Asia Pacific share market advanced on Monday, 11 May 2015, as sentiments
boosted by tracking positive close of offshore markets at the end of
last week and China's central bank interest rates cuts for the third
time in six months to support the world's second-biggest economy.
U.S. stocks finished sharply higher end of last week as investors welcomed a "Goldilocks" jobs report. The Dow Jones Industrial Average led gains with a rise of 1.5%, while the S&P 500 and Nasdaq Composite closed up 1.4 and 1.2%, respectively.
The People's Bank of China (PBOC) announced the cut in its benchmark lending rate and one-year deposit rates by 25 basis points on Sunday, as growth in the Asian economic giant slowed to levels not seen since the global financial crisis. The rate on a one-year loan by commercial banks was down by 0.25%age points to 5.10%. The interest rate paid on a one-year deposit was lowered by 0.25 points to 2.25%. The cuts are expected to reduce financial costs for state companies and are a signal to state-owned banks to boost lending.
Among Asian bourses
Nikkei surges 1.25%
Japanese share market advanced for second straight session, on the back of positive lead from the U.S. markets, firmer US dollar, and upbeat earnings expectations. The benchmark Nikkei 225 index advanced 241.72 points, or 1.25%, to finish at 19620.91. The broader Topix index of all first-section shares ended higher 10.57 points, or 0.67%, up at 1608.67.
Shares of export-related companies were generally higher as the yen was little softer from its level last week. The dollar was buying at Y119.75, up slightly from Y119.69 ahead of the weekend. Wireless telecoms Softbank Corp added 0.6% to Y7400 and KDDI Corp rose 1.7% to Y2868.50 on news reports projecting solid earnings, while rival NTT DoCoMo Inc jumped 2.6% to Y2175. Ball-bearing maker Minebea Co. jumped 8.2% to Y1984 after its profit forecast beat estimates. Mitsubishi Corp. gained 3.2% to Y2643 after the trading company said it plans to buy back as much as 2.8% of shares.
Shares of Japan's Sharp plunged 26.4% to Y190 after weekend media reports that the struggling electronics maker is planning a drastic capital reduction to help wipe away losses. Weekend reports said Sharp plans to reduce its capital by 99% to just Y100 million, the upper limit for the category of small and mid-sized companies with tax advantages. The Osaka-based company also plans to use surplus money squeezed out of the capital reduction to wipe away years of accumulated losses.
Toshiba shares plunged daily limit of 16.6% or Y80 to Y403.30 after the Japanese conglomerate withdrew its earnings forecast and said it won't pay a dividend, citing a probe into accounting irregularities on infrastructure projects. On Friday, Toshiba announced it had cancelled its projection for a 120 billion yen ($1.0 billion) net profit on sales of 6.7 trillion yen in its latest fiscal year to March. The vast engineering conglomerate also warned it may also have to revise past earnings.
Australia market extends fall for fifth day
The Australian share market closed softer in volatile trade, registering fifth session of falling streak, as losses in banks and financials and telecom heavyweight Telstra wiped out initial gain inspired by positive lead form offshore markets and an interest rate cut in China. The benchmark S&P/ASX 200 Index declined 9.40 points, or 0.17%, to 5625.20 while the broader All Ordinaries Index slipped 7.80 points, or 0.14%, to 5627.60. Market turnover was relatively healthy, with 1.88 billion shares changing hands worth of A$4.64 billion.
Financial stocks were biggest drag on the Sydney market, on lingering fears of additional capital requirements. Commonwealth Bank of Australia lost 0.6% to A$82.17 and Westpac Banking Corp dropped 1% to A$33.70. ANZ Banking Group lost 1.3% to A$31.92. National Australia Bank remained in a trading halt because of its capital raising.
Shares of mining companies advanced on firmer prices for some key commodities, with resources giant BHP Billiton up by 1.7% to A$31.82 and Rio Tinto higher by 0.3% to A$58.62. Iron ore miner Fortescue Metals Group was up 2.8% at A$2.57.
Fertilizer and explosives maker Incitec Pivot dived 3.3% to A$3.78 as its 27% gain in first-half profit failed to stoke strong buying interest in the face of a cautious outlook.
China market soars 3.04%
Mainland China equity market spurted today, on the back of central bank step to cut interest rates for the third time in six months to help the sluggish economy. All the SSE sectors advanced with shares of property and infrastructure companies being major gainers. The Shanghai Composite Index advanced 127.67 points, or 3.04%, to finish at 4333.58 points, off an intraday low of 4187.82. The CSI300 index increased 132.13 points, or 2.9, to 4690.53.
