Asia Pacific share market gained ground on Thursday, 19 November 2015, as risk sentiments encouraged by a rally on Wall Street overnight after minutes from the most recent Federal Reserve meeting showed policy makers' faith in the world's biggest economy. The MSCI Asia Pacific Index advanced 1.6% to 133.57
US stocks rose sharply on Thursday after minutes from the most recent Federal Reserve policy meeting strengthened expectations for a rate hike in December, a move that would remove lingering uncertainty in financial markets.
The minutes of the latest Federal Reserve's latest policy-board meeting published on Wednesday showed most members expect to raise interest rates in December for the first time since 2006, while also highlighting that rates would likely remain below levels historically considered "normal". Investors were bolstered by the prospect of extended easy-money policies in the world's largest economy. The news was cheered by investors on Wall Street overnight, and that optimism continued into the Asian session.
Among Asian bourses
Australia Market surges 2.13%
The Australian share market advanced for second day in row, as risk sentiments boosted up on back of some soothing words from the US Federal Reserve, renewed takeover activity and strength in the iron ore price. All sectors of the market recorded strong gains with grocery, energy and mining stocks faring the best. The benchmark S&P/ASX 200 index ended 109.50 points, or 2.13%, higher at 5242.60 points, while the broader All Ordinaries index climbed up 104.20 points, or 2.01%, to 5293.30 points.
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Financial stocks were stronger, with top four banks leading rally, buoyed by the news from the US Federal Reserve. Commonwealth Bank advanced 1.7% to A$79.14, Westpac Bank 2.6% to A$31.58, National Australia Bank 3.2% to $29.72, and ANZ Bank 2.9% to A$27.52.
Mining stocks were also in focus as BHP Billiton held its annual general meeting in Perth. BHP said it would publicly release the results of an external investigation into a fatal dam collapse at a mine it co-owns in Brazil. Its chairman and chief executive told shareholders they were deeply sorry for the disaster, in which 11 people have so far been confirmed dead. But they stopped short of reaffirming their commitment not to cut dividends, saying the balance sheet came first. BHP shares closed 3.1% higher at A$20.42 while Rio Tinto added 4% to A$48.68. Fortescue Metal grew 0.9% to A$2.17.
The payment services company OzForex soared 30% to close at A$3.38 after it received a takeover offer from the global money wire firm Western Union. global payments giant Western Union offered to buy online foreign exchange company OzForex for as much as A$3.70 a share, implying a value of about A$888 million. The offer is up to A$1.10 above Wednesday's closing price of A$2.60 and its average over the past six months of A$2.47.
Nikkei rallies 1.07%
The Japanese share market rallied for third straight session, Wednesday, 18 November 2015, as investors' confidence boosted after minutes from the US Federal Reserve meeting hinted rates will be raised in the world's biggest economy in December. Adding to confidence on trading floors was data showing Japan posted a surprise trade surplus in October, its first positive reading since March. However, stocks gains were limited after the Bank of Japan decided to maintain its current easing program. Every industry category on the main section gained ground, with warehousing, iron and steel and nonferrous metals leading gainers. The Nikkei Stock Average advanced 210.63 points, or 1.07%, to end at 19859.81 points. The broader Topix index has gained 0.87%, or 13.85 points, to 1600.38 at the close.
Trade statistics from the Ministry of Finance released today showing that Japan posted a surplus of 111.5 billion yen ($902 million), compared with a deficit of 741.76 billion yen a year ago, backed by relatively strong demand from the U.S. and Europe. Japanese exports were down 2.1% in October, while imports fell 13.4%.
After a two-day meeting the Bank of Japan on Thursday stood pat on its monetary policy, saying the economy "has continued to recover moderately", although it admitted exports and output had be hit by a slowdown in overseas economies. Its decision comes days after official data showed the country had slipped back into recession in the six months to September -- the second time in Prime Minister Shinzo Abe's near three-year premiership.
Shares of Toyo Seikan Group Holdings climbed 3.2% after Nomura Holdings Inc. raised its target price on the packaging maker's stock by 17% while maintaining its neutral rating..
Pigeon Corp. jumped 3.3% after a report the baby product company's operating profit for the nine months through October surged to a record.
