Asia Pacific share market ended last trading session of the week higher,
Friday, 28 August 2015, taking heart from a strong rally in the U.S.
markets after unexpectedly robust U.S. economic growth in the second
quarter and amid signals from the Federal Reserve that an interest-rate
increase looks less likely in the coming weeks.
The Wall Street's more than 2% gains on Thursday after better than expected economic data. The Commerce Department reported that the US economy grew at an annual rate of 3.7% in the second quarter, much higher than the 2.3% initially estimated. Initial jobless claims dropped by 6,000 for the week ending in 22 August 2015 to a seasonally adjusted 271,000, according to the Department of Labor. Together, the brighter reports may be giving investors confidence that the US economy could withstand a continuing slowdown in China.
New York Fed's William Dudley suggested that a rate hike in September appeared less likely now. According to him, "the decision to begin the normalization process at the September FOMC meeting seems less compelling to me than it was a few weeks ago". He noted that "normalization could become more compelling by the time of the meeting as we get additional information on how the US economy is performing, and more information on international and financial market developments". Dudley, however, remained hopeful about beginning the tightening cycle this year. He hoped that "we can raise interest rates this year, because that would be a sign that the US economic outlook is good and that we're actually on track to achieve our dual mandate objective.
US Fed official Esther George (non-voting member) said it's too soon to tell whether market volatility is going to affect the U.S. economy, adding that “At this point, I have not seen something that would change my own sense of how the economy is doing” The weekend will bring the Federal Reserve's annual conference in Jackson Hole, Wyo., where the central bank might offer fresh clues about a possible interest-rate hike. Kansas City Fed President Esther George yesterday, 27 August 2015, said the market turmoil complicates any decision to raise rates. Yet, she repeated her long-held call for a rate increase.
Among Asian bourses
Nikkei reclaims 19K mark
Japanese share market advanced for third straight day, as risk sentiments bolstered by tracking a second day of gains in U.S. markets and yen depreciation against dollar. Sentiment also got a lift by speculation of more stimulus from Japan central bank after official data showed that Japanese inflation fell back to zero in July while household spending dropped again.
Australian market rises another 0.6%
The Australian share market finished last trading session of the week firmly higher, following rally on the Wall Street overnight. Sentiments also lifted by rebound in crude oil and base metal prices. However, market gains were limited as investors pocketed some gain off the table following recent run and ahead of weekend holiday. The ASX sectors ended mixed, with materials and energy blue chip being winner of the day. The benchmark S&P/ASX 200 index advanced 30.30 points, or 0.58%, to 5263.60 points. The broader All Ordinaries index closed 32.10 points, or 0.61%, higher at 5274.70.
China stocks gain for second day
Mainland China's stock market advanced for second day in row on Friday, 28 August 2015, amid speculation that the government had restarted buying in a bid to boost market confidence. Sentiment also got a lift on news that Chinese pension funds will invest $313 billion in stocks and other assets as soon as possible and reports that Chinese government would ease restriction on property purchases by overseas institutions and individuals. The benchmark Shanghai Composite Index spurted 148.76 points, or 4.82%, to 3232.35. The Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 5.4%, or 94.61 points, to 1846.83. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, gained 6.26%, or 122.63 points, to close at 2082.12.
Hong Kong market closes lower on profit booking
Hong Kong stock market finished the session lower after wiping out intraday gain, dragged down by profit taking pressure late afternoon. Most of the blue-chip declined, with banks and financials led losses which reported virtually no profit growth in the first-half and mounting bad loans, adding to worries that the economy may be at risk of a sharper slowdown than earlier expected. The Hang Seng Index ended lower by 226.15 points, or 1.04%, at 21612.39 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, sank 112.88 points, or 0.54%, to 9750.73 points. Turnover reduced to HK$108.9 billion from HK$134.5 billion on Tuesday. Turnover soared to HK$122.43 billion from HK$109 billion on Wednesday.
Sensex trades firmly higher in afternoon
A bout of volatility was witnessed as Indian benchmark indices regained strength after trimming intraday gains in early afternoon trade. The 50-unit CNX Nifty retained the psychological 8,000 mark. Earlier, the Nifty regained the psychological 8,000 mark after opening with an upward gap on positive cues from global markets. At 12:19 IST, the S&P BSE Sensex was up 403.85 points or 1.54% at 26,635.04. The CNX Nifty was up 127.45 points or 1.6% at 8,076.40.
Reserve Bank of India (RBI) said in its Annual Report for 2014-15 published yesterday, 27 August 2015, that inflation developments will warrant close and continuous monitoring as part of the overall disinflation strategy that requires inflation to be brought down to 5% by January 2017.
There was massive selling of Indian stocks by foreign portfolio investors (FPIs) yesterday, 27 August 2015. FPIs sold shares worth a net Rs 3347.35 crore yesterday, 27 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 2577.06 crore yesterday, 27 August 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 2.5% to 8019.18. South Korea's KOPSI added 1.6% to 1937.67. New Zealand's NZX50 jumped 0.6% to 5670.48. Singapore's Straits Times index added 1.2% at 2979. Indonesia's Jakarta Composite index grew 1% to 4473. Malaysia's KLCI added 0.7% to 1613.29.
