Asia Pacific share market mostly advanced on Wednesday, 24 June 2015,
echoing another bullish session of the offshore markets in overnight
trading on growing optimism that a deal will be reached between Greece
and its creditors.
Risk appetites largely stimulated after Greece's left-wing government expressed confidence that parliament would approve a debt deal with lenders, despite an angry reaction from some of its own lawmakers.
However, gain on the upside was limited on bolstering prospects for lifting benchmark U.S. interest rates this year after slew of upbeat economic data and as Fed Governor Jerome Powell comments that the U.S. economy could be ready for a first rate hike in September followed by a second increase in December.
A statement by Greek Prime Minister Alexis Tsipras on late Wednesday that the some creditors have not accepted any of their proposals as yet also believed to cap markets gain.
Greek Prime Minister Alexis Tsipras told his government today, 24 June 2015, that the country's international creditors have rejected Athens's latest reform proposal, according to media reports, citing a Greek government officials. Greece submitted the proposals early this week in the latest bid to unlock much needed financial aid. Tsipras's comments came before he headed to Brussels for an emergency meeting to discuss the reform measures with the heads of lender institutions. Greece needs a deal to unlock new financing ahead of a 1.54 billion euro ($1.75 billion) debt payment due to the International Monetary Fund at the end of June.
Among Asian bourses
Nikkei attains 18.5 year high
Japanese share market finished the session at its highest level since December 1996, echoing another bullish session of the offshore markets in overnight trading on growing optimism that a deal will be reached between Greece and its creditors. A further weakening of yen against major currency baskets also supported the advance. The Nikkei Stock Average escalated 58.61 points, or 0.28% to 20868.03, its highest closing level since 5 December 1996, when it closed at 20944. The Topix index of all Tokyo Stock Exchange First Section issues jumped 0.21%, or 3.49 points, to close at 1679.89.
Export-related stocks were mostly higher, thanks to slightly weaker yen, with the greenback changing hands for 123.9 yen, softened from its 123.40 yen level at the previous Tokyo stock close. Among blue chips exporters, Nissan Motor Co rose 1.1%, Kyocera Corp added 1.5%, and Alps Electric Co improved 2.4%. Toyo Tire & Rubber Co. climbed 3.6% after its president and other top executives announced their resignation over a fake-data scandal. Sony Corp lost 0.2%, Sharp Corp sank 0.6%, and Panasonic Corp declined 0.2% on reports it was closing its production of fluorescent lights in Indonesia.
Shippers were also higher, echoing gain on the shipping freight rate. The Baltic Dry Index, a gauge of commodity shipping rates, climbed 1.4% on Tuesday to its highest close this year. Mitsui OSK Lines added 1.8%.
Trading house Itochu Corp recovered 2.7% after taking a hit following news late last week that it was booking a roughly $1 billion loss by walking away from its stake in U.S. energy company Samson Resources, which it sold for a nominal price of $1.
The Bank of Japan released minutes of its May meeting Wednesday, which showed many policy makers plan to continue monetary stimulus until Japan's inflation rate stabilizes at 2%.
Australia market extends gains
The Australian share market closed marginally higher after trimming earlier gains, as investors remain cautious ahead of a meeting by euro-zone finance minister where Greece will once again be the focal point. The benchmark S&P/ASX 200 Index added 2.50 points, or 0.04%, to 5686.80, while the broader All Ordinaries Index gained 1.30 points, or 0.02%, to 5672.70. Market turnover was above average with 1.9 billion shares changing hands worth of A$4.80 billion.
Banks and financial stocks mostly advanced on the Greek optimism. Australia & New Zealand Banking Group rose 0.6% to A$33.64, National Australia Bank 0.4% to A$34.52, and Commonwealth Bank of Australia 0.5% to A$87.19, while Westpac Banking Corp fell 0.1% to A$33.70.
Shares of Energy players closed mixed despite Brent crude futures hit their highest level in more than a week overnight, with Woodside Petroleum rising 0.2% to A$36.03, while Beach Energy gained 1.4% to A$1.07 and Santos gained 0.5% to A$8.39.
