Asia Pacific share market ended mixed on last trading session of the week, Friday, 12 June 2015, as lack of progress in bailout negotiations between Greece and its creditors and next week's U.S. Federal Open Market Committee meeting dampened the positive impulse from upbeat U.S. retail and jobs data.
US shares were pushed higher on Thursday after a report from the Commerce Department showing retail sales rose better than forecasted at 1.2% in May. The data was the latest indicating the world's number one economy and key driver of global growth is well on the road to recovery after a tough start to the year that saw contraction owing to a severe winter. The Dow gained 0.22%, the S&P 500 added 0.17% and the Nasdaq rose 0.11%.
Investors remain caution over Greece debt crisis after the International Monetary Fund halted bailout talks with the troubled nation on Thursday, citing a lack of progress over talks, while European leaders suggested negotiations were nearing an endgame. Greece has until the end of June to strike a deal before its current bailout program expires. It's expected if Greece defaults on its repayments, it could lead to the country withdrawing from the euro zone.
Risk sentiments also muted on caution ahead of a U.S. Federal Reserve summit next Tuesday and Wednesday, where investors might get further indication of the bank's timing of an expected rate hike later this year.
Among Asian bourses
Resources weigh on Australia market
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The Australian share market closed softer on the last trading session of the week. Market sentiments were broadly weak as weaker commodities prices hit the resource stocks, meanwhile concerns over Greece debt crisis and next week's US Federal Open Market Committee meeting dragged down financial and consumer related stocks. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both decreased 0.2% to close at 5545.30 and 5552.10 points, respectively. Market turnover was relatively light, with 1.28 billion shares changing hands worth of A$2.56 billion. For the week, the benchmark S&P/ASX200 and the broader All Ordinaries both chalked up 0.85%.
Materials and resources stocks declined the most in Sydney, with BHP Billiton down by 1.2% to A$27.90 and iron ore producer Fortescue Metals Group decreased 0.8% to A$2.46. Rio Tinto dropped 0.6% to A$57.14, getting little help from news the company was refinancing $1.2 billion in debt due next year.
Shares of uranium miner Energy Resources of Australia crashed by 48.3% to A$0.67 after it announced it was cancelling a key project as the uranium market has not improved. ERA's rival Paladin Energy rallied 5.4% to A$0.30.
Shares of Virgin Australia Holdings dropped 1.1% to A$0.45 as airline stocks around East Asia have recently lost ground on concerns about possible spread of the MERS outbreak affecting South Korea.
Nikkei closes higher in choppy trade
Japanese share market closed slight higher in choppy trading, as gains in the heavyweight stocks of Precision Instruments, Electric Appliances, Insurance, and Pharmaceutical sectors were more than losses elsewhere. The Nikkei Stock Average advanced 24.11 points, or 0.12%, to end at 20407.08 after moving in and out of negative territory. For the week, the index fell 0.3%. The Topix index of all Tokyo Stock Exchange First Section issues increased 0.16%, or 2.60 points, to close at 1651.48.
Shares of export-related companies were higher on yen weakening against the dollar and news that Japan's industrial production in April was revised upward to a month-on-month rise of 1.2% from a preliminary 1%. Among blue-chip exporters- Toyota Motor Corp closed up 0.9% at 8,394 yen and Nissan Motor Co 0.4% to 1265 yen. Factory robotics maker Fanuc Corp rose 0.8% to 26330 yen. Fujitsu added 2.5% to 730 yen, Sony Corp 0.7% to 3787 yen, and Konica Minolta Inc 0.3% to 1532 yen. Minebea Co. gained 4.5% to 96 yen after Mitsubishi UFJ Morgan Stanley raised its share-price target on the motors maker.
Pharmaceutical shares closed with gain after the MERS virus spread throughout East Asia. Shares of Astellas Pharma Inc gained 1.4% to 1785.50 yen, Takeda Pharmaceutical Co 0.3% to 6115 yen, Chugai Pharmaceutical Co 0.4% to 3900 yen, and Daiichi Sankyo Co 0.9% to2314 yen.
Energy shares declined on tracking losses for oil futures overnight, with Inpex Corp down 0.9% to 1509.50 yen, Showa Shell Sekiyu K.K. down 0.1% to 1192 yen, and Japan Petroleum Exploration Co down 0.6% to 3910 yen.
China stocks extend gain for second day
Mainland China share market finished the session higher for second straight day, as economic data in May indicated a renewal in the manufacturing and property sectors, but overall sentiment was cautious before a fresh wave of IPOs next week. The benchmark Shanghai Composite Index grew 44.76 points, or 0.87%, to 516.35, taking this week's advance to 2.9%.
