Asia Pacific share market advanced on Thursday, 02 April 2015, as investors chased for bottom fishing after weaker-than expected economic data from major economies boosted hopes for stimulus and a slow pace for U.S. interest rate hikes. The MSCI Asia Pacific index rose for the first time in six days, adding 1.2%.
Among Asian bourses
Australia market ups 0.64%
The Australian share market closed higher ahead of the Easter break and growing expectation of a Reserve Bank interest rate cut next Tuesday, with bullion, retailer, realty financial and stocks leading the rally. The benchmark S&P/ASX 200 Index advanced 37.80 points, or 0.64%, to 5898.60, while the broader All Ordinaries Index grew 36.80 points, or 0.63%, to 5869.70. Market turnover was healthy, with 1.48 billion shares changing hands worth of A$4.38 billion. The ASX closed on Good Friday and Monday for the Easter holiday.
The Australian Bureau of Statistics said Australia posted a seasonally adjusted trade deficit of A$1.3 billion in February, compared with a deficit of A$1.0 billion in January.
The RBA board meets next Tuesday to consider whether it will cut the official cash rate for a second time this year. The central bank lowered the rate to a new record low of 2.25% in February but surprised the market by leaving it unchanged in March.
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Financial stocks were up, with heavily weighted lenders leading the rally. Commonwealth Bank rose 1.2% to A$94.40, Westpac Banking Corp 0.7% to A$39.45, ANZ Banking Group 0.6% to A$36.67, and National Australia Bank 0.7% to A$38.69. QBE rallied 4.9% to A$13.42 after the insurer said that the first quarter was tracking in line with company expectations and it was well-placed to raise its dividend payment this year.
Shares of energy and bullion mining companies advanced the most in Sydney market, after oil and metals prices rallied. Overnight, the global benchmark oil price jumped after US weekly production declined for the first time in two months. Gold gained and base metals also rallied. Woodside Petroleum added 0.8% to A$34.15, Santos 0.3% to A$6.95, Origin Energy 1.2% to A$11.30, and Oil Search 1.3% to A$7.10. Gold Miner Newcrest advanced 4.9% to A$13.78 and Perseus Mining added 5.2% to A$0.305.
The drop in iron ore price took its toll on miners, with Fortescue Metals Group declining 4% to A$1.82 while BC Iron dropped 4.2% to A$0.345, Arrium sank 6.3% to A$0.15 and Atlas Iron shed 7.7% to A$0.12. BHP Billiton declined 0.4% to A$30.22 and Rio Tinto fell 1.1% to A$55.78.
UGL shares declined 3.3% to A$1.33 after the company said it would defend legal action taken against it relating to its market disclosure.
Nikkei rises for the first time in three days
Japanese share market advanced for the first time in three consecutive sessions, as investors chased for value buying after recently oversold stocks, with rail companies and banks were leading the rally. The benchmark Nikkei 225 index advanced 277.95 points, or 1.46%, to finish at 19312.79, while the broader Topix index of all first-section shares grew 25.18 points, or 1.65%, to 1554.17.
Tokyo market commenced trading with form footing today, shrugging off poor US data that spawned concerns about the health of the world's largest economy, supported by hopes that more pension funds increasing investments into equities. The Nikkei newspaper reported yesterday that the Japan Post Holdings Co., the state-owned mail, banking and insurance giant, will increase investments in riskier assets including equities.
Shares of railway companies advanced on bargain hunting after recent losses. East Japan Railway Co surged 3.9% to 0155 yen and Central Japan Railway Co. added 3.2% to 22570 yen.
Lenders were also higher, with Mitsubishi UFJ Financial Group Inc., Japan's largest lender, rising 3.3% to 773 yen. Resona Holdings Inc., the fifth-largest bank, added 3.3% to 610.20 yen.
Sony Corp jumped 3.1% to 3336 yen after saying it would book a profit of 46.8 billion yen ($391 million) after selling part of its stake in Olympus to JPMorgan Chase & Co. to fund strategic investments. Olympus Corp fell 4.1% to 4240 yen.
