Asia Pacific share market recovered some lost ground on Thursday, 13
August 2015, taking heart from a late recovery of US stocks overnight
and from efforts by China's central bank to slow the sharp descent of
the yuan.
An overnight recovery in U.S. stocks helped lift risk sentiments. Many investors expect the global economy is on track to continue expanding, and in a low interest-rate environment, that leaves returns on stocks still relatively appealing.
The onshore yuan rebounded 0.2% to 6.399 against the U.S. dollar, after falling nearly 1% early today as the Chinese central bank's continued effort to guide the yuan lower was met with a milder reaction than previous sessions. China's central bank guided its currency lower for a third day. The People's Bank of China said later that it has the ability to maintain a stable yuan and again dismissed the view that there is any economic basis for continued yuan weakness.
China's central bank said today, 13 August 2015, that there is no basis for further depreciation in the yuan currency given strong economic fundamentals, in a bid to reassure jittery global financial markets after it devalued the currency earlier in the week. The People's Bank of China (PBOC) said that the country's strong economic environment, sustained trade surplus, sound fiscal position and deep foreign exchange reserves provide "strong support" to the exchange rate. China's yuan fell recent days after the PBOC shocked markets by pushing its official guidance rate down 2% on Tuesday, 11 August 2015 the sharpest adjustment in the history of China's foreign exchange market.
The Bank of Korea held interest rates on hold earlier Thursday, despite pressure to weaken the currency to stay competitive against China. Lower interest rates, a form of monetary easing, have the effect of pushing down a nation's currency.
Japanese data released today, 13 August 2015, showed Japan's core machinery orders fell a greater-than-expected 7.9% in June, down for the first time in four months. The Cabinet Office maintained its assessment, saying, "Machinery orders are picking up."
Among Asian bourses
Japan stocks recover on bargain buying
Japanese share market recovered as investors chased for value buying, after selloff in the previous two sessions on concerns about possible decline in inbound tourists from the China and their purchasing power after Chinese central bank devaluation of the yuan. Total of 23 out of 33 TSE sectors advanced, with shares of utilities, transportation, drug-maker, shipping, and mining sectors being major gainers. The Nikkei Stock Average advanced 202.78 points, or 1%, to end at 20595.55 points. The broader Topix index ended 2.20 points, or 0.13%, higher at 1667.95 points.
Australia stocks end slight higher
The Australian share market ended marginally higher, as gains in energy stocks and the miners offsetting hefty falls in Computershare and Telstra. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both rose by 0.1% to 5387.90 points and 5389 points, respectively. Total of 2.1 billion shares were traded today, worth A$5.2 billion. 478 stocks rose, 471 fell and 337 finished unchanged.
China stocks bounce after calming currency woes
Mainland China's stock market ended higher for the first time in three consecutive sessions as yuan showed the first signs of stabilizing today since being allowed to weaken earlier in the week after the central bank signalled support for the currency. The People's Bank of China weakened the yuan by the least in three days today and indicated that it will maintain a "basically stable yuan around a reasonable and balanced level" and normal volatility of the exchange rate. All 10 SSE sectors ended well above the neutral line, with shares of utilities, telecom, materials, industrials, and retailers being major gainers. The benchmark Shanghai Composite Index rebounded 1.76%, or 68.24 points, to end at 3954.56 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, grew 2.21%, or 49.61 points, to 2298.79 points. Total volume of A shares traded in Shanghai was 57.87 billion shares, while Shenzhen volume was 28.70 billion shares.
Hong Kong market regains 0.4%
Hong Kong stock market advanced for the first time this week in volatile trade on tracking rebound in Mainland A-share markets and other regional bourses, after the People's Bank of China (PBOC) reiterated that there was no basis for continued currency depreciation. The Hang Seng Index ended 102.78 points, or 0.43%, higher at 24018.80 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, added 38.13 points, or 0.35%, to 11080.92 points. Turnover reduced to HK$86.8 billion from HK$103 billion on Wednesday.
Sensex edges higher amid volatility
Indian benchmark indices provisionally settled higher in what was a highly volatile trading session. Investors sentiment was lifted on hopes that the Reserve Bank of India (RBI) may cut rates to strengthen economic growth after the macro economic data announced after market hours yesterday, 12 August 2015, showed industrial production registered year-on-year growth of 3.8% in June 2015 and inflation based on the consumer price index (CPI) eased sharply last month to 3.78% from 5.4% in June 2015.
Firmness in European and Asian stocks also supported gains on the domestic bourses. However, gains were curtailed as Prime Minister Narendra Modi's reform agenda suffered a major blow today, 13 August 2015 when lawmakers ended the monsoon parliament session without approving a tax reform bill aimed at boosting economic growth. As per provisional figures, the S&P BSE Sensex was up 132.64 points or 0.48% at 27,644.90. The CNX Nifty was up 32.30 points or 0.39% at 8,381.75.
Foreign portfolio investors (FPIs) sold Indian shares worth a net Rs 1,855.02 crore yesterday, 12 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1223.80 crore yesterday, 12 August 2015, as per provisional data.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index added 0.3% to 8311.74. South Korea's KOSPI jumped 0.4% to 1983.46. New Zealand's NZX50 declined 0.3% to 5737.69. Singapore's Straits Times index rose 1% at 3091.78. Indonesia's Jakarta Composite index jumped 2.3% to 4584.25. Malaysia's KLCI grew 0.7% to 1621.62.
