Headline equities of the Asia Pacific market closed mostly higher in light trading on Thursday, 24 December 2015, as investor interest in blue-chips boosted up after an oil-linked surge on US and European bourses overnight. The MSCI Asia Pacific Index climbed 0.2% to 131.31.
Investors' sentiment remained firm after stabilization in commodity prices as crude climbed to a two-week high and industrial metals gained on optimism that the Chinese and American economies will spark demand for resources.
U.S. crude futures added 0.6% at $37.71 a barrel while Brent crude futures rose 0.6% to $37.58 in Asian trade on Thursday. Crude prices surged more than 3.5% Wednesday after a report showed US inventories unexpectedly fell in the week to Friday, a day after Brent had touched its lowest level since July 2004, leading to hopes a year-long slump may have bottomed out.
Base Metal prices closed higher on greater optimism about demand in China and as Chinese funds bet on higher prices along with the gains in the Oil prices.
Among Asian bourses
Australia Market surges to 3-week high
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Australian share market advanced in a shortened Christmas Eve session, following supportive global cues. Investors' sentiment remained firm after stabilization in commodity prices as crude climbed to a two-week high and industrial metals gained on optimism that the Chinese and American economies will spark demand for resources. All ASX industry groups, barring industrial, advanced, with shares of material, energy, and financial sectors being major gainers. At the close, the benchmark S&P/ASX 200 index ended 65.80 points, or 1.28%, up at 5207.60 points, a highest level since 3 December 2015 when it closed at 5227.70, while the broader All Ordinaries index grew 63.60 points, or 1.21%, to 5256.10 points. The S&P/ASX 200 VIX, which measures the implied volatility of S&P/ASX 200 options, declined 3.6% at 15.44, suggesting 4.4% swing in the equity benchmark index in the next 30 days.
Shares of energy and material sectors were top performers among ASX 10 industry groups, as investors continued hunting for resources related issues due to recovery in crude oil prices. Origin Energy continued leading Australian energy stocks higher, adding 6.2% to close at A$4.79, meanwhile oil and gas producer Woodside Petroleum rose 2.1% to A$28.18 and Santos jumped 2.7% to A$3.80. Worley Pearson climbed up 1.7% to A$4.67. Global miner BHP Billiton climbed up 5.3% to A$18.34 and rival Rio Tinto gained 4.4% to A$45.95. Smaller iron ore player Fortescue grew 5% to A$1.88. Gold miner Newcrest Mining added 1.3% to A$12.96.
Japan stocks down on profit booking
Japan share market closed down due to profit booking after being closed on Wednesday for the Emperor's birthday. Tokyo market opened higher, but equity gauges failed to hold momentum as investors' sentiment turned cautious after Japanese Prime Minister Shinzo Abe's cabinet approved on Thursday a record fiscal 2016 budget that counts on higher growth and tax revenue to achieve Abe's aim of reviving the economy and reining in public debt. Minutes of the Bank of Japan's November rate review released earlier in the session showed that many policymakers complained of slow wage and capital expenditure growth, but were optimistic that companies will start to boost spending once emerging economies improve. The 225-issue Nikkei Stock Average declined 97.01 points, or 0.51%, to 18789.69. The Topix index of all Tokyo Stock Exchange First Section issues sank 9.98 points, or 0.65%, to 1523.62.
Shares of export related companies mixed after yen hovered around mid-120 level against the greenback. Sony Corp advanced 1.3%, Canon Inc 0.4%, and industrial robot maker Fanuc Corp 0.8%. However, Toyota Motor Corp lost 1.2% and embattled Toshiba Corp sank 1.3%.
Shares of airbag manufacturer Takata closed lower by 4.8%, after the auto safety agency in America - The US National Highway Traffic Safety Administration said that there has been an eighth fatality in the United States, linked to a faulty Takata airbag inflator in a Honda vehicle. That would bring the death tally to nine worldwide and it's the first reported death since April.
