Headline shares in the Asia Pacific Market ended mostly higher on Friday, May 10, 2013, as appetite for risk assets propelled on signs of modest recovery in the world's largest economy after Thursday's weekly US data showed initial jobless claims fell to the lowest level in more than five years, following last week's much stronger-than-expected monthly nonfarm payrolls report for April. Meanwhile, strong rally of Chinese and Japanese stock markets also underpinned buying pressure.
The U.S. Labor Department said on Thursday that weekly initial claims for unemployment benefits fell by 4,000 to 323,000, the lowest level in more than five years. Last week, the Labor Department reported that the economy added 165,000 jobs in April, and that the unemployment rate slipped to 7.5% from 7.6%.
In the Asia Pacific region, Japan's market soared to five and half year peak, on the back of yen depreciating above the symbolic 100-level against greenback and beefing up the outlook for the Corporate Japan. The Nikkei Stock Average surged 416.06 points, or 2.93%, to end the day at 14,607.54 and cross the 14,600 line for the first time in nearly five and a half years. The 6.7% weekly gain was the sharpest such advance for the benchmark since the week beginning November 2009, and lifted it to its highest closing level since Jan. 4, 2008. For the year-to-date, the Nikkei is now up 41% and 69% since the start of the current rally in mid-November.
The dollar extended Thursday's gains to hit a fresh four-year high of 101.20 yen, having stalled for a month after reaching a high of 99.95 yen in early April. The euro rose to 131.91 yen, it's highest since January 2010. Capital flows data showed Japanese investors were net buyers of foreign bonds in the last two weeks, reversing their relentless net selling since late January. They repatriated a total of 9.33 trillion yen in January-April
Australian stock market closed slight higher on Friday, May 10, 2013, after a tug of war between the banks and resources. The benchmark S&P/ASX200 index higher by 0.15% to 5206.10198.40. The index rose 1.5% for the week, its third consecutive weekly rise. Shares of banks and financials fell for another day as the Australian dollar fell after RBA lowered its inflation forecast for the end of 2013 to 2.25% from a previous forecast of 2.50%, while high-yield materials and resources plays were benefited from a sustained fall in the exchange rate
South Korea's Kospi Index slid 1.8%, the most in 10 months, as exporters retreated after the won climbed to its highest against the yen in more than four years.
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China's shares rose today, pushing up the Shanghai Composite Index by 0.6% to 2,246.83 at the close, registering the second weekly gain. The benchmark gained 1.9% this week. Property developer shares climbed, led by Gemdale after sales jumped 20% last month. Metal companies rose, led by Aluminum Corp on a plan to sell 8.18 billion yuan ($1.3 billion) of assets.
Hong Kong shares rallied on late afternoon, buoying up the benchmark Hang Seng Index advanced higher by 0.47% to 23,321.22. The index gained 2.8% for the week. Among the 50 HK blue chips, 37 rose and 12 fell, with 1 stock remaining steady, while 1 is suspended trading. Belle International gained 4.1% to HK$13.20, while China Resources Power plunged 10% to HK$22.85 after announcing a merger plan with CR Gas, making themselves the largest blue-chip gainer and loser. Elsewhere, Esprit dipped 1% to HK$10.3. The stock is tipped to be removed from the HSI family on the quarterly review announced later today. Wynn Macau (01128), which is expected to replace Esprit, rose 1.6% to HK24.95. Sinopec rose 0.5% at HK$8.69 after China's latest fuel-price hike took effect on Friday. It was the first since fuel pricing reforms in March.
Malaysian stock market notched up its best week since July 2009 following the weekend general election. Gains in banks such as Malayan Banking Bhd and AMMB Holdings Bhd helped Kuala Lumpur's Composite Index reverse recent losses and end up 0.36% for the day. It gained 4.6% in the week
Indonesia's Jakarta Composite Index gained 0.33% to 5,105.94, topping Wednesday's record close, with a weekly gain of 3.7%.
India's shares ended higher thanks to gains in European stocks and data showing improvement in industrial production in March 2013. The Sensex and the 50-unit CNX Nifty, both, hit their highest level in over 14 weeks. The Sensex was provisionally up 134.54 points or 0.67%, off 45.56 points from the day's high and up 164.78 points from the day's low. Index heavyweight and cigarette major ITC hit record high. Other cigarette stocks also gained. Index heavyweight Reliance Industries (RIL) edged lower amid volatility. NTPC dropped in volatile trade after Q4 results. Auto stocks edged higher on renewed buying. Maruti Suzuki India scaled 52-week high as the Japanese yen weakened further against the dollar. Shriram Transport Finance Company surged after Piramal Enterprises acquired almost 10% stake in the company through block deals on BSE.
Elsewhere, Taiwan's Taiex Index declined 0.1%, while Singapore's Strait Times rose 0.32% and New Zealand's NZX50 added 0.3%.
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