Key benchmark indices of the Asia Pacific countries closed mixed on Wednesday, 18 September 2013, as investors cautiously awaited the US Federal Reserve's decision about the fate of its massive stimulus program.
Market participants are expecting the U.S. Federal Reserve would begin its long retreat from ultra-easy monetary policy on Wednesday by announcing a small reduction in its bond buying, while stressing that interest rates will remain near zero for a long time to come.
The FMOC meeting will finish later in the global day. Fed Chairman Ben Bernanke will also hold a press conference later today. A majority of the market place believes the U.S. central bank at this week's meeting will announce it will begin to scale back, or taper its monthly bond-buying program.
Most reckon the Fed will announce a $10 billion or $15 billion reduction in its $85 billion-a-month bond-buying program and signalling the beginning of the end to an unprecedented episode of monetary expansion that has been felt worldwide.
The baby step would begin to provide a bookend of sorts to the central bank's response to the global financial crisis that reached fever pitch five years ago this week with the collapse of investment bank Lehman Brothers.
Investors are also eyeing Fed's forward guidance on policy. The Fed is due to offer its rate expectations for 2016, and it has previously said it wanted to see the US unemployment fall to 6.5% from its current 7.3% before it raises the benchmark fed funds rate target from its present 0-to-0.25% range.
Among Asian bourses, Australian shares declined, weighing the broader All Ordinaries index 0.25% down at 5230.40, as chose to book some gains on caution ahead of the Federal Reserve's statement on monetary policy.
More From This Section
Shares of precious-metal miners declined heavily for third straight day in Sydney, as precious metal extended losses into a third session on Wednesday, falling over 1% to below $1300 an ounce. Perseus Mining down 3.5% to A$0.555, Kingsgate Consolidated lower by 3.8% to A$1.64 and Newcrest Mining down by 2.9% to A$11.98. Materials and resources blue chips were also weaker, with BHP Billiton was down 0.14% to A$36.09, Rio Tinto dropped 1.7% to A$61.70 while Fortescue Metals Group added lost 3.3% to A$4.47.
Shares of information technology sector were up in the Australia, led by Internet Service Providers TPG and iiNet. TPG Telecom (TPM) gained 5.9% today, adding to yesterday's 14% rise, after announcing an impressive 64% jump in annual profit to A$149.2 million yesterday. iiNet (IIN), which is 3.5 times smaller than TPM, also benefited from the result, adding 5.56%.
In Japan, Tokyo shares closed sharp higher, with the benchmark Nikkei Stock Average rose by 1.3% to 14472.52 with tech majors, shippers and airlines leading gains.
Advance in Tokyo market largely came due to large-lot buying of Nikkei futures that has continued since the morning as part of arbitrage trading between cash stocks and futures. Investors are buying futures in response to a rise in the September contract for Nikkei Stock Average futures on the Chicago Mercantile Exchange overnight, prompting arbitrage buying of cash stocks.
Strong index options buying helped push up the cash market, as overseas orders for October Nikkei calls with Oct. 11 expiry looking much more active than normal in a gamut of strike prices ranging from 14,500 to 16,000.
Shares of Sharp Corp jumped 1.6% to 376 yen on the back of reports that its April-September operating profit will come in well above forecasts.
Chubu Electric Power Co rose 0.8% to 1285 yen after the electricity producer President Akihisa Mizuno announced plan on Tuesday to raise electricity rates for households next April.
In New Zealand, NZ shares rose, with the NZX 50 Index edging up to a new record, as optimism about growth in the economy lifted stocks including Fletcher Building. Chorus fell to a six-week low amid a political argument over its network pricing.
The NZX 50 rose 5.803 points, or 0.1%, to 4703.83. Within the index, 16 stocks rose, 22 fell and 12 were unchanged. Kiwi Income Property Trust fell 0.9% to NZ$1.10, leading most property investors lower as rising bond yields sapped their appeal. Argosy Property fell 0.5% to NZ$0.93 and Goodman property Trust shed 0.5% to NZ$1.01.
In China, Chinese share market finished slight higher for the first time in four sessions in row in volatile trading, sending the benchmark Shanghai Composite index higher by 0.29% to finish at 2191.85. Advances in the Shanghai market were driven by Shanghai-based companies and property developers.
Chinese markets will close on Sept. 19 and 20 for the mid-Autumn festival and Oct. 1 to 7 for National Day holidays.
Shares of Shanghai-based companies surged on speculation Shanghai's free-trade zone will increase demand for trade and shipping. Shanghai Lujiazui jumped by the daily limit to 20.55 yuan. CTS International added 10% to 16.56 yuan. Shanghai-based China Eastern Airlines Corp. surged 2.6% to 3.11 yuan. Shanghai Pudong Development Bank Co. rose 1.6% to 11 yuan after it submitted plans to regulators to set up a branch in the trade area.
Shares of Chinese realty companies advanced after new home prices surged in the nation's four major cities. The National Bureau of Statistics said that home prices climbed in 69 of the 70 cities in August 2013. New home prices in China's four major cities jumped in August by the most since January 2011, led by Guangzhou, on expectations that the government won't implement new nationwide property curbs any time soon.
Poly Real Estate rose 0.7% to 10.66 yuan. Gemdale Corp. climbed 0.6% to 6.26 yuan. China Merchants Property Development Co. added 1.5% to 25.76 yuan.
In Hong Kong, HK shares eased in quiet trade as investors booked some gains on cautious ahead of outcome of the US Federal Reserve's two-day policy meeting later today. China A-share market's closure from tomorrow for Mid-autumn festival holiday also made punters cautious. The Hang Seng Index ended down 63 points to 23,117.
Among the 50 HK blue chips, 23 rose and 24 fell, with three stocks remaining steady. Cheung Kong was top blue-chip gainer, adding 3.1% to HK$120 after its chairman Li Ka Shing denied bluntly the potential delisting of the group. BEA was the top blue-chip loser, dipping 4.5% to HK$32.05 after yesterday's strong rally.
BYD retreated 3.1% to HK$33.9 after the China government announced new subsidy policy on new energy vehicles. Dongfeng Motor fell 2.5% to HK$11.08 on news that it plans to buy stake in Peugeot Citroen, Europe's second-biggest carmaker.
In India, Indian benchmark indices retained positive terrain in mid-afternoon trade as European stocks ahead of the outcome of the two-day meeting of the Federal Open Market Committee which concludes today, 18 September 2013. At 14:20 IST, the S&P BSE Sensex was up 54.15 points or 0.27% to 19,858.18. The index rose 96.65 points at the day's high of 19,900.68 in early trade, its highest level since 16 September 2013.
Foreign institutional investors (FIIs) bought Indian shares worth a net Rs 318.05 crore on Tuesday, 17 September 2013, as per provisional data from the stock exchanges.
Elsewhere, Indonesia's JKSE Composite fell 1.2% and Taiwan's Taiex lost 0.49%. Singapore's Straits Times Index added 0.41% while Malaysia's KLSE Composite lost 0.2%. South Korean markets were closed for a public holiday.
Powered by Capital Market - Live News