The regional stock market opened higher after the S&P index logged another record close on Wall Street overnight after reports on US housing to manufacturing showed the world's largest economy is strengthening and after minutes from the Federal Reserve's last meeting reinforced the central bank's commitment to supporting the economic recovery.
The minutes from the Federal Reserve's meeting showed members debated the possibility of an earlier interest rate rise, leading to speculation the rate could rise as early as March next year. The Fed is on pace to end its monthly bond purchases in October, and plans to keep rates low for a "considerable time" after that.
However, gain on the upside was limited due to lack of trading incentives, combined with reticence before US Federal Reserve chair Janet Yellen speech later in the global day. Yellen is to deliver a keynote speech later Friday at the Fed's annual conference in Jackson Hole, Wyoming, as investors speculate on the direction of U.S. interest rates. In addition to the Fed chair's speech, traders are also focusing on how willing European Central Bank head Mario Draghi is to take further easing action.
Among Asian bourses
Australia stocks rise for the seventh day in a row
Australian share market advanced for seventh consecutive session to a fresh six-year high, as gain in industrial, energy and retailer stocks were more than offset by losses in materials and resources stocks. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each rose by 0.12% to 5645.60 points and 5640.50 points, respectively. The benchmark S&P/ASX 200 Index added 1.4% and the broader All Ordinaries Index advanced 1.5% over the week.
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Shares of energy companies advanced, with Santos rising 3.9% to A$15.16 after increasing its interim dividend. Iluka jumped 3.4% after signalling an improved outlook for rutile, one of its key commodities used in paints and plastics.
Materials and resources stocks stumbled after base metal prices closed mixed on Thursday on weak Chinese manufacturing and trade data. Resources giant BHP Billiton fell 0.6% to A$37.80. Main rival Rio Tinto fell 0.3% to A$65.40 and Fortescue Metals sank 1.3% to A$4.42 after iron ore dropped below $US92 a tonne to its lowest since June on Thursday amid pressure from plentiful supply and tougher credit conditions. Iron ore for immediate delivery to China dropped 0.4% to $US91.90 a tonne on Thursday, its lowest since June 19. The price has fallen 1.6% so far this week. Iron ore fell to $US89 in June, its weakest since September 2012.
Crown Resorts gained 1.3% to A$16.18 after striking a deal with the Victorian government to pay less tax on VIP gaming, increase its table games and poker machines, and extend its Melbourne casino licence. Rival Echo Entertainment shed 2.5% to A$3.15.
Nikkei snaps nine days rally on profit booking
Japanese share market declined for the first time in ten straight sessions, amid profit booking on caution ahead of a key speech by U.S. Federal Reserve chief Janet Yellen. The benchmark Nikkei 225 index closed down 47.01 points to 15539.19, after nine consecutive days of gains. The Topix index of all first-section issues was down 5.12 points, at 1286.07.
Shares of builders and steelmaker companies were top decliners in the Tokyo market after reports that Tokyo Metropolitan Government will consider investing part of its 4 trillion yen ($39 billion) of public funds in the stock market. An advisory board of asset management experts will be created as early as next month, according to the report. The Topix Construction Index fell 1.5%, the most among the gauge's 33 industry groups, with Toyo Construction losing 5% to 476 yen. Yurtec Corp., which builds power distribution lines, lost 4.2% to 546 yen. Maeda lost 3.8% to 928 yen after Daiwa reduced its rating to neutral from outperform.
Japan Steel Works slid 2.5% to 436 yen after SMBC Nikko Securities Inc. said the company is likely to miss full-year targets for operating profit and orders.
Bridgestone gained 1.4% to 3688 yen after a Deutsche Bank upgrade to buy from hold, citing weaker operational headwinds such as domestic demand distortions around the April 1 consumption tax increase, and risk in the market for tires used in mining operations.
Shares of Shinsei Bank rose 0.9% to 220 yen on reports that it is planning to bid for Citigroup's Japanese retail banking operations, hoping to take over its wealthy clientele. Citigroup has sounded out a total of nine banks on the sale and will hold an initial round of bidding next month, the report said. Citibank Japan has Y4.7 trillion in total assets and 33 branch locations in Japan.
Apparel retailer Adastria Holdings fell 2.8% to 2139 yen after lowering its fiscal first half business forecast from a 500 million yen profit to a 400 million yen loss.
