Investors around the region were cheering the Chinese trade data which far exceeded expectations, helping relieve worries about slower growth in Asia's economic powerhouse. China Custom department reported much better than expected trade results for July early today (August 8, 2013), marking a sharp recovery from the previous month. China exports rose 5.1%, swinging from June's 3.1% fall. Imports, which had dropped 0.7% in June, showed a 10.9% leap for July. China's politically sensitive global trade surplus narrowed to $17.8 billion. The results far exceeded market expectations.
However, gains on the upside were largely capped amid lingering speculation that the Fed would start reducing its monthly bond purchases after encouraging economic data and more official comments regarding Fed's tapering.
Fed Bank of Cleveland President Sandra Pianalto said on Wednesday that there has been meaningful improvement in the labor market and that tapering may be warranted if it continues to strengthen. Fed policy makers are weighing data to determine whether the economy has improved enough to begin reducing its $85 billion in monthly bond purchases.
Chicago Federal Reserve Bank President Charles Evans said on Tuesday that the Fed is quite likely to dial back its aggressive monthly bond purchases later this year, and that stronger economic data would be key factor for his voting in favor reducing the size of the program.
Atlanta Fed Lockhart also said Fed could start dialing back the asset purchase as soon as in September but he's quite prepared to delay or even reconsider the timing if there is deterioration from this point.
Among Asia Pacific bourses, shares in Australian market advanced, with strong earnings from Telstra Corp and better than expected China's trade data lifting shares. The benchmark S&P/ASX200 index jumped 53.5 points to 5064.8, while the broader All Ordinaries gained 50.5 points to 5047.1.
More From This Section
Telstra shares rose 2.4% to A$5.13, coming near their highs for the calendar year, after Australia's largest Telco lifted its FY13 earnings by 12.9% to $3.9 billion. Stronger sales of smartphones helped lift revenue by 1.9% to A$26 billion. As expected and previously flagged, TLS said it will pay shareholders a final dividend of 14c per share, taking total dividend payments to 28c.
Rio Tinto shares rose 1.5% to A$59.48 after reporting first half results that met market expectation. Mining giant 1H net earnings came in at A$1.72 billion, down 71%. 1H underlying earnings came in at A$4.2 billion, down 18% and in line with expectations. RIO declared a 1H dividend of 83.5 cent per share, an increase of 15% on the prior corresponding period.
Japan's Nikkei Stock Average ended 1.59% lower at 13605.56, extending yesterday's 4% loss, as steep selling pressure in late trading washed out initial gain buoyed by bargain-hunting. The benchmark index touched intraday high of 14031.14 and low of 13556.65 during the trade. The benchmark index briefly surged almost 200 points to top 14,000. However, the decline in local market came late afternoon on tracking selling in stock index futures.
Speculative futures selling was continuing for straight second day in Tokyo on caution ahead of the calculation for the liquidation price for the August contract for stock index futures and options, scheduled for Friday, triggered selling in cash stocks to unwind arbitrage positions, pushing the Nikkei average down into red terrain.
Kubota advanced 1.6% to 1,427 yen after reporting better than expected profit numbers for the first quarter ended June 30, 2013. Revenues of Kubota Corp increased by 30.7% YoY to 361.8 billion yen. Operating income increased by 49.5% to 47.1 billion yen due to the effects of yen depreciation and increased revenues. Net income attributable to Kubota Corp increased by 14.8 billion yen or 91.9 % to 30.8 billion yen.
Japan's government said on Thursday that the combined primary budget deficit for the central and regional governments in fiscal 2015 is estimated to fall to Y17.1 trillion, or 3.3% of nominal GDP.
Japan's central bank said its board voted unanimously to keep the existing policy in place after a two-day policy meeting.
China stock market ended lower after paring back initial gains, as investors turned cautious before the release of factory output and inflation data tomorrow. Shanghai Composite Index fell 0.1% to 2,044.90 at the close
Shares of Rare-earth companies rose in Shanghai after the Ministry of Industry and Information Technology announced a plan to crack down on illegal exploration of rare earth from Aug. 15 to Nov. 15. Rare-earth companies will be ordered to halve production should output exceed plans. Baotou Rare-Earth gained 1.6% to 25.60 yuan. China Minmetals Rare Earth Co added 1.6% to 23.99 yuan.
Hong Kong's share market ended higher for the first time in three sessions, aided by strong monthly trade data from China. Hang Seng Index closed 67 points higher at 21655. The benchmark index rose more than 200 points at one stage after the combined losses of 633 points over the past two trading days.
Among the 50 HK blue chips, 35 rose, while 13 fell and remaining 2 ended steady. Sino Land softened 1.3% to HK$10.8, while Belle jumped 3.3% to HK$11.34, making themselves the biggest blue-chip loser and winner. Market heavyweights were firmer. Shares of banking heavyweight HSBC Holdings PLC rose 0.18% and China Coal Energy Co gained 2.45%, while footwear major Belle International Holdings jumped 3.28%. China Unicom added 2.7% to HK$11.54 after the SASAC announced its interim earnings earlier than the scheduled time. Mid and medium-sized local banks soared after Yuexiu Group was said to buy CHONG HING BANK yesterday. CHONG HING BANK shot up 17.15%, LIU CHONG HING jumped 17.42%.
Indian stock extended gains to hit fresh intraday high in mid-afternoon trade as European stocks rose after Chinese trade data for July 2013 signaled improvement in economic conditions for the world's second biggest economy. The S&P BSE Sensex was up 122.82 points or 0.66%, off close to 25 points from the day's high and up about 170 points from the day's low.
Indian realty stocks gained for the second straight day. Mining and metal stocks rose after China reported much better than expected trade results for July. Ranbaxy Laboratories extended intraday gain triggered by the company reporting improved Q2 results after trading hours on Wednesday, 7 August 2013. Asian Paints rose after completing acquisition of majority stake in Sleek Group. Cipla extended intraday gains ahead of its Q1 results tomorrow, 9 August 2013.
Elsewhere, Indonesia's Jakarta Composite rose 0.36% and South Korea's KOSPI added 0.3%, while New Zealand's NZX50 fell 0.15% and Taiwan's Taiex fell 0.17%. share market in Malaysia and Singapore closed today.
Powered by Capital Market - Live News