Asia pacific share market advanced on Monday, 05 October 2015, after
weak US employment data sparked hopes the Federal Reserve will delay a
long-expected rate rise. Investor sentiment was boosted further by talks
that talks that other central banks, including ECB and BoJ, would
possibly adopt further easing to support economic growth.
Investors' risk appetite atmosphere underpinned after a lacklustre US jobs report increased likelihood that Federal Reserve may delay raising near-zero U.S. interest rates for the rest of the year. The US jobs report showed employers added just 142,000 jobs in September, well below economist expectations of more than 200,000 new jobs.
The weak September job report, with lower than expected headline growth number, downward revision in prior month's figure and zero wage growth, should have dented some expectations of rate hike by Fed in December.
There are a number of central bank activities this week, including RBA rate decision on Tuesday, BoJ rate decision on Wednesday and BoE rate decision on Thursday. Fed will also release FOMC minutes on Thursday.
Investors will be waiting for tomorrow's rates decision by the Reserve Bank of Australia for more guidance on where interest rates are heading. No change to the cash rate is expected but the central bank's statement will be closely scrutinised for any change to its outlook.
The Bank of Japan policy committee will have a two-day meeting on Tuesday and Wednesday and another session on Oct. 30. Given signs of weakness in the Japanese economy, expectations are growing that the Bank of Japan will ease its monetary grip later this month to protect the economy to avoid recession again.
Among Asian bourses
Australian market closes 1.8% up
The Australian share market ended sharply higher, as investors continued hunting for risk assets, after prospects of a near-term interest rate hike by the Federal Reserve ebbed in the wake of Friday's weaker-than-expected U.S. employment data. All ten ASX sectors added weight, with shares in bullion, resources, and oil explorers being top gainers. The benchmark S&P/ASX 200 index and the broader All Ordinaries index both gained 1.9% to 5150.50 points and 5184.10 points, respectively.
Nikkei jumps 1.6%
The Japanese share market ended with strong footing, as investor sentiment was buoyed by hopes the US interest rate would delay a long-expected rate rise for the time being as well as speculation an agreement is imminent in the 12-party Trans-Pacific Partnership trade negotiations. The yen depreciation against the dollar also boosted up buying impetus.
However, market gain was limited on caution ahead of the Bank of Japan policy setting meeting later this week. Total 32 out of 33 first-section sector sub-indexes added strength, with Mining, Wholesale Trade, Pharmaceutical, Machinery, Oil & Coal Products, Air Transportation, and Iron & Steel issues being major gainers. The Nikkei Stock Average advanced 280.36 points, or 1.58%, to end at 18005.49 points, meanwhile the broader Topix index climbed up 1.31%, or 19 points, to 1463.92 at the close.
Hong Kong market raises amid US interest rate bets
Hong Kong stock market advanced on speculation the US Federal Reserve will keep rates near zero longer after weaker-than-expected US jobs data. The Hang Seng Index advanced 348.41 points, or 1.62%, at 21854.50 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, added 197.07 points, or 2.03%, to 9883.71 points. Turnover reduced to HK$75.9 billion from HK$90.95 billion on Friday.
Nifty reclaims 8,000 level
The barometer index, the S&P BSE Sensex, surged 573.82 points or 2.19% at 26,794.77, as per the provisional closing data. The 50-unit CNX Nifty jumped 174.55 points or 2.2% at 8,125.45, as per the provisional closing data. The Nifty surged past the psychological 8,000 level. The rally on the domestic bourses was a part of the rally in global stocks triggered by expectations that the US Federal Reserve will delay the first interest rate hike in almost a decade in the wake of a weak US jobs data for September 2015.
The market sentiment was upbeat as a number of commercial banks have announced a reduction in their base rate during the past few days in the wake of a steeper-than-expected 50 basis points cut in the repo rate announced by the Reserve Bank of India (RBI) after a regular monetary policy review early last week. The base rate is the minimum lending rate charged by a bank. Banks add their spread to the base rate in pricing loans to customers. The reduction in the base rate will bring down interest costs on working capital loans in the coming months.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 0.6% to 8352.36. South Korea's KOPSI soared 0.4% to 1978.25. New Zealand's NZX50 rose 0.7% to 5630.54. Singapore's Straits Times index added 2.1% at 2851.25. Indonesia's Jakarta Composite index ascended 3.2% to 4343.70. Malaysia's KLCI climbed up 1.2% to 1647.59. Financial markets in China closed for a public holiday.
