Headline equities of the Asia Pacific market mostly advanced on Tuesday,
21 April 2015, as risk sentiments drawing support from overnight rally
on the European and the US markets overnight. Meanwhile, prospect of
continued easy monetary policies regionally after China's decision to
cut the cash reserve ratio for banks also aided support to the rally.
On Sunday, the People's Bank of China lowered its reserve requirement ratio (RRR) for banks by 1% from 19.5 to 18.5%. The stimulus measure could release approximately one trillion yuan or $160 billion in liquidity. The second reduction in reserve ratios this year comes after a report showed the slowest economic growth in six years and on signs capital is leaving China, causing a shortage of liquidity.
Among Asian bourses
Nikkei rebounds 1.4% on positive offshore lead, weaker yen
Japanese share market finished the session sharply higher, on tracking a strong lead from offshore markets overnight and the US dollar appreciation against the yen. Most of the blue-chip stocks advanced, with shares of financials, utilities, lenders, miners, chemicals, pharma, and transportation companies being major gainers. The benchmark Nikkei 225 index advanced 274.60 points, or 1.4%, to finish at 19909.09, off an intra-day low of 19678.22. The broader Topix index of all first-section shares jumped 26.20 points, or 1.66%, to 1608.88, off an intra-day low of 1588.26.
Exporters were mostly higher, drawing support from the Japanese yen weakness against the greenback. The dollar was buying for 119.45 yen, up from 118.83 yen at the previous Tokyo stock close. Sony Corp added 1.8% to 3680.50 yen and Canon Inc rose 0.8% to 4524 yen. Sharp Corp jumped 0.8% to 259 yen and Kawasaki Heavy Industries added 1% to 607 yen. Honda Motor Co grew 1.6% to 4242.50 yen, Toyota Motor Corp jumped 2.2% to 8447 yen, and Suzuki Motor Corp rose 1.4% to 3824 yen.
Shares of Japanese banks and financial companies were also higher on tracking jump in US peers after healthy earnings results for Goldman Sachs Group Inc and Morgan Stanley. Mitsubishi UFJ Financial Group Inc jumped 3.3% to 854 yen, Mizuho Financial Group Inc rose 1.8% to 226.80 yen and Sumitomo Mitsui Financial Group Inc added 1.9% to 5050 yen. Orix Corp climbed up 4.8% to1891 yen and Credit Saison Co jumped 5.1% to2295 yen.
Japanese drug maker Daiichi Sankyo Co surged 4.4% to 2051 yen after reports it offloaded shares worth up to $3.6 billion in Indian drugmaker Sun Pharmaceutical Industries, on set to retreat from India after a roller-coaster seven years.
NEC Corp rose 0.5% to 390 yen after reports that the technology major would post an eight-year-high profit for the current fiscal year ending next March.
Australia market jumps 0.67%
The Australian share market ended higher, recouping most of yesterday's losses, as risk sentiments drew support from the global rally in the US and European markets overnight induced by China's move over the weekend to stimulate its cooling economy. Baring energy, all ASX sectors climbed up, with shares of tech, material, consumer discretionary, consumer staples, healthcare and financial companies being major gainers. The benchmark S&P/ASX 200 Index advanced 39.20 points, or 0.67%, to 5872.30, while the broader All Ordinaries Index added 37.20 points, or 0.64%, to 5844. Market turnover was relatively healthy, with 1.68 billion shares changing hands worth of A$4.35 billion.
Minutes of the latest Monetary Policy Meeting of the Reserve Bank Board released on Tuesday, indicating that Board judged that it was appropriate to hold interest rates steady for the time being, while accepting that further easing of policy may be appropriate over the period ahead to foster sustainable growth in demand and inflation consistent with the target. The Board would continue to assess the case for such action at forthcoming meetings. The Board decided to leave the cash rate unchanged at 2.25%.
Financial stocks were stronger, with top lenders being major gainer, after signals from the head of the Reserve Bank that another rate cut is possible. Commonwealth Bank added 0.4% to A$91.68, National Australia Bank rose 0.5% to A$38.53, and ANZ Banking Group jumped 0.3% to A$35.73. Westpac Banking Corp fell 0.1% to A$38.74.
