The regional stock market opened on a positive note, on tracking a positive lead from offshore. In the United States the S&P 500 and the Dow Jones Industrial Average both closed at record highs on Monday, while in Europe bond yields sunk to record lows following last week's decision by the European Central Bank to increase its stimulus.
The market participants responded positively to Chinese inflation data released earlier in the day, as it remained well within the governments' comfort zone, giving room for the government to launch fresh stimulus measures if needed to support the economy. China's consumer prices rose 2.5% in May from a year earlier. The producer-price index fell 1.4% after a 2% decline the previous month.
The Asian market benefited further after the People Bank of China statement that it will reduce reserve requirements for some banks by 50 basis points effective June 16. The central bank said reserve-ratio change applied to two-thirds of city commercial banks, 80% of non-county level rural commercial banks and 90% of non-county level rural cooperative banks. The change also covered finance firms and financial-leasing and automobile-financing companies.
Among Asian bourses
Australia market ends flat as data, retailers weigh
Australian share market finished the session slight higher after trimming morning gain during the course of the afternoon trade. The continued appeal of high yielding stocks, such as banks, property trusts and Telstra offset the gloomy mood from a raft of disappointing local economic indicators and profit downgrades from the retailers (The Reject Shop and Pacific Brands Group). The benchmark S&P/ASX200 and the broader All Ordinaries each climbed up 0.1% to 5469.70 and 5448.50, respectively, after having traded as much as 0.6% higher in the morning.
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The Australian stock market opened higher, but, trimmed most of intraday gain after new home loan figures showed the property market boom is cooling off. Home loan approval numbers were flat in April, just shy of the 0.2% rise the market had expected, figures from the Australian Bureau of Statistics showed. The figures confirm that the boom seen in the second half of 2013 was slowing down. The value of total housing finance rose 1.7% in April, seasonally adjusted, to A$27.89 billion, the ABS said. There were 52,109 approvals in the month, compared to 52,104 approvals in March.
Shares of retailers and consumer goods manufacturers declined steeply today in the Sydney market, due to profit downgrades from The Reject Shop (TRS) and Pacific Brands Group (PBG). Shares price of Pacific Brands (PBG) declined 8.9% to A$0.51 after the retailer of work wear and sports clothing, revised down earnings outlook for the year to June to be between A$90-$93 million, from previous guidance, in February, of A$105 million.
The Reject Shop shares ended at A$8.05, a loss of 12% from previous day closure after announcing its net profit in the year to June 30 to be between A$14.5-A$15.5 million, below its previous forecast of between A$17-A$18 million.
Japan stocks drop from 3-month high on profit booking
Japan share market closed lower, dragged down by profit taking after benchmark index had risen to three-month high the previous day. Meanwhile, yen appreciation against the dollar stokes equity selloff sentiment. The benchmark Nikkei 225 index shed 0.85% to finish at 14,994.80, while the Topix index of all first-section shares fell 0.49%, or 6.05 points, to 1,228.73.
Tokyo shares took a positive lead from offshore at the start of the trade. But, the market failed to hold the initial momentum, as profit-taking emerged after the Nikkei hit a three-month high on Monday. A stronger yen also took some air out of yen-sensitive shares with the dollar slipping to 102.26 yen from 102.53 yen on Monday in New York.
Participation levels were relatively thin, totalling 1.98 billion shares traded on the first section of the Tokyo Stock Exchange worth of around 1.73 trillion yen. Traders were awaiting details on the government's corporate tax reform plan after economics minister Akira Amari said he wanted to settle the issue this week.
Sony Corp dipped 0.7% to 1647 yen despite reports on Monday that it has overtaken Nintendo in game console sales during the fiscal year 2013. Nintendo was flat on the news.
Fast Retailing Co fell 1.6% to 34335 yen after announcing will increase prices at its Uniqlo stores by an estimated 5% from August.
