Asia Pacific share market closed mixed on Friday, 11 November 2016, after paring early gains inspired by record-breaking advance of the Dow Jones industrial average overnight, supported by hopes for U.S. policies under U.S. President-elect Donald Trump.
A sudden spike in US bond yields to a 10-month high rattled emerging equity markets today, 11 November 2016. Donald Trump was declared as the 45th President of the United States on Wednesday, 9 November 2016. US bond yields have surged after Trump's election on worries his policies stance - from protectionism and fiscal expansion - will boost inflation and lead the Federal Reserve to raise interest rates more than expected. Investors fear that higher interest rates in the US will spark capital outflows from the emerging equity markets.
The Dow Jones Industrial Average hit a record high overnight on Thursday, driven by a rally in bank stocks after a statement on Donald Trump's transition website talked of "dismantling" the Dodd-Frank law, financial sector regulations which came in place in the wake of the global financial crisis. Also adding to strength was expectations for U.S. economic policies under a Trump administration following his victory in the presidential election on Tuesday continued supporting the market.
Among Asian bourses
Australia Stocks incline for second straight day
Australian share market inclined for second successive session, on the back positive lead from Wall Street overnight and jump in commodity prices including iron ore. Most sectors on the ASX closed higher, with financial, materials, and energy sectors registering the biggest gains. At the closing bell, the benchmark S&P/ASX 200 index inclined 41.90 points, or 0.79%, to 5,370.70, while the broader All Ordinaries index increased 37.70 points, or 0.7%, to 5,446.60.
Shares of materials sector, which includes mining stocks, surged on hopes commodity prices would benefit from Mr Trump's infrastructure spending plans. Iron ore futures continued to rally on Friday, rising another 6% after the spot price shot above $US74 a tonne, its highest point since November 2014, on the prospect of a big infrastructure spending program in US under President-elect Donald Trump and increased Chinese demand. BHP Billiton gained 1.1% to A$24.94, Rio Tinto rose 2.4% to A$59.55, and pure iron ore miner Fortescue Metals Group soared 4.5% to A$6.28.
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The bank stocks were also beneficiaries, on following Wall Street's major lenders higher on news that one of Trump's first orders of business would be to "dismantle" the Dodd-Frank law which was introduced by the Obama administration to increase the regulation in the financial sector following the global financial crisis. Westpac was up 3.1% to A$31.91, National Australia Bank 4.2% to A$27.80, Australia & New Zealand Banking Group 2.6% to A$28.30, and Commonwealth Bank of Australia 3.4% to A$75.78.
Shares of gold producers fell, on tracking fall in bullion prices. Gold hit the lowest levels in over three weeks on Friday, weighed down by rising bond yields and a firm dollar due to inflation fears from the prospect of a splurge of U.S. infrastructure spending. Spot gold was down 0.3% at $1,255.85 an ounce, paring losses after hitting $1,250.70, the weakest since Oct. 17. It has declined over 3% so far this week. Newcrest Mining, Australia's largest producer was off 7.3% to A$22.47, Perseus Mining 9.2% to A$0.59, and Kingsgate 9.2% to A$0.59.
Nikkei extends gain on softer yen
The Japan share market inclined for second straight session, supported by yen depreciation to mid 106-level against greenback and hopes Trump administration will boost spending and spur U.S. economic growth. 18 out of 33 TSE industry categories closed in positive territory, led by Insurance, Banks, Nonferrous Metals, Securities & Commodities Futures, and Iron & Steel stocks, while Information & Communication, Fishery, Agriculture & Forestry, Retail Trade, and Electric Power & Gas were notable losers. The 225-issue Nikkei Stock Average rose 30.37 points, or 0.18%, to 17,374.79, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange jumped 1.93 points, or 0.14%, to end at 1,378.28. Banking issues gained, mirroring advances made on Wall Street's major lenders on news that one of Trump's first orders of business would be to "dismantle" the Dodd-Frank law which was introduced by the Obama administration to increase the regulation in the financial sector following the global financial crisis. overnight on hopes for eased regulations. Mitsubishi UFJ Financial Group leapt 13.4% to 608 yen and Sumitomo Mitsui Financial Group jumped 4.1% to 3,792 yen. Nomura Holdings Inc. surged 5.1% to 564 yen.
Export related stocks jumped on tracking yen depreciation against US dollar, with Komatsu surging 5% to 2,534 yen, Honda Motor added 0.6% to 2,999 yen, and Toyota Motor Corp added 2% to 5952 yen.
