Asia Pacific share market advanced on Friday, 18 September 2015, as
appetite for risk assets bolstered after the U.S. Federal Reserve left
rates unchanged, calming the risk of capital outflows from developing
nations. The MSCI Asia Pacific Ex-Japan Index advanced 1.1% to 412.93.
In a speech following the two-day meeting on Thursday, Federal Reserve chair Janet Yellen decided against raising interest rates and left its interest rate target unchanged at zero to 0.25% amid concerns over global economic headwinds, volatility in stock markets and anaemic inflation. The Fed's decision raised the possibility that countries with an easing-bias could consider further cuts.
Referring to the global outlook, Yellen explicitly said the central bank was focusing on the slowdown in China and emerging markets, saying one key issue is whether there might be a risk of a more abrupt slowdown in China.
Meanwhile, in the updated projection, Fed is forecasting federal funds rate to be at 0.4% by the end of 2015. That is, there would still be one rate hike between October and December. Fed funds rate is projected to be at 1.4% in 2016, 2.6% in 2017 and 3.4% in 2018. That was downward revision from June's projection of 0.6% in 2015, 1.6% in 2016 and 2.9% in 2017 respectively.
Unemployment rate projections were generally revised lower, showing Fed's confidence in improvements in the labor markets. Unemployment rate is forecast to be 5.0% in 2015, 4.8% in 2016, 2017 and 2018. That's lower then June's forecast of 5.3% in 2015, 5.1% in 2016 and 5.0% in 2017 respectively. GDP projections were mixed. GDP was projected to grow 2.1% in 2015, 2.3% in 2016, 2.2% in 2017 and 2.0% in 2018, comparing to June's projection of 1.9% in 2015, 2.5% in 2016 and 2.3% in 2017.
Among Asian bourses
Australian market extends gain
The Australian share market advanced for third consecutive session, as risk sentiments improved after the US Fed kept the interest rates on hold at its latest policy meeting. The gain was also bolstered after the governor of the Reserve Bank presented an optimistic view about the Australian economy. The decision boosted the demand for major bullion, big banks, property trusts, and industrial stocks. The benchmark S&P/ASX 200 index advanced 23.70 points, or 0.46%, to 5170.50 points. The broader All Ordinaries index ended up 23.10 points, or 0.45%, at 5194.30.
Nikkei tumbles on stronger yen
The Japanese share market finished the session deeply in sea of red, as risk aversion selloff triggered on stronger yen, disappointing trade data and Standard & Poor's Japan's long-term credit rating cut. All but one of the 33 Topix's industry groups ended down, with Insurance, Iron & Steel, Glass & Ceramics Products, Land Transportation, Banks, Warehousing & Harbor Transportation Services, and Chemicals issues being major decliners. The Nikkei Stock Average dropped 362.06 points, or 1.96%, to end at 18070.21 points. The broader Topix index dropped 2%, or 29.53 points, to 1462.38 at the close in Tokyo. The Japan market lost 1.2% this week. The Japanese share market will shut from Monday through Wednesday for holidays.
China market ends modestly up
The Mainland China's stock market ended modest higher, joining regional rally, after the Federal Reserve decided to hold off on its first rate hike in nearly a decade. However, market gains were limited amid concern government intervention will fail to shore up the world's second-largest stock market as signs grow the economic slowdown is deepening. The Shanghai Composite Index rose 0.38%, or 11.86 points, to 3097.92 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 1.25%, or 20.68 points, to 1679.09. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, was up 2.59%, or 50 points, to close at 1983.30. The Shanghai Composite Index dropped 3.2% this week.
Hong Kong market ends higher
Hong Kong stock market ended firmer on relief after the Fed decided to keep interest rate steady. But gains were capped by renewed concerns about the health of the global economy, in particular China. The benchmark Hang Seng Index (HSI) opened down 47 points and quickly reversed its downtrend. The Hang Seng Index added 66.20 points, or 0.3%, at 21920.83 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, grew 64.21 points, or 0.64%, to 10028.38 points. Turnover increased to HK$95.53 billion from HK$89.9 billion on Thursday.
Sensex trims gains late afternoon
Key benchmark indices trimmed intraday gains in afternoon trade after European stocks edged lower in early trade there. At 13:17 IST, the barometer index, the S&P BSE Sensex, was up 437.05 points or 1.68% at 26,401.02. The 50-unit CNX Nifty was up 131.95 points or 1.67% at 8,031.10.
The Reserve Bank of India (RBI) has granted in-principle approval to 10 applicants to set up small finance banks under the "Guidelines for Licensing of Small Finance Banks in the private sector" (Guidelines) issued on 27 November 2014. The in-principle approval granted will be valid for 18 months to enable the applicants to comply with the requirements under the Guidelines and fulfil other conditions as may be stipulated by the RBI.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 0.2% to 8462.14. South Korea's KOPSI jumped 1% to 1995.95. New Zealand's NZX50 gained 0.3% to 5712.05. Singapore's Straits Times index added 0.2% at 2901.54. Indonesia's Jakarta Composite index climbed up 0.5% to 4401.06. Malaysia's KLCI declined 0.3% to 1676.44.
