Federal Reserve Bank of New York President William Dudley said Thursday his expectations of a Fed rate increase this year will depend on the performance of economic data. He cited September's payroll report and soft retail sales as evidence of it weakening recently.
Among Asian bourses
Australia market ups 0.7% on rate cut hopes
The Australian share market advanced for second day in row on the back of gains in rate sensitive financial, realty and consumer-related stocks amid growing speculation that an RBA interest rate cut is on the horizon. The benchmark S&P/ASX 200 index and the broader All Ordinaries index each grew 0.7% to 5268.20 points, and 5303.70 points, respectively.
The financial and realty stocks were top gainers in the Sydney financial market on bets of another rate cut by the Reserve Bank of Australia after Westpac raised its mortgage rates in a shock move on Wednesday in what it said was to meet stricter capital requirements. Among top lenders, Commonwealth Bank of Australia advanced 1.5% to A$76.55, National Australia Bank 0.83% to A$31.77, and ANZ Banking Group 0.4% to A$28.67. Among developers, Stockland grew 2.6% to A$3.89, Mirvac 3.2% to A$1.75, and GPT Group 1.5% to A$4.68.
Shares of materials and resources companies were mostly down, with BHP Billiton lower by 0.5% to A$25 on tracking a fall in its U.S. ADR on the back of falling iron ore prices. Rio Tinto pared gains to slide 1% to A$53.69, after the miner announced a 17% rise in third-quarter iron ore shipments to 91.3 million tonnes and said it remained on track to meet full-year guidance of 340 million tonnes. Fortescue, however, had a strong day, up 4.8% to A$2.40 after Deutsche Bank, Morningstar and Bell Potter all raised its price targets for the stock.
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Nikkei rises on positive offshore lead, soft yen
The Japanese share market ended stronger today, catching up gains on the Wall Street overnight after upbeat U.S. price and jobless claims data calmed some concerns about the strength of the U.S. economy. Meanwhile, growing speculation of additional stimulus from Japanese authorities and greenback appreciation against the Japanese yen also bolstered buying spirit. Total 31 out of 33 TSE first-section sector sub-indexes ended up, with Insurance, Financial Business, Real Estate, Glass & Ceramics Products, Air Transportation, Securities & Commodities Futures, Rubber Products and Banks issues being major gainers. The Nikkei Stock Average advanced 194.90 points, or 1.08%, to end at 18291.80 points, meanwhile the broader Topix index rose 1.01%, or 15.12 points, to 1505.84 at the close.
The growing expectations of Japanese authorities to take additional steps to bolster economic activities amid recent signs of weakness aided strength to the market. Some anticipate the Bank of Japan will expand its easing program again at a policy meeting later this month. Buying momentum also aided after data from Japan's Ministry of Finance released on Friday showed that foreign investors became net buyers of Japanese stocks last week, scooping up Y521 billion ($4.38 billion) worth of shares. That followed eight consecutive weeks of net selling totalling Y4.8 trillion.
Shares of realty developers led the Tokyo market higher. Sumitomo Realty & Development Co. rose 4.1% to 4,143 yen. Real-estate firm Tokyu Fudosan Holdings Corp. gained 5.2% to 870 yen.
Shares of major exporters were also stronger, thanks to yen weakening against the greenback and other major currencies. A weaker yen is positive for Japanese exporters as it makes products cheaper overseas and improves their profits when repatriated. Blue-chip exporters such as Sony Corp rose 2.2% to 3250 yen and Canon Inc climbed 2% to 3747 yen. Automaker Toyota Motor Corp advanced 2.1% to 7400 yen, Nissan Motor Co 1.1% to 1210 yen and Suzuki Motor Corp 0.8% to 3940 yen.
China market climbs to 8-week high
The Mainland China's stock market surged on the back of firming speculation that Beijing will announce more stimulus to achieve year-end growth targets. The Shanghai Composite Index spurted 1.6%, or 53.28 points, to close at 3391.35 points, the highest level since 21 August 2015 when index closed at 3507.74. The Shenzhen Composite Index, which tracks stocks on China's second exchange, ascended 1.32%, or 25.68 points, to 1966.95. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, grew 1.58%, or 44.50 points, to close at 2449.03. The benchmark Shanghai Composite Index surged 6.5% this week.
A key meeting of Chinese Communist Party leaders focusing on the next five-year plan will be held in Beijing from Oct. 26 to 29. Leaders of the Communist Party of China (CPC) will gather in Beijing to discuss the development plan for the next five years. China's leaders are poised to lower their growth target for the next five years as they wrestle with challenges from rising debt to excess industrial capacity and bloated state enterprises.
