Asia Pacific share market mostly advanced on Wednesday, 17 June 2015, as
investors chased for bargain buying following selloff earlier this
week. But gains across the region were limited amid lack of progress in
Greece's debt talk with lenders and on caution before the conclusion of a
U.S. Federal Reserve meeting later in the day.
A two-day meeting of the Federal Open Market Committee (FOMC) to review US monetary policy concludes today, 17 June 2015. The FOMC meeting is being keenly watched for further indication of the timing of an expected rate hike by the US central bank later this calendar year.
Investors continue to watch developments in Greece. Greece Prime Minister Alexis Tsipras accused Greece's creditors yesterday, 16 June 2015, of trying to "humiliate" Greeks with more cuts as he defied a growing drumbeat of warnings that Europe was preparing for his country to leave the euro. The unrepentant address to lawmakers after the collapse of talks with European and International Monetary Fund (IMF) lenders at the weekend was the clearest sign yet that the leftist leader has no intention of making a last-minute U-turn and accepting austerity cuts needed to unlock frozen aid and avoid a debt default within two weeks.
Meanwhile, Austrian chancellor Werner Faymann is due to speak with Tsipras in Athens today, 17 June 2015, in an effort to break the deadlock, according to reports. Greece has a debt repayment of 1.6 billion euros ($1.8 billion) due at the end of this month to the International Monetary Fund after the European nation bundled all its four June repayments into one. Meanwhile, a meeting of eurozone finance ministers is scheduled in Luxembourg tomorrow, 18 June 2015.
Among Asian bourses
Australia market rises 1%
The Australian share market advanced on Wednesday, 17 June 2015, on tracking strong leads from US and European markets overnight, with the big banking stocks being performing robustly after couple of deal news in the financial arena. The benchmark S&P/ASX 200 Index advanced 59.60 points, or 1.08%, to 5595.40, while the broader All Ordinaries Index rose 55.10 points, or 1%, to 5590.30.
Shares of banks and financial players were top gainers in the Sydney market, with Westpac Banking Corp rising 1.8% to A$32.89, on the top of yesterday's 1.7% gain, after announcing plans to sell down its stake in BT Investment Management for up to A$700 million. Australia & New Zealand Banking Group added 2.2% to A$32.89, National Australia Bank 2% to A$33.43 and Commonwealth Bank of Australia 2.4% to A$84.36.
Shares of Alumina dropped 1% to A$1.55 after Credit Suisse cut the shares to neutral after raising them to outperform in April, citing prospects of weaker commodity prices causes turn in sentiment.
Woolworths closed 0.2% down at A$26.80 after the retailer announced the departure of Chief Executive Grant O'Brien, lowered its profit outlook and said it will likely cut about 1,200 jobs.
Nikkei falls for third day
Japanese share market closed down for third straight day, as risk sentiments dragged down by after downbeat export data and on caution before the U.S. Federal Reserve statement and a Bank of Japan policy decision later this week. The Nikkei Stock Average surrendered 38.67 points, or 0.19%, to end at 20219.27, off the intraday high of 20323.08. The Topix index of all Tokyo Stock Exchange First Section issues declined 0.38%, or 6.16 points, to close at 1633.70.
Trade statistics from the Ministry of Finance released on Wednesday, showing Japanese exports grew by 2.4% on year in May, slowing from growth of 8% in April, as shipments to all major regions decelerated on sluggish global growth. Imports fell 8.7% on lower purchases of crude oil, liquefied natural gas and iron ore. As a result, trade deficit worth Y216 billion in May, shrink sharply from Y917.2 billion a year before. It was a shortfall for the second straight month after a deficit of Y55.8 billion in April and a rare surplus in March.
Shares of export-related players extended losses after downbeat May trade data and as the yen slightly appreciated against the dollar. The greenback last quoted at 123.43 yen, down from 123.81 yen in the previous Tokyo stock session. Among major tech and industrial exporters decliner- Toshiba Corp surrendered 1.2%, Nikon Corp 1%, and Fuji Electric Co 2.5%, Sharp Corp 1.2%, and Renesas Electronics Corp 1.8%.
