Asia Pacific shares closed mostly higher on Wednesday, 20 May 2015, on the back of robust U.S. building permits and housing starts data for last month and better than expected first quarter Japanese growth figures. But gain was limited on caution ahead of the release of minutes from the Federal Reserve's last policy meeting.
The U.S. Commerce Department said on Tuesday that the number of building permits issued last month increased by 10.1% last month to 1.143 million units from March's total of 1.038 million. The report also showed that U.S. housing starts soared by 20.2% in April from a month earlier to an annual rate of 1.135 million units, the highest reading since November 2007.
The Cabinet Office reported on Wednesday that Japan's real gross domestic product grew 2.4% in annualized terms in the first quarter of 2015, much stronger than a revised 1.1% expansion in the previous quarter.
The Federal Reserve Open Market Committee is expected to release the minutes of its April meeting, when it downgraded its view of the U.S. economy and offered no sign that a rate increase might be coming soon. The release of the minutes is a key event for markets as investors try to divine the timing of the U.S. central bank's first rate hike since the global financial crisis.
Among Asian bourses
Nikkei ends above psychologically important 20000 level
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Japanese share market closed at fresh 15-year high, after official data indicated Japanese gross domestic product grew at its fastest pace in a year during the first quarter. Risk sentiments also buoyed by strong corporate profits and reports pension funds and other institutional investors rotating cash into shares from other asset classes. The benchmark Nikkei 225 index advanced 170.18 points, or 0.85%, to finish at 20196.56. The broader Topix index of all first-section shares increased 10.07 points, or 0.62%, up at 1643.40, its highest level since November 2007.
Shares of currency sensitive exporters extended gain on yen depreciation against the greenback. The US dollar rose to 120.81 yen from 120.04 yen at the previous stock-market close. Among the globally exposed majors, Panasonic Corp jumped 2% to 1752 yen, Konica Minolta Inc 2.3% to 1630 yen, Trend Micro Inc 3.1% to 4480 yen, and NEC Corp 1.5% to 414 yen. Honda Motor Co rose 0.1% to 4183 yen, with rivals Toyota Motor Corp jumped 0.5% to 8405 yen.
Shares of Takata Corp declined 10.2% to 1354 yen to after the firm recalled faulty air bags in nearly 34 million vehicles in the U.S.
Energy shares were weaker following fresh losses for crude oil, with JX Holdings Inc down 2.8% to 529.40 yen and Inpex Corp down 1.1% to 1460.50 yen. Japan Petroleum Exploration Co (Japex) was down 3.4% to 3995 yen after Pacific Northwest LNG -- in which Japex holds a stake -- failed to win approval from Canada's Lax Kwalaams indigenous tribes to build a liquefied-natural-gas plant as part of a plan to export the commodity to Asia.
ASX200 ends below 5600 level
The Australian share market closed below neutral line for third consecutive session, as losses among mining and energy stocks were more than offset by gains among healthcare and industrial stocks. The benchmark S&P/ASX 200 Index dropped 5.20 points, or 0.09%, to 5610.30, while the broader All Ordinaries Index lost 5.40 points, or 0.1%, to 5614. Market turnover was relatively healthy, with 1.95 billion shares changing hands worth of A$5.50 billion.
Shares of resources and energy companies declined on tracking a fresh drop for iron-ore prices, as well as significant losses for crude oil prices. Among the major mining shares, BHP Billiton fell 2.7% to A$28.82 and Rio Tinto sank 2.5% to A$56.03. Fortescue metal closed 6.8% lower at A$2.07.
Sharp losses for crude oil took a toll on the energy shares, with Santos down 3.8% to A$7.78, , Oil Search 0.4% to A$7.26, and Beach Energy down 3.2% to A$1.07.Woodside Petroleum closed marginal 0.1% to A$34.33.
Healthcare stocks outperformed the market, with Cochlear up 6.6 per cent to A$84.37, Resmed Inc up 2.3 per cent to A$7.20, and CSL up 1.3 per cent to A$89.68.
Shares of consumer stocks mostly gained after the latest Westpac-Melbourne Institute survey data showed consumer confidence jumped 6.4 per cent to 102.4 in May after declines in March and April, as a friendlier budget and cheaper credit buoyed spirit. Harvey Norman Holdings rose 1.8% to A$4.54 and Woolworths 0.2% to A$28.15, while Wesfarmers slipped 0.6% to A$43.43.
Shanghai Composite surges on signs of fresh investment
Mainland China share market advanced for second consecutive session, on prospect of further stimulus and investment from Beijing after the government released Made in China blueprint to boost the country's manufacturing industries in the next 10 years. The Shanghai Composite Index advanced 28.74 points, or 0.65%, to finish at 4446.29 points extending Tuesday's 3.1% rise. The CSI300 index added 22.70 points, or 0.5%, to 4754.92.
