The eurozone's economy grew by 0.3% in the final quarter of 2013, up from 0.1% growth in the previous quarter. The eurozone figures include 17 of the EU's economies. Latvia became the currency zone's 18th member in January. Across the whole 28-nation EU, including the UK, growth for the October-to-December period was 0.4%. The figures from Eurostat, the EU's statistics office, also showed that during 2013, GDP contracted by 0.4% in the eurozone, but increased by 0.1% in the EU as a whole.
The People's Bank of China has released January new loans data on Saturday, showing China banks disbursed the highest volume of loans in any month in four years in January 2014, a surge that suggests the world's second-biggest economy may not be cooling as much as some fear. Chinese banks made 1.32 trillion yuan worth of new yuan loans in January, beating a 1.1 trillion yuan forecast and nearly three times of December's 482.5 billion yuan. It is usual for loans to spike in January, when banks try to lend as much as they can to grab market share, but last month's surge was still the largest since January 2010.
Among regional bourses, Japan's stock market advanced for the first time in three consecutive sessions, as investors digested weaker-than-expected Japanese growth data and chased for recently battered stocks. The benchmark Nikkei-225 index advanced 80.08 points, or 0.56%, to finish the session at 14393.11, while the broader Topix index of all first-section shares rose 8.23 points, or 0.7%, to 1192.05.
Japanese shares commenced trading firmly higher on catching up equity markets in the United States. Wall Street advanced on Friday after a preliminary private survey indicated consumer sentiment has improved in February. But, the market slipped into negative terrain during mid-morning after the Cabinet Office reported fourth-quarter economic growth of 0.3%, flat from the previous quarter and below market expectations. A stronger currency also weighed on sentiment. Moreover, the benchmark indices recouped losses and managed to trade modestly higher during the afternoon as bargain buying resumed on recently battered stocks.
Shares of Internet retailer Rakuten Inc. tanked 9.54% to 1499 yen after announcing plans to buy online messaging and telecom firm Viber Media Inc. for $900 million as well as posting below-consensus full-year profit.
The Cabinet Office has released preliminary GDP for the fourth quarter ended December 2013 on Monday, showing that Japan's economy up 0.3% q/q in real GDP, or an annualized 1.0%, led by solid consumer spending before the April sales tax hike and continued effects of fiscal stimulus. But the pace of growth was little changed from an unrevised 0.3% rise (annualized +1.1%) in the third quarter of 2013. Net exports - exports minus imports - pushed down Q4 GDP by 0.5%age point, the second straight quarter of negative contribution. Personal consumption, which accounts for about 55% of GDP, rose by 0.5% in Q4, up from 0.2% in Q3. Business investment posted the third straight quarterly rise in Q4, up 1.3%. The pace of growth accelerated from an upwardly revised +0.2 (revised from unchanged) in Q3.
In Australia, Australian stock market finished higher buoyed by positive overseas leads, strong earnings reports and rising commodity prices. All sectors ended higher, with solid gains led by the bullion, materials, healthcare, industrials, energy utilities sectors. The benchmark S&P/ASX 200 index advanced 26.60 points to finish at 5382.90, while the broader All Ordinaries grew 27.90 points to 5394.80.
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Materials and resources stocks closed sharp higher, as global commodity prices inclined on Monday after the release of stronger than expected Chinese credit data for January 2014 on Saturday. Resources giant BHP Billiton rose 0.8% to A$38.02. Australia's second largest resources company Rio Tinto put-on 2.4% to A$69.54. Iron ore miner Fortescue Metals Group rose 2.1% to A$5.82 as the spot price for iron ore, landed in China, rose 1% to $US123.20 a tonne.
Newcrest Mining added 3.6% to A$11.45 and Resolute Mining rose 11.5% to A$0.73 as the spot price of gold rose 0.5% to $US1325.71 per ounce.
Financials were up, with top lenders leading the rally. Westpac Banking Corporation added 0.5% to A$32.91, ANZ Banking Group gained 0.9% to A$31.62 and National Australia Bank was up 1.9% to A$34.75. Commonwealth Bank of Australia fell 2.2% to A$74.35. Regional lender Bendigo and Adelaide Bank rose 0.5% to A$11.78 after boosting its half-year cash profit by 9.5%.
Retailers' shares were mixed, with Woolworths up 0.3% to A$35.61, while Wesfarmers, owner of Coles, fell 0.6% to A$43.57 ahead of reporting interim result later this week.
In New Zealand, Equities on the New Zealand stock market rose, paced by Hallenstein Glasson Holdings as retail figures showed there was some growth in the sector and as investors focus on earnings season, which peaks this week. By the provisional closing, the NZX 50 Index rose 6.588 points, or 0.1%, to 4894.988. Within the index, 25 stocks rose, 13 fell and 12 were unchanged.
Hallenstein jumped 6.8% to NZ$2.83 on bargain hunting after the stock tumbled 21% so far this year. Government figures showed retail sales rose 1.2% in the final quarter of 2013, less than expected, however clothing stores showed growth.
The New Zealand dollar was little changed after weaker than expected consumer spending figures failed to spook investors wary of the greenback after soft US manufacturing data last week. The kiwi traded at 83.75 US cents from 83.77 cents earlier and 83.64 cents on Friday in New York. The trade-weighted index edged up to 78.43 from 78.29 last week.
In China, the Mainland China market advanced, after stronger than expected China's new credit data for January was boosting optimism the world's second-largest economy can maintain its growth momentum.