Ryohim Keikaku Co escalated 6.8% after reports that the company planned an India joint venture with that country's Reliance Brands.
Shares of Japan Tobacco Inc rose 1.4% after Deutsche Bank raised its price target on the shares.
Kose gained 4.9% to 9,210 yen after Credit Suisse raised its target price on the stock to 10,200 yen from 8,200 yen.
Toyota Motor Corp declined 1% after expanding its recall by about 1.4 million cars, again due to faulty Takata Corp.
China market rebounds 1.65%
Mainland China share closed higher for the first time in three sessions, as investors chased for bargain buying after falling more than 5% earlier in the week. Buying pressure accelerated further by reports that China saw net capital inflows of around $20 billion in the first five months of the year. The benchmark Shanghai Composite Index rebounded 80.47 points, or 1.65%, to 4967.90, after washing out 5.4% in previous two sessions.
The Chinese market dropped in previous two sessions amid fears of a fresh government crackdown on illegal margin financing and as investor requirements for substantial capital from current equities to prepare for new share offers. The China Securities Regulatory Commission last week approved initial public offerings of 24 companies plus a firm which did not manage to list in the last round. The 25 IPOs will open for subscriptions from today. The new IPO subscriptions are set to lock up 6 trillion yuan (US$966 billion) of funds.
Shares of utilities companies being top gainers in Beijing, led by GD Power Development Co, up 10% daily limit after the Securities Times reported that the company may become the first company to get a license to sell electricity to users.
Bank of Communications climbed after the lender said it will explore adding private capital and giving strategic investors a more effective role.
Hong Kong market climbs 0.7%
The Hong Kong stock market finished higher for the first time this week, as risk sentiments spirited by tracking positive leads from US and European markets overnight and sharp rebound in the Mainland China A-share market today. However, market gain was limited amid caution before Federal Reserve policy meeting outcome later in the day and ahead of a politically sensitive vote in Hong Kong later this week. The Hang Seng Index advanced 187.09 points or 0.7% to finish at 26753.79, off an intra-day high of 26880.79 and day low of 26555.96. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, gained 161.90 points, or 1.22%, to 13414.83 points. Turnover decreased to HK$120.82 billion from HK$123.15 on Tuesday.
Banks and financial stocks were top gainers in the Hong Kong market, with Bank of Communications Co leading the way, up 1.7% after the State Council had approved its reform plan to allow further investment by private capital. China Construction Bank Corp advanced 0.9%, Industrial & Commercial Bank of China 0.6%, Agricultural Bank of China 0.5%, China Merchants Bank Co 2.2%, and Bank of China 2.4%.
Sensex, Nifty hit highest level in almost a week
Indian stock market extended gain in mid-afternoon trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their highest level in almost a week. At 14:17 IST, the S&P BSE Sensex was up 220.40 points or 0.83% at 26,906.91. The Nifty was up 68.30 points or 0.85% at 8,115.60. Index heavyweights HDFC, L&T and Reliance Industries edged higher. Cement stocks gained. Auto stocks also edged higher.
Central Board of Direct Taxes (CBDT) chairman Anita Kapur was quoted as saying at a press conference yesterday, 16 June 2015, that the income tax department would not attempt any coercive recovery of the minimum alternate tax (MAT) demands placed on foreign institutional investors (FIIs).
The India Meteorological Department (IMD) said in its daily monsoon update issued yesterday, 16 June 2015, that the cumulative rainfall during this year's monsoon season was 13% above the Long Period Average (LPA) until 15 June 2015.
Meanwhile, a news agency quoted Arvind Virmani who is a member of the central bank's technical advisory panel as saying that the Reserve Bank of India (RBI) still has scope to cut interest rates by more than a percentage point given the slowdown in inflation.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 0.25% to close at 9189.83. South Korea's KOSPI rose 0.27% to 2034.16. New Zealand's NZX50 lost 0.6% to 5779.26. Singapore's Straits Times index rose 1.26% at 3339.80. Malaysia's KLCI added 0.22% to 1726.04. Indonesia's Jakarta Composite index added 1.33% to 4937.58.
