Headline indices of the Asia pacific share market closed up by half to two percent on Thursday, April 11, 2013, powered by tracking record high finish of the Wall Street overnight and the release of better-than-expected China's credit figures for March. Meanwhile hopes for Japanese central-bank easing also lifted sentiment.
Markets took encouragement from record finish for key U.S. indexes after the minutes from the latest U.S. Federal Reserve's board meeting showed a majority of policymakers in favor of continuing the central bank bond purchases later in the year and halt it altogether by year-end if the labor market improves. However, the meeting came before a government report last week said U.S. payrolls in March expanded at their slowest pace in nine months, a dismal read that could affect future Fed moves.
China saw a large increase in lending in March, with banks extending 1.06 trillion yuan of net new loans, up from 620 billion yuan in February, bolstering expectations that ample liquidity could lend support to the ongoing economic recovery.
Global investors are now awaiting for data on US unemployment-benefit claims amid speculation of continued central-bank stimulus.
In the Asia Pacific market, headline indices on the Tokyo share market closed at best level since July 2008 on Thursday, April 11, 2013, powered by yen weakening against major currencies and positive offshore cues. The Nikkei Stock Average advanced 261.03 points to end the day at 13,549.16, while broader Topix index grew 26.25 points to 1147.29.
Exporters shares were sharp higher as the dollar edged closer to the 100 yen mark, spurring foreign-investor buying in liquid assets. A weaker yen improves the value of overseas earnings at Japanese exporters when repatriated. Canon Inc jumped 4.2% to 3695 yen, Sony Corp 1.6% to 1685 yen, Hitachi 7.4% to 628 yen, and Sharp Corp 7.9% to 313 yen. Honda Motor added 3.1% to A$3945 yen. Nissan Motor Co added 4.4% to 1043 yen, and Toyota Motor Corp 5.8% to 5640 yen.
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Shares in Japanese machinery makers rallied after data showed February core machinery orders rising 7.5% on- month and rebounding from their January fall. Robotic machine-maker Fanuc added 3.6% to 15,800 yen, while construction machinery maker Komatsu rose 5.3% to 2,516 yen.
South Korean shares closed modest higher, with the Kospi Composite added 0.73% to 1,949.80, even though the Bank of Korea disappointed some analysts by keeping its key interest rate at 2.75%. Some were expecting the central bank would lower the rate to spark borrowing and help the economy.
Construction-related and industrial stocks suffered deep losses in Seoul after the Bank of Korea surprised markets by refraining from a widely expected interest-rate cut. Hyundai Engineering & Construction Co slumped 5.2% and Kumho Industrial Co dropped 4.1%. But a 1.3% advance for heavyweight Samsung Electronics Co, along with broad gains for the financial sector, helped the market rebound from early losses.
The Australian share market advanced on Thursday, April 11, 2013, underpinned by tracking record high finish of the Wall Street overnight, with shares in financials, property trusts, retailers, and consumer goods sectors lead rally. The benchmark S&P/ASX200 index bounced39.10 points from prior day to finish at 5007.10, while broader All Ordinaries index grew 36.60 points to close at 5010.30.
Australian lenders stocks ended higher on speculation about another rate cut by central bank after data showed employment fell a steeper-than-expected 36,100 in March. Commonwealth Bank added 1.1% to A$68.05, Australia & New Zealand Banking Group 1.6% to A$28.69, Westpac 1.9% to A$31.53, and National Australia Bank 1.3% to A$31.60.
Shares of consumer goods and retailers went higher in Sydney, led by supermarket operator Woolworths that ended the day 1.4% up at A$34.37 after reporting a 2.5% increase in sales to $14.4 billion, despite challenging retail conditions.
New Zealand shares extended their decline after a stellar first quarter, as the high kiwi dollar weighed on companies with US dollar sales, such as Fisher & Paykel Healthcare. The NZX 50 Index fell 10.524 points, or 0.2%, to 4409.539, retreating from the record high reached at the end of the first quarter. Within the index, 20 stocks fell, 18 rose and 12 were unchanged.
The kiwi dollar traded at a 20-month high of 85.98 US cents and has gained to a post-float high on a trade-weighted basis, reducing the value of firms' offshore sales and boosting importers' use of spot prices to bring in their goods.
China share market closed lower on Thursday, April 11, 2013, with energy, consumer staples, materials, and industrials heavyweights led the fall, thanks to weakness in commodity metal and crude oil prices. Meanwhile gains for banks after new loans and money supply data helped to limit downfall. The Shanghai Composite Index dropped 6.57 points, or 0.3%, to 2,219.55.
Chinese lenders went higher after the People's Bank of China said that March's local-currency loans rose from 620 billion yuan in February. M2 money supply jumped 15.7%, more than the median forecast of 14.6%. Industrial Bank led gains for lenders, advancing 2.3% to 17.65 yuan. Huaxia Bank Co. climbed 0.3% to 10.17 yuan.
Shares of China Eastern Airlines Corp. climbed 2% after receiving the industry regulator's approval to raise funds by issuing new yuan-denominated shares.
Hong Kong share market closed higher after data released by the People's Bank of China showed the country's financial institutions extended 1.06 trillion yuan credit in March, sharply higher than the 620 billion yuan in loans they made in February. Hopes for tax reforms also aided market sentiment, after the State Council China's cabinet on Wednesday decided to implement nationwide a pilot program that replaces a tax on overall sales with a value-added tax. The move is expected to reduce the tax burden on businesses. The benchmark Hang Seng index added 66.71 points or 0.3% from previous session to finish at 22,101.27 on trading turnover of HK$57.96 billion.
Indian benchmark indices edged higher for the second day in a row as firmness in Asian and European stocks boosted sentiment. The barometer index, the S&P BSE Sensex, was provisionally up 110.48 points or 0.6%, up about 125 points from the day's low and off close to 75 points from the day's high. The market breadth was positive. Index heavyweight and cigarette maker ITC edged higher. Another index heavyweight Reliance Industries (RIL) edged lower in volatile trade. IT stocks edged higher ahead of IT major Infosys' Q4 results tomorrow, 12 April 2013. Bank and realty stocks also moved higher.
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