Investors' risk appetite atmosphere underpinned after a lacklustre US jobs report increased likelihood that Federal Reserve may delay raising near-zero U.S. interest rates for the rest of the year. The US jobs report showed employers added just 142,000 jobs in September, well below economist expectations of more than 200,000 new jobs.
The weak September job report, with lower than expected headline growth number, downward revision in prior month's figure and zero wage growth, should have dented some expectations of rate hike by Fed in December.
There are a number of central bank activities this week, including RBA rate decision on Tuesday, BoJ rate decision on Wednesday and BoE rate decision on Thursday. Fed will also release FOMC minutes on Thursday.
Investors will be waiting for tomorrow's rates decision by the Reserve Bank of Australia for more guidance on where interest rates are heading. No change to the cash rate is expected but the central bank's statement will be closely scrutinised for any change to its outlook.
The Bank of Japan policy committee will have a two-day meeting on Tuesday and Wednesday and another session on Oct. 30. Given signs of weakness in the Japanese economy, expectations are growing that the Bank of Japan will ease its monetary grip later this month to protect the economy to avoid recession again.
Among Asian bourses
Australian market closes 1.8% up
The Australian share market ended sharply higher, as investors continued hunting for risk assets, after prospects of a near-term interest rate hike by the Federal Reserve ebbed in the wake of Friday's weaker-than-expected U.S. employment data. All ten ASX sectors added weight, with shares in bullion, resources, and oil explorers being top gainers. The benchmark S&P/ASX 200 index and the broader All Ordinaries index both gained 1.9% to 5150.50 points and 5184.10 points, respectively.
Nikkei jumps 1.6%
The Japanese share market ended with strong footing, as investor sentiment was buoyed by hopes the US interest rate would delay a long-expected rate rise for the time being as well as speculation an agreement is imminent in the 12-party Trans-Pacific Partnership trade negotiations. The yen depreciation against the dollar also boosted up buying impetus.
However, market gain was limited on caution ahead of the Bank of Japan policy setting meeting later this week. Total 32 out of 33 first-section sector sub-indexes added strength, with Mining, Wholesale Trade, Pharmaceutical, Machinery, Oil & Coal Products, Air Transportation, and Iron & Steel issues being major gainers. The Nikkei Stock Average advanced 280.36 points, or 1.58%, to end at 18005.49 points, meanwhile the broader Topix index climbed up 1.31%, or 19 points, to 1463.92 at the close.
Hong Kong market raises amid US interest rate bets
Hong Kong stock market advanced on speculation the US Federal Reserve will keep rates near zero longer after weaker-than-expected US jobs data. The Hang Seng Index advanced 348.41 points, or 1.62%, at 21854.50 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, added 197.07 points, or 2.03%, to 9883.71 points. Turnover reduced to HK$75.9 billion from HK$90.95 billion on Friday.
Nifty reclaims 8,000 level
The barometer index, the S&P BSE Sensex, surged 573.82 points or 2.19% at 26,794.77, as per the provisional closing data. The 50-unit CNX Nifty jumped 174.55 points or 2.2% at 8,125.45, as per the provisional closing data. The Nifty surged past the psychological 8,000 level. The rally on the domestic bourses was a part of the rally in global stocks triggered by expectations that the US Federal Reserve will delay the first interest rate hike in almost a decade in the wake of a weak US jobs data for September 2015.
The market sentiment was upbeat as a number of commercial banks have announced a reduction in their base rate during the past few days in the wake of a steeper-than-expected 50 basis points cut in the repo rate announced by the Reserve Bank of India (RBI) after a regular monetary policy review early last week. The base rate is the minimum lending rate charged by a bank. Banks add their spread to the base rate in pricing loans to customers. The reduction in the base rate will bring down interest costs on working capital loans in the coming months.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 0.6% to 8352.36. South Korea's KOPSI soared 0.4% to 1978.25. New Zealand's NZX50 rose 0.7% to 5630.54. Singapore's Straits Times index added 2.1% at 2851.25. Indonesia's Jakarta Composite index ascended 3.2% to 4343.70. Malaysia's KLCI climbed up 1.2% to 1647.59. Financial markets in China closed for a public holiday.
