Asia Pacific share market closed mostly higher after fluctuated between
gains and losses on Monday, 13 April 2015, following the positive lead
from Wall Street on Friday, 10 April 2015. The regional markets gains
were led by China and Hong Kong amid expectations that a
sharper-than-forecast contraction in March trade increased chances that
Beijing will launch additional stimulus to spur slowing growth.
China's exports suffered an unexpected 14.6% fall to 886.83 billion yuan (about $143 billion), while imports tumbled 12.3% to 868.67 billion yuan, according to data released Monday by the General Administration of Customs. Resulting, the monthly trade surplus plummeted 62.6% to 18.16 billion yuan. The weakness in the data pointed towards a worse than expected slowdown in the Chinese economy. China-focused investment bank NSBO expects another cut in banks' required reserve ratios this month and an additional interest rate cut this month or next.
The World Bank cut its 2015 growth forecasts for developing East Asia, and warned of 'significant' risks from global uncertainties, including China's slowing expansion. The World Bank said growth in developing East Asian economies is forecast to ease to a still-robust 6.7% this year and in 2016, down slightly from last year's 6.9%. China's growth will cool to 7.1% in 2015, slower than the 7.2% predicted in October and last year's 7.4% expansion, the World Bank said in its East Asia and Pacific Economic Update. The World Bank cut its 2015 growth forecast for Indonesia to 5.2%, 0.4%age point lower than its previous projection made in October. It trimmed its forecast for Malaysia by 0.2%age point to 4.7%.
Among Asian bourses
Nikkei falls after weak machinery orders
Japanese share market finished the session slightly down after bobbling up and down, amid signs of a lackluster outlook for domestic economy after official data showed that core machinery orders fell 0.4% in February from the previous month. The benchmark Nikkei 225 index dropped 2.17 points, or 0.01%, to finish at 19905.46, while the broader Topix index of all first-section shares declined 3.28 points, or 0.21%, to 1586.26.
Shares of Sony Corp declined 0.2% to 3670 yen after reports that the company had developed low-priced image sensors for cut-rate smartphones aimed at developing-nation markets.
Mitsubishi Heavy Industries added 0.5% to 659.90 yen after its new aircraft unit again postponed the maiden flight for its Mitsubishi Regional Jet.
Nippon Electric Glass surged 17.7% to 665 yen after the company reported an operating profit of about 4.5 billion yen for the quarter ended March 2015.
Nintendo Co. rose 4.5%, after reports that that Unity Technologies Japan will provide its multiplatform system for Nintendo's 3DS handheld games console.
Alps Electric also added 2.8% after Goldman Sachs reiterated its buy rating (conviction list) and 3,710 yen target price, citing a wide range of company-specific earnings drivers, including the adoption of Alps sensors in smartphones, improvement in auto parts margins, and cutbacks in low-margin and unprofitable products.
The Cabinet Office has released Japanese machinery orders on Monday, showing Japan's core private-sector machinery orders fell 0.4% on the month to Y835.6 billion in February, the second straight fall after -1.7% in January and +8.3% in December. The Cabinet Office maintained its assessment of core machinery orders, saying, "A modest pickup is seen in machinery orders." Core orders rose by 5.9% from a year earlier in February, the third straight rise after +1.9% in January and +11.4% in December.
BoJ governor Haruhiko Kuroda expressed his confidence over the economic recovery and reiterated that the country is expected to "continue recovering moderately as a trend". Meanwhile, for core inflation, he expected it to "move around zero for the time being" due to falling energy prices. Overall, he also noted again that BoJ would adjust policy to achieve 2% inflation target if needed. The minutes for BoJ March 16-17 meeting showed that policy makers were confidence that the aggressive easing policies were having positive effect on the economy.
Miners weigh down Australia market
The Australian share market finished the session lower, as losses in the iron-ore players after appalling Chinese trade data were more than offset by gains for healthcare, energy and gold miners. The benchmark S&P/ASX 200 Index declined 8.10 points, or 0.14%, to 5960.30, while the broader All Ordinaries Index fell 7.30 points, or 0.12%, to 5928.10. Market turnover was healthy, with 1.82 billion shares changing hands worth of A$3.47 billion. Rising stocks outperformed declining ones, with total of 688 stocks up, while 628 stocks down.