The benchmark Shanghai Composite Index was higher by 0.92% to finish at 2135.4. 1The gauge has erased a 5.9% decline this year as the lending figures and better-than-estimated trade in January offset signs of a slowdown in manufacturing. It also reinforces hopes that China can limit the scale of any slowdown from last year's 7.7% expansion in gross domestic product.
The People's Bank of China has released January new loans data on Saturday, showing Chinese banks lent 1.32 trillion yuan (US$217.6 billion) worth of new yuan loans in January, nearly three times of December's 482.5 billion yuan. The broad M2 money supply was up 13.2% last month from a year earlier.
Among SSE sectors, 9/10 sectors of the SSE index inclined, with telecommunication services sector outperformed amongst the SSE sectoral peers, adding 4.2%, followed by information technology up 2.7%, consumer discretionary up 1.6%, healthcare up 1.2%, consumer staples up 1.1%, industrials up 1%, energy up 1%, materials up 0.9% and utilities up 0.8%.
Among SSE active stocks, Xi'an Aero-Engine Plc jumped by the 10% daily limit, leading an advance by defense companies on speculation the government will boost military spending. Liquor maker Kweichow Moutai Co. climbed 5% as consumer shares rallied. Shandong Gold Mining Co. gained among gold producers after the metal increased to a three-month high.
Aviation stocks were among the best performers on reports that the government could soon release a blueprint on low altitude airspace management. Aero Engine soared 9% while Aerospace Electronics added 4%.
Power stocks were in focus after the State Grid Corporation of China said it expects electricity consumption to slow this year. China Coal Energy rose over 1% while China Shenhua added 0.7%.
Banks were mixed despite data showing that lending rose to a four-year high in January. Minsheng Bank fell over 2% while Bank of China added 0.4%.
In Hong Kong, shares in the city's market rallied today, on catching cues from positive trade on the Mainland China bourses, with Tencent and Chinese insurers led rally. The benchmark Hang Seng Index provisionally finished 237.53 points, or 1.07%, higher at 22535.94.
Among the HK 50 blue chips, 33 stocks advanced and 12 stocks declined while remaining one stock ended steady. China Life Insurance Co advanced 5.8% to HK$22.85 after UBS raised the stock to buy from neutral and Credit Suisse rated it outperform from neutral, while Sands China dropped 3.4% to HK$57.50, making themselves the biggest blue-chip gainer and loser. Tencent (00700) added 5.7% to HK$580 on news that the company may invest in a mainland catering yellow page company.
Technology companies were sharp higher. Online-game developer NetDragon Websoft Inc. (777) jumped 11% to HK$16.94. Kingsoft Corp. (3888) surged 6.6% to HK$25.90 after the software maker said it will sell 40 million shares of gaming unit Westhouse Holdings Ltd. to Xiaomi Corp for $20 million.
Shares of casino companies were lower. Sands China dropped 3.4% to HK$57.50. Galaxy Entertainment Group Ltd., controlled by billionaire Lui Che-woo, slid 3.2% to HK$71.90.
Elsewhere, Agile Property (03383) said it achieved sales of Rmb2.53 billion with corresponding GFA sold of 196,000 square metres in January, an increase of 2% and a decrease of 14.8% from a year earlier. The average selling price was Rmb12917 per square metre. Its shares closed steady at HK$7.18.
Sino-Ocean Land (03377) shares declined 1% to HK$4.15 after the company said its contracted sales for January amounted to around Rmb1.49 billion, representing month-on-month decrease of 35% because of strategic pacing of new launches. Contracted sales GFA amounted to about 107,000 square metres, down 22% month-on-month. Contracted average selling price was around Rmb13,900 per square metre, representing month-on-month decrease of 18% mainly due to different product-mix.
In India, key benchmark indices moved in a narrow range in positive zone in mid-afternoon trade after the Finance Minister P Chidambaram said at the time of presenting the interim budget for the first four months of 2014/15 that the fiscal deficit will be contained at 4.6% of GDP for the year ending 31 March 2014 (2013/14) and will be pruned further to 4.1% of GDP in 2014/15 and that the that current account deficit (CAD) will be contained at $45 billion in 2013/14.
At 14:20 IST, the S&P BSE Sensex was up 62.60 points or 0.31% to 20,429.42. The index jumped 114.94 points at the day's high of 20,481.76 in early trade, its highest level since 13 February 2014. The index fell 27.87 points at the day's low of 20,338.95 in mid-morning trade.
Finance Minister P Chidambaram said fiscal deficit will be contained at 4.6% of GDP for the year ending 31 March 2014 (2013/14), smaller than the 4.8% originally forecast toward the start of the financial year. The Finance Minister said that current account deficit (CAD) will be contained at $45 billion in 2013/14. He said that the government and the RBI have acted in tandem to curtail inflation. Food inflation is still the main worry, although it has declined sharply from a high of 13.6% to 6.2%, Chidambaram said.
India's merchandise exports are projected to expand 6.3% to $326 billion in 2013/14. However, imports are down, and this does not augur well for either manufacturing or domestic trade, the Finance Minister said. "Our aim must be robust growth in both exports and imports, with trade in balance over a period of time", the Finance Minister said. Allcargo Logistics surged 5.89% after consolidated net profit jumped 58.03% to Rs 57.02 crore on 55.9% growth in total income from operations to Rs 1516.41 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced after market hours on Friday, 14 February 2014.
Elsewhere in the Asia Pacific region, Malaysia's KLSE Composite rose 0.45%. Singapore's Straits Times index added 1%. Taiwan's Taiex index added 0.07%. South Korea's KOSPI index added 0.31%. Indonesia's Jakarta Composite jumped 1.05%.
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