Asia Pacific share market advanced on Wednesday, 23 December 2015, as
risk sentiments boosted up amid growing investor confidence in the U.S.
economy after encouraging US economic data and renewed stimulus chatter
from China.
The positive finish of the U.S. markets overnight set a tone for regional markets today. Wall Street rallied across the board on Tuesday after oil prices recovered slightly and data showed that the U.S. economy grew at a fairly healthy clip in the third quarter. Earlier on Tuesday, the U.S. Commerce Department trimmed third-quarter economic growth to a 2% annual pace from the 2.1% estimated earlier. The Dow Jones industrial average ended up 0.96% at 17417.27. The S&P 500 gained 0.88% to 2038.97 and the Nasdaq Composite added 0.65% to 5001.11.
The US economy grew at a fairly healthy clip in the third quarter as strong consumer and business spending offset efforts by businesses to reduce an inventory glut, underscoring its resilience despite a raft of headwinds. Gross domestic product grew at a 2% annual pace, instead of the 2.1% rate reported last month, the Commerce Department said in its third estimate yesterday.
Sentiments also boosted up on hopes Beijing will push fresh reforms following a weekend policy meeting. Chinese government officials have cleared the way for fresh stimulus measures to halt the worsening economic slowdown in the World's second largest economy.
At the close of a key meeting of China's Communist leadership on 21 December 2015, the government announced a series of reforms, including plans to make China's monetary policy more flexible and to expand the government's budget deficit next year. The raft of measures is expected to provide much needed to support to a painful slowdown in the house building sector in China.
The announcement is the latest from Beijing after it promised last year to let the market play a bigger role in the world's No. 2 economy and implement reforms of bloated state-owned enterprises. It also follows other moves to kick- start slowing growth, including six interest-rate cuts since November last year.
Among Asian bourses
Australia market extends gain to sixth day
Australian share market advanced for sixth-straight session, as appetite for risk assets boosted up amid growing investor confidence in the U.S. and Chinese economies. Total eight out of ten ASX industry group rallied, with shares of material and energy sectors leading advancers. At the close, the benchmark S&P/ASX 200 index ended 25.10 points, or 0.49%, up at 5141.80 points, while the broader All Ordinaries index grew 25.80 points, or 0.5%, to 5193.50 points. The S&P/ASX 200 VIX, which measures the implied volatility of S&P/ASX 200 options, declined 5.13% at 15.99, suggesting 4.6% swing in the equity benchmark index in the next 30 days.
China market falls on profit booking
The Mainland China stock market ended softer after washing out initial gain late afternoon, due to profit booking after the benchmark indices surged to highest level in four-months yesterday. Total 8 out of 10 SSE industry groups declined, with shares of telecom, technology, and material issues led losses. The Shanghai Composite Index decreased 0.43%, or 15.68 points, to close at 3636.09. The Shenzhen Composite Index, which tracks stocks on China's second exchange, declined 1.2%, or 28.56 points, to close at 2351.06. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, dropped 2%, or 55.91 points, to close at 2783.94.
Hong Kong market rises for third day
The Hong Kong stock market advanced for third consecutive session on the back of positive lead from Wall Street overnight and amid renewed stimulus chatter in China. The benchmark Hang Seng Index advanced 210.57 points, or 0.96%, to 22040.59 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, added 151.42 points, or 1.56%, to 9882.95 points.
Sensex, Nifty rebounds as CAD narrows
Indian stock markets were trading higher around late afternoon on positive global cues and due to narrowing current account deficit. Besides, covering-up of short positions by speculators boosted the sentiment. At 13:55 IST, the 30-share BSE index Sensex was up 1% to 25853 and the 50-share NSE index Nifty was up 1% to 7864. All BSE sectoral indices were trading in the green, with shares of metal, oil & gas, power and healthcare issues being major gainers.
The latest data showed that India's current account deficit (CAD) declined to $8.2 billion or 1.6% of GDP in Q2 September 2015 from $10.9 billion or 2.2% of GDP in Q2 September 2014. On sequential basis, the CAD witnessed an increase from $6.1 billion or 1.2%% of GDP in Q1 June 2015. The RBI said that the decline in CAD in Q2 September 2015 on year-on-year basis was primarily on account of lower trade deficit.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 0.3% to 8315.70. South Korea's KOPSI grew 0.3% to 1999.22. New Zealand's NZX50 added 0.8% to 6195.34. Indonesia's Jakarta Composite index fell 0.2% to 4510.35. Malaysia's KLCI jumped 0.9% to 1658.39. Singapore's Straits Times index rose 0.4% at 2863. Japan market closed for a national holiday to celebrate the emperor's birthday.
