The sign of U.S. economy improvement helped ease investor worries about slowing global economic growth. The U.S. Federal Reserve's beige book report on Wednesday showed economic activity in most areas of the U.S. grew in recent months, while a private jobs gauge suggested employment rose in February.
Oil prices have maintained their upward trend, as Russia's Rosneft, the world's biggest listed oil producer by volume, said it's considering a cut to domestic production to balance the global market and as the firm faces a natural decline in 2016. Brent crude prices hovered at about $37 per barrel in Asian trading hours. Brent crude was up 0.30 per cent at $36.92 a barrel on Wednesday, while WTI, or US, crude was up 28 US cents at $34.68.
Copper, aluminium and zinc have hit their highest levels in several months, bolstered by optimism that global growth will pick up and as speculators chased the rally. Announcements from China this week of a cut in bank reserve requirements and structural reforms also helped to underpin sentiment.
Among Asian bourses
Australia market extends gain
Australian share market finished higher for fourth session in row, with big four banks, materials, and energy stocks leading rally, thanks to positive leads from the US and Europe markets overnight as well as strong performances on Asian markets. At the close, the benchmark S&P/ASX200 index rose 59.90 points, or 1.2%, at 5081.10, while the broader All Ordinaries index added 58.70 points, or 1.2%, to 5142.20.
Material and resources and energy stocks extended gains, on tracking firm trend in the commodity prices. Mining giant BHP Billiton gained 3.1% to A$17.25 after a US$2.3 billion settlement for the Samarco dam disaster in Brazil was reached, which lower than many had speculated. Rio Tinto closed 2.1% up at A$44.20 and Fortescue Metals Group added 6.7% to A$2.40. Meanwhile, resources industry services firms WorleyParsons and Monadelphous also strong gains, lifting 5.75 per cent and 6.19 per cent respectively. Woodside Petroleum advanced 5.1% to A$27.11, Santos rose 5% to A$3.60 and Origin Energy lifted 2.6% to A$4.71.
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The Australian Bureau of Statistic data showed that goods and services credits rose seasonally adjusted A$266m (1%) to A$25,549m while goods and services debits fell seasonally adjusted A$320m (1%) to A$28,487m. Thus, the balance on goods and services was a deficit of A$2,937m in January 2016, a decrease of A$587m (17%) on the deficit in December 2015.
Nikkei extends gain
Japan share market advanced for third session in row, on tracking positive lead from offshore markets overnight and yen depreciation against greenback. Also, adding risk sentiment was the Bank of Japan Deputy Governor Hiroshi Nakaso statement that Japan needs both aggressive monetary easing and government structural reform aimed at boosting labor productivity in order to overcome years of deflation and achieve sustained growth. Total 26 out of 33 TSE sectors advanced, with notable advancers comprised marine transportation, banking and mining-linked stocks. The 225-issue Nikkei average advanced 213.61 points, or 1.28%, to finish at 16960.16. The Topix index of all first-section issues closed up 19.44 points, or 1.44%, at 1369.05.
The Topix Banks Index gained 6.2%, as investors bought back the mega bank shares following the recent heavy selling in the wake of the Bank of Japan's introduction of negative interest rate policy. Sumitomo Mitsui Financial Group soared 284 yen, or 8.6%, to 3,604 yen and Mitsubishi UFJ Financial Group spiked 40.40 yen, or 7.9% to 551.30 yen
Tokyu Fudosan Holdings climbed 1.7% to 773 yen on reports that its real estate agency unit will enter the hotel development business to capitalize on an accommodation shortage amid an increase in the number of overseas tourists.
Kohnan Shoji rose 1.5% to 1,566 yen after the home center operator said Wednesday that it will open up its first overseas store in Ho Chi Minh City, Vietnam in the summer.
Sac's Bar Holdings dived 5.9% to 1,472 yen after the handbag retailer reported Wednesday that sales dropped in February from a year earlier on a same-store basis.
China stocks rise for third day
Mainland China stock market closed higher for third day in row on hopes for further stimulus efforts announcement during a key meeting of China's top legislature that starts on Saturday. But, gains were limited after Moody's downgrade on the credit outlook for China and more than 70 mainland-owned companies The Shanghai Composite Index ended up 10.08 points, or 0.35%, at 2859.76. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, rose 7.09 points, or 0.23%, to 3058.42.
