Asia Pacific share market closed mixed on Wednesday, 22 April 2015, as
optimism stemming from upbeat Japan trade data out and speculation of
further monetary stimulus in China counterbalanced with jitters about
the possibility of a Greek default and exit from the euro zone.
Asian stocks continued to draw support from Chinese measures to spur lending and combat a slowing economy. On Sunday, China's central bank cut the reserve requirement ratio for the country's lenders for the second time in two months.
But, swelling fears over the future of Greece in the Eurozone tempered the regional market gain. Greek Prime Minister Alexis Tsipras is expected to meet with German Chancellor Angela Merkel at a summit in Brussels on Thursday, before eurozone finance ministers meet in Riga, Latvia, on Friday. A deal on fresh aid, however, is unlikely to be agreed before the Eurogroup meeting on May 11, a day before Greece must pay 780 million euro ($838 million) due to the International Monetary Fund.
Among Asian bourses
Nikkei climbs 1.1% after trade data
Japanese share market barrelled higher to fresh 15-year high on Wednesday, 22 April 2015, as risk sentiments drew support from official data indicating Japan logged first monthly trade surplus in nearly three years in March. Total of 28 out of 33 TSE sectors ended higher, with shares of Securities & Commodities Futures, Banks, Other Financial Business, Insurance, Air Transportation, Glass & Ceramics Products, Real Estate, Machinery, and utilities issues being major gainers. The benchmark Nikkei 225 index advanced 224 points, or 1.13%, to finish at 20133.90, a new 15-year record high. The broader Topix index of all first-section shares jumped 12.91 points, or 0.8%, to 1621.79.
The Finance Ministry said on Wednesday that Japan's imports dropped 14.5% to 6.7 trillion yen in March from a year earlier. Exports climbed 8.5% to 6.9 trillion yen from a year earlier, leaving first monthly trade surplus of 229.3 billion yen in nearly three years.
Exporters were generally higher due to dollar strength in the international markets, with Panasonic Corp gaining 1.4% and Nikon Corp up adding 2.9%. Sharp Corp rose 1.9% as it looked set to seal a deal for a major cash infusion from its creditors. Shares of Hitachi advanced 3.7% and Mazda Motor Corp rose 1.1%, after reports that robust foreign demand would drive the pair to post record profits for the fiscal year ended in March.
Banks and financial stocks advanced, with Mitsubishi UFJ Financial Group Inc adding 3%, while Mizuho Financial Group Inc rose 2.5% and Sumitomo Mitsui Financial Group Inc rose 3.8%.
Shares of Softbank Corp jumped 1.9% on reports that the Japanese telecom's U.S. unit Sprint Corp would provide network access for Google Inc.'s planned wireless service.
Yahoo Japan Corp climbed up 2.7% on reports that its parent Yahoo Inc. hired advisers to "maximize value" from its holdings in the Japanese web portal.
Australia market dips 0.6%
The Australian share market ended lower, amid profit booking following yesterday's gain, with banks and financial stocks being major losers as a rise in inflation receding expectations for an early interest rate reduction. Mining and energy shares were also down after drop in oil and metal prices. The benchmark S&P/ASX 200 Index declined 34.80 points, or 0.59%, to 5837.50, while the broader All Ordinaries Index added 31.20 points, or 0.53%, to 5812.80. Market turnover was relatively healthy, with 1.68 billion shares changing hands worth of A$4.79 billion.
The Australian Bureau of Statistics said on Wednesday that domestic consumer prices rose 0.2% in the first quarter from the fourth, and were up 1.3% from a year earlier. The inflation data came above economists' expectations for a rise of 0.1% on month and 1.3% on year. Core inflation, which attempts to strip out extraordinary events such as extreme weather or new taxes, rose by an average 0.6% in the first quarter from the fourth.
With rise in inflation, stronger growth in Sydney housing market and strong-than-expected jobs data, market participants are sceptical over RBA rate cut from an already record low 2.25%.
