Headline shares in the Asia pacific region rose for the first time in five days on Tuesday, May 28, 2013, with the Japanese and Chinese bourses leading the rally. Other Asian markets registered relief with slight gains.
Despite a relief rally, investors largely sat on the sidelines as the US and UK markets were closed overnight, offering few leads to for the regional bourses.
Investors were awaiting for the data on US consumer confidence and home prices later today in the global day. The American consumer confidence and home values data will be scrutinized for how it might influence the Fed, which is undertaking its third round of aggressive bond-buying to help the economy. Speculation that the US central bank might scale back the program based on a recent improvement in some economic indicators has sparked jitters in stock markets.
Market players were also awaiting for further clues regarding the strength of the Chinese economy. The next slice of Chinese economic data to come out will be the official purchasing managers' index, due on Saturday.
During late Asian trade, Japan's Nikkei Stock ended the day 1.2% higher at 14,311.98, after witnessing sharp swings and sliding under the 14,000-point level in early trading. The broader Topix climbed 1.2%. Both benchmarks changed direction a few times Tuesday after plunging more than 3% in the previous session.
Export related stocks rebounded in Tokyo, with Toyota added 4.9% at 6,210 yen and Kyocera 2.8% at 10,360 yen. Mitsubishi Motors surged 14% to 168 yen and Taiyo Yuden 7.7% to 1,673 yen. Fast Retailing closed up 2.3% at 38,100 yen and KDDI and 1.1% at 4,885 yen.
Japan's corporate services price index fell unexpectedly in April. An index measuring corporate service prices in Japan was down 0.4% on year in April, the Bank of Japan said on Tuesday, standing at 96.1. On a monthly basis, corporate service prices were down 0.3% after rising 0.7% in March. Among the individual components, prices were up for advertising and transportation. They were down for real estate and flat for other services.
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China's Shanghai Composite Index jumped 1.2% and Hong Kong's Hang Seng Index added 1.1% on the back of solid gains in Chinese lenders, property and brokerage stocks.
Realty stocks rose in Shanghai after CITIC Securities stated Official documents on the expansion of the property tax trial hinted that China is planning to regulate the housing market and make it more market-oriented. This will help boost the valuation of property stocks. Vanke, the biggest Chinese developer, surged 4.8% to 12.36 yuan. Poly Real Estate, China's second-largest developer, added 3.3% to 12.64 yuan. Gemdale Corp jumped 4.4% to 8.06 yuan.
Financials shares were up in HK after Bernstein Research raising its view on the large Chinese banks. China Construction Bank Corp added 1.42% to HK$6.41 and Industrial & Commercial Bank of China 1.66% to HK$6.41. Conglomerates were also higher, with Cathay Pacific Airways jumped 3.22% to HK$14.76 on easing crude-oil prices, while ports operator Cosco Pacific Ltd gained 6.55% to HK$11.38 and diversified Swire Pacific 1.69% to HK$ 102.
Australia's S&P/ASX 200 finished slightly 0.2% higher, stemming the market's five-day run of losses, as high dividend-yielding stocks, such as banks, regained strength. Commonwealth Bank of Australia was higher 0.6% to A$68.60, Westpac Banking Corp rose 0.9% to A$29.47, while Australia & New Zealand Banking Group rose 0.8% to A$28.08. National Australia Bank shed 0.4% to A$31.12
Indian stock market gained for third day in a row on firm European and Asian stocks. The barometer index, the BSE Sensex, provisionally settled above the psychological 20,000 mark after having alternately swung above and below that level earlier in the day. The S&P BSE Sensex was provisionally up 136.77 points or 0.68%, up 204.31 points from the day's low and off 42.28 points from the day's high. Index heavyweight Reliance Industries (RIL) advanced for second day in a row after the company along with partners announced huge gas discovery in KG-D6 block after market hours on Friday, 24 May 2013. Another index heavyweight and cigarette major ITC also gained. Auto stocks were in demand on renewed buying. Coal India gained on robust consolidated Q4 earnings announced after market hours on Monday, 27 May 2013. GAIL (India) rose after good Q4 results announced during trading hours today, 28 May 2013. Colgate-Palmolive (India) fell after declaring poor Q4 result during trading hours today, 28 May 2013.
Elsewhere, South Korea's Kospi gained 0.3%, while Taiwan's Taiex lost 0.2%. New Zealand's NZX50 closed flat, while Indonesia's JKSE added 1.8%, Malaysia's KLSE rose 0.5% and Singapore STI jumped 0.44%.
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