Materials and resources stocks closed mixed, with Rio Tinto falling 1.2% to A$55.67 and BHP Billiton down 0.2% to A$28.55, but Junior iron ore producer Fortescue Metals Group grew 0.9% to A$2.20 and Oz Minerals jumped 1.6% to A$4.51 on tracking gains in the commodities markets. Gold's lowest close in two weeks saw Newcrest Mining lose 3.3% to A$13.20 and Evolution Mining shed 4.4% to A$1.19.
China market rises 2.5% on funds inflow
The Mainland China share market advanced for second straight session, as funds flow back to the equities market after a flood of new share offerings last week. The gain was backed by return of funds to the stock market after an estimated 6.7 trillion yuan of liquidity was locked up due to initial public offerings last week. Meanwhile, expectations of further easing from the People's Bank of China also supported the advance. The Shanghai Composite Index climbed 113.66 points, or 2.48% to end at 4690.15, extending yesterday's 2.2% jump. The gauge plunged 13% last week, the worst weekly loss since the 2008 global financial crisis.
Shares of power companies were biggest gainers in the Beijing market after Aviate Global LLP said in a June 22 report that power sector will be top area for reform especially electricity prices. Huadian Power International Corp. and Huaneng Power International Inc. jumped by the daily limit of 10%. D Power Development Co. rallied 8.7%.
Energy stocks were also standout, with PetroChina Co. rallying 2.9% after Caixin cited its president as saying the company's first-half profit was better than expected. Sinopec Shanghai Petrochemical Co. soared 10%.
Hong Kong market extends gain
The Hong Kong stock market closed firmer for fourth straight session on Wednesday, 24 June 2015, propelled by an uptick in global sentiment after another bullish session in offshore markets overnight amid growing optimism that a deal will be reached between Greece and its creditors. The Hang Seng Index advanced 71.51 points or 0.26% to finish at 27404.97, off an intra-day high of 27470.50 and day low of 27292.85. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, added 75.3 points, or 0.55%, to 13684.80 points. Turnover reduced to HK$117 billion from HK$136 billion on Tuesday.
Shares of energy companies advanced the most in Hong Kong after U.S. oil futures settled near a two-week high, CNOOC (00883) also put on 2% to HK$11.46. Sinopec (00386) edged up 0.7% to HK$6.83. PetroChina (00857) was up 2.7% to HK$9.1 as Chinese domestic media reported that its interim earnings may close to RMB40 billion.
Dairy counters were lower. Mengniu Dairy (02319) slid 5.8% to HK$39.35. Biostime (01112) also plunged 6.6% to HK$24.05.
China Taiping (00966) surged 4.2% to HK$30.95 as both Credit Suisse and Deutsche Bank are bullish for its outlook.
Tencent (00700) jumped 3.5% to HK$163.7 after Deutsche Bank's bullish comments. The research house derived a target price of HK$178 for the internet giant.
Gome Electrical Appliances Holding closed steady at HK$1.89 after home-appliance retailers announced plans to acquire Beijing-based consumer-electronics retailer Dazhong Electronics for more than 3.8 billion yuan.
China Unicom Hong Kong gained 1.1% to HK$12.56 after reports said the mobile operator may largely cut its international roaming fees this week to win over more customers.
Sensex snaps eight day winning streak, falls 75 points
The Indian markets snapped eight-day winning streak owing to profit booking before the near month expiry that is due on Thursday. A statement by Greek Prime Minister Alexis Tsipras on Wednesday that the some creditors have not accepted any of their proposals as yet is also believed to have rattled the investor community. The Sensex closed 75 points lower at 27,730 and the Nifty fell 21 points lower to shut shop at 8,361.
Selling pressure was visible in most of the sectors. Metals, oil & gas, realty, auto and capital goods indices ended 0.6-1.5% lower. On the other hand, FMCG and healthcare indices closed higher.
Cigarette major ITC edged lower amid volatility after a bulk deal of 7.39 lakh shares was executed on the counter at Rs 316.50 per share at 09:33 IST on BSE.
Tech Mahindra dropped on reports that a foreign brokerage has maintained its 'underweight' stance on the stock.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 0.1% to 9397.31. South Korea's KOSPI rose 0.21% to 2085.53. New Zealand's NZX50 gained 0.06% to 5775.49. Singapore's Straits Times index added 0.35% at 3351.33. Malaysia's KLCI added 0.3% to 1731.68. Indonesia's Jakarta Composite index rose 0.3% to 4953.52.