Total of nine out of 10 SSE industry groups ended higher, with information technology issue leading rally, with gain of 6.1%, followed by utilities up 4%, healthcare up 4%, consumer discretionary up 3.7%, telecommunication services up 3.4%, energy up 3.1%, materials up 3.1%, industrials up 3%, consumer staples up 2.4%, and financials up 1.9%.
Shares of realty and infrastructure companies ended higher. Shanghai Shimao rose 2.1%, while Poly Real Estate and China Vanke advanced nearly 2%. Huayuan Property Co soared limit-up by 10% and China Calxon Group Co popped 4.4% higher.
Hong Kong market jumps 0.51%
The Hong Kong stock market closed higher for second straight session on Monday, 11 May 2015, on the back of positive lead from offshore markets on Friday and China's central bank interest rates cut for the third time in last six months. The Hang Seng Index added 140.86 points or 0.51% to 27718.20, off an intra-day high of 27837.28 and day low of 27582.23. Turnover reduced to HK$130.97 billion from HK$139.13 billion on Friday.
Shares of Chinese developers benefited the most in Hong Kong market from a rate cut. The People's Bank of China on Sunday announced a quarter-percentage-point cut for both the benchmark deposit and lending rates. COLI (00688) jumped 4% to HK$30.6. CR Land (01109) also put on 2% to HK$27.15. Greenland HK (00337) shot up 4.3% to HK$7.83.
Chinese banks recorded substantial gains across the board, with China Minsheng Banking Corp up 2.2% to HK$11.32, Bank of China up 1.4% to HK$5.22, and Bank of Communications Co up 1.3% to HK$7.71. HSBC dipped 1% to HK$75.75 and StanChart edged down 0.2% to HK$125.2 after Alan Yarrow, the Lord Mayor for the City of London, said that if HSBC were to move its headquarters overseas, it would seriously damage Britain's reputation as a good place to do business. He believes that HSBC (00005) and StanChart (02888) will stay.
Tech stocks extended a previous rally after statement by China's State Council that the nation will “strive to develop the e-commerce industry and cultivate a new impetus to power the economic growth.” A Monday report by the state-run China Fund newspaper that Chinese mutual funds have been doing close research on Internet-finance-related companies may also have helped lift the sector. Tencent Holdings added 3% to HK$158.60, NetDragon Websoft Inc rose 11% to HK$27.75, and rival Baioo Family Interactive surged 9.7% to HK$1.13. Software developer Kingdee International Software Group jumped 6.3% to HK$4.75 and Kingsoft Corp was up 6.1% to HK$28.90.
Automakers were higher after China Association of Automobile Manufacturers (CAAM) announced passenger vehicle sales grew 3.7% to 1.67 million in April. Brilliant China (01114) and BYD (01211) gained 4% to HK$13.9 and HK$49.05.
Sensex gains for second day in a row
Indian stock market logged strong gains on first trading day of the week. The S&P BSE Sensex rose 401.91 points or 1.48% to settle at 27,507.30 and the CNX Nifty gained 133.75 points or 1.63% to settle at 8,325.25.
Metal and mining stocks gained after China cut interest rates for the third time in six months on Sunday, 10 May 2015 to stimulate growth. Pharma shares were in demand on renewed buying. Telecom stocks edged higher. Capital goods stocks also gained. Bank stocks were in demand. Bank of Baroda spurted as bank's bad loans declined sequentially.
Meanwhile, the Narendra Modi government today, 11 May 2015 reportedly decided to send the controversial land acquisition bill to the joint committee of Parliament in view of continued opposition to the proposed legislation. The controversial bill was introduced in the Lok Sabha today amid a huge uproar by the Opposition.
Foreign portfolio investors sold Indian shares worth a net Rs 354.75 crore into secondary equity market on Friday, 8 May 2015, as per data from Central Depository Services (India). Domestic institutional investors (DIIs) sold shares worth a net Rs 1114.38 crore during the previous trading session on Friday, 8 May 2015, as per provisional data.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 0.3% to 9663.72. South Korea's KOSPI added 0.6% to 2097.38. New Zealand's NZX50 added 0.22% to 5747.95. Singapore's Straits Times index rose 0.5% at 3470.80. Malaysia's KLCI dropped 0.1% to 1805.49. Indonesia's Jakarta Composite index sank 0.2% to 5172.48.
