Headline indices of the Asia Pacific market advanced on Tuesday, July 23, 2013, aided by tracking positive finish of Wall Street overnight, expectations China's will fine-tune its policies to support its economic growth and as the Japanese government upgraded its view of the economy for a third straight month.
Asia Pacific market commenced trading with firm footing, buoyed by tracking positive finish of offshore bourses. The US market eked out marginal gains on Monday, with the S&P 500 closing at a new high.
The gains in the regional bourses underpinned further on fading fears of a sharp economic slowdown in China. Investors are expecting that Beijing would fine-tune its policies to support China's economic growth on reports cited Premier Li Keqiang as saying that the government would take action to ensure economic growth doesn't fall below 7%. Meanwhile, Chinese Vice Premier Zhang Gaoli said on Monday that policy makers were committed to speeding up economic restructuring and would take steps to support reasonable infrastructure and social-welfare investments.
Further, buying pressure also spirited after the Japan's upgraded its view on the economy for a third straight month on Tuesday, saying deflation was easing and growth was picking up due to massive monetary fiscal stimulus. The comments from the government come after the Bank of Japan this month also used the word recover for the first time since 2011, pointing to a pick-up in investment as well as consumer and business confidence.
Among Asia, Japan stock market advanced for second day, helped by futures buying and as the Cabinet Office upgrade of its assessment of the economy. The benchmark Nikkei 225 index rose 0.82% at 14,778.51, while the Topix index of all first-section shares was up 0.51% at 1,222.72.
Mitsubishi Motors Corp tumbled 3.05% after the Nikkei newspaper reported it will likely post a 7% growth in group operating profit for the quarter ended June 30.
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Tokyo Electric Power Co dropped 6.69% after Kyodo News reported the company admitted that contaminated water from the disaster-struck Fukushima nuclear plant was leaking into the Pacific Ocean.
In Australia, Australian stock market advanced, thanks to a positive finish of Wall Street overnight, strong gains in China and a rally in the gold price. Both the All Ordinaries Index and ASX 200 Index closed above 5000 points, but gains were restricted ahead of the earnings season. The benchmark S&P/ASX200 index advanced 15.20 points, or 0.3%, to 5017.10, while All Ordinaries Index advanced 15.70 points, or 0.31%, to 5,004.60.
Shares of gold miners skyrocketed in Sydney on the back of an overnight rally in the precious metal's price. Gold prices jumped more than 3% to above $1,300, in part on expectations of more demand from China. Newcrest Mining was higher by 5.4% to A$12.60 and Kingsgate rose 2.6% to A$1.755.
Fortescue Metals Group shares eased 1.6% to A$3.62 despite the iron ore miner reporting a 41% jump in production last financial year. FMG shipped 25 million tonnes of the commodity in the June quarter, up 24% compared to the previous period.
Fertilizer and explosives manufacturer Incitec Pivot share price closed 0.4% up at A$2.70 after recouping initial fall on news it had closed its Phospate Hill fertilizer plant. The chemicals maker warned of an after tax reduction of A$23.5 million in second-half profit related to an outage at its Phosphate Hill fertilizer plant.
In China, the Chinese market closed sharp higher on the back of broad based bargain buying, led up by heavyweights in the financial, non-ferrous metal and railway firms on renewed speculation of policy easing. The Shanghai Composite Index surged 39.11 points or 1.95%, to 2043.88.
Chinese financial were up sharply amid mounting speculation that China's might ease monetary policies in the second half of the year after data showed foreign exchange purchases declined for the first time in six months. China Minsheng Banking Corp gained 32.6% to 8.64 yuan. Industrial Bank Co jumped 3.7% to 9.64 yuan.
Railway related companies surged after China Business News reported state-run China Railway Corp. may increase investment for railway construction this year to spur economic growth. China CNR Corp jumped 8% 4.47 yuan while Jinxi Axle Co locked 10% upper circuit at 13.37 yuan.
In India, the Indian stock market closed volatile trade modest higher, led by consumer goods companies as funds opt for traditionally defensive stocks in an uncertain environment underscored by the rupee's volatility. The barometer index, BSE Sensex, closed provisionally 0.75% higher at 20,303.49
Elsewhere in Asia, New Zealand's NZX50 rose 0.8%. South Korea's KOSPI rose 1.3%. Taiwan's TAIEX added 1.4%. Hong Kong's Hang Seng jumped 2.3%. Indonesia's JKSE Composite grew 1.9%. Singapore's STI added 0.6%. Malaysia's KLSE Composite climbed 0.4%.
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