Don’t miss the latest developments in business and finance.

Asia Pacific Market: Stocks extend gains on positive U. lead, China PMI data

Image
Capital Market
Last Updated : Oct 02 2015 | 12:02 AM IST
Asia Pacific share market advanced for second straight day on Thursday, 01 October 2015, as sentiments for risk assets boosted up after rise in Wall Street overnight and as China's Purchasing Managers' Index of manufacturing activity for September came in a little better than the previous month.

Overnight on Wall Street, the tech-heavy Nasdaq Composite led gains with a jump of 2.3%, after data showed U.S. private-sector payrolls in September rose at a pace that matched expectations. The Dow Jones Industrial Average and the S&P 500 closed up 15 and 1.9% respectively.

China's Purchasing Managers' Index of manufacturing activity for September came in a little better than the previous month, though it was still near a three-year low. China's official manufacturing purchasing managers index ticked up to 49.8 in September from 49.7 in August, according to the China Federation of Logistics and Purchasing, which issues the data with the National Bureau of Statistics. The September reading beat the market forecast of 49.7. Official non-manufacturing PMI was unchanged at 53.4. The Caixin manufacturing PMI was revised higher to 47.2, the lowest reading since March 2009, while Caixin services PMI dropped to 50.5. A PMI reading above 50 indicates an expansion in manufacturing activity, while a reading below points to a contraction.

Among Asian bourses

Australia market closes 1.8% up

The Australian share market advanced for second straight day on Thursday, 01 October 2015, as relatively solid Chinese economic data boosted up risk sentiments. All ten ASX sectors added weight, with shares in energy, utilities, industrial, financial, and material issues being major gainers. The benchmark S&P/ASX 200 index ascended 90.50 points, or 1.8%, to end at 5112.10 points, while the broader All Ordinaries index gained 85.50 points, or 1.7%, to 5144.10 points.

Shares of energy and material companies were top gainers in the Australian financial market today, as metal commodity prices bounced back and firmer crude oil prices in Asian trade. Among miners, BHP Billiton gained 2.1% to A$22.68, mirroring the rise in its U.S. ADRs, meanwhile Rio Tinto added 2% to A$49.58. Oz Minerals leaped 19.6% on reports that U.S. private equity giant KKR & Co bought a 10% stake in the copper miner. Among energy shares, Woodside Petroleum rose 2.9% to A$29.76, Oil Search 2.1% to A$7.32, and Santos 4.8% to A$4.17.

Financial stocks were also benefitted, with big-four lenders being major gainers. Among top lenders, Westpac Bank led rally among major banks, up 2.3% to A$30.39, meanwhile National Australia Bank climbed up 1.9% to A$30.54 and Commonwealth Bank 2.1% to A$74.27. Australia & New Zealand Banking Group added 1.6% to A$27.52, after the lender announced that Shayne Elliott will replace Mike Smith as chief executive officer from January 2016. Elliott currently serves as ANZ's chief financial officer.

More From This Section

Nikkei extends gain

The Japanese share market ended higher on Thursday, 01 October 2015, as appetite for risk assets bolstered by positive lead from Wall Street overnight, relatively solid Chinese economic data and yen depreciation against greenback. Meanwhile, sentiments boosted up on expectations the BOJ will ease monetary policy during its October meetings after weaker than expected Bank of Japan's quarterly tankan business sentiment survey data. Total 31 out of 33 first-section sector sub-indexes added strength, with Real Estate, Financial Business, Precision Instruments, Electric Appliances, Machinery, Transportation Equipment, and Iron & Steel issues being major gainers. The Nikkei Stock Average ascended 334.27 points, or 1.92%, to end at 17722.42 points, meanwhile the broader Topix index climbed up 2.24%, or 31.58 points, to 1442.74 at the close.

The Bank of Japan's latest corporate survey showed that big manufacturers turned more cautious about the economy over the third quarter, underscoring challenges facing exporters because of China's economic slowdown. The tankan survey's main index measuring the mood among big manufacturers about present business conditions fell to plus 12 from plus 15 in June despite record-high profits. The result marked the first deterioration since December and was worse than the plus 13 expected by economists.

The disappointing Tankan survey supplied the latest evidence that Prime Minister Shinzo Abe's growth blitz, dubbed Abenomics, was faltering, as speculation grows that Japan's central bank would have to expand its massive asset-buying scheme, possibly as early as this month.

Shares of real estate, precision machinery, and mining companies were top gainers in the Tokyo. Sumitomo Realty & Development Co rose 6.5% to Y4037. Optical product maker Hoya Corp. gained 6.8% to Y4167. Oil explorer Inpex Corp. added 2.5% to Y1090.5. Toyota shares were up 2.58% to Y7151, Sony gained 3.36% to Y2996, and market heavyweight Fast Retailing, operator of the Uniqlo clothing chain, rose 1.9% to Y49300.

Japan Tobacco fell 3.30% to Y3573, after losing almost seven% on Wednesday, as investors dismissed its $5 billion purchase of a US-cigarette brand as too pricey. More than $US10 billion has been wiped off the tobacco giant's market value in response to JT's agreement with Reynolds American to buy its Natural American Spirit brand outside the US.

Sensex extends gain in afternoon trade

Indian stock market extended gains in afternoon trade on buying in IT, pharma and banking stocks amid a firming trend overseas. At 13:17 IST, Sensex was up 145.36 points or 0.56% at 26,300.19. he Nifty was up 22.50 points or 0.28% at 7,971.40. Sentiments turned bullish after RBI Governor Raghuram Rajan sprang a surprise by announcing a biggest-than-expected interest rate cut of 0.50% to 6.75, lowest in four-and-half-years to boost country's economic growth. Besides, a firming trend at other Asian markets following overnight gains on the Wall Street as investors bought recent beaten-down stocks boosted sentiments.

The outcome of a monthly survey showed that India's manufacturing sector lost growth momentum last month. Due to slower increase in new business, the Nikkei India Manufacturing Purchasing Managers' Index (PMI) fell to seven-month low of 51.2 in September 2015 from 52.3 in August 2015.

Meanwhile, data released by the government after trading hours yesterday, 30 September 2015, showed that the output of eight core industries, comprising nearly 38% of the weight of items included in the Index of Industrial Production (IIP) registered growth of 2.6% in August 2015 over August 2014. Its cumulative output growth during April to August 2015-16 was 2.2% compared with 5.6% growth in the corresponding period of last year.

Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 0.6% to 8181.24.68. South Korea's KOPSI soared 1% to 1962.81. New Zealand's NZX50 eased 0.1% to 5585.43. Singapore's Straits Times index added 0.9% at 2817.24. Indonesia's Jakarta Composite index ascended 1% to 4264.31. Malaysia's KLCI climbed up 0.8% to 1633.65. Financial markets in Hong Kong and China are closed for a public holiday.

Powered by Capital Market - Live News

Also Read

First Published: Oct 01 2015 | 2:48 PM IST

Next Story