Asia Pacific share market were mixed in quiet trade on Friday, 20 February 2015, as investors opting a wait-and-see stance ahead of crucial eurozone finance ministers' meeting on the Greek bailout.
Regional market grew at early trade on news of Greece request for an extension of euro zone financial support a day ahead of its Friday deadline underpinned gains. The Greek government requested a six-month assistance package, rather than an extension of the bailout. Stocks then pared gains on news Germany had rejected the plan and will be discussed at a Eurogroup meeting scheduled later on Friday.
Investors would like to see the outcome of the eurozone finance ministers' meeting later Friday in Brussels to discuss the Greece's proposal to extend the government's bailout program. Greece has little more than a week before its EUR240 billion ($273 billion) bailout expires at the end of February, leaving the government without financing and its banks at risk of being completely cut off from the lending facilities of the European Central Bank. Expectations are fairly high that an agreement can be reached.
Trading volumes across the region were relatively thin due to market closures in China, Hong Kong, South Korea, Singapore, Taiwan and Malaysia.
Among Asian bourses
Nikkei hits new 15-year high
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Japanese share market advanced to a fresh 15-year high, as sentiment for risk assets grew from greenback strength against the yen, upbeat Japanese trade data and optimism over a solution to the Greek debt standoff. The Nikkei 225 stock index ended 0.37% higher at 18332.30, a highest level since May 2000. The broader Topix added 0.36% to 1500.33, its strongest close since December 2007.
Official data on Thursday showed that surging exports helped cut Japan's trade deficit by more than half in January, a day after the central bank said the world's No. 3 economy was on the mend. On Monday, separate data showed Japan crawled out of recession in the fourth-quarter, offering some hope for Prime Minister Shinzo Abe's growth blitz, dubbed Abenomics, after a sales tax rise last year hammered consumer spending and threw the plan into doubt.
The dollar appreciation to 119.02 yen from an overnight low of 118.42 yen underpin demand for export related stocks, with Konica Minolta Inc up 1.4% to 1247 yen, TDK Corp up 3.1% to 7920 yen 1.8%, and Fanuc Corp 1.2% to 23285 yen. Shares of Japan Display Inc surged 5.4% to 488 yen on reports that the company was planning a new facility in Japan to make screen panels for Apple Inc.
Among other movers, shares of Astellas Pharma Inc grew 0.1% to 1863.50 yen after the company announced results from a study showing one of its drugs was beneficial for liver-transplant patients. Shares of bankrupt budget carrier Skymark Airlines Inc jumped 44.4% to 39 yen on reports that group of backers had offered financial support to the airline, with the consortium including Orix Corp, Daiwa Securities Group Inc and Shinsei Bank.
Australia stocks fall for second straight day
The Australian share market closed down for second straight session, as lower commodity prices and weaker than expected corporate earnings continued to hurt risk sentiments. Meanwhile, Uncertainty over the euro zone debt negotiations with Greece also adding to investor caution.
The S&P/ASX200 closed 22.70 points, or 0.38%, lower at 5881.50, while the All Ordinaries de-grew 24.20 points, or 0.41%, to 5845.60. Market turnover was relatively light, with 1.58 billion shares changing hands worth of A$4.39 billion.
Energy major Santos was down 2.6% to A$8.03 after swinging violently to a loss and cutting its dividend. The company has posted a A$935 million full year net loss due to post-tax write-downs of $1.56 billion in assets, compared with a A$516 million net profit in 2013. Santos Chief Executive David Knox said on Friday the company would cut its operating costs by 10% in 2015 as well as slashing capital spending by a quarter, and insisted that GLNG would be profitable even if oil fell as far as $40 a barrel.
Medibank Private, Australia's leading health insurer, fell 3.5% to A$2.47 after the company expects continued headwinds in the health-insurance industry in Australia due to rising healthcare costs that are making care less affordable for customers and encouraging them to change polices. Still, it stuck with its forecast of a A$250.9 million net profit this financial year, or A$258.2 million on a pro-forma basis. Australian health-insurer net profit jumped to A$143.8 million in the six months through December from A$71 million a year earlier, primarily due to a year-earlier A$80 million writedown of goodwill on one of its operations. Total income for the period was 3.2% higher at A$3.32 billion.
Woodside Petroleum shares fell 1.1% to A$35.72 after RBC cut its shares to underperform from sector-perform.
Telstra Corp closed steady at A$6.61, after recouping early losses, on reports that Chief Executive Officer of the company Mr David Thodey was leaving and would be replaced by his chief financial officer.
Sensex trim losses
After languishing in negative zone in morning trade, key benchmark trimmed losses in mid-morning trade. At 11:22 IST, the S&P BSE Sensex was down 156.61 points or 0.53% at 29,305.66. The 50-unit CNX Nifty was down 46.25 points or 0.52% at 8,849.05.
Reliance Industries edged lower on reports that the Delhi police yesterday, 19 February 2015, arrested five people and detained an employee of Reliance Industries among a number of other individuals on charges of leaking secret documents of Ministry of Petroleum & Natural Gas. Sugar stocks rose after the Cabinet Committee on Economic Affairs (CCEA) yesterday, 19 February 2015, approved the continuation of the incentive scheme for marketing and promotion services of raw sugar production during current sugar season 2014-15 (October-September) for a quantity of 14 lakh metric tonnes. Most capital goods shares were trading higher. Lypsa Gems & Jewellery jumped after bagging an export order.
Foreign portfolio investors (FPIs) bought Indian shares worth a net Rs 1542.70 crore yesterday, 19 February 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 195.74 crore yesterday, 19 February 2015, as per provisional data.
Elsewhere in the Asia Pacific region: New Zealand's NZX50 rose 0.4% to 5748.95. Indonesia's Jakarta Composite Index rose 0.55% to 5420390.45. Exchanges in China, South Korea, Hong Kong, Malaysia and Singapore were closed for holidays. South Korea, Hong Kong and Singapore reopen Monday, while mainland markets resume on Wednesday.
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