the most among 10 industry groups in Beijing, after the government encourages innovation and technology upgrades to develop fledging industries. Dr. Peng Telecom & Media Group Co surged by the 10% daily limit to 34.91 yuan. Beijing Shiji Information Technology Co gained 7.6% to 122.30 yuan Fiberhome Telecommunication Technologies Co. jumped 10% to 24.57 yuan.
Shares of property developers posted substantial gains, helped by reports that China was preparing to unveil policies to boost the housing market, including allowing first-time home buyers to pay only 20% down payment if they get their loans from public housing funds. Poly Real Estate Group Co gained 2% to 10.77 yuan and China Vanke added 1.7% to 13.36 yuan. Gemdale Corp added 2% to 10.42 yuan after the developer reported net income of 4 billion yuan in 2014.
Infrastructure plays also rallied, with China Railway Group up by the 10% daily maximum limit on news that Beijing will soon release details of the "Belt and Road" initiative seeking to link China to Europe.
China plans to build three to five giant steel mills and boost the crude steel output of its top 10 steelmakers to more than 60% of the country's total by 2025, according to the Ministry of Industry and Information Technology (MIIT) draft of a revised restructuring plan. China also aims to boost the production utilization rate for its massive steel sector to more than 80% by 2017, The output of the top-10 steelmakers was 36.6% of the total in 2014, down 2.8 percentage points from 2013.
Hong Kong market closes 0.4% up
Hong Kong stocks ended the session with gains, drawing strength from a strong finish on Wall Street last week and rebound in Mainland A-share market today, with real estate developers being the biggest contributors to rally. The Hang Seng Index advanced 94.76 points, or 0.39%, to close at 24470, off an intra-day high of 24436.42 and intra-day low of 24436.42. Turnover decreased to HK$87.2 billion from HK$116.12 billion on Friday.
Shares of Hong Kong listed Mainland Chinese property developers climbed up on speculation of unveiling policies from Chinese government to boost the housing market, including allowing first-time home buyers to pay only 20% down payment if they get their loans from public housing funds. China Resources Land advanced 3.2% to HK$21 and China Overseas Land & Investment 3.2% to HK$22.90. Shimao Property Holdings grew 2.3% to HK$16.22.
Brokerage houses were also rose, ahead of earnings release this week. Citic Securities Co gained 1.7% to HK$27.70 and Haitong Securities Co jumped 1.8% to HK$18.26. China Galaxy Securities Co rose 2.5% to HK$8.93 and China Everbright added 1.7% to HK$19.64.
Ping An Insurance shares advanced 1.5% to HK$93.45 after Macquarie Research raised its target price for the company to HK$100 from HK$91, and maintained its "outperform" rating. Ping An said on Friday that its net profit rose 39.5% to Rmb39279 million for the year ended 31 December 2014. Total income amounted to Rmb530020 million, an increase of 25.8% from a year earlier. Net earned premiums amounted to Rmb288779 million, up 20.2% year-on-year. Embedded value grew 39.2% to Rmb458812 million.
Sensex slips in red
Indian stock market slipped in the negative zone in afternoon after erasing early gain as investors preferred to take book profits at higher levels ahead of the expiry of monthly derivatives contracts on Thursday. The Sensex was trading 0.2% down at 28209, while the Nifty declined 15 points to 8555.
The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month March 2015 series to April 2015 series. The near month March 2015 derivatives contracts expire on Thursday, 26 March 2015.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 354.59 crore on Friday, 20 March 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 219.20 crore on Friday, 20 March 2015, as per provisional data.
GMR Infrastructure shares gain 3.7% as traders accumulate long positions in April derivative series a day ahead of opening of rights issue. Traders expect good subscription in rights issue to rise up to Rs.1402 crore.
Elsewhere in the Asia Pacific region: South Korea KOSPI edged down 0.03% to 2036.59. Taiwan's Taiex grew 0.09% to 9758.09. New Zealand NZX50 was up 0.07% to 5875.23. Indonesia's Jakarta Composite index rose marginal 0.01% to 5443.49. Singapore's Straits Times index grew 0.03% at 3413.39. Malaysia's KLCI slipped 0.73% to 1795.85.
