Asia Pacific share market inclined on Tuesday, 12 July 2016, as buying sentiment was bolstered by waning Brexit fears after British Prime Minister David Cameron yesterday, 11 July 2016, announced that Theresa May would succeed him as Britain's new Prime Minister, ending speculation over who would succeed Cameron. Sentiments bolstered further on anticipation that Abe would soon introduce a fresh fiscal stimulus package to help the stagnant economy.
In Japan, after winning the upper house election, Prime Minister Shinzo Abe said his cabinet would start to compile a stimulus package in the current fiscal year. There are speculation that the package could worth up to JPY 20T. And he pledged to stimulate the economy with "swift formulation of comprehensive, bold economic measures". Meanwhile, there is report that Abe could reshuffle his cabinet in early August. Former Fed chairman Ben Bernanke met with Abe today. Cabinet Secretary Yoshihide Suga said that "Mr Bernanke said Japan should raise nominal growth by fiscal policy coordinated with monetary policy steps." And, "he pointed out that there are various monetary policy measures left for the BOJ to take."
Among Asian bourses
Australia Market extends gain to fourth day
Australian share market closed higher for the fourth straight session, as gains in materials and resources and financials stocks were more than offset by losses in bullion, utilities, energy, and consumer goods stocks. At close of trade, the benchmark S&P/ASX 200 index advanced 16.10 points, or 0.3%, to 5353.70. The broader All Ordinaries climbed up 15.70 points, or 0.29%, to 5433.20. Rising stocks outnumbered declining ones on the Australia Stock Exchange by 622 to 450 and 349 ended unchanged. The S&P/ASX 200 VIX, which measures the implied volatility of S&P/ASX 200 options, was down 4.10% to 16.688.
Shares of materials and resources closed mostly higher. BHP Billiton inclined 1.7% to A$19.93, while main rival Rio Tinto was down 0.2% to A$49.40. Iron ore miner Fortescue Metals Group grew 2.5% to A$4.17.
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Banks and financial stocks added strength. Commonwealth Bank of Australia added 0.5% to A$74.50, Westpac Banking Corp 0.7% to A$29.38, ANZ Banking Group 1.2% to A$24.20, and National Australia Bank 0.5% to A$25.11.
Consumer stocks were also in favour Australia's biggest car retailer Automotive Holdings Group jumped by 3.5% to A$4.13 and media company Nine Entertainment added 3.3% to A$1.10.
Japan Market extends gain on stimulus promises
The Japan share market spurted for the second consecutive day on an easing yen and growing hopes for more monetary stimulus after Prime Minister Shinzo Abe pledge on Monday that the government will compile a fresh stimulus package to underpin growth. His ruling coalition won convincingly in the House of Councillors election on Sunday. Every industry category on the main section except food issues gained ground, led by miscellaneous product, financial stock and banking issues. The 225-issue Nikkei Stock Average ended up 386.83 points, or 2.46%, from Monday at 16,095.65. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 29.94 points, or 2.38%, higher at 1,285.73.
Large-capital stocks rose noticeably Tuesday on the Tokyo Stock Exchange. Among them, Mitsubishi UFJ Financial Group rose 8% at one point and Nomura Holdings was up 7%. Mazda Motor, which gets roughly 20% of its total sales in Europe, saw its share price jump 8%.
Shares of Nintendo Co. jumped 12.7%, fueled by the craze for "Pokemon Go," a smartphone game based on the video game maker's characters that's become the top grossing app in the iPhone store less than a week after its release in the U.S., Australia and New Zealand. The "augmented reality" game layers gameplay onto the physical world, letting players wander the physical world in search of digital monsters.
China Stocks rise on stimulus optimism
Mainland China stock market advanced to three month higher, as buying sentiment was bolstered by speculation state-backed institutions intervened in both the share and currency markets and as the nation's pension funds prepared to invest in equities. All 10 SSE sectoral indices advanced, with energy issue being top gainer, followed by consumer staples, healthcare, industrials, and consumer discretionary issues being top gainers. The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 2.18%, to 3273.18, while the Shanghai Composite Index surged 1.82%, to 3049.38 points.
China's pension funds, which have about 2 trillion yuan ($300 billion) for investment, may start deploying some of their holdings in securities including equities in the second half, according to China International Capital Corp. and CIMB Securities.
China's actual foreign direct investment rose 9.7% y/y in June to $15.23 billion, the Ministry of Commerce said on Tuesday, compared with a 1% y/y drop in May. For the first six months, actual FDI was up 5.1% at $69.42 billion after excluding investment in the financial sector. Hong Kong: Stocks climbs 1.65%
Hong Kong Stocks climbs 1.65%
The Hong Kong stock market closed up, following an upbeat session on mainland equity markets and Wall Street overnight. The benchmark Hang Seng Index advanced 344.24 points, or 1.65%, to 21224.74 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, grew 152.31 points, or 1.75%, to 8855.31. Turnover increased to HK$71.1 billion from HK$60.3 billion on Monday.
Coal mining companies rose across the board on rising coal prices and improved supply and demand curves. China Shenhua (01088) rose 5.2% to HK$14.9. Winsway (01733) billowed 18.5% to HK$0.25. China Coal Energy Co. jumped 7.4% after saying it will swing to a first-half profit from a net loss a year earlier.
Tension in South China Sea is escalating as court of arbitration in The Hague will send its ruling at 5 p.m. today regarding the sovereignty dispute between Philippines and China. China Energine (01185) heaved 19% to HK$0.63.
Tangshan city in Hebei province handed down official document, capping steel output, with immediate effect. Maanshan Iron (00323) jumped 4.5% to HK$1.86. Angang Steel (00347) surged 6.2% to HK$3.94.
The State Council has approved the merger of CITS Group and China National Travel Service HK Group Corporation (HKCTS Group). China Travel HK (00308), a unit of HKCTS Group, soared 7.4% to HK$2.46.
Nifty hits more than eleven-month closing high
Positive cues from global markets aided the latest upmove on the domestic bourses. The barometer index, the S&P BSE Sensex, rose 181.45 points or 0.66% to settle at 27,808.14. The Nifty 50 index rose 53.15 points or 0.63% to settle at 8,521.05. The market sentiment was positive after data showing substantial purchases of Indian stocks by foreign funds during the previous trading session.
The market sentiment was boosted after data showing substantial purchases of Indian stocks by foreign funds during the previous trading session. Foreign portfolio investors (FIIs) bought shares worth a net Rs 1070.10 crore from the secondary equity markets yesterday, 11 July 2016, as per data from the National Securities Depository (NSDL). The Sensex had surged 1.84% yesterday, 11 July 2016.
Shares of staffing firm Quess Corp settled at Rs 503 on BSE, a premium of 58.68% over the initial public offer price of Rs 317 on its debut on the stock exchanges today, 12 July 2016. The stock debuted at Rs 499, a premium of 57.41% to the initial public offer (IPO) price. Quess Corp provides comprehensive solutions including recruitment, temporary staffing, technology staffing, IT products and solutions, skill development, payroll, compliance management, integrated facility management and industrial asset management services.
Elsewhere in the Asia Pacific region: New Zealand's NZX50 added 0.2% to 7079.46. South Korea's KOSPI index gained 0.1% to 1991.23. Taiwan's Taiex index climbed 0.6% to 8841.46. Malaysia's KLCI grew 0.01% to 1653.97. Indonesia's Jakarta Composite index gained 0.6% to 5099.53. Singapore's Straits Times index added 0.9% to 2901.82.
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