U.S. stocks finished sharply higher end of last week as investors welcomed a "Goldilocks" jobs report. The Dow Jones Industrial Average led gains with a rise of 1.5%, while the S&P 500 and Nasdaq Composite closed up 1.4 and 1.2%, respectively.
The People's Bank of China (PBOC) announced the cut in its benchmark lending rate and one-year deposit rates by 25 basis points on Sunday, as growth in the Asian economic giant slowed to levels not seen since the global financial crisis. The rate on a one-year loan by commercial banks was down by 0.25%age points to 5.10%. The interest rate paid on a one-year deposit was lowered by 0.25 points to 2.25%. The cuts are expected to reduce financial costs for state companies and are a signal to state-owned banks to boost lending.
Among Asian bourses
Nikkei surges 1.25%
Japanese share market advanced for second straight session, on the back of positive lead from the U.S. markets, firmer US dollar, and upbeat earnings expectations. The benchmark Nikkei 225 index advanced 241.72 points, or 1.25%, to finish at 19620.91. The broader Topix index of all first-section shares ended higher 10.57 points, or 0.67%, up at 1608.67.
Shares of export-related companies were generally higher as the yen was little softer from its level last week. The dollar was buying at Y119.75, up slightly from Y119.69 ahead of the weekend. Wireless telecoms Softbank Corp added 0.6% to Y7400 and KDDI Corp rose 1.7% to Y2868.50 on news reports projecting solid earnings, while rival NTT DoCoMo Inc jumped 2.6% to Y2175. Ball-bearing maker Minebea Co. jumped 8.2% to Y1984 after its profit forecast beat estimates. Mitsubishi Corp. gained 3.2% to Y2643 after the trading company said it plans to buy back as much as 2.8% of shares.
Shares of Japan's Sharp plunged 26.4% to Y190 after weekend media reports that the struggling electronics maker is planning a drastic capital reduction to help wipe away losses. Weekend reports said Sharp plans to reduce its capital by 99% to just Y100 million, the upper limit for the category of small and mid-sized companies with tax advantages. The Osaka-based company also plans to use surplus money squeezed out of the capital reduction to wipe away years of accumulated losses.
Toshiba shares plunged daily limit of 16.6% or Y80 to Y403.30 after the Japanese conglomerate withdrew its earnings forecast and said it won't pay a dividend, citing a probe into accounting irregularities on infrastructure projects. On Friday, Toshiba announced it had cancelled its projection for a 120 billion yen ($1.0 billion) net profit on sales of 6.7 trillion yen in its latest fiscal year to March. The vast engineering conglomerate also warned it may also have to revise past earnings.
Australia market extends fall for fifth day
The Australian share market closed softer in volatile trade, registering fifth session of falling streak, as losses in banks and financials and telecom heavyweight Telstra wiped out initial gain inspired by positive lead form offshore markets and an interest rate cut in China. The benchmark S&P/ASX 200 Index declined 9.40 points, or 0.17%, to 5625.20 while the broader All Ordinaries Index slipped 7.80 points, or 0.14%, to 5627.60. Market turnover was relatively healthy, with 1.88 billion shares changing hands worth of A$4.64 billion.
Financial stocks were biggest drag on the Sydney market, on lingering fears of additional capital requirements. Commonwealth Bank of Australia lost 0.6% to A$82.17 and Westpac Banking Corp dropped 1% to A$33.70. ANZ Banking Group lost 1.3% to A$31.92. National Australia Bank remained in a trading halt because of its capital raising.
Shares of mining companies advanced on firmer prices for some key commodities, with resources giant BHP Billiton up by 1.7% to A$31.82 and Rio Tinto higher by 0.3% to A$58.62. Iron ore miner Fortescue Metals Group was up 2.8% at A$2.57.
Fertilizer and explosives maker Incitec Pivot dived 3.3% to A$3.78 as its 27% gain in first-half profit failed to stoke strong buying interest in the face of a cautious outlook.
China market soars 3.04%
Mainland China equity market spurted today, on the back of central bank step to cut interest rates for the third time in six months to help the sluggish economy. All the SSE sectors advanced with shares of property and infrastructure companies being major gainers. The Shanghai Composite Index advanced 127.67 points, or 3.04%, to finish at 4333.58 points, off an intraday low of 4187.82. The CSI300 index increased 132.13 points, or 2.9, to 4690.53.