Financial stocks were down, with top lenders being major losers after slightly higher-than-expected inflation numbers spurred speculation that the Reserve Bank of Australia would delay a rate cut. Commonwealth Bank declined 0.7% to A$91.12, National Australia Bank 1.2% to A$38.11, ANZ Banking Group 0.8% to A$35.49, and Westpac Banking Corp 1.3% to A$38.29.
The insurance sector took a hit amid uncertainty around the damage bill from the Sydney storms. QBE dropped 1.6% to $13.61, IAG fell 1% to $5.87 and Suncorp lost 1.2% to $13.71.
Shares of materials and energy companies were also lower, in sympathy with overnight declines in the prices of iron ore and crude oil. Resource heavyweight BHP Billiton dropped 1.1% to A$30.27 while Rio Tinto fell 0.5% to A$55.20. Fortescue Metals Group jumped 1.9% to A$1.905. Woodside Petroleum dropped 0.5% to A$34.52, Origin Energy lost 2.4% to A$12.26, Oil Search fell 1.6% to A$7.96 and Santos shed 1.8% to A$7.74.
China market surges to fresh seven-year high
Mainland China equity market rocketed to highest level in more than seven-year, amid mounting expectation the government would accelerate monetary stimulus to support the economy. Meanwhile, buying momentum accelerated after the government launched three new free trade zones (FTZs) yesterday after 18 months. Most of the industrial blue-chip stocks advanced, with securities, pipeline transportation, information dissemination and medical equipment companies were among the largest gainers. Stocks of aviation transportation, food and beverage industries were among the lowest gainers. Shanghai Composite Index spurted by 104.87 points, or 2.44% to 4398.49 at the close, its highest level since March 2008. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, jumped 120.65 points, or 2.61%, to 4739.81.
Shares of utility, financial and material companies advanced the most among 10 industry groups. Aluminum Corp increased 4.8%. Huadian Power International Corp. soared 10%. Citic Securities Co., the biggest-listed brokerage, advanced 7.8% after data from China Securities Depository and Clearing Co indicated Chinese investors opened 3.28 million accounts in the week ended April 17, up from 1.68 million a week earlier.
Hang Seng rises 0.3%
Hong Kong stock market ended higher after swinging between gain and loss, thanks to gain in shares of nuclear equipment makers and property developers. The Hang Seng Index ended higher 83.36 points or 0.3% to 27933.85, off an intra-day high of 28048.46 and day low of 27727.86. Turnover increased to HK$187.85 billion from HK$182.96 billion on Tuesday.
Shares of nuclear-energy equipment makers ended sharp higher after reports that China's first domestically designed nuclear reactor, the Hualong 1, scheduled to start construction on May 7. The gain was also propelled by reports that China's agreed to export five nuclear reactors to Pakistan in an investment worth around $15 billion. Shanghai Electric Group jumped 8.8%, Harbin Electric Co rallied 5.5%, Dongfang Electric Corp rose 4.6%, and nuclear-power project developer CGN Power Coclimbed up 6.4%
Chinese developers were higher on Citi Research revised up its assumptions on volume and price for Tier 1/2 cities in 2015. CR Land (01109) and COLI (00688) jumped 5.6% and 5.4% to HK$25.6 and HK$30.4.
Utilities stocks climbed after the NDRC planned to speed up its market reform on energy pricing and broaden coverage. CR Power (00836) was the top blue chip gainer. China Merchants (00144) also jumped 7.4% to HK$34.85.
Alibaba Pictures Group rallied 12.8% after it resumed trading Wednesday, as the company announced it had acquired Guangdong Yueke Software Engineerning Co., one of China's largest cinema-ticketing system suppliers, for 830 million yuan ($133 million).
China Resources Enterprise closed 0.6% up, after soaring 56% the previous day, as the company announced Tuesday it would sell its non-beer assets to the corporate parent for 28 billion yuan.