The positive finish of the U.S. markets overnight set a tone for regional markets today. Wall Street rallied across the board on Tuesday after oil prices recovered slightly and data showed that the U.S. economy grew at a fairly healthy clip in the third quarter. Earlier on Tuesday, the U.S. Commerce Department trimmed third-quarter economic growth to a 2% annual pace from the 2.1% estimated earlier. The Dow Jones industrial average ended up 0.96% at 17417.27. The S&P 500 gained 0.88% to 2038.97 and the Nasdaq Composite added 0.65% to 5001.11.
The US economy grew at a fairly healthy clip in the third quarter as strong consumer and business spending offset efforts by businesses to reduce an inventory glut, underscoring its resilience despite a raft of headwinds. Gross domestic product grew at a 2% annual pace, instead of the 2.1% rate reported last month, the Commerce Department said in its third estimate yesterday.
Sentiments also boosted up on hopes Beijing will push fresh reforms following a weekend policy meeting. Chinese government officials have cleared the way for fresh stimulus measures to halt the worsening economic slowdown in the World's second largest economy.
At the close of a key meeting of China's Communist leadership on 21 December 2015, the government announced a series of reforms, including plans to make China's monetary policy more flexible and to expand the government's budget deficit next year. The raft of measures is expected to provide much needed to support to a painful slowdown in the house building sector in China.
The announcement is the latest from Beijing after it promised last year to let the market play a bigger role in the world's No. 2 economy and implement reforms of bloated state-owned enterprises. It also follows other moves to kick- start slowing growth, including six interest-rate cuts since November last year.
Among Asian bourses
Australia market extends gain to sixth day
Australian share market advanced for sixth-straight session, as appetite for risk assets boosted up amid growing investor confidence in the U.S. and Chinese economies. Total eight out of ten ASX industry group rallied, with shares of material and energy sectors leading advancers. At the close, the benchmark S&P/ASX 200 index ended 25.10 points, or 0.49%, up at 5141.80 points, while the broader All Ordinaries index grew 25.80 points, or 0.5%, to 5193.50 points. The S&P/ASX 200 VIX, which measures the implied volatility of S&P/ASX 200 options, declined 5.13% at 15.99, suggesting 4.6% swing in the equity benchmark index in the next 30 days.
China market falls on profit booking
The Mainland China stock market ended softer after washing out initial gain late afternoon, due to profit booking after the benchmark indices surged to highest level in four-months yesterday. Total 8 out of 10 SSE industry groups declined, with shares of telecom, technology, and material issues led losses. The Shanghai Composite Index decreased 0.43%, or 15.68 points, to close at 3636.09. The Shenzhen Composite Index, which tracks stocks on China's second exchange, declined 1.2%, or 28.56 points, to close at 2351.06. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, dropped 2%, or 55.91 points, to close at 2783.94.
Hong Kong market rises for third day
The Hong Kong stock market advanced for third consecutive session on the back of positive lead from Wall Street overnight and amid renewed stimulus chatter in China. The benchmark Hang Seng Index advanced 210.57 points, or 0.96%, to 22040.59 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, added 151.42 points, or 1.56%, to 9882.95 points.
Sensex, Nifty rebounds as CAD narrows
Indian stock markets were trading higher around late afternoon on positive global cues and due to narrowing current account deficit. Besides, covering-up of short positions by speculators boosted the sentiment. At 13:55 IST, the 30-share BSE index Sensex was up 1% to 25853 and the 50-share NSE index Nifty was up 1% to 7864. All BSE sectoral indices were trading in the green, with shares of metal, oil & gas, power and healthcare issues being major gainers.
The latest data showed that India's current account deficit (CAD) declined to $8.2 billion or 1.6% of GDP in Q2 September 2015 from $10.9 billion or 2.2% of GDP in Q2 September 2014. On sequential basis, the CAD witnessed an increase from $6.1 billion or 1.2%% of GDP in Q1 June 2015. The RBI said that the decline in CAD in Q2 September 2015 on year-on-year basis was primarily on account of lower trade deficit.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 0.3% to 8315.70. South Korea's KOPSI grew 0.3% to 1999.22. New Zealand's NZX50 added 0.8% to 6195.34. Indonesia's Jakarta Composite index fell 0.2% to 4510.35. Malaysia's KLCI jumped 0.9% to 1658.39. Singapore's Straits Times index rose 0.4% at 2863. Japan market closed for a national holiday to celebrate the emperor's birthday.