U.S. stocks rallied on Friday, following a pullback in the U.S. dollar after last week's surprisingly dovish Fed statement. The U.S. Federal Reserve last week lowered its growth and inflation forecasts, while staying cautious about the health of the labour market. The Dow Jones Industrial Average and the S&P 500 index closed up 0.9% each, while the Nasdaq gained 0.7%.
However, market gains were limited on caution ahead of key event and economic data this week. For the week ahead, there is plenty of macro data to watch – The main focus will be on Greece still, with German Chancellor Angela Merkel and Greek Prime Minister Alexis Tsipras meeting in Berlin today to discuss conditions around the extension of Greece's bailout plan. On Tuesday, the flash PMIs for the main Eurozone economies as well as for China will be published. With uncertainties around growth in these regions, these numbers should be closely watched.
Among Asian bourses
Nikkei index hit a 15-year high
Japanese share market advanced to 15-year-high, as risk sentiments boosted up by tracking a positive lead from the U.S. market on Friday and as some premarket foreign buying. But, gain on the upside was limited due to US dollar softening to 119.81, almost a full yen lower than the 120.90 yen level seen when Tokyo stocks last traded. The Nikkei Stock Average advanced 194.14 points, or 0.99%, to close at 19754.36, after briefly climbing to 19778.60, the highest intraday level since April 2000. The broader Topix index grew 11.74 points, or 0.74%, to 1592.25.
Shares of blue-chip exporters were mostly higher, with Toshiba Corp rising 1.4% to 513.60 yen and Hitachi added 0.6% to 835.60 yen, and Rohm Co rose 2% to 9060 yen. Sharp Corp jumped 4.6% to 249 yen after media report that Taiwan's Hon Hai Precision Industry Co was looking to buy a stake in the Japanese electronics company after a failed deal in 2012.
Retailers were mixed, with J. Front Retailing Co up 0.6% to 1873 yen and Fast Retailing Co up 0.7% to 47145 yen. Aeon Co was up 5% to 1340 yen.
Shares of Japan Airlines Co gained 1.7% to 3955 yen on reports that the carrier may soon start direct service between Tokyo and Dallas.
Australia stocks down on profit booking
The Australian share market finished the session with losses in light trade, amid profit booking after strong rally last week, with shares of financial, retailer, consumer goods, realty, and technology companies being major losers. The benchmark S&P/ASX 200 Index declined 19.40 points, or 0.32%, to 5956.10, while the broader All Ordinaries Index fell 15.30 points, or 0.26%, to 5921. Market turnover was relatively light, with 1.4 billion shares changing hands worth of A$2.9 billion. Rising stocks outperformed by declining ones, with total of 684 stocks up, while remaining 599 down.
Financial stocks closed mixed, with Commonwealth Bank down 0.9% to A$95.48, National Australia Bank 0.5% to A$39.18, and Westpac Banking Corp 0.4% to A$39.56. ANZ Banking Group was up 0.03% to A$36.80.
Explosives maker Orica added 2.6% to A$19.10 after the company named a former BHP executive as its interim CEO. Rival explosives company Incitec Pivot improved by 1% to A$4.05. Meanwhile, shares of Ten Network lost 4.6% to A$0.23 on reports that it's still in talks to sell itself but that a deal might not materialize, according to CNBC.
China market rises for ninth day in row
Mainland China share market advanced for ninth session in a row, the longest winning streak since April 2007, as risk sentiments buoyant after the China Securities Regulatory Commission signalled recent rally is inevitable and rational. The Shanghai Composite Index closed up 70.41 points, or 1.95%, to 3687.73. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, added 79.42 points, or 2.04%, to 3972.06.
Monday's improvement for the Chinese markets came after statement from a spokesman for the China Securities Regulatory Commission on Friday that the recent gains for Shanghai-listed shares had its own "inevitability and rationality," and was due to China's improving economic conditions. The spokesman also stated that officials had spoken with MSCI Inc. and FTSE International about including Shanghai A-shares on their respective indexes. The CSRC's comments display official support for the market rally.
Shares of iiNet declined 1.1% to A$8.85 after its founder Michael Malone slammed his old company's board of directors and told shareholders to reject TPG Telecom's $1.4 billion takeover bid. TPG shares lost 0.3% to A$8.83.
