Asia Pacific share market mostly advanced on Thursday, 12 March 2015, as
investors chased for value buying following steep selloff earlier this
week. Meanwhile, surprise interest rate cut by South Korea's central
bank lifted sentiment. Also, buying momentum aided on relief after the
International Monetary Fund had agreed to put $10 billion into Ukraine's
struggling economy, over the next 12 months. But, uncertainty about the
timing of US Federal Reserve interest rate hike and uncertainty about
the situation in Greece helped to limit the upside for the regional
markets.
The Bank of Korea said it had cut its benchmark lending rate by 25 basis points to a record low of 1.75%, its first cut in five months.
The IMF board on Wednesday approved a loan of $17.5 billion, with the bulk of the money heading out the door fast: $5 billion probably by the end of this week and another $5 billion in coming months. That will be combined with $7.5 billion in loans from other international organisations and an expected $15.4 billion in debt relief that Ukrainian officials hope to negotiate with bondholders.
Investors are watching for clues from a U.S. Federal Reserve meeting next week about the possible timing of an interest rate hike. The Fed was expected to raise interest rates later this year but strong jobs data has raised expectations for quicker action as early as the summer. The Fed's key rate has been near zero since the global financial crisis.
Among Asian bourses
Australia shares up on good jobs news
The Australian share market advanced, on the back of official data indicating that the nation's jobless rate has eased last month. Most of the ASX sectors climbed up, with shares, with shares of financials and some of the higher-yield dividend companies being major gainers. The benchmark S&P/ASX 200 Index advanced 57 points, or 0.98%, to 5850.20 and the broader All Ordinaries Index grew by 52.70 points, or 0.91%, to 5816. Market turnover was relatively healthy, with 1.66 billion shares changing hands worth of A$4.28 billion.
Australian Bureau of Statistics data showed that the unemployment rate has fallen from its 12-year high of 6.4% in January to 6.3% in February. The seasonally adjusted labour force participation rate decreased to 64.6% in February 2015 from 64.7% in January 2015.
Shares of mining companies were down on the back of weaker commodity prices overnight. Base metals closed lower on the London Metal Exchange on Wednesday after worse-than-expected Chinese data and a stronger dollar. Three-month copper on the London Metal Exchange ended down 0.6% at $5730 a tonne, having earlier touched a two-week low of $5712. Tin shed 2.1% to $17430 a tonne, while aluminium fell 0.8% to $1748 a tonne. Nickel ended down 2% at $13775 a tonne, zinc fell 1.3% to $1995 and lead dropped 0.2% to $1808.
Global miner BHP declined 0.4% to A$30.20. Rio Tinto lost 0.6% to A$57.50. Fortescue Metals Group declined 1.8% to A$1.915.
The big banks were went higher as investors moved back into high yielding stocks because nation's jobless rate result was in line with market expectations and does not change the interest rate outlook. Commonwealth Bank advanced 1.4% to A$91.82 after a target price upgrade by Macquarie, which now expects shares to hit A$101 over the next 12 months. Westpac Banking Corp rose 1.6% to A$38.09. ANZ Banking Group grew 1.2% to A$35.64 and National Australia Bank added 1.2% to A$38.
Shares of Ten Network fell 2.1% to A$0.23 as the Australian Financial Review reported that suitors for the media company -- Discovery Communications Inc and Foxtel, which is owned by Telstra Corp and News Corp -- had revised their takeover offer downward. Shares of News Corp. rose 1.1% to A$21.32, while Telstra added 1.1% to A$6.29.
Nikkei climbs 1.43% on weaker yen
Japanese share market advanced for second straight day, on the back of yen weakening against the greenback, with blue chips of insurers, airlines and exporters being major gainers. The Nikkei Stock Average advanced 267.59 points, or 1.43%, to close at 18991.11, an almost 15-year high, after crossing the 19000 level several times during the session. The broader Topix index grew 20.96 points, or 1.37%, to 1556.63, its highest close since December 2007.