The Wall Street's more than 2% gains on Thursday after better than expected economic data. The Commerce Department reported that the US economy grew at an annual rate of 3.7% in the second quarter, much higher than the 2.3% initially estimated. Initial jobless claims dropped by 6,000 for the week ending in 22 August 2015 to a seasonally adjusted 271,000, according to the Department of Labor. Together, the brighter reports may be giving investors confidence that the US economy could withstand a continuing slowdown in China.
New York Fed's William Dudley suggested that a rate hike in September appeared less likely now. According to him, "the decision to begin the normalization process at the September FOMC meeting seems less compelling to me than it was a few weeks ago". He noted that "normalization could become more compelling by the time of the meeting as we get additional information on how the US economy is performing, and more information on international and financial market developments". Dudley, however, remained hopeful about beginning the tightening cycle this year. He hoped that "we can raise interest rates this year, because that would be a sign that the US economic outlook is good and that we're actually on track to achieve our dual mandate objective.
US Fed official Esther George (non-voting member) said it's too soon to tell whether market volatility is going to affect the U.S. economy, adding that “At this point, I have not seen something that would change my own sense of how the economy is doing” The weekend will bring the Federal Reserve's annual conference in Jackson Hole, Wyo., where the central bank might offer fresh clues about a possible interest-rate hike. Kansas City Fed President Esther George yesterday, 27 August 2015, said the market turmoil complicates any decision to raise rates. Yet, she repeated her long-held call for a rate increase.
Among Asian bourses
Nikkei reclaims 19K mark
Japanese share market advanced for third straight day, as risk sentiments bolstered by tracking a second day of gains in U.S. markets and yen depreciation against dollar. Sentiment also got a lift by speculation of more stimulus from Japan central bank after official data showed that Japanese inflation fell back to zero in July while household spending dropped again.
Australian market rises another 0.6%
The Australian share market finished last trading session of the week firmly higher, following rally on the Wall Street overnight. Sentiments also lifted by rebound in crude oil and base metal prices. However, market gains were limited as investors pocketed some gain off the table following recent run and ahead of weekend holiday. The ASX sectors ended mixed, with materials and energy blue chip being winner of the day. The benchmark S&P/ASX 200 index advanced 30.30 points, or 0.58%, to 5263.60 points. The broader All Ordinaries index closed 32.10 points, or 0.61%, higher at 5274.70.
China stocks gain for second day
Mainland China's stock market advanced for second day in row on Friday, 28 August 2015, amid speculation that the government had restarted buying in a bid to boost market confidence. Sentiment also got a lift on news that Chinese pension funds will invest $313 billion in stocks and other assets as soon as possible and reports that Chinese government would ease restriction on property purchases by overseas institutions and individuals. The benchmark Shanghai Composite Index spurted 148.76 points, or 4.82%, to 3232.35. The Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 5.4%, or 94.61 points, to 1846.83. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, gained 6.26%, or 122.63 points, to close at 2082.12.
Hong Kong market closes lower on profit booking
Hong Kong stock market finished the session lower after wiping out intraday gain, dragged down by profit taking pressure late afternoon. Most of the blue-chip declined, with banks and financials led losses which reported virtually no profit growth in the first-half and mounting bad loans, adding to worries that the economy may be at risk of a sharper slowdown than earlier expected. The Hang Seng Index ended lower by 226.15 points, or 1.04%, at 21612.39 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, sank 112.88 points, or 0.54%, to 9750.73 points. Turnover reduced to HK$108.9 billion from HK$134.5 billion on Tuesday. Turnover soared to HK$122.43 billion from HK$109 billion on Wednesday.
Sensex trades firmly higher in afternoon
A bout of volatility was witnessed as Indian benchmark indices regained strength after trimming intraday gains in early afternoon trade. The 50-unit CNX Nifty retained the psychological 8,000 mark. Earlier, the Nifty regained the psychological 8,000 mark after opening with an upward gap on positive cues from global markets. At 12:19 IST, the S&P BSE Sensex was up 403.85 points or 1.54% at 26,635.04. The CNX Nifty was up 127.45 points or 1.6% at 8,076.40.
Reserve Bank of India (RBI) said in its Annual Report for 2014-15 published yesterday, 27 August 2015, that inflation developments will warrant close and continuous monitoring as part of the overall disinflation strategy that requires inflation to be brought down to 5% by January 2017.
There was massive selling of Indian stocks by foreign portfolio investors (FPIs) yesterday, 27 August 2015. FPIs sold shares worth a net Rs 3347.35 crore yesterday, 27 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 2577.06 crore yesterday, 27 August 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 2.5% to 8019.18. South Korea's KOPSI added 1.6% to 1937.67. New Zealand's NZX50 jumped 0.6% to 5670.48. Singapore's Straits Times index added 1.2% at 2979. Indonesia's Jakarta Composite index grew 1% to 4473. Malaysia's KLCI added 0.7% to 1613.29.