Risk appetites largely stimulated after Greece's left-wing government expressed confidence that parliament would approve a debt deal with lenders, despite an angry reaction from some of its own lawmakers.
However, gain on the upside was limited on bolstering prospects for lifting benchmark U.S. interest rates this year after slew of upbeat economic data and as Fed Governor Jerome Powell comments that the U.S. economy could be ready for a first rate hike in September followed by a second increase in December.
A statement by Greek Prime Minister Alexis Tsipras on late Wednesday that the some creditors have not accepted any of their proposals as yet also believed to cap markets gain.
Greek Prime Minister Alexis Tsipras told his government today, 24 June 2015, that the country's international creditors have rejected Athens's latest reform proposal, according to media reports, citing a Greek government officials. Greece submitted the proposals early this week in the latest bid to unlock much needed financial aid. Tsipras's comments came before he headed to Brussels for an emergency meeting to discuss the reform measures with the heads of lender institutions. Greece needs a deal to unlock new financing ahead of a 1.54 billion euro ($1.75 billion) debt payment due to the International Monetary Fund at the end of June.
Among Asian bourses
Nikkei attains 18.5 year high
Japanese share market finished the session at its highest level since December 1996, echoing another bullish session of the offshore markets in overnight trading on growing optimism that a deal will be reached between Greece and its creditors. A further weakening of yen against major currency baskets also supported the advance. The Nikkei Stock Average escalated 58.61 points, or 0.28% to 20868.03, its highest closing level since 5 December 1996, when it closed at 20944. The Topix index of all Tokyo Stock Exchange First Section issues jumped 0.21%, or 3.49 points, to close at 1679.89.
Export-related stocks were mostly higher, thanks to slightly weaker yen, with the greenback changing hands for 123.9 yen, softened from its 123.40 yen level at the previous Tokyo stock close. Among blue chips exporters, Nissan Motor Co rose 1.1%, Kyocera Corp added 1.5%, and Alps Electric Co improved 2.4%. Toyo Tire & Rubber Co. climbed 3.6% after its president and other top executives announced their resignation over a fake-data scandal. Sony Corp lost 0.2%, Sharp Corp sank 0.6%, and Panasonic Corp declined 0.2% on reports it was closing its production of fluorescent lights in Indonesia.
Shippers were also higher, echoing gain on the shipping freight rate. The Baltic Dry Index, a gauge of commodity shipping rates, climbed 1.4% on Tuesday to its highest close this year. Mitsui OSK Lines added 1.8%.
Trading house Itochu Corp recovered 2.7% after taking a hit following news late last week that it was booking a roughly $1 billion loss by walking away from its stake in U.S. energy company Samson Resources, which it sold for a nominal price of $1.
The Bank of Japan released minutes of its May meeting Wednesday, which showed many policy makers plan to continue monetary stimulus until Japan's inflation rate stabilizes at 2%.
Australia market extends gains
The Australian share market closed marginally higher after trimming earlier gains, as investors remain cautious ahead of a meeting by euro-zone finance minister where Greece will once again be the focal point. The benchmark S&P/ASX 200 Index added 2.50 points, or 0.04%, to 5686.80, while the broader All Ordinaries Index gained 1.30 points, or 0.02%, to 5672.70. Market turnover was above average with 1.9 billion shares changing hands worth of A$4.80 billion.
Banks and financial stocks mostly advanced on the Greek optimism. Australia & New Zealand Banking Group rose 0.6% to A$33.64, National Australia Bank 0.4% to A$34.52, and Commonwealth Bank of Australia 0.5% to A$87.19, while Westpac Banking Corp fell 0.1% to A$33.70.
Shares of Energy players closed mixed despite Brent crude futures hit their highest level in more than a week overnight, with Woodside Petroleum rising 0.2% to A$36.03, while Beach Energy gained 1.4% to A$1.07 and Santos gained 0.5% to A$8.39.
Materials and resources stocks closed mixed, with Rio Tinto falling 1.2% to A$55.67 and BHP Billiton down 0.2% to A$28.55, but Junior iron ore producer Fortescue Metals Group grew 0.9% to A$2.20 and Oz Minerals jumped 1.6% to A$4.51 on tracking gains in the commodities markets. Gold's lowest close in two weeks saw Newcrest Mining lose 3.3% to A$13.20 and Evolution Mining shed 4.4% to A$1.19.