Shares of aviation players advanced the most in Beijing today on reports China is considering setting up a new company that will bring all its aerospace engine assets under one entity as part of a government restructuring drive of state-owned enterprises. Avic Heavy Machinery Co. surged 10% daily limit. AVIC Aviation Engine Corp. gained 4.2%.
Shares of utilities companies were also up, on reports China will promote price reform in water, oil, natural gas, electric power and transportation sectors. Chengdu Xingrong Environment Co. jumped by 10% daily limit.
The People Bank of China said on Thursday that Chinese banks extended 1.05 trillion yuan (US$165.47 billion) in new yuan loans in September, surpassing the previous month's lending. The central bank said broad M2 money supply grew 13.1% from a year earlier. Outstanding loan growth was 15.4% in September.
Hong Kong market ends 0.8% up
Hong Kong stock market ended stronger, catching up gains in the US markets overnight and firmer trend in other regional bourses. The Hang Seng Index advanced 179.20 points, or 0.78%, to 23067.37 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, gained 84.08 points, or 0.8%, to 10637 points. Turnover reduced to HK$88 billion from HK$90.8 billion on Thursday.
Chinese insurers were higher, after Daiwa Research said the CIRC's VAT reform will be neutral for life insurers but slightly negative for P&C insurers. Ping An (02318) was up 1% to HK$43.25, after its subsidiaries reported 9-month premium grew 18%. It recommended China Life (02628) and China Taiping (00966) both stocks rose 2% to HK$29.95 and HK$25.75, respectively.
AIA (01299) shares soared 3.2% to HK$46.15 after the company said its value of new business (VONB) on constant exchange rates for the third quarter ended 31 August 2015 rose 25% year-on-year to US$552 million. VONB margin rose 8.4 percentage points year-on-year to 57.6%. For the nine months ended 31 August 2015, VONB on constant exchange rates grew 25% year-on-year to US$1,511 million and VONB margin rose 5.3 percentage points to 52.7%.
Wynn Macau (01128) slipped 4% to HK$11.46 after it reported 3Q net profit plunged 72% to US$62.096 million. Total operating revenues amounted to US$585 million, a decrease of 37.9% from a year earlier. Adjusted property EBITDA in the third quarter of 2015 was US$162.8 million, down 50% year-on-year. Total non-casino revenues, before promotional allowances, decreased 22.2% during the quarter to US$77.1 million.
China Coal Energy (01898) declined.6% to HK$3.74 after the coal miner said its production and sales volume of commercial coal for September amounted to 7.44 million tonnes and 10.4 million tonnes, a decrease of 17.4% and 23.5% from a year earlier. For the first nine months of 2015, the accumulated production and sales volume of commercial coal amounted to 71.59 million tonnes and 101.06 million tonnes, down 18.1% and 12.1% over the same period last year.
Sensex regains 27,000 level
A sudden rebound took key benchmark indices into positive zone from negative zone in mid-afternoon trade. At 14:18 IST, the barometer index, the S&P BSE Sensex, was up 34.91 points or 0.13% at 27,045.05. The 50-unit CNX Nifty was up 17.60 points or 0.22% at 8,197.10.
Nestle India surged 5.58% to Rs 6,550.20 after the company announced that it will soon commence manufacture of Maggi noodles and that the company intends to reintroduce its Maggi noodles in the market at the earliest.
Jay Bharat Maruti fell 4.03% at Rs 138 after net profit fell 18.9% to Rs 9.94 crore on 3.2% decline in net sales to Rs 312.28 crore in Q2 September 2015 over Q2 September 2014. The result was announced after market hours yesterday, 15 October 2015.
Cyient slumped 11.02% at Rs 556.70 on reports that the US-based private equity firm Carlyle is evaluating plans to sell its entire stake in the company, which it holds through First Carlyle Ventures Mauritius. Talks are in the preliminary stage and the exit may either be through a block deal or secondary market sale, reports added. First Carlyle Ventures Mauritius held 1.10 crore shares, or 9.88% stake, in Cyient as on 30 June 2015. Carlyle had picked up the stake in Cyient on 11 July 2012 for around Rs 210 crore.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index edged up 0.04% to 8605. South Korea's KOPSI fell 0.2% to 2030.26. New Zealand's NZX50 climbed up 0.8% to 5820. Singapore's Straits Times index added 0.5% at 3030.57. Indonesia's Jakarta Composite index was up 0.06% to 4510. Malaysia's KLCI rose 0.2% to 1716.
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