Materials stocks advanced on tracking gains in their FTSE 100-listed counterparts, with resource heavyweight BHP Billiton adding 2.5% to A$30.57 while Fortescue Metals Group fell 1.6% to A$1.882.
Rio Tinto climbed up 1.6% to A$55.52 despite revealing a surprise 12% fall in iron ore exports over the March quarter fat 74.7 million tonnes. The miner reaffirmed it expects to ship about 350 million tonnes of iron ore from its Australian and Canadian operations. The miner's average cash cost of iron-ore production is forecast at about $US17 a tonne in FY15, down from $US19.50 a tonne reported in FY14.
OZ Minerals shares rose 6.2% to A$4.13 after Copper miner announced strategy update on Monday's. Deutsche Bank has raised its price target to A$4.20 from A$4. Jefferies has increased its target to A$7.94 from A$6.64.
Cochlear shares gained 1.3% to A$88.77 after the hearing implants maker said a US District Court has entered judgment in a patent infringement lawsuit against the company and its US subsidiary. Cochlear said the court previously overturned $US131.2m in damages awarded by the jury, ordering a new trial on damages for infringement of the remaining patent claim. The plaintiffs are expected to appeal the judgment.
Shares of Compumedics advanced 10% to A$0.22 after medical technology provider won a 3-year distribution contract worth A$2.2 million for supplying neurological monitoring systems in China. The company said the contract complements group's current sleep diagnostic distribution arrangements.
China market surges to seven-year high
Mainland China equity market advanced to seven-year high on expectations monetary stimulus will bolster the economy after the central bank decision to cut the cash reserve ratio for banks. But, market gain was limited amid concern about steps by government to curb margin trading. Shanghai Composite Index rose by 76.55 points, or 1.82% to 4293.62 at the close, off an intraday low of 4188.57. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, jumped 97.24 points, or 2.15%, to 4619.16.
Chinese investors have been piling into the equity market after the central bank cut interest rates twice since November and authorities from the CSRC to central bank Governor Zhou Xiaochuan endorsed the flow of funds into equities. The second reduction in reserve ratios this year comes after a report showed the slowest economic growth in six years and on signs capital is leaving China, causing a shortage of liquidity.
The China Securities Regulatory Commission announced measures on Friday to clamp down on the use of shadow financing for equity purchases and increase the supply of shares available for short sellers.
Barring industrial, all SSE industry groups advanced, with information technology issue leading the rally, with a gain of 4.9%, followed by consumer staple issue which ended 4.7% up. Meanwhile, consumer discretionary sector added 4.1%, telecommunication services rose 4%, healthcare added 3.7%, materials added 2.8%, utilities added 2.7%, financials added 2.6%, and energy added 2%.
Brokerage shares were up as investors bet the industry will benefit from surging trading. Citic Securities added 4.3% to 35.08 yuan and haitong Securities Co jumped 4.4% to 27.47 yuan.
Liquor makers also jumped on signs that the sector, which has been hit by President Xi Jinping's anti-extravagance campaign, is bottoming out. Kweichow Moutai rose by its 10% daily limit after reporting an 18% jump in first-quarter net profit, its fastest quarterly growth since 2013.
Hang Seng spurts 2.79%
Hong Kong stock market ended sharp higher, as investors chased for bargain buying on tracking positive lead from Wall Street overnight after China's central bank launched new stimulus designed to counter the country's slowest economic growth in six years. Most of the blue chips advanced with industrial goods, financials, and realty companies being major gainers. The Hang Seng Index ended higher 755.56 points or 2.79% to 27850.49, off an intra-day high of 27925.36 and day low of 27404.15. Turnover decreased to HK$182.96 billion from HK$211 billion on Monday.
China Mobile shares climbed 7.5% to HK$115.90 after the mobile operator said it added 19.696 million 4G customers in March 2015, faster than the pace of 16.585 million in the previous month, bringing the total 4G customer size to 143 million. The accumulated net addition of customers for March was 4.602 million, faster than the pace of 2.227 million in the previous month, with a total customer size of 815 million as at 31 March 2015. The net reduction of 3G customers in March amounted to 7.394 million, as compared to additions of 1.133 million in the month before, with the number of 3G customers at 235 million by the end of last month.
