Asia Pacific share market recovered some lost ground on Thursday, 13 August 2015, taking heart from a late recovery of US stocks overnight and from efforts by China's central bank to slow the sharp descent of the yuan.
An overnight recovery in U.S. stocks helped lift risk sentiments. Many investors expect the global economy is on track to continue expanding, and in a low interest-rate environment, that leaves returns on stocks still relatively appealing.
The onshore yuan rebounded 0.2% to 6.399 against the U.S. dollar, after falling nearly 1% early today as the Chinese central bank's continued effort to guide the yuan lower was met with a milder reaction than previous sessions. China's central bank guided its currency lower for a third day. The People's Bank of China said later that it has the ability to maintain a stable yuan and again dismissed the view that there is any economic basis for continued yuan weakness.
China's central bank said today, 13 August 2015, that there is no basis for further depreciation in the yuan currency given strong economic fundamentals, in a bid to reassure jittery global financial markets after it devalued the currency earlier in the week. The People's Bank of China (PBOC) said that the country's strong economic environment, sustained trade surplus, sound fiscal position and deep foreign exchange reserves provide "strong support" to the exchange rate. China's yuan fell recent days after the PBOC shocked markets by pushing its official guidance rate down 2% on Tuesday, 11 August 2015 the sharpest adjustment in the history of China's foreign exchange market.
The Bank of Korea held interest rates on hold earlier Thursday, despite pressure to weaken the currency to stay competitive against China. Lower interest rates, a form of monetary easing, have the effect of pushing down a nation's currency.
Japanese data released today, 13 August 2015, showed Japan's core machinery orders fell a greater-than-expected 7.9% in June, down for the first time in four months. The Cabinet Office maintained its assessment, saying, "Machinery orders are picking up."
Also Read
Among Asian bourses
Japan stocks recover on bargain buying
Japanese share market recovered as investors chased for value buying, after selloff in the previous two sessions on concerns about possible decline in inbound tourists from the China and their purchasing power after Chinese central bank devaluation of the yuan. Total of 23 out of 33 TSE sectors advanced, with shares of utilities, transportation, drug-maker, shipping, and mining sectors being major gainers. The Nikkei Stock Average advanced 202.78 points, or 1%, to end at 20595.55 points. The broader Topix index ended 2.20 points, or 0.13%, higher at 1667.95 points.
Shares of utilities rose the most among the Topix's 33 industry group, as bargain buying spurred after falling earlier this week on reports about the restart of the nation's first nuclear reactor since the Fukushima meltdown 4 years ago. Tokyo Electric Power Co. surged 4.7%, while Kyushu Electric Power Co. added 3.1%. Hirose Electric gained 1.9% after JPMorgan Chase & Co. raised its rating on the supplier to Apple Inc. to neutral from underweight.
Shares of exporters were mostly higher, led by China's related companies after suffering heavy losses yesterday. Komatsu, which competes in China in the market for construction equipment, rebounded 1.1% after suffering the steepest yesterday. Department-store operator Isetan Mitsukoshi Holdings, which relies on spending from Chinese tourists, rose 2.8% after losing 5% yesterday.
Australia stocks end slight higher
The Australian share market ended marginally higher, as gains in energy stocks and the miners offsetting hefty falls in Computershare and Telstra. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both rose by 0.1% to 5387.90 points and 5389 points, respectively. Total of 2.1 billion shares were traded today, worth A$5.2 billion. 478 stocks rose, 471 fell and 337 finished unchanged.
Shares of mining and energy companies were top performing sector in the ASX200 sectoral group after commodity prices stabilised overnight. BHP Billiton gained 1.2% to A$25.51 and Rio Tinto grew 0.6% to A$51.96. Fortescue Metal added 1.7% to A$1.82. Among oil explorers, Woodside Petroleum jumped 1.8% to A$34.05, Santos rose 1.7% to A$6.58, origin Energy grew 3% to A$10.13, and Oil Search added 1.8% to A$6.92.
Information technology was worst performing sector in the ASX200 sectoral group, down 3.7% on the Computershare sell-off. Computershare was down 5.8% to A$10 and extending the previous day's slide after posting disappointing earnings.
Fairfax Media surged 4.9% to close at A$0.855 after posting better than expected full-year net profit of A$143.4 million, down 3.9% from corresponding previous year. Total revenue was down 5.3% to A$1.88 billion. Competitor News Corporation rose almost the same amount, 4.7%, to A$19.59, despite reporting a full-year loss of US$149 million from the year-earlier net profit of US$237 million thanks largely to a non-cash write-down in its education business, Amplify.
Sirtex Medical's shares soared 9.7% to A$32.94 after the biotech lifted its full year profit 70% to A$40.3 million, thanks to increased sales of its liver cancer drug. The company upped its final dividend six cents to 20 cents per share, fully franked.
Goodman Group firmed 0.9% to A$6.34 after reporting an operating profit of A$653.5 million for the year ended June 2015, up 8.7% from A$601.1 million a year ago. Revenue climbed 40.4% to A$2.357 billion.