Total of nine out of 10 SSE industry groups ended higher, with information technology issue leading rally, with gain of 6.1%, followed by utilities up 4%, healthcare up 4%, consumer discretionary up 3.7%, telecommunication services up 3.4%, energy up 3.1%, materials up 3.1%, industrials up 3%, consumer staples up 2.4%, and financials up 1.9%.
Shares of realty and infrastructure companies ended higher. Shanghai Shimao rose 2.1%, while Poly Real Estate and China Vanke advanced nearly 2%. Huayuan Property Co soared limit-up by 10% and China Calxon Group Co popped 4.4% higher.
Hong Kong market jumps 0.51%
The Hong Kong stock market closed higher for second straight session on Monday, 11 May 2015, on the back of positive lead from offshore markets on Friday and China's central bank interest rates cut for the third time in last six months. The Hang Seng Index added 140.86 points or 0.51% to 27718.20, off an intra-day high of 27837.28 and day low of 27582.23. Turnover reduced to HK$130.97 billion from HK$139.13 billion on Friday.
Shares of Chinese developers benefited the most in Hong Kong market from a rate cut. The People's Bank of China on Sunday announced a quarter-percentage-point cut for both the benchmark deposit and lending rates. COLI (00688) jumped 4% to HK$30.6. CR Land (01109) also put on 2% to HK$27.15. Greenland HK (00337) shot up 4.3% to HK$7.83.
Chinese banks recorded substantial gains across the board, with China Minsheng Banking Corp up 2.2% to HK$11.32, Bank of China up 1.4% to HK$5.22, and Bank of Communications Co up 1.3% to HK$7.71. HSBC dipped 1% to HK$75.75 and StanChart edged down 0.2% to HK$125.2 after Alan Yarrow, the Lord Mayor for the City of London, said that if HSBC were to move its headquarters overseas, it would seriously damage Britain's reputation as a good place to do business. He believes that HSBC (00005) and StanChart (02888) will stay.
Tech stocks extended a previous rally after statement by China's State Council that the nation will “strive to develop the e-commerce industry and cultivate a new impetus to power the economic growth.” A Monday report by the state-run China Fund newspaper that Chinese mutual funds have been doing close research on Internet-finance-related companies may also have helped lift the sector. Tencent Holdings added 3% to HK$158.60, NetDragon Websoft Inc rose 11% to HK$27.75, and rival Baioo Family Interactive surged 9.7% to HK$1.13. Software developer Kingdee International Software Group jumped 6.3% to HK$4.75 and Kingsoft Corp was up 6.1% to HK$28.90.
Automakers were higher after China Association of Automobile Manufacturers (CAAM) announced passenger vehicle sales grew 3.7% to 1.67 million in April. Brilliant China (01114) and BYD (01211) gained 4% to HK$13.9 and HK$49.05.
Sensex gains for second day in a row
Indian stock market logged strong gains on first trading day of the week. The S&P BSE Sensex rose 401.91 points or 1.48% to settle at 27,507.30 and the CNX Nifty gained 133.75 points or 1.63% to settle at 8,325.25.
Metal and mining stocks gained after China cut interest rates for the third time in six months on Sunday, 10 May 2015 to stimulate growth. Pharma shares were in demand on renewed buying. Telecom stocks edged higher. Capital goods stocks also gained. Bank stocks were in demand. Bank of Baroda spurted as bank's bad loans declined sequentially.
Meanwhile, the Narendra Modi government today, 11 May 2015 reportedly decided to send the controversial land acquisition bill to the joint committee of Parliament in view of continued opposition to the proposed legislation. The controversial bill was introduced in the Lok Sabha today amid a huge uproar by the Opposition.
Foreign portfolio investors sold Indian shares worth a net Rs 354.75 crore into secondary equity market on Friday, 8 May 2015, as per data from Central Depository Services (India). Domestic institutional investors (DIIs) sold shares worth a net Rs 1114.38 crore during the previous trading session on Friday, 8 May 2015, as per provisional data.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 0.3% to 9663.72. South Korea's KOSPI added 0.6% to 2097.38. New Zealand's NZX50 added 0.22% to 5747.95. Singapore's Straits Times index rose 0.5% at 3470.80. Malaysia's KLCI dropped 0.1% to 1805.49. Indonesia's Jakarta Composite index sank 0.2% to 5172.48.