Sensex closes higher in volatile trade
Indian benchmark indices edged higher after seeing intense volatility during the second half of the trading session. Benchmark indices bounced back soon after extending intraday losses in mid-afternoon trade. Earlier, benchmark indices had extended intraday losses in mid-afternoon trade after India's weather office -- India Meteorological Department -- predicted below normal rains during the June-September southwest monsoon season this year. The barometer index, the S&P BSE Sensex, was provisionally up 226.87 points or 0.82% at 27,902.91.
FMCG stocks edged lower after the India Meteorological Department (IMD) forecast below normal rains this year. Procter & Gamble Hygiene & Health Care (down 2.63%), Colgate Palmolive (India) (down 1.59%), Godrej Consumer Products (down 1.22%), Dabur India (down 1.02%), GlaxoSmithKline Consumer Healthcare (down 0.48%), Nestle India (down 0.45%) and Tata Global Beverages (down 0.27%), edged lower. Britannia Industries (up 0.09%), Marico (up 0.24%), Jyothy Laboratories (up 0.91%), Bajaj Corp (up 2.26%) and Hindustan Unilever (up 3.56%) edged higher.
Wipro edged lower after the company reported a muted 2% year-on-year growth in bottom line in Q4 March 2015 and issued tepid revenue guidance for Q1 June 2015.
L&T advanced 3.42% to Rs 1,747.20 after the company said that its construction division has secured orders worth Rs 2674 crore across various business segments. The announcement was made during trading hours today, 22 April 2015.
Foreign portfolio investors bought Indian shares worth a net Rs 17488.73 crore yesterday, 21 April 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1364.83 crore on yesterday, 21 April 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: South Korea KOSPI fell 0.04% to 2143.89. Taiwan's Taiex index rose 0.83% to 9613. New Zealand NZX50 declined 0.41% to 5793.61. Singapore's Straits Times index slipped 0.35% at 3496.24. Indonesia's Jakarta Composite index fell 0.43% to 5437.12. Malaysia's KLCI was down 0.43% to 1854.77.
Asian stocks continued to draw support from Chinese measures to spur lending and combat a slowing economy. On Sunday, China's central bank cut the reserve requirement ratio for the country's lenders for the second time in two months.
But, swelling fears over the future of Greece in the Eurozone tempered the regional market gain. Greek Prime Minister Alexis Tsipras is expected to meet with German Chancellor Angela Merkel at a summit in Brussels on Thursday, before eurozone finance ministers meet in Riga, Latvia, on Friday. A deal on fresh aid, however, is unlikely to be agreed before the Eurogroup meeting on May 11, a day before Greece must pay 780 million euro ($838 million) due to the International Monetary Fund.
Among Asian bourses
Nikkei climbs 1.1% after trade data
Japanese share market barrelled higher to fresh 15-year high on Wednesday, 22 April 2015, as risk sentiments drew support from official data indicating Japan logged first monthly trade surplus in nearly three years in March. Total of 28 out of 33 TSE sectors ended higher, with shares of Securities & Commodities Futures, Banks, Other Financial Business, Insurance, Air Transportation, Glass & Ceramics Products, Real Estate, Machinery, and utilities issues being major gainers. The benchmark Nikkei 225 index advanced 224 points, or 1.13%, to finish at 20133.90, a new 15-year record high. The broader Topix index of all first-section shares jumped 12.91 points, or 0.8%, to 1621.79.
The Finance Ministry said on Wednesday that Japan's imports dropped 14.5% to 6.7 trillion yen in March from a year earlier. Exports climbed 8.5% to 6.9 trillion yen from a year earlier, leaving first monthly trade surplus of 229.3 billion yen in nearly three years.
