Regional shares commenced today's trading with firm footing on tracking strong lead from offshore after equity markets in the United States and Europe moved higher overnight in response to better than expected US industrial production numbers. Data from the Federal Reserve showed factory production in the U.S. rose 0.8% in February after a revised 0.9% slump in the prior month.
Investment rationale for riskier assets cemented further on relief that the sanctions on Russia from the US and EU was deemed as moderate as it avoided measures that might disrupt Russian economic activity after the referendum of Ukraine's Crimea region overwhelmingly supports joining Russia.
Crimea's parliament official declared the region an independent state after an overwhelming majority of voters in Crimea, 97%, voted to join Russia in a controversial referendum over the weekend. Russia president Putin also signed a decree recognizing Crimea as a "sovereign and independent country". But such referendum was seen as illegal to the West, which triggered sanctions to Russia from US and EU.
US president Obama announced sanctions against Russia "to isolate Russia for its actions, and to reassure our allies and partners" of American support. It targeted seven Russian and four Ukrainian officials and includes asset freezes and travel bans. EU separately announced sanctions of 21 individuals. Both lists have just four names in common, two top Crimeans and two Russians.
Among Asian key bourses, Australian stock market finished the session modest higher, on the back of bargain buying across the sector, with mining and financial stocks leading the way. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each were up 0.5% to 5344.6 and 5360.2, respectively.
Shares of Australian material and resources companies went higher, with resources giant BHP Billiton higher by 1.7% to A$36.07, while main rival Rio Tinto added 0.9% to A$61.85. Fortescue Metals Group, which produces only iron ore, dropped 0.6% to $4.88.
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Australian financial companies were also higher. Commonwealth Bank of Australia rose 0.5% to A$75.19, Westpac Banking Corp 0.2% to A$33.59, National Australia Bank 1% to A$34.54 and ANZ Banking Group 0.6% to A$32.26. Investment bank Macquarie Group rose 0.2% to A$54.50 after announcing the sale of its private equity division.
Australia's gold producers sank sharply, as comex gold futures price eased from six-month highs on Monday, down by US$6.10 an ounce or 0.4% to US$1,372.90 per ounce. Australia's biggest gold producer Newcrest Mining lost 7.7% to A$11.23, while Perseus Mining shed 7.7% to A$0.48. Shares in Kingsgate Consolidated (KCN) were in a trading halt. The miner announced it will rise as much as A$59.4 million from investors through placement and entitlement offer.
RBA meeting minutes released on Tuesday, reiterating that the central bank will keep rates on hold for a period of time. The minutes noted timely indicators were consistent with some improvement in economic conditions over recent months and the decline in the exchange rate seen to date would assist in achieving balanced growth in the economy.
In Japan, Japanese share market closed modest higher on the back of strong lead from offshore equity markets, weaker yen and relief about conflict between Russia and Ukraine. The benchmark Nikkei-225 index climbed 0.94% to finish at 14,411.27, while the Topix index of all first-section issues rose 0.95% to 1,165.94.
Shares of Japanese exporters went higher, on the back of US dollar strength against the Japanese yen. Japan's currency was little changed against the greenback today after falling 0.4% yesterday. Mazda added 2% to 460 yen and Nissan Motor Co rose 2.2% to 869 yen.
Shares of information and communication companies climbed up, with SoftBank, which holds a stake in Alibaba Group Holding, leading the rally, up 3.2% to 8,372 yen, after China's biggest e-commerce company started the process to list shares in the U.S. Nippon Telegraph & Telephone Corp. added 2% to 5,730 yen.
Dentsu soared 5.5% to 3,850 yen after its rating was raised to buy from neutral at Bank of America Merrill Lynch.
Mitsubishi Electric gained 3.1% to 1,147 yen after the manufacturer of electronic equipment raising its planned year-end dividend to 11 yen from 6 yen a year earlier.
Prime Minister Abe's advisor Hamada, a retired Yale University professor, said that BoJ should add stimulus as soon as May if the planned sales tax hike shows sign of hurting the economy and warned that waiting for the June quarter GDP to act would be too late. Meanwhile, Hamada also said that BoJ could even double its annual pace of bond purchase to JPY 100T to give free stimulus to the economy.
In China, Mainland China stock market finished the session slight higher, with consumer discretionary, utilities and telecom related blue chips were leading the rally. However, gains on the upside were limited amidst lingering worries over growth outlook for Asia biggest economy and concerns about corporate credit defaults in China. The benchmark Shanghai Composite Index climbed up 0.08% to 2025.20.