Shares of technology and telecommunication sectors advanced the most among 10 industry groups in Beijing, after the government encourages innovation and technology upgrades to develop fledging industries. Dr. Peng Telecom & Media Group Co surged by the 10% daily limit to 34.91 yuan. Beijing Shiji Information Technology Co gained 7.6% to 122.30 yuan Fiberhome Telecommunication Technologies Co. jumped 10% to 24.57 yuan.
Shares of property developers posted substantial gains, helped by reports that China was preparing to unveil policies to boost the housing market, including allowing first-time home buyers to pay only 20% down payment if they get their loans from public housing funds. Poly Real Estate Group Co gained 2% to 10.77 yuan and China Vanke added 1.7% to 13.36 yuan. Gemdale Corp added 2% to 10.42 yuan after the developer reported net income of 4 billion yuan in 2014.
Infrastructure plays also rallied, with China Railway Group up by the 10% daily maximum limit on news that Beijing will soon release details of the "Belt and Road" initiative seeking to link China to Europe.
China plans to build three to five giant steel mills and boost the crude steel output of its top 10 steelmakers to more than 60% of the country's total by 2025, according to the Ministry of Industry and Information Technology (MIIT) draft of a revised restructuring plan. China also aims to boost the production utilization rate for its massive steel sector to more than 80% by 2017, The output of the top-10 steelmakers was 36.6% of the total in 2014, down 2.8 percentage points from 2013.
Hong Kong market closes 0.4% up
Hong Kong stocks ended the session with gains, drawing strength from a strong finish on Wall Street last week and rebound in Mainland A-share market today, with real estate developers being the biggest contributors to rally. The Hang Seng Index advanced 94.76 points, or 0.39%, to close at 24470, off an intra-day high of 24436.42 and intra-day low of 24436.42. Turnover decreased to HK$87.2 billion from HK$116.12 billion on Friday.
Shares of Hong Kong listed Mainland Chinese property developers climbed up on speculation of unveiling policies from Chinese government to boost the housing market, including allowing first-time home buyers to pay only 20% down payment if they get their loans from public housing funds. China Resources Land advanced 3.2% to HK$21 and China Overseas Land & Investment 3.2% to HK$22.90. Shimao Property Holdings grew 2.3% to HK$16.22.
Brokerage houses were also rose, ahead of earnings release this week. Citic Securities Co gained 1.7% to HK$27.70 and Haitong Securities Co jumped 1.8% to HK$18.26. China Galaxy Securities Co rose 2.5% to HK$8.93 and China Everbright added 1.7% to HK$19.64.
Ping An Insurance shares advanced 1.5% to HK$93.45 after Macquarie Research raised its target price for the company to HK$100 from HK$91, and maintained its "outperform" rating. Ping An said on Friday that its net profit rose 39.5% to Rmb39279 million for the year ended 31 December 2014. Total income amounted to Rmb530020 million, an increase of 25.8% from a year earlier. Net earned premiums amounted to Rmb288779 million, up 20.2% year-on-year. Embedded value grew 39.2% to Rmb458812 million.
Sensex slips in red
Indian stock market slipped in the negative zone in afternoon after erasing early gain as investors preferred to take book profits at higher levels ahead of the expiry of monthly derivatives contracts on Thursday. The Sensex was trading 0.2% down at 28209, while the Nifty declined 15 points to 8555.
The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month March 2015 series to April 2015 series. The near month March 2015 derivatives contracts expire on Thursday, 26 March 2015.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 354.59 crore on Friday, 20 March 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 219.20 crore on Friday, 20 March 2015, as per provisional data.
GMR Infrastructure shares gain 3.7% as traders accumulate long positions in April derivative series a day ahead of opening of rights issue. Traders expect good subscription in rights issue to rise up to Rs.1402 crore.
Elsewhere in the Asia Pacific region: South Korea KOSPI edged down 0.03% to 2036.59. Taiwan's Taiex grew 0.09% to 9758.09. New Zealand NZX50 was up 0.07% to 5875.23. Indonesia's Jakarta Composite index rose marginal 0.01% to 5443.49. Singapore's Straits Times index grew 0.03% at 3413.39. Malaysia's KLCI slipped 0.73% to 1795.85.