China Market falls 0.65%
The Mainland China stock market declined, due to resumption of profit booking amid speculation recent gains were overdone, and concern about fund diversion toward initial public offerings from existing equities. Total 9 out of 10 SSE industry groups declined, with shares of industrial, consumer staple, and healthcare issues being major losers. The Shanghai Composite Index decreased 0.65%, or 23.60 points, to close at 3612.49. The Shenzhen Composite Index, which tracks stocks on China's second exchange, declined 0.2%, or 4.69 points, to close at 2346.37. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, gained 0.43%, or 11.84 points, to close at 2795.78.
Shares of health-care and property companies slumped as profit booking revived amid speculation recent gains were overdone. Drugmaker Beijing Tongrentang Co. and Drugmaker Beijing Tongrentang Co lost 6.9%. Yunnan Baiyao Group Co. retreated 1.6%. Developer Gemdale Corp. tumbled 9%, while Poly Real Estate Co. slid 4.7%.
Shares of insurers were mixed after China's insurance regulator raised transparency requirements for insurance funds buying shares in the market. Late Wednesday, the China Insurance Regulatory Commission said it would require insurance firms to disclose plans to buy stakes up to 5% of listed firms and their sources of funding. China Life Insurance climbed 2% but Ping An Insurance eased 0.1%.
Hong Kong Market rises in shortened session
The Hong Kong stock market ended higher in the holiday-shortened session, as investor sentiment was boosted by rally in U.S. equities overnight amid a reprieve in the recent plunge of oil prices. The benchmark index opened up 167 points at 22,207 and gradually pared its gains as the Shanghai market softened and failed the 3,600 level. The benchmark Hang Seng Index advanced 97.54 points, or 0.44%, to 22138.13 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, added 70.26 points, or 0.71%, to 9953.21 points. The HSI Volatility Index (VHSI), which measures the cost of options on the Hong Kong equity gauge, fell 4.5% to 18.33points, suggesting 5.3% swing in the equity benchmark index in the next 30 days. Hong Kong markets closed at midday, and will be closed on Friday for Christmas.
Shares of energy players gained on tracking strength in crude oil future prices. PetroChina (00857) gained 2.3% to HK$5.38. Sinopec (00386) also advanced 2.3% to HK$4.95.
Banking stocks were higher, with StanChart (02888) jumping 4.3% to HK$67.9. HSBC (00005)rose 1% to HK$62.15. New World Development (00017) agreed to subscribe perpetual convertible securities issued by Evergrande (03333). New World dipped 2.2% to HK$7.61, while Evergrande shot up 2.7% to HK$6.5.
Chinese Estates (00127) stock surged 5% to HK$25.2 after it agreed to sell Windsor House to its controlling shareholder Joseph Lau. It then plans to distribute special dividend.
Shares of farm-related companies rose after China kicked off its meetings on rural works. Sinofert (00297) leaped 7.3% to HK$1.33. China Agri-Products (00149) jumped 8.5% to HK$0.385.
Indian indices trade near the flat line
Indian benchmark indices were hovering near the flat line in afternoon trade. At 13:16 IST, the barometer index, the S&P BSE Sensex, was off 3.19 points or 0.01% at 25,847.11. The 50-unit Nifty 50 index was currently off 5.75 points or 0.07% at 7,860.20.
Aurobindo Pharma rose 0.92% after the company said that it has received final approval from USFDA to manufacture and market Famotidine Tablets USP, 20 mg and 40 mg, in the US. Biocon surged after the company during market hours today, 24 December 2015, announced the introduction of an advanced novel therapy CIMIVIR-L for the treatment of Hepatitis C in India.
Sun Pharmaceutical Industries (Sun Pharma) rose 0.42% after its wholly owned subsidiary Sun Pharma Laboratories raised Rs 1000 crore from unsecured redeemable non-convertible debentures on private placement basis under two series.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rose 0.1% to 8324.36. South Korea's KOPSI fell 0.4% to 1990.65. New Zealand's NZX50 added 0.5% to 6225.53. Singapore's Straits Times index rose 0.5% at 2877.62. Indonesia and Malaysia market closed for public holiday.
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