Shares of Chinese train makers rallied, with CSR Corp leading the rally, up 4.7% to 4.42 yuan after the company's received 12.8 billion yuan worth of order from Transnet Freight of South Africa. China CNR Corp. advanced 0.9% to 4.30 yuan.
Realty developers stocks closed weaker after National Bureau of Statistics of China data showed the growth in capital city house prices continued to moderate in February after slowing down in January for the first time in a year. Growth in new-home prices in Beijing and Shenzhen each rose 0.2% in February from a month earlier, the National Bureau of Statistics said. Poly Real Estate dropped 2.8% to 6.88 yuan. China Vanke fell 2.1% to 7.60 yuan in Shenzhen trading.
Shares of distilleries were higher, with Wuliangye Yibin Co, the second-biggest maker of baijiu, up 1.5% to 18.03 yuan.
The Ministry of Commerce of the People's Republic of China reported that on annual basis China's January to February month foreign direct investment raises by 10.44% to $19.3 billion. The ministry previously reported January FDI at $10.76 billion which was 16.11% higher year over year. The ministry didn't break out February data and statistics for the first two months of the year are often combined to reduce distortions from the Lunar New Year.
The People's Bank of China drained CNY100 billion via 28-day repos in its open market operations on Tuesday. The amount is unchanged compared with a week ago Tuesday. A total of CNY78 billion is set to mature this week.
In Hong Kong, HK share market finished modest higher for the first time in five consecutive sessions, boosted by gains on Wall Street overnight and as traders perceived that the worst of the Crimea crisis didn't happen. But move on the upside was limited on concern over how fast China's economy will grow this year. The Hang Seng Index closed up 0.5% at 21,583.5, its first gain after four days of losses.
Among the HK 50 blue chips, 25 fell and 21 rose, with four stocks remaining steady. Belle International Holdings dipped 3.6% to HK$7.7 becoming the top blue-chip loser. Tencent Holdings jumped 5.8% to HK$578, becoming the top blue-chip gainer, as investors chased for bottom fishing following steep losses in recent sessions.
China Longyuan (00916) plunged 13.8% to HK$7.93 after the firm reported a 21% decline in its net profit of last year. CSR (01766) shot up 13.1% to HK$6.3 as it signed a number of contracts worth over RMB20bn. CSR Times (03898) also jumped 13.3% to HK$25.1.
KWG (01813) soared 10% to HK$3.97 as the developer reported a 14% growth in its earnings for 2013.
Shares in Lippo jumped by as much as 41% to a six-year high after the property firm resumed trading following preliminary approval from South Korea to build and operate a casino resort as part of a consortium.
The latest data from the Census and Statistics Department showed volume of Hong Kong's re-exports of goods dropped 1.3% in January from a year earlier, while that of domestic exports fell 2.7%. Taken together, the volume of total exports and imports of goods declined 1.3% and 3.7%. Comparing the three months ending January 2014 with the three months ending January 2013, the volume of Hong Kong's re-exports of goods edged up 0.4%, whereas that of domestic exports dropped 7.3%. Taken together, the volume of total exports of goods rose 0.3%. Concurrently, the volume of imports of goods grew 0.9%
In India, key benchmark indices -- the barometer index, S&P BSE Sensex, and the 50-unit CNX Nifty -- provisionally settled a tad higher for the day after strong initial gains took them to new record high.
As per provisional figures, the S&P BSE Sensex was up 12.22 points or 0.06% to 21,822.02. The index jumped 230.92 points at the day's high of 22,040.72 in early trade, a new record high for the barometer index.
The CNX Nifty was up 10.05 points or 0.15% to 6,514.25, as per provisional figures. The index hit a high of 6,574.95 in intraday trade, a new record high.
Indian index heavyweight and cigarette major ITC gained. Most metal and mining stocks edged higher. Shares of Maruti Suzuki India surged after the company and its Japanese parent Suzuki Motor Corporation modified terms of the Gujarat manufacturing plant to address Maruti shareholders' concerns. Index heavyweight Reliance Industries (RIL) edged higher in choppy trade after the company said that its telecom unit -- Reliance Jio Infocomm -- (Reliance Jio) will launch its services across India using telecom-tower infrastructure provided by Viom Networks.
Elsewhere in the Asia Pacific region, Taiwan's Taiex index added 0.37%. South Korea's KOSPI index rose 0.66%. New Zealand's NZX50 declined jumped 0.94%. Malaysia's KLSE Composite rose 0.31%. Singapore's Straits Times index added 0.05%. Indonesia's Jakarta Composite Index fell 1.45%.
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