Regional shares opened mostly higher, as U.S. shares provided a strong lead after payrolls company ADP said the private sector added 281,000 jobs in June, up from 179,000 in May. The news buoyed investors ahead of Thursday's Department of Labor report on job creation and unemployment nationwide for June. On Wall Street, the Dow added 0.12% and the S&P 500 was marginally higher, both hitting records for a second successive day. The Nasdaq was flat.
Risk sentiments encouraged further after China's services industry activity boomed in June. Activity in China's services sector expanded at its fastest pace in 15 months in June, a private survey showed on Thursday, reinforcing signs that the broader economy is stabilizing. The services purchasing managers' index (PMI) compiled by HSBC/Markit rebounded to 53.1 in June from 50.7 in May, well above the 50-point level that demarcates expansion in activity from contraction. Government data on the services sector released earlier in the day also pointed to continued strong expansion, though the pace of growth dipped slightly to 55 for June from 55.5 in May.
The expansion in the service sector followed upbeat readings from factory activity surveys earlier in the week which offered signs that the world's second-largest economy is steadying as a flurry of government stimulus measures start to kick in. The official purchasing managers' index (PMI), published by the National Bureau of Statistics, hit a six-month high of 51 in June, in line with market expectations and up from May's 50.8. The final HSBC/Markit purchasing managers' index for June rose to 50.7 from May's 49.4, surging past the 50-point level that separates growth in activity from contraction for the first time since December.
Beijing has stepped up policy support in recent months to give a lift to economic growth, which dipped to 18-month low in the first quarter. Such measures include targeted reserve requirement cuts for some banks, quicker fiscal disbursements and hastening construction of railways and public housing projects.
However, gain across the Asian market capped on caution ahead of two important events. The first event is non-farm payroll report from US today that could be major market moving. Another key event is ECB rate decision and press conference.
Among Asian bourse
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Australia market extends rally, miners lead
Australian share market advanced for second consecutive day, as risk sentiments lifted up on improving global economic scenario and bets that further gains will be driven by earnings growth and increased market confidence. All ASX sectors improved, with shares in materials and resources leading rally. The benchmark S&P/ASX200 advanced 0.66% to 5491.20 while the broader All Ordinaries grew 0.69% to 5479.50.
Shares of material and resources companies extended rally for third day in row, on the back of stronger commodity prices. Base metal prices were higher on the London Metal Exchange on Wednesday. Zinc rose by 2.9% while nickel lifted by 2.7%. The Comex gold futures quote rose by US$4.30 an ounce or 0.3% to US$1,330.90 per ounce. Iron ore rose by US50c a tonne or 0.5% to US$94.70 a tonne.
Resources giant BHP Billiton climbed up 1% to A$37.23, while Rio Tinto rose 0.7% to A$62.45. Iron ore miner Fortescue Metals Group was up 5.2% to A$4.63 and Arrium jumped 4.9% to A$0.865. Gold miner Newcrest Mining Co added 2.2% to A$11.03.
Shares of building firm WorleyParsons advanced 6.3% to A$18.61 after Bank of America Merrill Lynch upgraded it to buy, expecting it to deliver on profit expectations, and as it is trading 20% below its 10-year trend price.
Nikkei falls on profit booking
Japan share market declined for the first time in four consecutive sessions, as profit-taking emerged on overheating woes after the benchmark index raised nearly 10% over the past six weeks. However, the yen depreciation against the greenback helped to limit losses. The benchmark Nikkei 225 index edged 0.14% down to finish at 15348.29, while the Topix index of all first-section shares lost 0.17% to 1278.59.
Shares of exporters closed down on profit booking. Toyota slipped 0.7% to 6,168 yen. Honda Motor Co., which gets about 80% of its sales outside Japan, lost 0.6% to 3,535 yen. Sony Corp., which gets 72% of revenue abroad, dropped 1.5% to 1,696 yen.
Shares of oil refiners slumped, as Nymex crude futures hit a three-week low. JX Holdings fell 3.2% to 537 yen and Idemitsu Kosan Co lost 1.3% to 2255 yen after both had logged sharp gains over the prior three days.
Dai-ichi Life sank 2.3% to 1,502 yen on reports the insurer's board will approve the 250 billion yen share sale to fund its purchase of Protective Life Corp.
Brokerage firm Monex Group lost 3.8% following a Deutsche Bank downgrade to Hold from Buy. The bank predicted a sharp fall in industry profits due to weak retail trading levels over the last quarter.
Pioneer Corp. soared 7.1% to 242 yen after Bank of America Corp.'s Merrill Lynch raised its target price on the maker of car audio equipment to 248 yen from 230 yen.
Toshiba advanced 2.5% to 484 yen on reports the company's Westinghouse unit will get the order to build a nuclear power plant in Bulgaria in coming days.
Mitsubishi Heavy Industries added 1.1% to 655 yen after a Macquarie initiation at Outperform, citing growth in its gas turbine business, plus gains from restructuring.