China stocks bounce after calming currency woes
Mainland China's stock market ended higher for the first time in three consecutive sessions as yuan showed the first signs of stabilizing today since being allowed to weaken earlier in the week after the central bank signalled support for the currency. The People's Bank of China weakened the yuan by the least in three days today and indicated that it will maintain a "basically stable yuan around a reasonable and balanced level" and normal volatility of the exchange rate. All 10 SSE sectors ended well above the neutral line, with shares of utilities, telecom, materials, industrials, and retailers being major gainers. The benchmark Shanghai Composite Index rebounded 1.76%, or 68.24 points, to end at 3954.56 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, grew 2.21%, or 49.61 points, to 2298.79 points. Total volume of A shares traded in Shanghai was 57.87 billion shares, while Shenzhen volume was 28.70 billion shares.
Shares of technology and utility companies climbed the most in SSE 10 industry groups. Leshi Internet Information & Technology Corp. advanced 3.3%, while Huaneng Power International Inc. gained 2.2%.
Chinese carriers also enjoyed a reprieve after intense selling pressure in the past two trading sessions on worries that a weaker currency could increase borrowing costs and fuel bills, with China Eastern Airlines and Air China gaining 4.1% and 2.8%, respectively.
The China Association of Automobile Manufacturers said on Wednesday that car sales in China contracted by 6.6% to 1.3 million in July. Last month's slide in sales followed June's 3.4% decline. Total vehicle sales, including trucks and buses, fell 7.1% in July to 1.5 million vehicles. Sales of passenger vehicles in the seven months through July rose 3.9% year on year to 1.1 million. Total vehicle sales came close to stalling, rising just 0.4% to 1.3 million.
Hong Kong market regains 0.4%
Hong Kong stock market advanced for the first time this week in volatile trade on tracking rebound in Mainland A-share markets and other regional bourses, after the People's Bank of China (PBOC) reiterated that there was no basis for continued currency depreciation. The Hang Seng Index ended 102.78 points, or 0.43%, higher at 24018.80 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, added 38.13 points, or 0.35%, to 11080.92 points. Turnover reduced to HK$86.8 billion from HK$103 billion on Wednesday.
Tencent (00700) jumped 7% to HK$144.1. It was the top blue-chip winner and contributed 154-point gains to the benchmark. Lenovo (00992) slid 9% to HK$7.7 after it reported a 51% plunge in its 1Q earnings. It was the biggest blue-chip loser.
CR Land (01109) put on 3% to HK$20.35 after announcing yesterday that the group has achieved contracted sales of about Rmb11.72 billion in July, an increase of 42% month-on-month and up 175% year-on-year, with contracted GFA of about 704,000 square metres. Total rental income from investment properties amounted to about HK$521 million.
Hong Kong Exchanges (HKEx) shares dropped 0.6% to HK$205.80 after HSBC Global Research cut its target price for bourse operator to HK$210 from HK$280, and maintained its "hold" rating. The research house reduced its net profit forecasts by 27-37% for 2015-17 to reflect the lower ADT forecasts and lower LME volume. UBS Global Research cut its target price for HKEx to HK$200 from HK$225, and maintained its "sell" rating.
Shares of China Overseas Land & Investment (COLI) advanced 1.1% to HK$23.40 after announcing the contracted property sales of the group for July amounted to about HK$10.45 billion with the corresponding gross floor area (GFA) sold of about 745,500 square metres, an increase of 12.1% and 15.4% from a year earlier. For the first seven months of 2015, the accumulated contracted property sales of the COLI group amounted to around HK$95.902 billion and the accumulated corresponding GFA sold was around 6.57 million square metres.
Sensex edges higher amid volatility
Indian benchmark indices provisionally settled higher in what was a highly volatile trading session. Investors sentiment was lifted on hopes that the Reserve Bank of India (RBI) may cut rates to strengthen economic growth after the macro economic data announced after market hours yesterday, 12 August 2015, showed industrial production registered year-on-year growth of 3.8% in June 2015 and inflation based on the consumer price index (CPI) eased sharply last month to 3.78% from 5.4% in June 2015. Firmness in European and Asian stocks also supported gains on the domestic bourses. However, gains were curtailed as Prime Minister Narendra Modi's reform agenda suffered a major blow today, 13 August 2015 when lawmakers ended the monsoon parliament session without approving a tax reform bill aimed at boosting economic growth. As per provisional figures, the S&P BSE Sensex was up 132.64 points or 0.48% at 27,644.90. The CNX Nifty was up 32.30 points or 0.39% at 8,381.75.
ONGC rose after reporting good Q1 results. Pharma stocks gained on weak rupee. Dr. Reddy's Laboratories (DRL) gained after the company announced that it has launched PRAMIPEXOLE dihydrochloride extended-release tablets 0.375 mg, 0.75 mg, 1.5 mg, 3 mg and 4.5 mg, a therapeutic equivalent generic version of MIRAPEX ER (pramipexole dihydrochloride) Extended-Release Tablets in the US market on 11 August 2015, following the approval by the United States Food & Drug Administration (USFDA). Aurobindo Pharma rose on decent Q1 result.
Foreign portfolio investors (FPIs) sold Indian shares worth a net Rs 1,855.02 crore yesterday, 12 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1223.80 crore yesterday, 12 August 2015, as per provisional data.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index added 0.3% to 8311.74. South Korea's KOSPI jumped 0.4% to 1983.46. New Zealand's NZX50 declined 0.3% to 5737.69. Singapore's Straits Times index rose 1% at 3091.78. Indonesia's Jakarta Composite index jumped 2.3% to 4584.25. Malaysia's KLCI grew 0.7% to 1621.62.
Powered by Capital Market - Live News