In a speech following the two-day meeting on Thursday, Federal Reserve chair Janet Yellen decided against raising interest rates and left its interest rate target unchanged at zero to 0.25% amid concerns over global economic headwinds, volatility in stock markets and anaemic inflation. The Fed's decision raised the possibility that countries with an easing-bias could consider further cuts.
Referring to the global outlook, Yellen explicitly said the central bank was focusing on the slowdown in China and emerging markets, saying one key issue is whether there might be a risk of a more abrupt slowdown in China.
Meanwhile, in the updated projection, Fed is forecasting federal funds rate to be at 0.4% by the end of 2015. That is, there would still be one rate hike between October and December. Fed funds rate is projected to be at 1.4% in 2016, 2.6% in 2017 and 3.4% in 2018. That was downward revision from June's projection of 0.6% in 2015, 1.6% in 2016 and 2.9% in 2017 respectively.
Unemployment rate projections were generally revised lower, showing Fed's confidence in improvements in the labor markets. Unemployment rate is forecast to be 5.0% in 2015, 4.8% in 2016, 2017 and 2018. That's lower then June's forecast of 5.3% in 2015, 5.1% in 2016 and 5.0% in 2017 respectively. GDP projections were mixed. GDP was projected to grow 2.1% in 2015, 2.3% in 2016, 2.2% in 2017 and 2.0% in 2018, comparing to June's projection of 1.9% in 2015, 2.5% in 2016 and 2.3% in 2017.
Among Asian bourses
Australian market extends gain
The Australian share market advanced for third consecutive session, as risk sentiments improved after the US Fed kept the interest rates on hold at its latest policy meeting. The gain was also bolstered after the governor of the Reserve Bank presented an optimistic view about the Australian economy. The decision boosted the demand for major bullion, big banks, property trusts, and industrial stocks. The benchmark S&P/ASX 200 index advanced 23.70 points, or 0.46%, to 5170.50 points. The broader All Ordinaries index ended up 23.10 points, or 0.45%, at 5194.30.
Nikkei tumbles on stronger yen
The Japanese share market finished the session deeply in sea of red, as risk aversion selloff triggered on stronger yen, disappointing trade data and Standard & Poor's Japan's long-term credit rating cut. All but one of the 33 Topix's industry groups ended down, with Insurance, Iron & Steel, Glass & Ceramics Products, Land Transportation, Banks, Warehousing & Harbor Transportation Services, and Chemicals issues being major decliners. The Nikkei Stock Average dropped 362.06 points, or 1.96%, to end at 18070.21 points. The broader Topix index dropped 2%, or 29.53 points, to 1462.38 at the close in Tokyo. The Japan market lost 1.2% this week. The Japanese share market will shut from Monday through Wednesday for holidays.
China market ends modestly up
The Mainland China's stock market ended modest higher, joining regional rally, after the Federal Reserve decided to hold off on its first rate hike in nearly a decade. However, market gains were limited amid concern government intervention will fail to shore up the world's second-largest stock market as signs grow the economic slowdown is deepening. The Shanghai Composite Index rose 0.38%, or 11.86 points, to 3097.92 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 1.25%, or 20.68 points, to 1679.09. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, was up 2.59%, or 50 points, to close at 1983.30. The Shanghai Composite Index dropped 3.2% this week.
Hong Kong market ends higher
Hong Kong stock market ended firmer on relief after the Fed decided to keep interest rate steady. But gains were capped by renewed concerns about the health of the global economy, in particular China. The benchmark Hang Seng Index (HSI) opened down 47 points and quickly reversed its downtrend. The Hang Seng Index added 66.20 points, or 0.3%, at 21920.83 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, grew 64.21 points, or 0.64%, to 10028.38 points. Turnover increased to HK$95.53 billion from HK$89.9 billion on Thursday.
Sensex trims gains late afternoon
Key benchmark indices trimmed intraday gains in afternoon trade after European stocks edged lower in early trade there. At 13:17 IST, the barometer index, the S&P BSE Sensex, was up 437.05 points or 1.68% at 26,401.02. The 50-unit CNX Nifty was up 131.95 points or 1.67% at 8,031.10.
The Reserve Bank of India (RBI) has granted in-principle approval to 10 applicants to set up small finance banks under the "Guidelines for Licensing of Small Finance Banks in the private sector" (Guidelines) issued on 27 November 2014. The in-principle approval granted will be valid for 18 months to enable the applicants to comply with the requirements under the Guidelines and fulfil other conditions as may be stipulated by the RBI.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 0.2% to 8462.14. South Korea's KOPSI jumped 1% to 1995.95. New Zealand's NZX50 gained 0.3% to 5712.05. Singapore's Straits Times index added 0.2% at 2901.54. Indonesia's Jakarta Composite index climbed up 0.5% to 4401.06. Malaysia's KLCI declined 0.3% to 1676.44.