China Stocks gain to fresh 10-months high
Mainland China stock market closed at fresh 10-months high, on tracking gains in global market, supported by hopes for U.S. policies under U.S. President-elect Donald Trump. All major sectors gained, led by metal producers and construction companies. The benchmark Shanghai Composite Index grew 0.78% to close at 3,196.04 points, taking its advance from its Jan. 28 low to more than 20%. The CSI 300 index closed marginal 0.01% down at 3,390.25 points.
China market registered fifth consecutive week of gains, after rising more than 1.5% this week on growing conviction that China's economy is stabilizing. Chinese markets have been driven up by positive sentiment on the back of positive economic data and the upcoming launch of the Shenzhen-Hong Kong stock connect which is due to begin later this month.
Industrial metals rallied, especially copper, zinc and lead, as investors bet on sectors that may benefit from U.S. President-election Donald Trump's pledge to increase infrastructure spending. An index tracking raw material shares rose over 2% and an index tracking infrastructure added 1.5%.
Hong Kong Stocks fall on fears of weak GDP
The Hong Kong stock market closed down, shrugging off global lead, on fears of weak GDP after reports city economic growth likely to slow in the third quarter from the second, with weak exports, sluggish retail sales and falling tourist arrivals. The economy was expected to grow 0.3% for the third quarter from the second, according to the median estimate of economists in a poll. From a year earlier, growth was forecast at 1.6%. Gross domestic product grew a seasonally adjusted 1.6% in the second quarter from the first, and 1.7% from a year earlier, the Special Administrative Region (SAR) government said in August. The Hang Seng Index declined 1.35% or 308.02 points to 22531.09, while the Hang Seng China Enterprises Index dropped 1.18% or 112.48 points to 9433.37. Turnover increased to HK$94.3 billion from HK$71.9 billion on Thursday.
Market talks circulated that the authorities may announce launch date for the Shenzhen-HK Connect program today after market close. HKEx (00388) rose 0.7% to HK$206.2. Bright Smart (01428) soared 3.6% to HK$3.45. CGS (06881) added 2% to HK$7.65. CITIC Sec (06030) gained 1.6% to HK$17.5.
Local banks also attracted buying orders. HSBC (00005) broke above HK$60 barrier. It ended up 1.9% to HK$61.15. Standard Chartered (02888) put on 1.5% to HK$64.8. BOCHK (02388) rose 2.4% to HK$28.25. It was the top blue-chip gainer today. Bank of East Asia (00023) climbed 1% to HK$31.4.
Chinese banks were mostly lower as new data showed that the ratio of non-performing loans rose by the end of the third quarter. The Industrial and Commercial Bank of China fell 1.29% to HK$4.60 while the Bank of China slipped 1.16% to HK$3.42.
Technology companies traded down after their US counterparts closed lower overnight. Tencent Holdings dropped 3.94% to HK$200 and China Mobile sunk 3.27% to a three month low of HK$84.25. Coolpad (02369) plunged 5.7% to HK$1 on news that its parent company LeTV allegedly paid bribes to CSRC executives for facilitating its IPO in Shenzhen.
Sensex ends below 27,000 mark
Sudden selling pressure in late trade dragged the key benchmark indices sharply lower. The barometer index, the S&P BSE Sensex, fell 698.86 points or 2.54% to settle at 26,818.82. The Nifty fell 229.45 points or 2.69% to settle at 8,296.30. All the 19 sectoral indices on BSE ended negative.
State Bank of India fell 3.09% to Rs 272.90 after net profit fell 34.56% to Rs 2538.32 crore on 8.29% growth in total income to Rs 50742.99 crore in Q2 September 2016 over Q2 September 2015. The result was announced during market hours today, 11 November 2016.
Sun Pharmaceutical Industries rose 3.30% to Rs 688.95 after consolidated net profit surged 117.25% to Rs 2235.14 crore on 19.98% rise in total income to Rs 8384.52 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 10 November 2016.
Elsewhere in the Asia Pacific region: New Zealand's NZX50 declined 0.5% to 6697.78. Indonesia's Jakarta Composite index slipped 4% to 5231.97. Taiwan's Taiex slipped 2.1% to 8957.76. South Korea's KOSPI index declined 0.9% to 1984.43. Malaysia's KLCI was down 1.1% to 1634.19. Singapore's Straits Times index fell 0.7% to 2814.60.
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