The State Council, China's Cabinet, unveiled the Made in China 2025 yesterday to promote and upgrade China's manufacturing industries. The 10-year plan aims to upgrade the country from being factory of the world to a leading global player for quality and innovation. The plan sets out nine tasks including innovation, integration within the information technology sector, fostering Chinese brands, green manufacturing, advances in 10 key sectors, and restructuring in manufacturing, service-oriented manufacturing and manufacturing-related service industries. The 10 key sectors are new information technology, numerical control tools and robotics, aerospace equipment, ocean engineering equipment and high-tech ships, railway equipment, energy-saving and new-energy vehicles, power equipment, new materials, biological medicine and medical devices, as well as agricultural machinery.
Total of eight out of 10 SSE industry groups ended up, with consumer discretionary issue being major gainer, with rise of 2.2%, followed by telecommunication services up 1.4%, information technology up 1.3%, industrials up 1%, healthcare up 0.9%, utilities up 0.9%, consumer staples up 0.5%, and materials up 0.5%.
Shares of information technology sector went higher on speculation that the government will do more to support technology innovation and mass entrepreneurship. Tech-related stocks also got a boost from Beijing's ambitious "Made in China 2025" strategy published on Tuesday. Yonyou Network gained 4.9% to a record close, while DHC Software increased 2.9%.
Siasun Robot & Automation Co. jumped by the 10% daily limit after the government yesterday outlined a plan to support high-tech manufacturing. Jiangsu Broadcasting Cable Information Network Corp.
Hang Seng falls 0.39%
The Hong Kong stock market closed weaker, as weakness among energy and property counters offsetting strength in airline stocks. The benchmark index opened down 57 points and then saw its losses widen to 200 points at one stage before recovering half of the lost ground. The Hang Seng Index ended down 108.49 points or 0.39% to 27585.05, off an intra-day high of 27751.44 and day low of 27490.33. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, rose 44.40 points, or 0.31%, to 14235.90 points. Turnover was little changed at HK$137.78 billion compared to HK$136 billion on Tuesday.
Shares of energy players suffered broad-based declines after steep drop in the international crude-oil futures. Cnooc declined 0.5% to HK$12.34, Sinopec Shanghai Petrochemical Co 2.5% to HK$3.92, Kunlun Energy Co 2.7% to HK$8.60, PetroChina Co 0.5% to HK$9.57, and China Petroleum & Chemical Corp 0.1% to HK$6.89.
Airlines advanced across the broad in anticipation of lower fuel costs, with China Southern Airlines Co gaining 3.2% to HK$7.71 and China Eastern Airlines Corp raising 6.2% to HK$5.82, while Air China jumped 1.5% to HK$10.02 and Cathay Pacific Airways rose 0.2% to HK$19.84.
Hanergy TFP (00566) plunged 47% to HK$3.91 in the morning amid its shareholder meeting. The company requested trading suspension of its shares pending an announcement. Other solar players were also dragged lower. Comtec Solar (00712) slid 10.3% to HK$1.48. GCL-Poly (03800) fell 2.3% to HK$2.17.
New China Life Insurance Co declined 1.1% to HK$50.85 after reports said some institutional investors had sold more than 30 million shares of the company for $221 million.
Sensex registers modest gains
IT stocks and index heavyweights HDFC, HDFC Bank and Reliance Industries (RIL) led modest gains for key benchmark indices. The market breadth indicating the overall health of the market was positive. The barometer index, the S&P BSE Sensex, was provisionally up 152.90 points or 0.55% at 27,798.43. Key benchmark indices hovered in positive zone throughout the trading session today, 20 May 2015, after a higher opening.
IT stocks rose as the rupee edged lower against the dollar. Telecom stocks fell. Shares of pharmaceuticals companies were mixed.
Meanwhile, the finance ministry yesterday, 19 May 2015, reportedly issued draft guidelines on gold monetization scheme that will encourage Indians to vest the gold in their possession with banks and earn interest on it.
Foreign portfolio investors bought Indian shares worth a net Rs 48.06 crore yesterday, 19 May 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 451.02 crore yesterday, 19 May 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 0.32% to 9685.31. South Korea's KOSPI rose 0.9% to 2139.54. New Zealand's NZX50 ticked down 0.02% to 5755.79. Singapore's Straits Times index fell 0.4% at 3439.68. Malaysia's KLCI ticked up 0.02% to 1810.11. Indonesia's Jakarta Composite index added 0.44% to 5292.75.
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