Asia Pacific market finished higher on Friday, August 23, 2013, on the back of positive manufacturing data out of the China, Europe and US. The MSCI Asia Pacific Index rallied 1.1%, halting a six-day slide.
Advance in the regional market came after encouraging economic data from China, Europe and US raised hopes that a global economic recovery was underway. A survey released Thursday by HSBC Corp. indicated that manufacturing in China had expanded in August, the latest evidence that the world's second-largest economy may be over its recent weakness. HSBC's Flash China Purchasing Managers' Index, the earliest indicator of manufacturing activity at private and export-oriented firms, advanced in August to 50.1, compared with the final figure of 47.7 in July. A reading of 50 or higher indicates the activity is expanding.
Additional good economic news came from Europe, where manufacturing and services for the 17 countries that use the euro climbed to its highest level since June 2011, and reinforcing expectations that Europe's recovery from recession is gaining momentum. The euro zone's purchasing managers' index, a key gauge of growth in both the manufacturing and services sectors, rose to 51.7 points in August from 50.4 in July, according to financial information company Markit.
Risk sentiments received further boost after Markit data showed the world largest economy manufacturing activity hit a five-month high in August as hiring picked up and new orders increased at their fastest pace since January. Financial data firm Markit said its flash, or preliminary, US Manufacturing Purchasing Managers Index rose to 53.9, its best showing since March. The index stood at 53.7 in July. A reading above 50 indicates expansion.
However, gains on the upside across the region were limited as investors turn their attention to the US new home sales for July scheduled later in the day after strong US data helped strengthen the belief that the US Federal Reserve could start to roll back its stimulus program soon. The data would be critical element for evaluating the strength of the housing market and also the overall economy.
Among Asia bourses, shares on the Tokyo market rose, sending the Nikkei Stock Average higher by 295.38 points, or 2.21%, to end the day at 13,660.55, on the back of US dollar rebound against the yen and a positive manufacturing data out of the China and Europe
Shares of export related companies advanced in Tokyo, as yen depreciated to 99 level against the greenback. Toyota Motor added 2.8% to 6,220 yen, Nissan Motor Co 3.4% to 1,028 yen and Yamaha Motor Co 4.44% to 1318 yen. Citizen Holdings Co gained 3.76% to 634 yen and Kawasaki Heavy Industries rose 4.9% to 364 yen. Mitsubishi Motors Corp rose 2.58% to 1113 yen on reports the automaker planned to build an automobile plant in the Philippines by around 2015
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Amada Co gained 5.4% to 769 yen on reports the machinery maker will post an increase in profit that is 26% higher than its previous forecast.
Australian stocks rebounded today, sending the benchmark S&P/ASX200 index higher by 0.94% to 5124.40, with metal & mining, energy, industrials and retailer blue chips leading rally. For the week, the ASX200 added 9.5 points, or 0.2%.
Shares of materials and energy companies were top advancers in Sydney, with a more-than-1% climb for Nymex crude futures overnight helping send Origin Energy up 2.16% and WorleyParsons adding 3.63%. Among the miners, Rio Tinto rose 1.51%, while Fortescue Metals Group gained 4.46%, extending its post-earnings advance from the previous session.
Mining and exploration company Mount Gibson Iron (MGX) has reported a 2.9% fall in FY net profit to $157.3M. Underlying net profit excluding the Mineral Resources Rent Tax credit came in at $92.9M, below expectations. Shareholders will receive a fully franked final dividend of 2 cents per share, unchanged from FY12s payment. It brings total FY13 dividend payments to 4 cents per share. Mount Gibson's share price rose 0.7%.
Crown (CWN) reported a NPAT of $395.8Million after significant items, down 22.9%. Crown has seen growth in main floor gaming revenue up 3.6%, and its VIP program saw its turnover grow by 7.8%. Crown announced a dividend to shareholders of $0.19 a share helping to lift the share price up over 5% today.
Bucking the regional trend, Chinese stock market finished lower but well above intraday low, amid concerns over liquidity tightening overshadowed a rebound in China's manufacturing sector.
Stocks in Shanghai saw selling pressure after money market data showed China's benchmark money-market rate rose this week on concern cash supply will tighten as banks cover month-end obligations. The seven-day repo rate, usually watched as an indicator of liquidity stress, was trading above sentimental 4%, while overnight repo rate, a benchmark measure of interbank funding availability, also hovering above 3%.
China Merchants Bank Co. slid 3.2% to 10.56 yuan after announcing plans to raise 34.8 billion yuan through share sale this year. The lender said in regulatory filings on Thursday that it will offer a total of 3.75 billion Shanghai and Hong Kong-traded shares at 9.29 yuan or HK$11.68 each. That represents a 15% discount to yesterday's closing price in Shanghai, or an 18% discount to the Hong Kong shares.
Hong Kong's shares have finished weaker in volatile trade. The Hang Seng Index ended down 31 points to 21,863. The HSI traded between 21,769 and 22,103. Among the 50 HK blue chips, 22 rose and 27 fell, with one stock remaining steady. Belle (01880) dipped 3.5% to HK$10.42, while Kunlun Energy (00135) gained 3.1% to HK$12.46, making themselves the biggest blue-chip loser and winner respectively.
Indian benchmark indices surged after data showed a pickup in manufacturing activity in euro zone and China. Meanwhile, comments from Finance Minister P. Chidambaram and Reserve Bank of India Governor D. Subbarao on Thursday, 22 August 2013, in separate news conferences that India doesn't plan to introduce capital controls helped soothe investors' nerves. The S&P BSE Sensex was provisionally up 204.96 points or 1.12%, up close to 305 points from the day's high and off about 30 points from the day's low. Except BSE Realty index, all the other sectoral indices on BSE were in the green.
Indian index heavyweight and cigarette major ITC edged higher in choppy trade. Capital goods pivotals rose on bargain hunting after recent losses. Most bank stocks gained. Reliance Infrastructure (RInfra) gained after the Maharashtra Electricity Regulatory Commission (MERC) allowed the company to recover past arrears over next 6 years and to recover revised cross subsidy surcharge. Among IT stocks, Tech Mahindra hit 52-week high.
Elsewhere, Taiwan's Taiex rose 0.75%, South Korea's KOSPI added 0.75% and Malaysia's KLSE Composite rose 0.04%. New Zealand's NZX50 lost 0.12%, Indonesia's Jakarta Composite shed 0.04% and Singapore's Strait Times shed 0.02%.
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