Exporters were generally higher due to dollar strength in the international markets, with Panasonic Corp gaining 1.4% and Nikon Corp up adding 2.9%. Sharp Corp rose 1.9% as it looked set to seal a deal for a major cash infusion from its creditors. Shares of Hitachi advanced 3.7% and Mazda Motor Corp rose 1.1%, after reports that robust foreign demand would drive the pair to post record profits for the fiscal year ended in March.
Banks and financial stocks advanced, with Mitsubishi UFJ Financial Group Inc adding 3%, while Mizuho Financial Group Inc rose 2.5% and Sumitomo Mitsui Financial Group Inc rose 3.8%.
Shares of Softbank Corp jumped 1.9% on reports that the Japanese telecom's U.S. unit Sprint Corp would provide network access for Google Inc.'s planned wireless service.
Yahoo Japan Corp climbed up 2.7% on reports that its parent Yahoo Inc. hired advisers to "maximize value" from its holdings in the Japanese web portal.
Australia market dips 0.6%
The Australian share market ended lower, amid profit booking following yesterday's gain, with banks and financial stocks being major losers as a rise in inflation receding expectations for an early interest rate reduction. Mining and energy shares were also down after drop in oil and metal prices. The benchmark S&P/ASX 200 Index declined 34.80 points, or 0.59%, to 5837.50, while the broader All Ordinaries Index added 31.20 points, or 0.53%, to 5812.80. Market turnover was relatively healthy, with 1.68 billion shares changing hands worth of A$4.79 billion.
The Australian Bureau of Statistics said on Wednesday that domestic consumer prices rose 0.2% in the first quarter from the fourth, and were up 1.3% from a year earlier. The inflation data came above economists' expectations for a rise of 0.1% on month and 1.3% on year. Core inflation, which attempts to strip out extraordinary events such as extreme weather or new taxes, rose by an average 0.6% in the first quarter from the fourth.
With rise in inflation, stronger growth in Sydney housing market and strong-than-expected jobs data, market participants are sceptical over RBA rate cut from an already record low 2.25%.
Financial stocks were down, with top lenders being major losers after slightly higher-than-expected inflation numbers spurred speculation that the Reserve Bank of Australia would delay a rate cut. Commonwealth Bank declined 0.7% to A$91.12, National Australia Bank 1.2% to A$38.11, ANZ Banking Group 0.8% to A$35.49, and Westpac Banking Corp 1.3% to A$38.29.
The insurance sector took a hit amid uncertainty around the damage bill from the Sydney storms. QBE dropped 1.6% to $13.61, IAG fell 1% to $5.87 and Suncorp lost 1.2% to $13.71.
Shares of materials and energy companies were also lower, in sympathy with overnight declines in the prices of iron ore and crude oil. Resource heavyweight BHP Billiton dropped 1.1% to A$30.27 while Rio Tinto fell 0.5% to A$55.20. Fortescue Metals Group jumped 1.9% to A$1.905. Woodside Petroleum dropped 0.5% to A$34.52, Origin Energy lost 2.4% to A$12.26, Oil Search fell 1.6% to A$7.96 and Santos shed 1.8% to A$7.74.
China market surges to fresh seven-year high
Mainland China equity market rocketed to highest level in more than seven-year, amid mounting expectation the government would accelerate monetary stimulus to support the economy. Meanwhile, buying momentum accelerated after the government launched three new free trade zones (FTZs) yesterday after 18 months. Most of the industrial blue-chip stocks advanced, with securities, pipeline transportation, information dissemination and medical equipment companies were among the largest gainers. Stocks of aviation transportation, food and beverage industries were among the lowest gainers. Shanghai Composite Index spurted by 104.87 points, or 2.44% to 4398.49 at the close, its highest level since March 2008. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, jumped 120.65 points, or 2.61%, to 4739.81.
Shares of utility, financial and material companies advanced the most among 10 industry groups. Aluminum Corp increased 4.8%. Huadian Power International Corp. soared 10%. Citic Securities Co., the biggest-listed brokerage, advanced 7.8% after data from China Securities Depository and Clearing Co indicated Chinese investors opened 3.28 million accounts in the week ended April 17, up from 1.68 million a week earlier.