China stocks climb up on CPI data, central bank measures
Mainland China share market closed sharp higher on Tuesday, 10 June 2014, helped by better than expected domestic inflation data and the central bank measures to boost lending to smaller companies. The benchmark Shanghai Composite closed 1.08% higher at 2052.53. Market turnover increased to 65.41 billion yuan from Monday's 55.14 billion yuan.
Shares of banks and financial companies climbed up after the central bank released details of measures to boost lending to smaller companies. Industrial & Commercial Bank of China, the nation's biggest bank, gained 1.9% to 3.73 yuan. Industrial Bank Co. added 1.5% to 9.94 yuan.
Brokerages rallied after authorities allowed new share sales to resume. The China Securities Regulatory Commission said yesterday it approved 10 first-time share sales. Citic Securities gained 2.9% to 11.50 yuan. Sinolink Securities Co. jumped 5.5% to 20.38 yuan.
Hong Kong stocks jump on China economic optimism
Hong Kong share market finished the session modest higher on Tuesday, 10 June 2014, extending yesterday's gain, as positive lead from offshore. Meanwhile, risk appetite buying underpinned further after China central bank measures to boost lending to smaller companies spurs optimism that Chinese policy makers will succeed in countering the nation's economic slowdown. The benchmark Hang Seng Index closed 0.86% higher from prior day closure at 23315.74. Turnover increased to HK$60.17 billion from HK$44.09 billion on Monday.
Shares of energy producers climbed up sharply on tracking increase in crude oil prices. World oil prices were higher on Monday in response to strong US and Chinese economic data. Brent crude rose by US$1.38 or 1.3% to US$109.99 a barrel. The US Nymex was up by US$1.75 to US$104.41 a barrel. Sinopec (00386) added 2.52% to HK$7.33. PetroChina (00857) put on 1.2% to HK$9.5. CNOOC (00883) rose 2.4% to HK$13.6.
Mainland lenders were higher on the PBoC's target RRR cut. ABC (01288) added 1.7% to HK$3.69. ICBC (1398) and CCB (00939) gained 1% to HK$5.23 and HK$5.83. BOC (03988) inched up 0.8% to HK$3.73. CQRC Bank (03618) ascended 3.75% to HK$3.6.
Nine Dragons Paper Holdings surged 6.6% to HK$5.49 today after Citigroup Inc. said the reserve ratio reductions will help the paper-making industry by improving liquidity.
SJM Holdings slid 5.2% to HK$19.20 after Macau's biggest casino operator said a regulator is clamping down on China UnionPay Co.'s debit cards on gaming floors. Deutsche Bank AG lowered its estimate for annual Macau casino revenue growth to 12% from 15% on VIP risks and downgraded SJM and Wynn Macau Ltd. to hold from buy
Sensex ends flat
Key benchmark indices finished marginally higher in volatile trade. After hitting another life-time high of 25,711.11 in the opening trade, the S&P BSE Sensex touched an intraday low of 25347.33, due to profit-booking by funds and retail investors. The benchmark index finished the session 3.48 points higher at 25583.69.
Among BSE sectoral indices, realty, oil & gas, capital goods and power indices lost investors' support and were down 2.96%, 0.96%, 0.9% and 0.86%, respectively.
On the other hand, consumer durables and IT indices were the star-performers and were up 3.55% and 2.32%, respectively, followed by TECk 1.98% and healthcare 1.97%.
Infosys, Wipro, Cipla, TCS and Dr Reddy's were the top five Sensex gainers, while the top five losers were BHEL, ONGC, Tata Steel, SSLT and Hero MotoCorp.
Elsewhere in the Asia Pacific region- Taiwan's Taiex index rose 0.65%. South Korea's KOSPI index was up 1.09%. New Zealand's NZX50 fell 0.15%. Singapore's Straits Times index fell 0.34%. Indonesia's Jakarta Composite Index added 1.25%. Malaysia's KLSE Composite jumped 0.69%.
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