China Resources Enterprise shares spurted 55.9% to HK$23.70 after the company said it agreed to sell to controlling shareholder China Resources (Holdings) Company (CRH) all the non-beer business segments for HK$28,000 million. Upon completion, the company shall declare and pay a special cash dividend of HK$11.5 per share, representing 75.66% of the closing share price of HK$15.2. CRH will make a voluntary cash partial offer to acquire up to 242 million shares of CRE, representing about 10% of shares in issue, at an offer price of HK$12.7 apiece for a total of about HK$3,075 million. The aggregate of the offer price and special dividend of HK$24.2 represents a premium of around 59.2% to the closing price.
Sensex slides after weak Q3 results
A divergent trend was witnessed among various index constituents as key benchmark indices languished in negative zone in mid-afternoon trade. At 14:16 IST, the S&P BSE Sensex was off 34.40 points or 0.12% at 27,851.81. The CNX Nifty was down 21.05 points or 0.25% at 8,427.05.
Foreign portfolio investors sold Indian shares worth a net Rs 1506.86 crore yesterday, 20 April 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 962.50 crore on yesterday, 20 April 2015, as per provisional data.
HCL Technologies edged lower in volatile trade after weak Q3 outcome. The stock was off 3.38% at Rs 891.95. The stock hit a high of Rs 919 and a low of Rs 834.10 so far during the day. As per US accounting standards, the company's consolidated net profit fell 12.2% to Rs 1683 crore on 0.2% fall in revenue to Rs 9267 crore in Q3 March 2015 over Q2 December 2014. Earnings before interest, taxation, depreciation and amortization (EBITDA) fell 9.8% to Rs 2091 crore in Q3 March 2015 over Q2 December 2014. The EBITDA margin edged lower to 22.5% in Q3 March 2015 from 25% in Q2 December 2014. The company made net addition of 3,944 employees during the quarter.
Elsewhere in the Asia Pacific region: South Korea KOSPI fell 0.1% to 2144.79. Taiwan's Taiex index slid 0.2% to 9533.98. New Zealand NZX50 declined 0.1% to 5817.52. Singapore's Straits Times index added 0.15% at 3508.61. Indonesia's Jakarta Composite index rose 1.1% to 5460.57. Malaysia's KLCI was up 0.8% to 1862.80.
On Sunday, the People's Bank of China lowered its reserve requirement ratio (RRR) for banks by 1% from 19.5 to 18.5%. The stimulus measure could release approximately one trillion yuan or $160 billion in liquidity. The second reduction in reserve ratios this year comes after a report showed the slowest economic growth in six years and on signs capital is leaving China, causing a shortage of liquidity.
Among Asian bourses
Nikkei rebounds 1.4% on positive offshore lead, weaker yen
Japanese share market finished the session sharply higher, on tracking a strong lead from offshore markets overnight and the US dollar appreciation against the yen. Most of the blue-chip stocks advanced, with shares of financials, utilities, lenders, miners, chemicals, pharma, and transportation companies being major gainers. The benchmark Nikkei 225 index advanced 274.60 points, or 1.4%, to finish at 19909.09, off an intra-day low of 19678.22. The broader Topix index of all first-section shares jumped 26.20 points, or 1.66%, to 1608.88, off an intra-day low of 1588.26.
Exporters were mostly higher, drawing support from the Japanese yen weakness against the greenback. The dollar was buying for 119.45 yen, up from 118.83 yen at the previous Tokyo stock close. Sony Corp added 1.8% to 3680.50 yen and Canon Inc rose 0.8% to 4524 yen. Sharp Corp jumped 0.8% to 259 yen and Kawasaki Heavy Industries added 1% to 607 yen. Honda Motor Co grew 1.6% to 4242.50 yen, Toyota Motor Corp jumped 2.2% to 8447 yen, and Suzuki Motor Corp rose 1.4% to 3824 yen.
Shares of Japanese banks and financial companies were also higher on tracking jump in US peers after healthy earnings results for Goldman Sachs Group Inc and Morgan Stanley. Mitsubishi UFJ Financial Group Inc jumped 3.3% to 854 yen, Mizuho Financial Group Inc rose 1.8% to 226.80 yen and Sumitomo Mitsui Financial Group Inc added 1.9% to 5050 yen. Orix Corp climbed up 4.8% to1891 yen and Credit Saison Co jumped 5.1% to2295 yen.