Canon Inc. advanced 3.2% to 4310 yen after Citigroup Inc. raised its rating on the stock to buy from neutral, citing expectations of higher shareholder payouts and the recent purchase of a Swedish surveillance camera maker.
Nippon Steel & Sumitomo Metal dropped 1.3% to 294.80 yen after the Nikkei newspaper reported the company will cut crude steel production in the quarter ending June by 10% from the previous three months.
China market climbs to seven year high
Mainland China share market advanced, as risk sentiment remained upbeat on news that Beijing is expanding the investment scope of country's 1.2 trillion yuan ($194 billion) social security fund. Today's gains were on the top of yesterday's 1.7% rally after an indicator of factory activity rose unexpectedly in March. The Shanghai Composite Index advanced 15.49 points, or 0.41% to 3825.78 at the close, its highest level since March 2008. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, grew 0.88 point, or 0.02%, to 4124.78.
The Chinese government said on Wednesday that the fund, which backs China's pension system, will be allowed to buy more local government debt, investment trusts and shares in state-owned companies. The move is expected to channel more money into the stock market, and help reduce financial risks accumulated in massive local government borrowings.
Shares of technology companies surged the most in Beijing after China's state council, or cabinet, promised late on Wednesday to boost e-commerce, including through cutting red tape and liberalizing investment rules. China's clean technology and new energy stocks also rose sharply, after Wu Xiaoqing, vice minister of environmental protection, told a conference on Wednesday scientists have identified vehicles as being the biggest polluters in major cities. Wu's remarks fuelled hopes of fresh policies to promote new energy vehicles and green technology. Wangsu Science & Technology Co. surged 8.6% to 98.45 yuan, while Zhejiang Dahua Technology Co added 7.4% to 39.97 yuan.
Ping An Insurance Group Co. slid 1.4% to 78.02 yuan after agreeing to buy a 9.9% stake in Country Garden Holdings Co.
Hong Kong market gains 0.77%
Hong Kong stock market finished the session with gain for fourth straight day, on tracking strength in Mainland A-share and other Asian bourses today, with industrial, financial and realty stocks being major gainers. The Hang Seng Index ended up 192.89 points or 0.77% to 25275.64, off an intra-day high of 25297.80 and day low of 25152.57. Turnover increased to HK$124.74 billion from HK$110.3 billion on Wednesday.
Shares of tech sector shined after China's central government unveiled new policies to support the e-commerce industry. Online-transaction service provider China Binary Sale Technology added 9.3% to HK$2.11, online game developer Boyaa Interactive International 5.7% to HK$7.46, Forgame Holdings 5.7% to HK$17.82, and NetDragon Websoft Inc 5% to HK$19.20.
Property developers were also traded higher, with China Resources Land rising 1.4% to HK$22.55 and China Overseas Land & Investment shining 1.2% to HK$26.15. Chinese real estate developer Country Garden Holdings jumped 4.8% to HK$3.28 after the company announced it would issue new shares to major Chinese insurer Ping An Insurance Group HK$6.3 billion. After the deal, Ping An would become the developer's second largest shareholder with a 9.9% stake. Ping An Insurance was down 1.4% to HK$93.15.
Hong Kong-based telecommunications firm PCCW grew 4.6% to HK$5.01 after its subsidiary Hong Kong Television Entertainment Co. received a 12-year free-to-air license from local government.
Elsewhere in the Asia Pacific region: South Korea KOSPI added marginal 0.03% to 2029.07. Taiwan's Taiex grew 1% to 9600.32. New Zealand NZX50 was down 0.07% to 5831.40. Indonesia's Jakarta Composite index sank 0.25% to 5453.47. Singapore's Straits Times index was up 0.1% to 3450.27. Malaysia's KLCI added 0.23% to 1830.46. India's stock market remains closed today on account of Mahavir Jayanti. Stock market of Australia, Hong Kong and India close again on Friday, 3 April 2015, on account of Good Friday.
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