A two-day meeting of the Federal Open Market Committee (FOMC) to review US monetary policy concludes today, 17 June 2015. The FOMC meeting is being keenly watched for further indication of the timing of an expected rate hike by the US central bank later this calendar year.
Investors continue to watch developments in Greece. Greece Prime Minister Alexis Tsipras accused Greece's creditors yesterday, 16 June 2015, of trying to "humiliate" Greeks with more cuts as he defied a growing drumbeat of warnings that Europe was preparing for his country to leave the euro. The unrepentant address to lawmakers after the collapse of talks with European and International Monetary Fund (IMF) lenders at the weekend was the clearest sign yet that the leftist leader has no intention of making a last-minute U-turn and accepting austerity cuts needed to unlock frozen aid and avoid a debt default within two weeks.
Meanwhile, Austrian chancellor Werner Faymann is due to speak with Tsipras in Athens today, 17 June 2015, in an effort to break the deadlock, according to reports. Greece has a debt repayment of 1.6 billion euros ($1.8 billion) due at the end of this month to the International Monetary Fund after the European nation bundled all its four June repayments into one. Meanwhile, a meeting of eurozone finance ministers is scheduled in Luxembourg tomorrow, 18 June 2015.
Among Asian bourses
Australia market rises 1%
The Australian share market advanced on Wednesday, 17 June 2015, on tracking strong leads from US and European markets overnight, with the big banking stocks being performing robustly after couple of deal news in the financial arena. The benchmark S&P/ASX 200 Index advanced 59.60 points, or 1.08%, to 5595.40, while the broader All Ordinaries Index rose 55.10 points, or 1%, to 5590.30.
Shares of banks and financial players were top gainers in the Sydney market, with Westpac Banking Corp rising 1.8% to A$32.89, on the top of yesterday's 1.7% gain, after announcing plans to sell down its stake in BT Investment Management for up to A$700 million. Australia & New Zealand Banking Group added 2.2% to A$32.89, National Australia Bank 2% to A$33.43 and Commonwealth Bank of Australia 2.4% to A$84.36.
Shares of Alumina dropped 1% to A$1.55 after Credit Suisse cut the shares to neutral after raising them to outperform in April, citing prospects of weaker commodity prices causes turn in sentiment.
Woolworths closed 0.2% down at A$26.80 after the retailer announced the departure of Chief Executive Grant O'Brien, lowered its profit outlook and said it will likely cut about 1,200 jobs.
Nikkei falls for third day
Japanese share market closed down for third straight day, as risk sentiments dragged down by after downbeat export data and on caution before the U.S. Federal Reserve statement and a Bank of Japan policy decision later this week. The Nikkei Stock Average surrendered 38.67 points, or 0.19%, to end at 20219.27, off the intraday high of 20323.08. The Topix index of all Tokyo Stock Exchange First Section issues declined 0.38%, or 6.16 points, to close at 1633.70.
Trade statistics from the Ministry of Finance released on Wednesday, showing Japanese exports grew by 2.4% on year in May, slowing from growth of 8% in April, as shipments to all major regions decelerated on sluggish global growth. Imports fell 8.7% on lower purchases of crude oil, liquefied natural gas and iron ore. As a result, trade deficit worth Y216 billion in May, shrink sharply from Y917.2 billion a year before. It was a shortfall for the second straight month after a deficit of Y55.8 billion in April and a rare surplus in March.
Shares of export-related players extended losses after downbeat May trade data and as the yen slightly appreciated against the dollar. The greenback last quoted at 123.43 yen, down from 123.81 yen in the previous Tokyo stock session. Among major tech and industrial exporters decliner- Toshiba Corp surrendered 1.2%, Nikon Corp 1%, and Fuji Electric Co 2.5%, Sharp Corp 1.2%, and Renesas Electronics Corp 1.8%.
Ryohim Keikaku Co escalated 6.8% after reports that the company planned an India joint venture with that country's Reliance Brands.