Shanghai Composite bounces 0.46%
Mainland China share market advanced on speculation of more policy support from the government, with shares of telecom, utilities, healthcare technology, financial and industrial companies being the bigger gainers. The benchmark Shanghai Composite rose 0.5% to 2,240.81 at the close. Turnover increased to 140.35 billion yuan from yesterday's 140.09 billion yuan. The benchmark measure climbed 0.6% this week.
The mainland market opened lower after a closely watched survey showed Chinese factory activity at a three-month low. The HSBC/Markit Flash China Manufacturing Purchasing Managers' Index (PMI) fell to 50.3 from July's 18-month high of 51.7. It was the lowest reading since May, though the PMI stayed above the 50-point level that separates growth in activity from contraction for a third consecutive month.
But the mainland market picked up gain late afternoon on hopes government would continue accommodative liquidity conditions, faster fiscal spending, and additional policy support, including support for social housing and more widespread relaxation of local property restrictions until there is a more sustainable rebound in economic activity.
The State Council, China's Cabinet, said on Wednesday that China lowering taxes for high-tech companies and cutting red tape in its latest bid to help businesses operate in the world's second-largest economy. China will also abolish the need for firms to seek approvals in 68 areas when conducting commerce, the government said in an online statement. The right to grant approvals for business projects in 19 other areas would also be devolved to lower levels of government, the statement said. Companies identified as high-tech services firms would enjoy lower corporate income tax rates of 15%, the government said.
Hang Seng jumps 0.47%
Hong Kong share market closed higher on tracking gain on the Wall Street overnight, with shares of financials, utilities and realty companies being biggest gainers. The Hang Seng Index rose 0.47%, or 118.13 points, to 25112.23. Market turnover stood at HK$63.67 billion, down from HK$75.52 billion on Thursday. The measure advanced 0.6% this week, trading near a six-year high.
Hang Lung Properties (00101) put on 3.2% to HK$25.45. It was today's blue-chip top performer. China Resources (00291) plunged 5.6% to HK$21.95, making itself the top loser as a slew of research houses have lowered their target prices for the stock post its earnings announcement.
HK Market heavyweights were firmer. HSBC (00005) gained 0.9% to HK$83.2. China Mobile (00941) and AIA (01299) edged up 0.6% and 0.5% to HK$95 and HK$43.35 respectively.
Li & Fung (00494) fell 4.6% to HK$10 as a number of investment banks downgraded the stock post earnings results. Its spin-off Global Brands (00787) plunged 8.3% to HK$1.87.
China Rongsheng jumped 7.9% to HK$1.50 after the shipbuilder agreed to buy a 60% stake in an oilfield project in Kyrgyzstan for HK$2.18 billion ($281.3 million) in an all-stock deal.
Bank of Communications added 1.4% to HK$5.76 after announcing a rise in net income by 5.6% to 18.1 billion yuan ($2.9 billion) from a year earlier. The bank also said it planned to be the nation's first listed lender to offer stock incentives to management.
Indian market gains for second day in a row
Indian stock market closed higher in a volatile trading session as speculation of an upward revision of India's sovereign rating outlook by global rating agency S&P resurfaced after data on Thursday, 21 August 2014, showed foreign funds bought Indian bonds worth a staggering Rs 16071.97 crore (net) in a single trading session on Wednesday, 20 August 2014. As per provisional figures, the S&P BSE Sensex was up 59.44 points or 0.23% at 26419.55, while the CNX Nifty was up 22.10 points or 0.28% to 7913.20.
IT stocks rose on positive economic data in US, the biggest outsourcing market for the Indian IT firms. Tech Mahindra scaled record high. TCS rose 1.11% after the company said that its TCS BaNCS customer, National Employment Savings Trust (NEST) in the UK, has crossed the 1 million member mark. HCL Technologies rose 2.59% on reports that a foreign brokerage has maintained a buy rating on the stock.
Most hospitality stocks gained after the Ministry of Tourism said it has decided to simplify the hotel classification and re-classification procedure. Taj GVK Hotels (up 11.49%), Indian Hotels (up 0.35%), and Royal Orchid Hotel (up 1.73%) gained. EIH (down 1.25%) and EIH Associated Hotels (down 0.85%) declined.
Elsewhere in the Asia Pacific region-- South Korea's KOSPI index rose 0.61% to 2056.70. Taiwan's Taiex index gained 1.4% to 9380.10. Malaysia's KLCI fell 0.2% to 1870.99. New Zealand's NZX50 added 0.27% to 5167. Singapore's Straits Times index rose 0.04% to 3325.50. Indonesia's Jakarta Composite index declined 0.14% to 5198.90.
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