Japanese drug maker Daiichi Sankyo Co surged 4.4% to 2051 yen after reports it offloaded shares worth up to $3.6 billion in Indian drugmaker Sun Pharmaceutical Industries, on set to retreat from India after a roller-coaster seven years.
NEC Corp rose 0.5% to 390 yen after reports that the technology major would post an eight-year-high profit for the current fiscal year ending next March.
Australia market jumps 0.67%
The Australian share market ended higher, recouping most of yesterday's losses, as risk sentiments drew support from the global rally in the US and European markets overnight induced by China's move over the weekend to stimulate its cooling economy. Baring energy, all ASX sectors climbed up, with shares of tech, material, consumer discretionary, consumer staples, healthcare and financial companies being major gainers. The benchmark S&P/ASX 200 Index advanced 39.20 points, or 0.67%, to 5872.30, while the broader All Ordinaries Index added 37.20 points, or 0.64%, to 5844. Market turnover was relatively healthy, with 1.68 billion shares changing hands worth of A$4.35 billion.
Minutes of the latest Monetary Policy Meeting of the Reserve Bank Board released on Tuesday, indicating that Board judged that it was appropriate to hold interest rates steady for the time being, while accepting that further easing of policy may be appropriate over the period ahead to foster sustainable growth in demand and inflation consistent with the target. The Board would continue to assess the case for such action at forthcoming meetings. The Board decided to leave the cash rate unchanged at 2.25%.
Financial stocks were stronger, with top lenders being major gainer, after signals from the head of the Reserve Bank that another rate cut is possible. Commonwealth Bank added 0.4% to A$91.68, National Australia Bank rose 0.5% to A$38.53, and ANZ Banking Group jumped 0.3% to A$35.73. Westpac Banking Corp fell 0.1% to A$38.74.
Materials stocks advanced on tracking gains in their FTSE 100-listed counterparts, with resource heavyweight BHP Billiton adding 2.5% to A$30.57 while Fortescue Metals Group fell 1.6% to A$1.882.
Rio Tinto climbed up 1.6% to A$55.52 despite revealing a surprise 12% fall in iron ore exports over the March quarter fat 74.7 million tonnes. The miner reaffirmed it expects to ship about 350 million tonnes of iron ore from its Australian and Canadian operations. The miner's average cash cost of iron-ore production is forecast at about $US17 a tonne in FY15, down from $US19.50 a tonne reported in FY14.
OZ Minerals shares rose 6.2% to A$4.13 after Copper miner announced strategy update on Monday's. Deutsche Bank has raised its price target to A$4.20 from A$4. Jefferies has increased its target to A$7.94 from A$6.64.
Cochlear shares gained 1.3% to A$88.77 after the hearing implants maker said a US District Court has entered judgment in a patent infringement lawsuit against the company and its US subsidiary. Cochlear said the court previously overturned $US131.2m in damages awarded by the jury, ordering a new trial on damages for infringement of the remaining patent claim. The plaintiffs are expected to appeal the judgment.
Shares of Compumedics advanced 10% to A$0.22 after medical technology provider won a 3-year distribution contract worth A$2.2 million for supplying neurological monitoring systems in China. The company said the contract complements group's current sleep diagnostic distribution arrangements.
China market surges to seven-year high
Mainland China equity market advanced to seven-year high on expectations monetary stimulus will bolster the economy after the central bank decision to cut the cash reserve ratio for banks. But, market gain was limited amid concern about steps by government to curb margin trading. Shanghai Composite Index rose by 76.55 points, or 1.82% to 4293.62 at the close, off an intraday low of 4188.57. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, jumped 97.24 points, or 2.15%, to 4619.16.
Chinese investors have been piling into the equity market after the central bank cut interest rates twice since November and authorities from the CSRC to central bank Governor Zhou Xiaochuan endorsed the flow of funds into equities. The second reduction in reserve ratios this year comes after a report showed the slowest economic growth in six years and on signs capital is leaving China, causing a shortage of liquidity.
The China Securities Regulatory Commission announced measures on Friday to clamp down on the use of shadow financing for equity purchases and increase the supply of shares available for short sellers.