Shares of exporters were up, thanks to yen weakening against the greenback. The yen traded at 121.34 per dollar after weakening 0.3% Wednesday. A weaker yen is generally good for Japanese exporters, as it gives them more room to cut prices on goods they sell overseas and increases the yen value of any profits they send back home. Nikon Corp rose 1.2% to 1686 yen. TDK Corp., an electronic components-maker that gets more than 90% of its revenue abroad, rose 2.3% to 8,750 yen.
Nissan added 2.8% to 1,273 yen and Fuji Heavy Industries grew 1.6% to 4118 yen after both automakers have decided to meet their trade unions' bonus demands in full again this year. Labor at Nissan seeks bonuses equal to 5.7 months' pay while Fuji Heavy's union wants six months' worth. Nissan has agreed to labor's bonus demands for the past two years, and Fuji Heavy has done so for the prior four. Toyota Motor Corp rose 1.2% to 8258 yen on reports the auto maker is seen accepting its union's demand for bonuses worth 6.8 months' pay.
Shares of civil aviation companies benefited from drop in crude oil prices. ANA Holdings Inc. added 1.2% to 330.5 yen. Japan Airlines Co. jumped 4.3% to 3,965 yen. ANA Holdings Inc. added 1.5% to 331.5 yen.
Shares of Brother Industries closed 5.7% down at 1891 yen after the company agreed to pay a 27% premium to buy Domino. The Nagoya-based maker of office equipment was attracted to Domino's label and package printing business.
Shares of Dai-ichi Life Insurance Co. climbed 2% to 1798 yen on reports that the company was considering a dividend increase for policy holders.
China market surges on monetary easing hopes
Mainland China share market ended the session with gains, as appetite for risky assets underpinned by better than expected credit growth data. Meanwhile, upward momentum underpinned further on hopes that policy-makers would step up monetary easing to bolster growth after dismal economic data. The Shanghai Composite Index closed up 58.42 points, or 1.78%, to 3349.32. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, rose 68.19 points, or 1.93%, to 3592.84.
Aggregate financing was 1.35 trillion yuan ($215.5 billion) in February, above the estimate of 1 trillion yuan. New yuan loans totaled 1.02 trillion yuan and M2 money supply rose 12.5%. The data suggest monetary easing is spurring demand for loans.
The Japanese investment bank Nomura has predicted three 25-basis-point benchmark rate cuts and three 50-basis-point reserve requirement ratio trims in the rest of this year. Morgan Stanley Research also projected the reserve requirement ratio will be cut in the second quarter. The firm also expected interest rates to be trimmed by 25 basis points.
Total of nine out of ten SSE industry groups advanced, with financial issue leading the rally, up 4.1%, followed by energy (up 1.7%), utilities (up 1.2%), consumer discretionary (up 1.1%), industrials (up 1%), materials (up 0.5%), and information technology (up 0.5%). The consumer staples issue declined 0.2%.
Shares of financial companies advanced the most in Beijing on hopes of improving bank's asset quality after the government unveiled plans to exchange 1 trillion yuan ($159.70 billion) worth of local government high-interest maturing debt for low-interest municipal or provincial bonds. Bank Of China was up 4.2% to 4.18 yuan, Industrial Bank 9.4% to 15.94 yuan and Agricultural Bank Of China 2.8% to 3.31 yuan. Ping An Bank added 5.3% to 14.60 yuan and Bank Of Ningbo 8.8% to 17.40 yuan.
Hong Kong stocks rise for the first time in last eight sessions
Hong Kong share market closed higher for the first time in eight consecutive session, as investors chased for bottom hunting following recent selloff. Strength in Mainland A-share market also aided the gain in local bourses. But, uncertainty about the timing of US Federal Reserve interest rate hike helped to limit the upside for the market. The Hang Seng Index ended up 80 points or 0.34% to 23797.96, off an intra-day high of 23,880.25 and day low of 23677.06. Turnover reduced slightly to HK$77.9 billion from HK$78.3 billion on Wednesday.