An overnight recovery in U.S. stocks helped lift risk sentiments. Many investors expect the global economy is on track to continue expanding, and in a low interest-rate environment, that leaves returns on stocks still relatively appealing.
The onshore yuan rebounded 0.2% to 6.399 against the U.S. dollar, after falling nearly 1% early today as the Chinese central bank's continued effort to guide the yuan lower was met with a milder reaction than previous sessions. China's central bank guided its currency lower for a third day. The People's Bank of China said later that it has the ability to maintain a stable yuan and again dismissed the view that there is any economic basis for continued yuan weakness.
China's central bank said today, 13 August 2015, that there is no basis for further depreciation in the yuan currency given strong economic fundamentals, in a bid to reassure jittery global financial markets after it devalued the currency earlier in the week. The People's Bank of China (PBOC) said that the country's strong economic environment, sustained trade surplus, sound fiscal position and deep foreign exchange reserves provide "strong support" to the exchange rate. China's yuan fell recent days after the PBOC shocked markets by pushing its official guidance rate down 2% on Tuesday, 11 August 2015 the sharpest adjustment in the history of China's foreign exchange market.
The Bank of Korea held interest rates on hold earlier Thursday, despite pressure to weaken the currency to stay competitive against China. Lower interest rates, a form of monetary easing, have the effect of pushing down a nation's currency.
Japanese data released today, 13 August 2015, showed Japan's core machinery orders fell a greater-than-expected 7.9% in June, down for the first time in four months. The Cabinet Office maintained its assessment, saying, "Machinery orders are picking up."
Among Asian bourses
Japan stocks recover on bargain buying
Japanese share market recovered as investors chased for value buying, after selloff in the previous two sessions on concerns about possible decline in inbound tourists from the China and their purchasing power after Chinese central bank devaluation of the yuan. Total of 23 out of 33 TSE sectors advanced, with shares of utilities, transportation, drug-maker, shipping, and mining sectors being major gainers. The Nikkei Stock Average advanced 202.78 points, or 1%, to end at 20595.55 points. The broader Topix index ended 2.20 points, or 0.13%, higher at 1667.95 points.
Australia stocks end slight higher
The Australian share market ended marginally higher, as gains in energy stocks and the miners offsetting hefty falls in Computershare and Telstra. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both rose by 0.1% to 5387.90 points and 5389 points, respectively. Total of 2.1 billion shares were traded today, worth A$5.2 billion. 478 stocks rose, 471 fell and 337 finished unchanged.
China stocks bounce after calming currency woes
Mainland China's stock market ended higher for the first time in three consecutive sessions as yuan showed the first signs of stabilizing today since being allowed to weaken earlier in the week after the central bank signalled support for the currency. The People's Bank of China weakened the yuan by the least in three days today and indicated that it will maintain a "basically stable yuan around a reasonable and balanced level" and normal volatility of the exchange rate. All 10 SSE sectors ended well above the neutral line, with shares of utilities, telecom, materials, industrials, and retailers being major gainers. The benchmark Shanghai Composite Index rebounded 1.76%, or 68.24 points, to end at 3954.56 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, grew 2.21%, or 49.61 points, to 2298.79 points. Total volume of A shares traded in Shanghai was 57.87 billion shares, while Shenzhen volume was 28.70 billion shares.
Hong Kong market regains 0.4%
Hong Kong stock market advanced for the first time this week in volatile trade on tracking rebound in Mainland A-share markets and other regional bourses, after the People's Bank of China (PBOC) reiterated that there was no basis for continued currency depreciation. The Hang Seng Index ended 102.78 points, or 0.43%, higher at 24018.80 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, added 38.13 points, or 0.35%, to 11080.92 points. Turnover reduced to HK$86.8 billion from HK$103 billion on Wednesday.
Sensex edges higher amid volatility
Indian benchmark indices provisionally settled higher in what was a highly volatile trading session. Investors sentiment was lifted on hopes that the Reserve Bank of India (RBI) may cut rates to strengthen economic growth after the macro economic data announced after market hours yesterday, 12 August 2015, showed industrial production registered year-on-year growth of 3.8% in June 2015 and inflation based on the consumer price index (CPI) eased sharply last month to 3.78% from 5.4% in June 2015.
Firmness in European and Asian stocks also supported gains on the domestic bourses. However, gains were curtailed as Prime Minister Narendra Modi's reform agenda suffered a major blow today, 13 August 2015 when lawmakers ended the monsoon parliament session without approving a tax reform bill aimed at boosting economic growth. As per provisional figures, the S&P BSE Sensex was up 132.64 points or 0.48% at 27,644.90. The CNX Nifty was up 32.30 points or 0.39% at 8,381.75.
Foreign portfolio investors (FPIs) sold Indian shares worth a net Rs 1,855.02 crore yesterday, 12 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1223.80 crore yesterday, 12 August 2015, as per provisional data.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index added 0.3% to 8311.74. South Korea's KOSPI jumped 0.4% to 1983.46. New Zealand's NZX50 declined 0.3% to 5737.69. Singapore's Straits Times index rose 1% at 3091.78. Indonesia's Jakarta Composite index jumped 2.3% to 4584.25. Malaysia's KLCI grew 0.7% to 1621.62.