Shares of materials and resources companies declined heavily in the Australia Stock Exchange, on weak Chinese trade data and amid rising fears that more junior resources companies will collapse after Atlas Iron's decision announced on Friday to shut operations. The sector was facing a funding crunch against a backdrop of slower growth in China and a plunging iron ore price. Resource heavyweight BHP Billiton stumbled 2.2% to A$29.48 and Rio Tinto erased 3% to A$55.21. Australia's third largest iron ore miner Fortescue Metals Group shed 2.8% to A$1.765, as chairman Andrew Forrest said the company will curb plans to increase production. Ore crushing services provider Mineral Resources tanked 11.1% to A$6.20, as shockwaves from the Atlas Iron shutdown. Gold producer Newcrest Mining bucked the trend up 3.6% to A$14.56, after Citigroup upgraded the stock to "buy" and as the gold price steadied above $1200 per ounce.
Energy players were biggest gainers in the Australia Stock Exchange after a recovery in the oil price. Oil prices had gained last week after a further drop in the U.S. drilling-rig count. Nymex crude gained 5.1% last week and has been up for four consecutive weeks, while Brent crude gained 5.3% and has been up for three of the past four weeks. Woodside Petroleum added 0.03% to A$34.91, while Santos jumped 1.9% to A$7.66, origin Energy 0.4% to A$12.03, and Oil Search 2.2% to A$7.90.
Shanghai Composite hits fresh seven-year high
Mainland China equity market advanced to fresh seven-year high, amid growing hopes that policy makers would unveil fresh stimulus moves to support the economy after surprisingly bad export data. The Shanghai Composite Index surged 87.40 points, or 2.17% to 4121.71 at the close, its highest level since March 2008. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, jumped 76.65 points, or 1.75%, to 4421.07.
All ten SSE industry groups advanced, with industrial issue leading the rally, with a gain of 4%, followed by healthcare issue which ended 3.8% higher. Meanwhile, utilities sector gained 2.5%, information technology 2.2%, energy 2.1%, materials 1.9%, telecommunication services 1.7%, financials 1.5%, consumer discretionary 1.2%, and consumer staples 1%.
Shares of China's lenders advanced with China Merchants Bank Co raising 10% daily limit to 17.23 yuan after the lender announced fundraising and stock incentive plans. Brokerages were also higher after China allowed mainland investors to open multiple A-share accounts. Western Securities Co locked 10% upper circuit at 62.69 yuan and Sinolink Securities Co rose 3.7% to 27.34 yuan.
Hang Seng rises to fresh 7-year high
Hong Kong stock market advanced for eight consecutive sessions on Monday, 13 April 2015, amid firming expectation of fresh money inflows into the Hong Kong market after the China Insurance Regulatory Commission allowed mainland insurance firms to invest in Hong Kong's Growth Enterprise Market. Meanwhile, buying was accelerated after reports of likely removal of quotas for the "Shanghai-HK Connect" program. The Hang Seng Index ended up 743.95 points or 2.73% to 28016.34, off an intra-day high of 28031.96 and day low of 27304.12. The benchmark index has risen for eight consecutive days, raking in combined 3,530 points. Turnover rose to HK$263.6 billion from HK$221 billion on Friday.
Brokerage BOC International predicted that about 100 billion yuan ($16.09 billion) worth of capital will be raised by mainland mutual fund managers and become available to invest in Hong Kong as early as May. In addition, Hong Kong's Oriental Daily newspaper reported on Monday that the daily investment quota for Hong Kong stock purchases by mainlanders under the Shanghai-Hong Kong Connect scheme will be nearly quadrupled to 40 billion yuan.
Shares of brokerage firms jumped after China Securities Depository and Clearing Corp. said mainland investors would be allowed to open up to 20 stock-trading accounts, effective Monday. Haitong International Securities Group Co climbed up 22.8% to HK$12.52, First Shanghai Investments 17.7% to HK$2.60, Guotai Junan International Holdings 10.2% to HK$10.90, Shenyin Wanguo HK 9.6% to HK$9.12, and China Galaxy Securities Co 8.9% to HK$13.78.