Hang Seng rises 0.3%
Hong Kong stock market ended higher after swinging between gain and loss, thanks to gain in shares of nuclear equipment makers and property developers. The Hang Seng Index ended higher 83.36 points or 0.3% to 27933.85, off an intra-day high of 28048.46 and day low of 27727.86. Turnover increased to HK$187.85 billion from HK$182.96 billion on Tuesday.
Shares of nuclear-energy equipment makers ended sharp higher after reports that China's first domestically designed nuclear reactor, the Hualong 1, scheduled to start construction on May 7. The gain was also propelled by reports that China's agreed to export five nuclear reactors to Pakistan in an investment worth around $15 billion. Shanghai Electric Group jumped 8.8%, Harbin Electric Co rallied 5.5%, Dongfang Electric Corp rose 4.6%, and nuclear-power project developer CGN Power Coclimbed up 6.4%
Chinese developers were higher on Citi Research revised up its assumptions on volume and price for Tier 1/2 cities in 2015. CR Land (01109) and COLI (00688) jumped 5.6% and 5.4% to HK$25.6 and HK$30.4.
Utilities stocks climbed after the NDRC planned to speed up its market reform on energy pricing and broaden coverage. CR Power (00836) was the top blue chip gainer. China Merchants (00144) also jumped 7.4% to HK$34.85.
Alibaba Pictures Group rallied 12.8% after it resumed trading Wednesday, as the company announced it had acquired Guangdong Yueke Software Engineerning Co., one of China's largest cinema-ticketing system suppliers, for 830 million yuan ($133 million).
China Resources Enterprise closed 0.6% up, after soaring 56% the previous day, as the company announced Tuesday it would sell its non-beer assets to the corporate parent for 28 billion yuan.
Sensex closes higher in volatile trade
Indian benchmark indices edged higher after seeing intense volatility during the second half of the trading session. Benchmark indices bounced back soon after extending intraday losses in mid-afternoon trade. Earlier, benchmark indices had extended intraday losses in mid-afternoon trade after India's weather office -- India Meteorological Department -- predicted below normal rains during the June-September southwest monsoon season this year. The barometer index, the S&P BSE Sensex, was provisionally up 226.87 points or 0.82% at 27,902.91.
FMCG stocks edged lower after the India Meteorological Department (IMD) forecast below normal rains this year. Procter & Gamble Hygiene & Health Care (down 2.63%), Colgate Palmolive (India) (down 1.59%), Godrej Consumer Products (down 1.22%), Dabur India (down 1.02%), GlaxoSmithKline Consumer Healthcare (down 0.48%), Nestle India (down 0.45%) and Tata Global Beverages (down 0.27%), edged lower. Britannia Industries (up 0.09%), Marico (up 0.24%), Jyothy Laboratories (up 0.91%), Bajaj Corp (up 2.26%) and Hindustan Unilever (up 3.56%) edged higher.
Wipro edged lower after the company reported a muted 2% year-on-year growth in bottom line in Q4 March 2015 and issued tepid revenue guidance for Q1 June 2015.
L&T advanced 3.42% to Rs 1,747.20 after the company said that its construction division has secured orders worth Rs 2674 crore across various business segments. The announcement was made during trading hours today, 22 April 2015.
Foreign portfolio investors bought Indian shares worth a net Rs 17488.73 crore yesterday, 21 April 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1364.83 crore on yesterday, 21 April 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: South Korea KOSPI fell 0.04% to 2143.89. Taiwan's Taiex index rose 0.83% to 9613. New Zealand NZX50 declined 0.41% to 5793.61. Singapore's Straits Times index slipped 0.35% at 3496.24. Indonesia's Jakarta Composite index fell 0.43% to 5437.12. Malaysia's KLCI was down 0.43% to 1854.77.