China stocks rise on service PMI
Mainland China share market closed higher for fourth consecutive day after recovering initial losses, as risk sentiments encouraged further after China's services industry activity boomed in June. The benchmark Shanghai Composite closed 0.19% higher from prior day to 2063.23. Trading turnover increased to 96.18 billion yuan from yesterday's 89.30 billion yuan.
Among SSE sectors, 9/10 sectors of the SSE index advanced, with healthcare sector leading the sectoral rally, with gain of 1.4%, followed by materials up 1.1%, telecom up 0.9%, utilities up 0.7%, consumer staples up 0.7%, consumer discretionary up 0.5%, industrials up 0.5%, information technology up 0.4%, and financials up 0.2%.
Shares of Dalian Port PDA rallied 10% daily limit to 3.50 yuan after the State Council approved setting up of an international transportation and logistics center in the city.
Anhui Conch Cement Co, the nation's biggest producer of the building material, climbed 4.7% to 15.50 yuan after the company said net income probably rose about 90% in the first half from a year earlier.
Hong Kong stocks fall on profit taking
Hong Kong share market closed edge below neutral line after fluctuating in narrow range. Investors elected for profit-taking after the benchmark index yesterday ended at its highest level since 10 December 2013, overshadowing another record close on Wall Street overnight. The benchmark Hang Seng Index closed 18.18 points down to 23531.44. Trading turnover decreased to HK$56.57 billion from yesterday's HK$73.32 billion
Among the HK 50 blue chips, 23 rose and 22 fell, with five stocks remaining steady. China Resources Land advanced 2.3% to HK$14.68, contributing 2-points gains to the benchmark Index and becoming the best-performing blue chip. Li & Fung declined 10.5% to HK$10.44, contributing 22-points losses to the benchmark Index and becoming the worst-performing blue chip.
Shares of Mainland developers extended gain on rumours that Jinan city in Shandong province plans to remove house purchase restrictions and after Investment Company UBS stated that property sales volume for top 41 Chinese cities rose 13% last week from the previous week. China Overseas Land & Investment rose 1.7% to HK$19.92. China Resources Land, the second-biggest mainland developer listed in the city by market value, rose 2.2% to HK$14.68.
Anhui Conch jumped 5.6% to HK$29.10 after saying it expects net income to jump from a year earlier on higher sales volume and prices.
Shares of electric car related companies rose after Mainland media reported the ramp-up plan of charging facilities for new energy vehicles. GAC Group (02238) and Geely (00175) gained 5% to HK$9.65 and HK$2.95. Great Wall Motor (02333) rose 3% to HK$30.85. Brillance China (01114) put on 2.9% to HK$15.1. BYD (01121) was up 0.7% to HK$6.05.
Shares of shippers and port operators advanced after the State Council approved a new zone in Dalian city to boost cooperation with Northeast Asian countries, and transform the city to an international shipping centre and a global logistics hub. Dalian Port (02880) soared 17% to HK$2.29. China Ship (01138) shot up 4.5% to HK$4.88. CSCL (02866) added 3% to HK$2.05
The Census and Statistics Department said on Thursday that Hong Kong's value of total retail sales in May, provisionally estimated at HK$39 billion, down 4.1% over a year earlier. The revised estimate of the value of total retail sales in April fell 9.9% over the same period a year earlier. For the first five months of 2014, total retail sales declined 0.2% in value over the same period a year earlier.
Sensex snaps four-day winning streak
Indian stock market registered small losses, with turnover on BSE seeing a sharp decline due to a near 3-hour shutdown caused by network outage. As per provisional figures, the S&P BSE Sensex was down 28.95 points or 0.11% to 25,812.26. The total turnover on BSE amounted to Rs 1418 crore, much lower than Rs 4315.78 crore on Wednesday, 2 July 2014. Trading on BSE was halted in early morning trade due to technical glitch. It took about 3 hours for trading on the exchange to resume at about 12:45 IST.
Realty stocks edged lower. DLF (down 1.46% to Rs 215.55), Sobha Developers (down 1.76% to Rs 481.80), Indiabulls Real Estate (down 3.8% to Rs 94.95) and Unitech (down 4.66% to Rs 32.75) declined.
JSW Energy declined 1.23% to Rs 84.05. The company during market hours said that the company continues to evaluate various opportunities as part of its growth strategy. However, it is currently not in any conclusive discussions for any particular project. JSW Energy issued this clarification after news reports said that the company is set to acquire Lanco Infratech's 1,200 megawatts (MW) Udupi Power plant which is situated in coastal Karnataka for about Rs 5700 crore.
Elsewhere in the Asia Pacific region- Taiwan's Taiex index was up 0.44% to 9526.23. Malaysia's KLSE Composite grew 0.1% to 1888.69. Singapore's Straits Times index added 0.28% to 3273.15. New Zealand's NZX50 added 0.35% to 5167.39. South Korea's KOSPI index dropped 0.21% to 2010.97. Indonesia's Jakarta Composite Index was down 0.4% to 4888.73.
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