Mainland bank China Merchants Bank Co spurted 24.8% to HK$24.60 after it announced a massive employee stock-incentive plan over the weekend, raising up to 6 billion yuan ($960 million) through a private placement to no more than 8,500 employees.
Hong Kong retailers declined after reports that China would slash the number of visitors to Hong Kong from the neighbouring city of Shenzhen by putting a limit of one entry per week on residents' visa to Hong Kong. Cosmetics chain store Sa Sa International Holdings sank 6.2% to HK$4.06, Bonjour Holdings 7.1% to HK$0.65, Jewelery retailer Chow Tai Fook Jewellery Group 2.9% to HK$8.95, and Luk Fook Holdings International 3.8% to HK$23.
Sensex regains 29000 level
Indian benchmark indices closed higher, on the back of gains in telecom stocks and index heavyweight stocks The Sensex was provisionally up 166.91 points or 0.58% at 29,046.29. The stock market remains closed tomorrow, 14 April 2015, on account of Dr. Baba Saheb Ambedkar Jayanti.
Index heavyweights HDFC and ITC edged higher. Index heavyweight Reliance Industries (RIL) rose in volatile trade after the company announced successful commissioning of PET resin (polyethylene terephthalate) capacity at Dahej, Gujarat. Index heavyweight and engineering and construction major L&T gained after the company and France based AREVA signed a memorandum of understanding (MoU) for cooperation to maximize localization for the EPR Nuclear Power plant to be built at Jaitapur, Maharashtra.
On the macro front, data released by the government after trading session on Friday, 10 April 2015, showed a pickup in industrial production growth in February this year.
Meanwhile, Prime Minister Narendra Modi yesterday, 12 April 2015, said that the highest priority for the government is creating world class infrastructure.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 362.79 crore during the previous trading session on Friday, 10 April 2015, as per provisional data as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 135.18 crore on Friday, 10 April 2015, as per provisional data.
Elsewhere in the Asia Pacific region: South Korea KOSPI added 0.53% to 2098.92. Taiwan's Taiex jumped 0.51% to 9666.52. New Zealand NZX50 was up 0.1% to 5854.32. Singapore's Straits Times index added 0.35% at 3484.4. Malaysia's KLCI slipped 0.4% to 1842.08. Indonesia's Jakarta Composite index sank 0.8% to 5447.41.
China's exports suffered an unexpected 14.6% fall to 886.83 billion yuan (about $143 billion), while imports tumbled 12.3% to 868.67 billion yuan, according to data released Monday by the General Administration of Customs. Resulting, the monthly trade surplus plummeted 62.6% to 18.16 billion yuan. The weakness in the data pointed towards a worse than expected slowdown in the Chinese economy. China-focused investment bank NSBO expects another cut in banks' required reserve ratios this month and an additional interest rate cut this month or next.
The World Bank cut its 2015 growth forecasts for developing East Asia, and warned of 'significant' risks from global uncertainties, including China's slowing expansion. The World Bank said growth in developing East Asian economies is forecast to ease to a still-robust 6.7% this year and in 2016, down slightly from last year's 6.9%. China's growth will cool to 7.1% in 2015, slower than the 7.2% predicted in October and last year's 7.4% expansion, the World Bank said in its East Asia and Pacific Economic Update. The World Bank cut its 2015 growth forecast for Indonesia to 5.2%, 0.4%age point lower than its previous projection made in October. It trimmed its forecast for Malaysia by 0.2%age point to 4.7%.
Among Asian bourses
Nikkei falls after weak machinery orders
Japanese share market finished the session slightly down after bobbling up and down, amid signs of a lackluster outlook for domestic economy after official data showed that core machinery orders fell 0.4% in February from the previous month. The benchmark Nikkei 225 index dropped 2.17 points, or 0.01%, to finish at 19905.46, while the broader Topix index of all first-section shares declined 3.28 points, or 0.21%, to 1586.26.
Shares of Sony Corp declined 0.2% to 3670 yen after reports that the company had developed low-priced image sensors for cut-rate smartphones aimed at developing-nation markets.
Mitsubishi Heavy Industries added 0.5% to 659.90 yen after its new aircraft unit again postponed the maiden flight for its Mitsubishi Regional Jet.