Financial stocks were higher, with big four lenders being major winner after China's central bank reported that the new yuan loans in February increased higher than expected to RMB1.02 trillion. CCB (00939) added 2% to HK$6.28. ICBC (01398) gained 1.9% to HK$5.48. BOC (03988) put on 1.7% to HK$4.26. ABC (01288) rose 1.6% to HK$3.72.
Shares of power companies declined the most in Hong Kong, on hopes major utilities became less attractive investment on strong USD, which reflects market's hopes of Fed rate hike. Power Assets (00006) fell 1.7% to HK$74.05. CLP (00002) slipped 1.5% to HK$64.55. HK & China Gas (00003) edged down 0.1% to HK$17.22. CR Power (00836) slid 3.2% to HK$18.6 after Credit Suisse lowered its rating and target price.
Sensex ups 0.8% in afternoon trade
Indian benchmark indices made healthy gains during the late afternoon trade session. At 14:16 IST, the S&P BSE Sensex was up 230.27 points or 0.8% at 28,889.44. The CNX Nifty was up 56.05 points or 0.64% at 8,756.
All sector-based indices of the BSE made gains during the late afternoon trade session. Healthy buying was observed in automobile, capital goods, consumer durables, healthcare, bank, fast moving consumer goods (FMCG) and metal sectors.
Meanwhile, Prime Minister Narendra Modi who is on a visit to Mauritius today, 12 March 2015, said that India and Mauritius have decided to continue discussion on revision of Double Taxation Avoidance Convention between the two countries.
Meanwhile, the International Monetary Fund has raised its forecasts of India's economic growth yesterday, 11 March 2015, saying it now predicts gross domestic product will expand by 7.2% in the current fiscal year ending 31 March 2015 (FY 2015), which runs until the end of March, instead of 5.6% as predicted earlier.
Elsewhere in the Asia Pacific region: South Korea KOSPI declined 0.52% to 1970.59. Taiwan's Taiex added 0.76% to 9596. New Zealand NZX50 was up 0.42% to 5886.78. Indonesia's Jakarta Composite index grew 0.37% to 5439.83. Singapore's Straits Times index dropped 0.26% at 3369.63. Malaysia's KLCI added 0.5% to 1786.87.
The Bank of Korea said it had cut its benchmark lending rate by 25 basis points to a record low of 1.75%, its first cut in five months.
The IMF board on Wednesday approved a loan of $17.5 billion, with the bulk of the money heading out the door fast: $5 billion probably by the end of this week and another $5 billion in coming months. That will be combined with $7.5 billion in loans from other international organisations and an expected $15.4 billion in debt relief that Ukrainian officials hope to negotiate with bondholders.
Investors are watching for clues from a U.S. Federal Reserve meeting next week about the possible timing of an interest rate hike. The Fed was expected to raise interest rates later this year but strong jobs data has raised expectations for quicker action as early as the summer. The Fed's key rate has been near zero since the global financial crisis.
Among Asian bourses
Australia shares up on good jobs news
The Australian share market advanced, on the back of official data indicating that the nation's jobless rate has eased last month. Most of the ASX sectors climbed up, with shares, with shares of financials and some of the higher-yield dividend companies being major gainers. The benchmark S&P/ASX 200 Index advanced 57 points, or 0.98%, to 5850.20 and the broader All Ordinaries Index grew by 52.70 points, or 0.91%, to 5816. Market turnover was relatively healthy, with 1.66 billion shares changing hands worth of A$4.28 billion.
Australian Bureau of Statistics data showed that the unemployment rate has fallen from its 12-year high of 6.4% in January to 6.3% in February. The seasonally adjusted labour force participation rate decreased to 64.6% in February 2015 from 64.7% in January 2015.