Maeda Corp. dropped 5.3% after Mitsubishi UFJ Morgan Stanley Securities Co. cut its rating on the building contractor to underweight, citing a weak recovery in earnings.
Fujitsu rose 3.7% on reports that the company won an order from Singapore worth 45.2 million Singapore dollars ($31.8 million) to build the city-state's first national supercomputer center.
China Market rebounds 1.36%
The strong rebound in afternoon trade helped the Mainland China stock market to post first gain in three days in row. The appetite for risk assets propelled by news that Beijing would help manufacturers to upgrade their technology and minutes from a Federal Reserve meeting signaled that the pace of U.S. interest-rate increases will be gradual. The Shanghai Composite Index rebounded 1.36%, or 48.59 points, to close at 3617.06 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, grew 3.07%, or 67.33 points, to close at 2257.21. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, was up 4.12%, or 109.59 points, to close at 2770.75.
Shares of technology companies advanced the most among SSE 10 industry groups after China's cabinet said the government will support targeted industries to upgrade their technology. The government will guide private investment into industries such as light manufacturing, textiles, steel and construction materials, after a State Council meeting chaired by Premier Li Keqiang. Han's Laser Technology Co., which also supplies to Apple, jumped 3.4%. Leshi Internet Information & Technology Corp., the biggest mainland-listed Internet video provider, advanced 6.1%.
Hong Kong Market shines 1.41%
Hong Kong stock market ended sharply higher, as risk sentiments encouraged by a rally on Wall Street overnight and a robust rebound in mainland markets today. The All major sectors rose, with energy and financials leading the gains. The benchmark Hang Seng Index advanced 311.96 points, or 1.41%, to 22500.22 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, has gained 137.83 points, or 1.37%, to 10193.11 points. Turnover increased to HK$66.8 billion from HK$63.7 billion on Wednesday.
Oil majors jumped on rising oil prices after US crude inventory growth last week undershot market expectations. PetroChina (00857), CNOOC (00883) and Sinopec (00386) rose 2% to HK$5.51, HK$8.33, and HK$5.06 respectively.
Consumer players saw speculative activities. Bonjour Holdings (00653) surged 26% to HK$0.36. Sa Sa (00178) soared 5.3% to HK$2.8. Belle (01880) advanced 3.3% to HK$7.15. But Giodano (00709) slipped 4.6% to HK$3.96.
Developers have discounted the upcoming rate hike in December. Wharf (00004) put on 2% to HK$44.8. Sino Land (00083), Link REIT (00823) and New World Dev (00017) rose 2% to HK$11.7, HK$48.05 and HK$8.23. MTRC (00066) put on 2.2% to HK$36.85.
Geely Automobile Holdings jumped 5% to HK$4.17, after the Chinese automaker said it planned to concentrate entirely on developing green energy vehicles, eschewing traditional combustion engines and completely overhauling its product portfolio.
Sensex ends 359 points up
Indian stock market advanced on bets the US Federal Reserve would raise rates in December but proceed cautiously on more tightening. All sectors except healthcare closed the day in the green with strong gains made by financial and IT stocks that were beaten down in the previous session. The S&P BSE Sensex closes 1.41%, or 359.40 points, higher at 25,841.92, while the NSE's Nifty 50 gains 1.43%, or 110.95 points, to end at 7,842.75.
Punj Lloyd rose after the company said in a notice to BSE that it got two orders from NTPC for rural electrification of Puri and Koraput in Odisha.
Shares of Hero MotoCorp surged after the two-wheeler major clocked over 10 lakh units in retail sales during the festive season this year.
Meanwhile, Dr Reddy's Laboratories shares trimmed losses after falling as much as 6.8% earlier in the day after the drugmaker said it followed all disclosure norms required by the US and Indian regulators. The stock fell after US law firm Lundin Law made a class action appeal over allegations of misleading statements from the Indian drugmaker.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index added 1.64% to 8477.20. South Korea's KOPSI grew 1.33% to 1988.91. Malaysia's KLCI added 0.2% to 1660.06. Singapore's Straits Times index jumped 1.17% at 2919.83. Indonesia's Jakarta Composite index rose 0.47% to 4518.94. New Zealand's NZX50 added 0.26% to 5995.25.
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