Nippon Electric Glass surged 17.7% to 665 yen after the company reported an operating profit of about 4.5 billion yen for the quarter ended March 2015.
Nintendo Co. rose 4.5%, after reports that that Unity Technologies Japan will provide its multiplatform system for Nintendo's 3DS handheld games console.
Alps Electric also added 2.8% after Goldman Sachs reiterated its buy rating (conviction list) and 3,710 yen target price, citing a wide range of company-specific earnings drivers, including the adoption of Alps sensors in smartphones, improvement in auto parts margins, and cutbacks in low-margin and unprofitable products.
The Cabinet Office has released Japanese machinery orders on Monday, showing Japan's core private-sector machinery orders fell 0.4% on the month to Y835.6 billion in February, the second straight fall after -1.7% in January and +8.3% in December. The Cabinet Office maintained its assessment of core machinery orders, saying, "A modest pickup is seen in machinery orders." Core orders rose by 5.9% from a year earlier in February, the third straight rise after +1.9% in January and +11.4% in December.
BoJ governor Haruhiko Kuroda expressed his confidence over the economic recovery and reiterated that the country is expected to "continue recovering moderately as a trend". Meanwhile, for core inflation, he expected it to "move around zero for the time being" due to falling energy prices. Overall, he also noted again that BoJ would adjust policy to achieve 2% inflation target if needed. The minutes for BoJ March 16-17 meeting showed that policy makers were confidence that the aggressive easing policies were having positive effect on the economy.
Miners weigh down Australia market
The Australian share market finished the session lower, as losses in the iron-ore players after appalling Chinese trade data were more than offset by gains for healthcare, energy and gold miners. The benchmark S&P/ASX 200 Index declined 8.10 points, or 0.14%, to 5960.30, while the broader All Ordinaries Index fell 7.30 points, or 0.12%, to 5928.10. Market turnover was healthy, with 1.82 billion shares changing hands worth of A$3.47 billion. Rising stocks outperformed declining ones, with total of 688 stocks up, while 628 stocks down.
Shares of materials and resources companies declined heavily in the Australia Stock Exchange, on weak Chinese trade data and amid rising fears that more junior resources companies will collapse after Atlas Iron's decision announced on Friday to shut operations. The sector was facing a funding crunch against a backdrop of slower growth in China and a plunging iron ore price. Resource heavyweight BHP Billiton stumbled 2.2% to A$29.48 and Rio Tinto erased 3% to A$55.21. Australia's third largest iron ore miner Fortescue Metals Group shed 2.8% to A$1.765, as chairman Andrew Forrest said the company will curb plans to increase production. Ore crushing services provider Mineral Resources tanked 11.1% to A$6.20, as shockwaves from the Atlas Iron shutdown. Gold producer Newcrest Mining bucked the trend up 3.6% to A$14.56, after Citigroup upgraded the stock to "buy" and as the gold price steadied above $1200 per ounce.
Energy players were biggest gainers in the Australia Stock Exchange after a recovery in the oil price. Oil prices had gained last week after a further drop in the U.S. drilling-rig count. Nymex crude gained 5.1% last week and has been up for four consecutive weeks, while Brent crude gained 5.3% and has been up for three of the past four weeks. Woodside Petroleum added 0.03% to A$34.91, while Santos jumped 1.9% to A$7.66, origin Energy 0.4% to A$12.03, and Oil Search 2.2% to A$7.90.
Shanghai Composite hits fresh seven-year high
Mainland China equity market advanced to fresh seven-year high, amid growing hopes that policy makers would unveil fresh stimulus moves to support the economy after surprisingly bad export data. The Shanghai Composite Index surged 87.40 points, or 2.17% to 4121.71 at the close, its highest level since March 2008. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, jumped 76.65 points, or 1.75%, to 4421.07.
All ten SSE industry groups advanced, with industrial issue leading the rally, with a gain of 4%, followed by healthcare issue which ended 3.8% higher. Meanwhile, utilities sector gained 2.5%, information technology 2.2%, energy 2.1%, materials 1.9%, telecommunication services 1.7%, financials 1.5%, consumer discretionary 1.2%, and consumer staples 1%.