Shares of mining companies were down on the back of weaker commodity prices overnight. Base metals closed lower on the London Metal Exchange on Wednesday after worse-than-expected Chinese data and a stronger dollar. Three-month copper on the London Metal Exchange ended down 0.6% at $5730 a tonne, having earlier touched a two-week low of $5712. Tin shed 2.1% to $17430 a tonne, while aluminium fell 0.8% to $1748 a tonne. Nickel ended down 2% at $13775 a tonne, zinc fell 1.3% to $1995 and lead dropped 0.2% to $1808.
Global miner BHP declined 0.4% to A$30.20. Rio Tinto lost 0.6% to A$57.50. Fortescue Metals Group declined 1.8% to A$1.915.
The big banks were went higher as investors moved back into high yielding stocks because nation's jobless rate result was in line with market expectations and does not change the interest rate outlook. Commonwealth Bank advanced 1.4% to A$91.82 after a target price upgrade by Macquarie, which now expects shares to hit A$101 over the next 12 months. Westpac Banking Corp rose 1.6% to A$38.09. ANZ Banking Group grew 1.2% to A$35.64 and National Australia Bank added 1.2% to A$38.
Shares of Ten Network fell 2.1% to A$0.23 as the Australian Financial Review reported that suitors for the media company -- Discovery Communications Inc and Foxtel, which is owned by Telstra Corp and News Corp -- had revised their takeover offer downward. Shares of News Corp. rose 1.1% to A$21.32, while Telstra added 1.1% to A$6.29.
Nikkei climbs 1.43% on weaker yen
Japanese share market advanced for second straight day, on the back of yen weakening against the greenback, with blue chips of insurers, airlines and exporters being major gainers. The Nikkei Stock Average advanced 267.59 points, or 1.43%, to close at 18991.11, an almost 15-year high, after crossing the 19000 level several times during the session. The broader Topix index grew 20.96 points, or 1.37%, to 1556.63, its highest close since December 2007.
Shares of exporters were up, thanks to yen weakening against the greenback. The yen traded at 121.34 per dollar after weakening 0.3% Wednesday. A weaker yen is generally good for Japanese exporters, as it gives them more room to cut prices on goods they sell overseas and increases the yen value of any profits they send back home. Nikon Corp rose 1.2% to 1686 yen. TDK Corp., an electronic components-maker that gets more than 90% of its revenue abroad, rose 2.3% to 8,750 yen.
Nissan added 2.8% to 1,273 yen and Fuji Heavy Industries grew 1.6% to 4118 yen after both automakers have decided to meet their trade unions' bonus demands in full again this year. Labor at Nissan seeks bonuses equal to 5.7 months' pay while Fuji Heavy's union wants six months' worth. Nissan has agreed to labor's bonus demands for the past two years, and Fuji Heavy has done so for the prior four. Toyota Motor Corp rose 1.2% to 8258 yen on reports the auto maker is seen accepting its union's demand for bonuses worth 6.8 months' pay.
Shares of civil aviation companies benefited from drop in crude oil prices. ANA Holdings Inc. added 1.2% to 330.5 yen. Japan Airlines Co. jumped 4.3% to 3,965 yen. ANA Holdings Inc. added 1.5% to 331.5 yen.
Shares of Brother Industries closed 5.7% down at 1891 yen after the company agreed to pay a 27% premium to buy Domino. The Nagoya-based maker of office equipment was attracted to Domino's label and package printing business.
Shares of Dai-ichi Life Insurance Co. climbed 2% to 1798 yen on reports that the company was considering a dividend increase for policy holders.
China market surges on monetary easing hopes
Mainland China share market ended the session with gains, as appetite for risky assets underpinned by better than expected credit growth data. Meanwhile, upward momentum underpinned further on hopes that policy-makers would step up monetary easing to bolster growth after dismal economic data. The Shanghai Composite Index closed up 58.42 points, or 1.78%, to 3349.32. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, rose 68.19 points, or 1.93%, to 3592.84.
Aggregate financing was 1.35 trillion yuan ($215.5 billion) in February, above the estimate of 1 trillion yuan. New yuan loans totaled 1.02 trillion yuan and M2 money supply rose 12.5%. The data suggest monetary easing is spurring demand for loans.