China market rises 2.5% on funds inflow
The Mainland China share market advanced for second straight session, as funds flow back to the equities market after a flood of new share offerings last week. The gain was backed by return of funds to the stock market after an estimated 6.7 trillion yuan of liquidity was locked up due to initial public offerings last week. Meanwhile, expectations of further easing from the People's Bank of China also supported the advance. The Shanghai Composite Index climbed 113.66 points, or 2.48% to end at 4690.15, extending yesterday's 2.2% jump. The gauge plunged 13% last week, the worst weekly loss since the 2008 global financial crisis.
Shares of power companies were biggest gainers in the Beijing market after Aviate Global LLP said in a June 22 report that power sector will be top area for reform especially electricity prices. Huadian Power International Corp. and Huaneng Power International Inc. jumped by the daily limit of 10%. D Power Development Co. rallied 8.7%.
Energy stocks were also standout, with PetroChina Co. rallying 2.9% after Caixin cited its president as saying the company's first-half profit was better than expected. Sinopec Shanghai Petrochemical Co. soared 10%.
Hong Kong market extends gain
The Hong Kong stock market closed firmer for fourth straight session on Wednesday, 24 June 2015, propelled by an uptick in global sentiment after another bullish session in offshore markets overnight amid growing optimism that a deal will be reached between Greece and its creditors. The Hang Seng Index advanced 71.51 points or 0.26% to finish at 27404.97, off an intra-day high of 27470.50 and day low of 27292.85. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, added 75.3 points, or 0.55%, to 13684.80 points. Turnover reduced to HK$117 billion from HK$136 billion on Tuesday.
Shares of energy companies advanced the most in Hong Kong after U.S. oil futures settled near a two-week high, CNOOC (00883) also put on 2% to HK$11.46. Sinopec (00386) edged up 0.7% to HK$6.83. PetroChina (00857) was up 2.7% to HK$9.1 as Chinese domestic media reported that its interim earnings may close to RMB40 billion.
Dairy counters were lower. Mengniu Dairy (02319) slid 5.8% to HK$39.35. Biostime (01112) also plunged 6.6% to HK$24.05.
China Taiping (00966) surged 4.2% to HK$30.95 as both Credit Suisse and Deutsche Bank are bullish for its outlook.
Tencent (00700) jumped 3.5% to HK$163.7 after Deutsche Bank's bullish comments. The research house derived a target price of HK$178 for the internet giant.
Gome Electrical Appliances Holding closed steady at HK$1.89 after home-appliance retailers announced plans to acquire Beijing-based consumer-electronics retailer Dazhong Electronics for more than 3.8 billion yuan.
China Unicom Hong Kong gained 1.1% to HK$12.56 after reports said the mobile operator may largely cut its international roaming fees this week to win over more customers.
Sensex snaps eight day winning streak, falls 75 points
The Indian markets snapped eight-day winning streak owing to profit booking before the near month expiry that is due on Thursday. A statement by Greek Prime Minister Alexis Tsipras on Wednesday that the some creditors have not accepted any of their proposals as yet is also believed to have rattled the investor community. The Sensex closed 75 points lower at 27,730 and the Nifty fell 21 points lower to shut shop at 8,361.
Selling pressure was visible in most of the sectors. Metals, oil & gas, realty, auto and capital goods indices ended 0.6-1.5% lower. On the other hand, FMCG and healthcare indices closed higher.
Cigarette major ITC edged lower amid volatility after a bulk deal of 7.39 lakh shares was executed on the counter at Rs 316.50 per share at 09:33 IST on BSE.
Tech Mahindra dropped on reports that a foreign brokerage has maintained its 'underweight' stance on the stock.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 0.1% to 9397.31. South Korea's KOSPI rose 0.21% to 2085.53. New Zealand's NZX50 gained 0.06% to 5775.49. Singapore's Straits Times index added 0.35% at 3351.33. Malaysia's KLCI added 0.3% to 1731.68. Indonesia's Jakarta Composite index rose 0.3% to 4953.52.