Shares of China's lenders advanced with China Merchants Bank Co raising 10% daily limit to 17.23 yuan after the lender announced fundraising and stock incentive plans. Brokerages were also higher after China allowed mainland investors to open multiple A-share accounts. Western Securities Co locked 10% upper circuit at 62.69 yuan and Sinolink Securities Co rose 3.7% to 27.34 yuan.
Hang Seng rises to fresh 7-year high
Hong Kong stock market advanced for eight consecutive sessions on Monday, 13 April 2015, amid firming expectation of fresh money inflows into the Hong Kong market after the China Insurance Regulatory Commission allowed mainland insurance firms to invest in Hong Kong's Growth Enterprise Market. Meanwhile, buying was accelerated after reports of likely removal of quotas for the "Shanghai-HK Connect" program. The Hang Seng Index ended up 743.95 points or 2.73% to 28016.34, off an intra-day high of 28031.96 and day low of 27304.12. The benchmark index has risen for eight consecutive days, raking in combined 3,530 points. Turnover rose to HK$263.6 billion from HK$221 billion on Friday.
Brokerage BOC International predicted that about 100 billion yuan ($16.09 billion) worth of capital will be raised by mainland mutual fund managers and become available to invest in Hong Kong as early as May. In addition, Hong Kong's Oriental Daily newspaper reported on Monday that the daily investment quota for Hong Kong stock purchases by mainlanders under the Shanghai-Hong Kong Connect scheme will be nearly quadrupled to 40 billion yuan.
Shares of brokerage firms jumped after China Securities Depository and Clearing Corp. said mainland investors would be allowed to open up to 20 stock-trading accounts, effective Monday. Haitong International Securities Group Co climbed up 22.8% to HK$12.52, First Shanghai Investments 17.7% to HK$2.60, Guotai Junan International Holdings 10.2% to HK$10.90, Shenyin Wanguo HK 9.6% to HK$9.12, and China Galaxy Securities Co 8.9% to HK$13.78.
Mainland bank China Merchants Bank Co spurted 24.8% to HK$24.60 after it announced a massive employee stock-incentive plan over the weekend, raising up to 6 billion yuan ($960 million) through a private placement to no more than 8,500 employees.
Hong Kong retailers declined after reports that China would slash the number of visitors to Hong Kong from the neighbouring city of Shenzhen by putting a limit of one entry per week on residents' visa to Hong Kong. Cosmetics chain store Sa Sa International Holdings sank 6.2% to HK$4.06, Bonjour Holdings 7.1% to HK$0.65, Jewelery retailer Chow Tai Fook Jewellery Group 2.9% to HK$8.95, and Luk Fook Holdings International 3.8% to HK$23.
Sensex regains 29000 level
Indian benchmark indices closed higher, on the back of gains in telecom stocks and index heavyweight stocks The Sensex was provisionally up 166.91 points or 0.58% at 29,046.29. The stock market remains closed tomorrow, 14 April 2015, on account of Dr. Baba Saheb Ambedkar Jayanti.
Index heavyweights HDFC and ITC edged higher. Index heavyweight Reliance Industries (RIL) rose in volatile trade after the company announced successful commissioning of PET resin (polyethylene terephthalate) capacity at Dahej, Gujarat. Index heavyweight and engineering and construction major L&T gained after the company and France based AREVA signed a memorandum of understanding (MoU) for cooperation to maximize localization for the EPR Nuclear Power plant to be built at Jaitapur, Maharashtra.
On the macro front, data released by the government after trading session on Friday, 10 April 2015, showed a pickup in industrial production growth in February this year.
Meanwhile, Prime Minister Narendra Modi yesterday, 12 April 2015, said that the highest priority for the government is creating world class infrastructure.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 362.79 crore during the previous trading session on Friday, 10 April 2015, as per provisional data as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 135.18 crore on Friday, 10 April 2015, as per provisional data.
Elsewhere in the Asia Pacific region: South Korea KOSPI added 0.53% to 2098.92. Taiwan's Taiex jumped 0.51% to 9666.52. New Zealand NZX50 was up 0.1% to 5854.32. Singapore's Straits Times index added 0.35% at 3484.4. Malaysia's KLCI slipped 0.4% to 1842.08. Indonesia's Jakarta Composite index sank 0.8% to 5447.41.