Shares of Japan Tobacco Inc rose 1.4% after Deutsche Bank raised its price target on the shares.
Kose gained 4.9% to 9,210 yen after Credit Suisse raised its target price on the stock to 10,200 yen from 8,200 yen.
Toyota Motor Corp declined 1% after expanding its recall by about 1.4 million cars, again due to faulty Takata Corp.
China market rebounds 1.65%
Mainland China share closed higher for the first time in three sessions, as investors chased for bargain buying after falling more than 5% earlier in the week. Buying pressure accelerated further by reports that China saw net capital inflows of around $20 billion in the first five months of the year. The benchmark Shanghai Composite Index rebounded 80.47 points, or 1.65%, to 4967.90, after washing out 5.4% in previous two sessions.
The Chinese market dropped in previous two sessions amid fears of a fresh government crackdown on illegal margin financing and as investor requirements for substantial capital from current equities to prepare for new share offers. The China Securities Regulatory Commission last week approved initial public offerings of 24 companies plus a firm which did not manage to list in the last round. The 25 IPOs will open for subscriptions from today. The new IPO subscriptions are set to lock up 6 trillion yuan (US$966 billion) of funds.
Shares of utilities companies being top gainers in Beijing, led by GD Power Development Co, up 10% daily limit after the Securities Times reported that the company may become the first company to get a license to sell electricity to users.
Bank of Communications climbed after the lender said it will explore adding private capital and giving strategic investors a more effective role.
Hong Kong market climbs 0.7%
The Hong Kong stock market finished higher for the first time this week, as risk sentiments spirited by tracking positive leads from US and European markets overnight and sharp rebound in the Mainland China A-share market today. However, market gain was limited amid caution before Federal Reserve policy meeting outcome later in the day and ahead of a politically sensitive vote in Hong Kong later this week. The Hang Seng Index advanced 187.09 points or 0.7% to finish at 26753.79, off an intra-day high of 26880.79 and day low of 26555.96. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, gained 161.90 points, or 1.22%, to 13414.83 points. Turnover decreased to HK$120.82 billion from HK$123.15 on Tuesday.
Banks and financial stocks were top gainers in the Hong Kong market, with Bank of Communications Co leading the way, up 1.7% after the State Council had approved its reform plan to allow further investment by private capital. China Construction Bank Corp advanced 0.9%, Industrial & Commercial Bank of China 0.6%, Agricultural Bank of China 0.5%, China Merchants Bank Co 2.2%, and Bank of China 2.4%.
Sensex, Nifty hit highest level in almost a week
Indian stock market extended gain in mid-afternoon trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their highest level in almost a week. At 14:17 IST, the S&P BSE Sensex was up 220.40 points or 0.83% at 26,906.91. The Nifty was up 68.30 points or 0.85% at 8,115.60. Index heavyweights HDFC, L&T and Reliance Industries edged higher. Cement stocks gained. Auto stocks also edged higher.
Central Board of Direct Taxes (CBDT) chairman Anita Kapur was quoted as saying at a press conference yesterday, 16 June 2015, that the income tax department would not attempt any coercive recovery of the minimum alternate tax (MAT) demands placed on foreign institutional investors (FIIs).
The India Meteorological Department (IMD) said in its daily monsoon update issued yesterday, 16 June 2015, that the cumulative rainfall during this year's monsoon season was 13% above the Long Period Average (LPA) until 15 June 2015.
Meanwhile, a news agency quoted Arvind Virmani who is a member of the central bank's technical advisory panel as saying that the Reserve Bank of India (RBI) still has scope to cut interest rates by more than a percentage point given the slowdown in inflation.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 0.25% to close at 9189.83. South Korea's KOSPI rose 0.27% to 2034.16. New Zealand's NZX50 lost 0.6% to 5779.26. Singapore's Straits Times index rose 1.26% at 3339.80. Malaysia's KLCI added 0.22% to 1726.04. Indonesia's Jakarta Composite index added 1.33% to 4937.58.