The Japanese investment bank Nomura has predicted three 25-basis-point benchmark rate cuts and three 50-basis-point reserve requirement ratio trims in the rest of this year. Morgan Stanley Research also projected the reserve requirement ratio will be cut in the second quarter. The firm also expected interest rates to be trimmed by 25 basis points.
Total of nine out of ten SSE industry groups advanced, with financial issue leading the rally, up 4.1%, followed by energy (up 1.7%), utilities (up 1.2%), consumer discretionary (up 1.1%), industrials (up 1%), materials (up 0.5%), and information technology (up 0.5%). The consumer staples issue declined 0.2%.
Shares of financial companies advanced the most in Beijing on hopes of improving bank's asset quality after the government unveiled plans to exchange 1 trillion yuan ($159.70 billion) worth of local government high-interest maturing debt for low-interest municipal or provincial bonds. Bank Of China was up 4.2% to 4.18 yuan, Industrial Bank 9.4% to 15.94 yuan and Agricultural Bank Of China 2.8% to 3.31 yuan. Ping An Bank added 5.3% to 14.60 yuan and Bank Of Ningbo 8.8% to 17.40 yuan.
Hong Kong stocks rise for the first time in last eight sessions
Hong Kong share market closed higher for the first time in eight consecutive session, as investors chased for bottom hunting following recent selloff. Strength in Mainland A-share market also aided the gain in local bourses. But, uncertainty about the timing of US Federal Reserve interest rate hike helped to limit the upside for the market. The Hang Seng Index ended up 80 points or 0.34% to 23797.96, off an intra-day high of 23,880.25 and day low of 23677.06. Turnover reduced slightly to HK$77.9 billion from HK$78.3 billion on Wednesday.
Financial stocks were higher, with big four lenders being major winner after China's central bank reported that the new yuan loans in February increased higher than expected to RMB1.02 trillion. CCB (00939) added 2% to HK$6.28. ICBC (01398) gained 1.9% to HK$5.48. BOC (03988) put on 1.7% to HK$4.26. ABC (01288) rose 1.6% to HK$3.72.
Shares of power companies declined the most in Hong Kong, on hopes major utilities became less attractive investment on strong USD, which reflects market's hopes of Fed rate hike. Power Assets (00006) fell 1.7% to HK$74.05. CLP (00002) slipped 1.5% to HK$64.55. HK & China Gas (00003) edged down 0.1% to HK$17.22. CR Power (00836) slid 3.2% to HK$18.6 after Credit Suisse lowered its rating and target price.
Sensex ups 0.8% in afternoon trade
Indian benchmark indices made healthy gains during the late afternoon trade session. At 14:16 IST, the S&P BSE Sensex was up 230.27 points or 0.8% at 28,889.44. The CNX Nifty was up 56.05 points or 0.64% at 8,756.
All sector-based indices of the BSE made gains during the late afternoon trade session. Healthy buying was observed in automobile, capital goods, consumer durables, healthcare, bank, fast moving consumer goods (FMCG) and metal sectors.
Meanwhile, Prime Minister Narendra Modi who is on a visit to Mauritius today, 12 March 2015, said that India and Mauritius have decided to continue discussion on revision of Double Taxation Avoidance Convention between the two countries.
Meanwhile, the International Monetary Fund has raised its forecasts of India's economic growth yesterday, 11 March 2015, saying it now predicts gross domestic product will expand by 7.2% in the current fiscal year ending 31 March 2015 (FY 2015), which runs until the end of March, instead of 5.6% as predicted earlier.
Elsewhere in the Asia Pacific region: South Korea KOSPI declined 0.52% to 1970.59. Taiwan's Taiex added 0.76% to 9596. New Zealand NZX50 was up 0.42% to 5886.78. Indonesia's Jakarta Composite index grew 0.37% to 5439.83. Singapore's Straits Times index dropped 0.26% at 3369.63. Malaysia's KLCI added 0.5% to 1786.87.
