Asia Pacific market closed first trading session of August 2013 firmly higher, on the back of pleasing US economy growth data and better than expected China official manufacturing PMI data. The MSCI Asia Pacific Index climbed 1.2%, headed for the biggest gain since July 11. The gauge advanced 1.3% last month, the first gain since April.
Investors' appetite for risk assets boosted by data indicated the US economy grew faster than expected in second quarter and as the Federal Reserve after a two-day policy meeting maintained its bond-buying program at current levels on Wednesday, 31 July 2013.
The Commerce Department said Wednesday that the economy grew at a 1.7% annual rate in the April-June quarter, better than a revised 1.1% rate for the first quarter. Separately, a private survey from payroll company ADP showed that U.S. businesses created 200,000 jobs this month.
Meanwhile, the Federal Reserve gave no hint it may be reducing its bond-buying program any time soon as it concluded a two-day policy meeting on Wednesday. But it did signal concern about higher mortgage rates and flagged the risks of inflation falling too far below its target.
Investors cheered China's official purchasing manager's index (PMI) figure, which rose unexpectedly rose to 50.3 in July, from 50.1 in June. However, a private gauge of factory activity by HSBC fell to an eleven-month low of 47.7 in July, in line with its flash estimate released last week. A reading above 50 indicates an improvement, while one below 50 shows deterioration in conditions for the sector.
Among regional bourses, Japanese stocks advanced, with benchmark Nikkei 225 Stock Average rising 2.47% and Topix index escalating 2.8%, aided by the pleasing US economy growth data and better than expected China official manufacturing PMI data. Meanwhile, buying pressure accelerated further after string of strong earnings reports, including from two of the nation's largest banks, as well as from Panasonic Corp. and Tokyo Electric Power Co.
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Tokyo Electric Power Co Inc jumped 8% to 647 yen after the utility reported on Wednesday a group net profit of 437.93 billion yen for the April to June quarter.
Australian stock market closed modest higher thanks to notable gains in materials and resources that helped to offset losses in bank and financial stocks. The benchmark S&P/ASX200 rose 0.2% to 5061.5.
Shares of Australian mining companies climbed up after China's official purchasing managers' index (PMI) picked up slightly to 50.3, beating market expectations of a contraction to 49.9. Global miners BHP Billiton gained 1.5% to A$35.17, while Rio Tinto grew 0.8% to A$57.94. FMG was up 0.3% to A$3.67.
Elders jumped 11.4% to A$0.088 after rural services company announcing it had agreed to sell its automotive components supplier business for A$69 million.
Transurban Group shares advanced 2.7% to A$6.96 after the Toll roads operator announced 198% rise in net profit to A$174.5 million for the year ending June 30.
Packaging giant Amcor gained 11.4% to A$1.74 after announcing plan to spin off its glass and beverage packaging unit by the end of the year to focus on growth areas.
In New Zealand, NZ shares were mixed, with the NZX 50 eking out small 7.782 points or 0.2%, gains, as ongoing concern about the weaker Australian economy and associated high kiwi dollar weighed on companies including Ebos Group and Mainfreight, while Fletcher Building rose from a month low,
Xero fell 1.2% to NZ$17.10 after chief executive Rod Drury told shareholders at today's annual meeting it expects to post a wider loss in 2014 as it continues to press ahead with growth plans. Xero added another 36,000 customers since March, and is forecasting an 80% lift in annual sales to some $70 million.
In China, headline shares of the China market skyrocketed, sending the benchmark Shanghai Composite index 1.77% up at 2029.07. Stocks gains were spread across a number of sectors after better than expected China's official manufacturing Purchasing Managers' Index data and followed reassurances from policy makers on China's economic growth.
Xu Shaoshi, the head of China's top planning agency, the National Development and Reform Commission, expressed confidence in a statement on Wednesday that the country's economy will expand at the government's official target of 7.5% this year.
Chinese mining and energy stocks rose after data showed China's official version of the manufacturing Purchasing Managers' Index (PMI) unexpectedly raised in July. China is the world's largest consumer of copper and aluminum. Shares of Jiangxi Copper advanced 2.3% to 15.89 yuan and Aluminum Corp of China rose 1.3% to 3.14 yuan. China Oilfield Services added 5.1% to 15.70 yuan and China Petroleum & Chemical Corp 1.1% to 4.43 yuan.
Hong Kong's share market advanced after data showed China's official version of the manufacturing Purchasing Managers' Index (PMI) unexpectedly raised in July. Gains in other Asian stocks also underpinned sentiment. The benchmark Hang Seng Index climbed up 0.94% to finish at 22,088.79.
Among the 50 HK blue chips, 44 stocks rose, while 3 fell and remaining 3 stocks closed steady. Want Want slid 0.6% to HK$10.44, while Li & Fung gained 3.1% to HK$10.58, making themselves the biggest blue-chip loser and winner.
Shun Tak Holdings shares closed 8.7% up at HK$3.62 after the conglomerate late Wednesday said it successfully won a 721 million yuan (US$117.7 million) land deal on China's Hengqin Island.
In India, key Indian indices edged lower after witnessing high intraday volatility. Index heavyweight Reliance Industries (RIL) dropped. The S&P BSE Sensex was provisionally down 38.64 points or 0.2%, off close to 265 points from the day's high and up about 135 points from the day's low. The market breadth, indicating the overall health of the market, was weak. FMCG major Hindustan Unilever (HUL) rose on bargain hunting after the recent steep losses.
Mahindra & Mahindra (M&M) dropped after the company said that as part of aligning its production with sales requirements, the company would be observing no production days at its automotive plants for a period ranging from 0 to 6 days in the forthcoming months. Shares of two wheeler makers were mixed after PSU OMCs hiked petrol price. Bank of Baroda declined after the state-run bank reported rise in sticky loans at the time of announcing Q1 results today, 1 August 2013. Shares of Financial Technologies crashed after the National Spot Exchange, a commodities exchange, on Wednesday, 31 July 2013, said it has suspended trading of contracts, other than e-Series contracts till further notice. Shares of Multi Commodity Exchange of India (MCX), a commodity futures exchange promoted by Financial Technologies, fell by the maximum permissible level of 20% for the day.
Elsewhere, South Korea's Kospi Index (KOSPI) gained 0.35%, while Taiwan's Taiex Index shed 0.64%. Indonesia's JKSE Composite was up 0.3%. Singapore's Straits Times Index added 0.66%. Malaysia's KLSE Composite climbed 0.29%.
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