Investment in the property sector rose 5.1% year on year to 3.23 trillion yuan (US$520 billion) in the first five months of this year, the National Bureau of Statistics said yesterday. In the period, investment in residential development gained 2.9% to 2.16 trillion yuan. Also yesterday, the Ministry of Commerce said China's foreign direct investment jumped 10.5% year on year to 330.95 billion yuan from January to May.
Next week, 25 companies will launch initial public offerings, which analysts estimate could lock up 5.5 trillion yuan ($886.20 billion) of liquidity.
Shares of real-estate players climbed the most in Beijing on signs of a renewal in the country's sluggish real estate market. As per media reports, several banks in the southern Chinese boom town of Shenzhen increased mortgage rates after the city's property market turned up in the wake of stimulus policies unveiled by Beijing in late March. China Vanke Co. advanced 1%. Shanghai Waigaoqiao Free Trade Zone Development Co. rallied 10% after reports that the city will restructure more than 10 state-owned enterprises.
Shares of consumer-staples sectors also advanced, with Kweichow Moutai Co., the biggest producer of baijiu liquor, up 2.3%. Bright Dairy jumped 10% for a third day.
Hong Kong market ends 1.4% stronger
The Hong Kong stock market to finish sharp higher on Friday, 12 June 2015, following a second successive rally on Wall Street overnight and in line with another pick-up in the Mainland market on bets of further measures to kickstart the Chinese economy. The Hang Seng Index advanced 372.69 points or 1.39% to finish at 27280.54, off an intra-day high of 27356.51 and day low of 26987.52. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, grew 240.75 points, or 1.75%, to 13984 points. Turnover increased to HK$131.5 billion from HK$124.3 billion on Thursday.
Hong Kong listed Chinese developers were higher after China's Ministry of Housing and Urban-Rural Development said value-added earnings for housing provident funds increased 26% year-on-year. CR Land (01109) gained 5% to HK$25.35. COLI (00688) jumped 3% to HK$28.6. HKEx (00388) and Tingyi (00322) soared 3.6% and 3.9% to HK$296.6 and HK$15.84.
Chinese insurance stocks rallied after reports that the nation's top insurance regulator would soon unveil guidelines allowing insurers to sell preferred stock, expanding fundraising options for the sector. China Life Insurance Co gained 2.3% to HK$36.30 and People's Insurance Company Group of China soared 1% to HK$5.08. Ping An Insurance Group Co added 2.8% to HK$114.90, China Pacific Insurance Group Co 3.2% to HK$42.15, and New China Life Insurance Co 1.9% to HK$49.90.
Media players were chased in afternoon after ATV executive director Yip Ka-bo said that new investor signed sale and purchase agreement with shareholders of the free-to-air broadcaster last night. HKTV (01137) soared 7.6% to HK$2.82 and i-Cable (01097) surged 8% to HK$0.81. But TVB (00511) fell 1.5% to HK$43.85.
Bank of Communications Co advanced 1.5% to HK$8.26 after the bank reached a deal with HSBC Holdings to work together on the upcoming mutual recognition of funds between Hong Kong and Shanghai, a move scheduled to be launched by regulators in July. HSBC shares closed 0.1% higher at HK$73.25.
Sensex nudges higher after seeing intraday volatility
Indian benchmark indices eked out small gains after alternately swinging between positive and negative zone in intraday trade. The S&P BSE Sensex rose 54.32 points or 0.21% to settle at 26,425.30. The CNX Nifty rose 17.55 points or 0.22% to settle at 7,982.90.
Index heavyweight Reliance Industries (RIL) edged higher after the company's chairman Mukesh Ambani said at the company's annual general meeting (AGM) that RIL will start commercial 4G telecommunication services around December 2015. IT stocks declined. TCS and Infosys dropped on reports that the US Department of Labour has opened probe against these two Indian IT companies for H1-B visa violations. Shares of private sector banks rose. Shares of state-run banks witnessed a mixed trend.
Index heavyweight and housing finance major HDFC advanced. Metal and mining stocks declined across the board. Realty stocks also edged lower. FMCG stocks were mixed.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 584.83 crore into the secondary equity markets yesterday, 11 June 2015, as per data released by the depositories. Domestic institutional investors (DIIs) bought shares worth a net Rs 589.29 crore yesterday, 11 June 2015, as per provisional data released by the stock exchanges.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell marginal 0.56 point to close at 9301.93. South Korea's KOSPI dropped 0.2% to 2052.17. New Zealand's NZX50 lost 0.2% to 5846.97. Singapore's Straits Times index inclined 0.2% at 3353.85. Malaysia's KLCI closed 0.39 point down at 1734.37. Indonesia's Jakarta Composite index rose 0.1% to 4935.82.
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