Moody's Investor Service downgraded the credit outlook of 71 mainland companies to negative, including 38 state-owned enterprises, 25 non-insurance financial institutions, and eight insurance companies. On Wednesday, Moody's also cut China's sovereign credit rating to negative from stable, citing rising government debts and shrinking foreign exchange reserves as among the key reasons.
Shares of property developers and financial companies sustained strong upward momentum amid signs of recovery in several major cities. Hangzhou Binjiang Real Estate advanced 1.3%. Rise Sun Real Estate Development Co. climbed 1.4%. ICBC rose 0.5% and Bank of China added 0.3%.
Materials and resources stocks also benefited. Yunnan Copper Co.gained 3.5%, while Tongling Nonferrous Metals Group Co. added 1.7%.
Energy stocks fell, on profit booking after strong rally yesterday. Shanxi Xishan Coal & Electricity Power Co. lost 0.7% after jumping by the 10% daily limit a day earlier. Shanxi Lu'an Environmental Energy Development Co. retreated 3%.
Hong Kong stocks fall on profit taking
The Hong Kong stock market ended softer on Thursday, 03 March 2016, bucking the regional trend, due to profit taking selloff, following yesterday's sharp surge. The benchmark index opened up 78 points at 20,082, which marked the intra-day high. It then went south and fell as much as 211 point to an intra-day low of 19,791 at one stage. The benchmark Hang Seng Index declined 61.73 points, or 0.31%, to 19941.76 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, rose 16.70 points, or 0.2%, to 8390.79 points. Turnover reduced to HK$71.7 billion from HK$92.7 billion on Wednesday.
Shares of casino companies declined after S&P statement that Macau's better-than-expected gaming revenue numbers for February 2016 are not a sign of a rebound. The credit rating agency expects the gaming revenue in Macau to decline up to 10% in 2016. Sands China (01928) declined 2% to HK$28.65. Galaxy Ent (00027) softened 1% to HK$26.95.
HKEx (00388) fell 1% to HK$173.3 as both Citi Research and Deutsche Bank were bearish for the outlook for the stock, with the former lowering its rating to "sell" and the latter chopping its target price by 56% to HK$140.
CKI (01038) slid 5% to HK$75.7 after Morgan Stanley downgraded its rating for the stock to "underweight", noting the share price has discounted positive of its inclusion into the HSI family.
Sensex, Nifty hit almost four-week closing high
Gains in metal and capital goods stocks along with index heavyweights Infosys and HDFC led the latest rally for the two key benchmark indices. The barometer index, the S&P BSE Sensex, rose 364.01 points or 1.5% to settle at 24,606.99. The 50-unit Nifty 50 index rose 106.75 points or 1.45% to settle at 7,475.60.
Data showing heavy purchases of Indian stocks by foreign portfolio investors (FPIs) during the previous trading session boosted sentiment on the domestic bourses. FPIs bought shares worth a net Rs 1708.38 crore from the secondary equity markets, yesterday, 2 March 2016, as per data from National Securities Depository (NSDL). The Sensex had risen almost 2% yesterday, 2 March 2016, mirroring a rally in Asian stocks.
Metal and mining stocks were in demand after favourable announcements in the Union Budget 2016-17 announced early this week. Capital goods edged higher on expectations of increase in order flow following the government's thrust on infrastructure sector in the Budget. Dr Reddy's Laboratories surged after receiving approval from the United States Food and Drug Administration (FDA) for Palonosetron Hydrochloride injection or Aloxi generic. Central Bank of India nudged higher after the state-run bank said that a special committee of the board has approved raising funds by issuing equity shares.
Elsewhere in the Asia Pacific region: New Zealand's NZX50 added 1.1% to 6380.86. Taiwan's Taiex index added 0.8% to 8611.79. South Korea's KOPSI rose 0.6% to 1958.17. Malaysia's KLCI fell 0.2% to 1688.20. Singapore's Straits Times index climbed up 2.2% at 2787.62. Indonesia's Jakarta Composite index advanced 0.2% to 4844.
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