Asia Pacific share market inclined on Thursday, 08 December 2016, as risk appetite buying resumed after the Wall Street powered to fresh record highs overnight. But gains across the region capped as investor eye a key European Central Bank meeting.
Markets were waiting for a statement from the European Central Bank late on Thursday. The European Central Bank (ECB) is widely expected to prolong massive monetary stimulus Thursday to spur an economy crimped by a rise in political uncertainty as exemplified by Trump's upset win, Brexit and the rise of the far right in Europe.
Among Asian bourses
Australia market spurs to 4-month high
Australian share market advanced to its highest point in nearly four months, on the back of significant gains in resources and financial stocks. With the exception of energy issue, every ASX sector was up, with technology, financial and mining issues leading rally. At the closing bell, the benchmark S&P/ASX 200 index advanced 65.50 points, or 1.2%, to 5543.60, while the broader All Ordinaries index inclined 63.60 points, or 1.15%, to close at 5599.
Shares of materials and resources were best performers among ASX sectors, thanks to jump in base metal price in overnight trade. Rio Tinto added 3.1% to A$62.73 and BHP ended up 1.2% to A$26.04. Fortescue added 1.7% to A$6.69.
Shares of financial players, which had lost ground over the last few months, were attracting the attention of international investors, in part due to a lower Australian dollar. Among major banks, Westpac added 2.1% to A$32.13, Australia & New Zealand Banking Group 2.5% to A$29.53, Commonwealth Bank of Australia 0.5% to A$79.73, and National Australia Bank 1.1% to A$29.32.
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Nikkei extends gains on strong global cues
The Japan share market inclined to its best close this year, after Wall Street powered to fresh record highs overnight. But gains were limited after weak revised figures that showed Japan's economy grew less than expected in the third quarter and as investors eye a key European Central Bank meeting. Total 31 out of 33 TSE industry category on the main section gained ground, with Electric Power & Gas, Securities & Commodities Futures, Insurance, Iron & Steel, Information & Communication, and Air Transportation issues being major gainers. The 225-issue Nikkei average inclined 268.78 points, or 1.45%, to close at 18,765.47. The Topix index of all first-section issues finished up 22.07 points, or 1.48%, at 1,512.69.
SoftBank shares roared again in the wake of Trump's announcement of a $50 billion investment in the US by the telecoms giant.The stock jumped more than six% on Wednesday, with investors hailing CEO Masayoshi Son's meeting with Trump in New York.
Honda Motor Corp jumped after the announcement that its joint venture in China plans to build a third production plant in the country.
Sony was up after it announced plans to release new smartphone games in April into the Japanese market.
Japan's gross domestic product grew 0.3% on quarter in the third quarter of 2016, the Cabinet Office said in Thursday's final revision. That missed expectations for 0.5%, which would have been unrevised from the November 14 preliminary reading. GDP was up 0.2% in the second quarter. On a yearly basis, GDP was knocked all the way down to 1.3% from the preliminary reading of 2.2%.
Japan had a current account surplus of 1.719 trillion yen in October, the Ministry of Finance said on Thursday, rising 22.7% on year, following the 1.821 trillion yen surplus in September. The trade balance reflected a surplus of 587.6 billion, down from 642.4 billion yen in the previous month. Imports were down 15.9% on year to 5.160 trillion yen, while exports dipped 9.4% to 5.747 trillion yen.
China Stocks edge lower on weak trade data
Mainland China stock market ended slight lower on Thursday, 08 December 2016, as investors grappled with mixed data showing better-than-expected November trade numbers but a sharp fall in foreign-exchange reserves. Sectors were mixed, with banks and raw materials gained, while properties and infrastructures dropped. The Shanghai Composite Index dropped 0.21%, to 3,215.37, while the Shenzhen Composite Index, which tracks stocks on China's second exchange, declined 0.52% to 2,077.37. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, fell 1% to close at 2,114.71 points.
Investors' risk appetites were dented after data late on Wednesday showed forex reserves fell nearly $70 billion last month to the lowest level in nearly six years, as the central bank struggled to prop up the yuan's value. However, unexpectedly strong trade data on Thursday provided some relief. China's November exports rose by 0.1 percent from a year earlier, while imports expanded 6.7 percent on strong demand for commodities from coal to iron ore.
Resource shares advanced, despite the generally cautious mood. Steelmaker Baoshan Iron & Steel Co and Wuhan Iron and Steel jumped on the heels of regulatory approval for their merger plan.
Hong Kong Stocks extends gain for the third session
The Hong Kong stock market finished higher for third straight session, on the back of positive lead from US markets overnight. Still, the upside was limited by a softer close for mainland shares after China's foreign exchange reserves fell far more than expected in November to the lowest level in nearly six years. The reserves data also seemed to have offset any enthusiasm from solid trade numbers for the world's second-biggest economy. Most sectors rose, with industrial and resource shares leading the gains. The Hang Seng Index ended up 0.27%, or 60.92 points, to 22,861.84, while the Hang Seng China Enterprises index inclined 0.68%, or 67.24 points, to 9,896.82. Turnover increased to HK$73.5 billion from HK$62.5 billion on Wednesday.
HSBC (00005) edged down 0.2% to HK$65.35. The global bank has started buying back its own shares since early August, but it did not issue repurchase notice today.
AIA (01299) slipped 2% to HK$44.25 becoming the largest blue-chip loser. Nomura said in a research report that potential downside from UnionPay restriction is yet to play out fully. AIA today registered a HK$574 million block deal.
Nomura also noted that HKEx's (00388) valuation is ahead of fundamentals. But it rebounded 0.7% to HK$195 after four-day decline. MTR Corp (00066) edged up 0.3% to HK$38.6.
China Customs said exports and imports in November rebounded to 0.1% and 6.7% year-on-year in USD terms. COSCO Shipping Ports (01199) and Tianjin Port Development (03382) rose 2.9% and 1.7% to HK$7.92 and HK$1.22.
Sensex, Nifty settle at near 4-week high
Gains in metal, auto sector stocks and index heavyweights ITC, Reliance Industries, Infosys, HDFC and HDFC Bank lifted key benchmark indices. The barometer index, the S&P BSE Sensex, surged 457.41 points or 1.74% to settle at 26,694.28. The Nifty 50 index jumped 144.80 points or 1.79% to settle at 8,246.85. Strong global cues boosted investors' sentiment.
Bank stocks edged higher. Tata Motors rose after the company said that Jaguar Land Rover (JLR), the UK's leading manufacturer of premium luxury vehicles, reported its best ever November retail sales. Escorts advanced after the company announced the completion of the divestment of its auto products business to Badve Engineering, Pune. Tata Steel rose as Tata Steel UK reached an agreement with trade unions on a number of proposals that would structurally reduce risks and help secure a more sustainable future for its UK business.
Elsewhere in the Asia Pacific region: New Zealand's NZX50 shed 0.08% to 6910.19. Indonesia's Jakarta Composite index added 0.7% to 5303.73. Taiwan's Taiex grew 1.2% to 9375.86. South Korea's KOSPI index was up 2% to 2031. Malaysia's KLCI grew 0.7% to 1643.75. Singapore's Straits Times index fell 0.03% to 2958.86.
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