Asian stocks commenced trading with firm footing, on tracking a positive finish of Wall Street overnight. Investors in Asia were heartened after the U.S. stock market turned in its longest winning streak in half a year as earnings season kicked off with companies such as toymaker Hasbro and online video service Netflix reporting healthy profits.
But move on the upside was limited as risk sentiments were restrained ahead of a preliminary purchasing managers' index report by HSBC on activity in China's huge manufacturing sector expected Wednesday that could provide further evidence of a slowdown in the world's second-biggest economy.
Also, risk sentiments were quiet amid the tension in Ukraine. The U.S. has warned it will quickly order new economic sanctions on Russian officials and entities if Moscow doesn't follow through on provisions in an accord last week aimed at stemming the crisis.
Among regional bourses, Australian share market finished the session firmly in positive territory in first day of trade after the Easter break, with shares in top lenders, retailers, consumer goods and energy companies led rally. The benchmark S&P/ASX200 rose by 0.46% from prior day to finish at 5479.30, while the broader All Ordinaries added 0.41% to 5467.10.
Shares of Australian banks and financials closed higher. ANZ Banking Group added 1.2% to A$34.28, Commonwealth Bank of Australia 0.6% to A$78.03, Westpac Banking Corp 1% to A$35.29 and National Australia Bank 0.4% to A$35.49.
Shares in retailers and consumer goods companies also finished sharp higher, with supermarket giant Woolworths continued leading rally with a gain of 2.4% to A$37.98 after broker UBS upgrade for the stock from a neutral to a buy in response to an improved earnings outlook for the retail group's stores that also include Big W and Masters. Main rival Wesfarmers, owner of Coles, K-Mart, Target and Bunnings, rose 1.1% to A$43.46.
Oil Search was higher by 0.5% to A$8.68 after announcing its PNG LNG project is running ahead of schedule. The oil company produced 1.68 million barrels of oil equivalent (BOW) in the first quarter of its financial year, a 7.7% annual increase. 1Q revenue fell 3.3% on the year to $170.2 million.
Also Read
Shares of Flight Centre tumbled 2% to A$53.40 on reports the company appealing against the Federal Court's decision to uphold the Australian Competition and Consumer Commission's allegations of price fixing at A$11 million in penalties. The ACCC accused the travel agent of illegally fixing prices for international flights by attempting to collude with Singapore Airlines, Malaysia Airlines and Emirates over a four year period.
In Japan, Japanese share market finished in negative territory after washing out intraday gains during late afternoon, as investors withdrew profit off the table as expectations for more monetary easing from the Bank of Japan waned. The Nikkei 225 index lost 0.85% to finish at 14,388.77, while the Topix index of all first-section shares was off 0.76% to 1,162.50.
Shares of Financial companies were among the hardest hit, harmed by falling hopes for monetary easing owing to the deflationary effects on borrowing trends, as well as on the group's vast holdings of securities. Daiwa Securities Group was down 3% to 788 yen and Nomura Holdings Inc dropped 1.8% to 611 yen. Among banks, Mitsubishi UFJ Financial Group lost 2.3% to 548 yen and Sumitomo Mitsui Financial Group surrendered 1.4% to 4035 yen.
Electronic component maker Yaskawa Electric dropped 5.1% to 1260 yen after announcing fiscal 2014 results and guidance well short of analysts' expectations.
In China, Mainland China share market finished higher for the first time in four consecutive sessions, thanks to gains in financials stocks. However, weakness in technology shares capped move on the upside. The benchmark Shanghai Composite Index, which tracks both A and B shares, closed 7 points higher at 2072.83, after hitting an intraday low of 2047.33.
Shares of banks and financial companies advanced after People's Bank of China announced a 2%age point reduction in reserve-requirement ratios at some rural commercial banks. Citic Bank gained 4.3% to 4.90 yuan. Industrial Bank Co. advanced 3.3% to 10.23 yuan.
Shares of technology companies declined, mobile gaming provider Ourpalm Co. paced declines, with 7.1% drop. Beijing E-Hualu Information Technology Co. tumbled 5.5% while Nanfeng Ventilator Co. lost 4%.
In Hong Kong, shares in city's market finished in negative territory in the first day of trade after the Easter break. The benchmark Hang Seng index was down by 0.13% to 22730.68, while Hang Seng China Enterprises Index declined 0.49% to 10030.72.
The HK shares opened weaker and traded below the neutral line most of the time today, amid concerns about a potential share oversupply in Mainland China market after the securities regulator posted prospectuses for 28 companies over the weekend. Meanwhile PBoC drained again another RMB100bn from the market also weighed on the market sentiment. Further, cautions ahead of China flash factory data for April also dented risk sentiments.
HSBC Holdings Plc and Markit Economics are scheduled to release tomorrow a preliminary reading of China's manufacturing index for April, known as the flash PMI.
Among the HK 50 blue chips, 30 fell and 18 rose, with remaining two stocks closed steady. China Mengniu Dairy Co advanced 3.8% to HK$42.50, contributing 7-points gains to the benchmark Index and becoming the best-performing blue chip.
China Resources Power Holdings Co declined 9.6% to HK$18.98, contributing 12-points losses to the benchmark Index and becoming the worst-performing blue chip, after the Communist Party's Central Commission for Discipline Inspection said in a statement on April 17 that Chairman of China Resources Holdings Co. Song Lin is being probed for suspected disciplinary violations.
China Resources group companies plunged across the board on news that its chief Song Lin was under investigation of serious discipline and law violations. CR Power (00836) slid 9.6% to HK$18.98. CR Resources (00291) retreated 4.2% to HK$21.9. CR Land (01109) dipped 3% to HK$16.26. CR Cement (01313) declined 4.1% to HK$5.82. CR Gas (01193) weakened 2.7% to HK$23.
Lenovo (00992) declined 3.3% to HK$8.97 after Morgan Stanley reduced its target price for the stock. Mengniu Dairy (02319) rebounded 3.8% to HK$42.5.
Hong Kong's seasonally adjusted unemployment rate stood at 3.1% in January - March 2014, same as that in December 2013 - February 2014. The underemployment rate also remained unchanged at 1.2% in the two periods, data from the Census and Statistics Department showed.
In India, headline indices of the Indian stock market ended flat after hitting new record highs for the second straight session, as the momentum waned ahead of the expiry of monthly derivative contracts on Wednesday. The 30-share benchmark Sensex closed 0.03%, or 6.46 points, lower at 22,758.37, while the Nifty lost 0.03%, or 2.30 points, to end at 6,815.35.
South Indian Bank rose 0.81% after the central bank allowed foreign investors to buy shares in South Indian Bank as the foreign shareholding in the bank has gone below caution limit stipulated under the extant FDI policy.
Sesa Sterlite dropped 4% after the company during market hours today, 22 April 2014, said that consequent to the Supreme Court order dated Monday, 21 April 2014, all mining leases in the state of Goa, including those of Sesa Sterlite, have expired in 2007 and that no mining operations can be carried out until renewal/execution of mining lease deeds by the state government.
MRF lost 3.58% to Rs 22,720 on weak Q2 results. MRF's net profit declined 18.86% to Rs 170.87 crore on 13.66% growth in total income to Rs 3309.66 crore in Q2 March 2014 over Q2 March 2013.
Elsewhere in the Asia Pacific region, New Zealand's NZX50 added 0.03%. Taiwan's Taiex index added 0.26%. South Korea's KOSPI index was up 0.25%. Indonesia's Jakarta Composite Index rose 0.12%. Malaysia's KLSE Composite added 0.19%. Singapore's Straits Times index added 0.46%.
Powered by Capital Market - Live News