Barring industrial, all SSE industry groups advanced, with information technology issue leading the rally, with a gain of 4.9%, followed by consumer staple issue which ended 4.7% up. Meanwhile, consumer discretionary sector added 4.1%, telecommunication services rose 4%, healthcare added 3.7%, materials added 2.8%, utilities added 2.7%, financials added 2.6%, and energy added 2%.
Brokerage shares were up as investors bet the industry will benefit from surging trading. Citic Securities added 4.3% to 35.08 yuan and haitong Securities Co jumped 4.4% to 27.47 yuan.
Liquor makers also jumped on signs that the sector, which has been hit by President Xi Jinping's anti-extravagance campaign, is bottoming out. Kweichow Moutai rose by its 10% daily limit after reporting an 18% jump in first-quarter net profit, its fastest quarterly growth since 2013.
Hang Seng spurts 2.79%
Hong Kong stock market ended sharp higher, as investors chased for bargain buying on tracking positive lead from Wall Street overnight after China's central bank launched new stimulus designed to counter the country's slowest economic growth in six years. Most of the blue chips advanced with industrial goods, financials, and realty companies being major gainers. The Hang Seng Index ended higher 755.56 points or 2.79% to 27850.49, off an intra-day high of 27925.36 and day low of 27404.15. Turnover decreased to HK$182.96 billion from HK$211 billion on Monday.
China Mobile shares climbed 7.5% to HK$115.90 after the mobile operator said it added 19.696 million 4G customers in March 2015, faster than the pace of 16.585 million in the previous month, bringing the total 4G customer size to 143 million. The accumulated net addition of customers for March was 4.602 million, faster than the pace of 2.227 million in the previous month, with a total customer size of 815 million as at 31 March 2015. The net reduction of 3G customers in March amounted to 7.394 million, as compared to additions of 1.133 million in the month before, with the number of 3G customers at 235 million by the end of last month.
China Resources Enterprise shares spurted 55.9% to HK$23.70 after the company said it agreed to sell to controlling shareholder China Resources (Holdings) Company (CRH) all the non-beer business segments for HK$28,000 million. Upon completion, the company shall declare and pay a special cash dividend of HK$11.5 per share, representing 75.66% of the closing share price of HK$15.2. CRH will make a voluntary cash partial offer to acquire up to 242 million shares of CRE, representing about 10% of shares in issue, at an offer price of HK$12.7 apiece for a total of about HK$3,075 million. The aggregate of the offer price and special dividend of HK$24.2 represents a premium of around 59.2% to the closing price.
Sensex slides after weak Q3 results
A divergent trend was witnessed among various index constituents as key benchmark indices languished in negative zone in mid-afternoon trade. At 14:16 IST, the S&P BSE Sensex was off 34.40 points or 0.12% at 27,851.81. The CNX Nifty was down 21.05 points or 0.25% at 8,427.05.
Foreign portfolio investors sold Indian shares worth a net Rs 1506.86 crore yesterday, 20 April 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 962.50 crore on yesterday, 20 April 2015, as per provisional data.
HCL Technologies edged lower in volatile trade after weak Q3 outcome. The stock was off 3.38% at Rs 891.95. The stock hit a high of Rs 919 and a low of Rs 834.10 so far during the day. As per US accounting standards, the company's consolidated net profit fell 12.2% to Rs 1683 crore on 0.2% fall in revenue to Rs 9267 crore in Q3 March 2015 over Q2 December 2014. Earnings before interest, taxation, depreciation and amortization (EBITDA) fell 9.8% to Rs 2091 crore in Q3 March 2015 over Q2 December 2014. The EBITDA margin edged lower to 22.5% in Q3 March 2015 from 25% in Q2 December 2014. The company made net addition of 3,944 employees during the quarter.
Elsewhere in the Asia Pacific region: South Korea KOSPI fell 0.1% to 2144.79. Taiwan's Taiex index slid 0.2% to 9533.98. New Zealand NZX50 declined 0.1% to 5817.52. Singapore's Straits Times index added 0.15% at 3508.61. Indonesia's Jakarta Composite index rose 1.1% to 5460.57. Malaysia's KLCI was up 0.8% to 1862.80.
