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Asia Pacific Market: Stocks soar on solid data

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Last Updated : Oct 07 2016 | 12:01 AM IST
Asia pacific share market surged on Wednesday, 02 March 2016, as risk sentiments boosted up on tracking gains in the commodity prices and a swath of positive economic data from Australia to the United States. MSCI's broadest index of Asia-Pacific shares outside Japan rose 2%.

The Institute for Supply Management's (ISM) index of US factory activity, a closely-watched measure of the American manufacturing sector, rose more than expected last month. The Institute for Supply Management (ISM) said its index of national factory activity increased 0.2%age point to a reading of 48.2 last month. A reading below 50 signals a contraction in factory activity.

Australia's GDP, in seasonally adjusted chain volume terms, grew 0.6% in the December quarter 2015, according to figures released today by the Australian Bureau of Statistics (ABS).

Among Asian Bourses

Australia Market closes above 5K level

Australian share market ended sharply higher, with big four banks and energy stocks leading rally, thanks to the release of better than expected Australia GDP data. Risk sentiments were also spirited by stronger commodities prices and strong manufacturing data from the United States overnight. At the close, the benchmark S&P/ASX200 index rose 98.90 points, or 2.01%, at 5021.20, while the broader All Ordinaries index added 93.90 points, or 1.88%, to 5083.50.

Material and resources and energy stocks ended stronger. Mining giant BHP Billiton gained 4.4% to A$16.73, Rio Tinto closed 4.7% up at A$43.30 and Fortescue Metals Group added 3.7% to A$2.25. Woodside Petroleum advanced 5.1% to A$27.11, Santos rose 5% to A$3.60 and Origin Energy lifted 2.6% to A$4.71.

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The banks also performed well, with ANZ Banking Group up 4.5% to A$24.10, Westpac up 4.1% to A$30.69, Commonwealth Bank up 3.5% to A$73.94 and National Australia Bank up 3.5% to A$25.55.

Casino operator Crown Resorts rose 4.5% to A$11.98 after the Chinese territory of Macau posted its best monthly gambling revenue performance since October last year.

Metropolitan television networks struggled as the federal government moved to change media laws, with Seven West Media losing 8.5 cents to close at 94.5 cents, Nine Entertainment falling by 4.5 cents to $1.46 and Ten Network was flat at $1.005.

Nikkei surges 4.1%

Japan share market ended sharply higher, as risk appetite buying continued on tracking rally on the Wall Street overnight and yen depreciation against greenback. All 33 TSE sectors advanced, with iron & steel, insurance, marine transportation, electric appliance, and machinery issues being major gainers. The 225-issue Nikkei average surged 661.04 points, or 4.11%, to finish at 16746.55. The Topix index of all first-section issues closed up 48.78 points, or 3.75%, at 1349.61. Rising issues overwhelmed falling ones 1,824 to 82 in the TSE's first section, while 36 issues were unchanged. Volume increased to 2.49 billion shares from Tuesday's 2.22 billion shares.

The weaker yen buoyed export-oriented names, including automakers Toyota, Nissan and Honda, electronics parts makers Alps, Murata Manufacturing and TDK, air conditioner producer Daikin, and tire manufacturer Bridgestone. Machinery makers, such as industrial robot leader Fanuc, drew purchases thanks to receded worries about a slowdown in the U.S. manufacturing sector.

Olympus jumped 7.46% after the optical equipment maker said it has made deals with the U.S. Justice Department to settle kickback allegations without revising down its earnings estimates for the current fiscal year through March.

Bearing maker Minebea shot up 7.25%, following its announcement Tuesday of a plan to launch sales of lighting equipment in Southeast Asia.

Toyota Motor Corp gained 3.5% after its Lexus car edged into the monthly lead in U.S. luxury-vehicle sales, outselling BMW AG and Daimler AG's Mercedes-Benz.

China Stocks surges on more stimulus bet

Mainland China stock market spurted, as broad based bargain hunting spurred on expectations of further stimulus efforts by China to boost its economic growth continued to lift sentiment. Market largely shrugged of Moody's downgrade of China's outlook to negative from stable. All 10 industry groups on the CSI 300 Index advanced, led by materials, industrial and energy stocks. The Shanghai Composite Index ended up 116.51 points, or 4.26%, at 2849.68. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, rose 120.64 points, or 4.12%, to 3051.33.

Coal and steel stocks jumped amid speculation policy makers will take steps that have been dragging down the economy such as overcapacity. Anhui Conch Cement Co., the nation's biggest producer of the building material, soared 10%. Wuhan Iron & Steel Co. led gains for steelmakers, rising 7.3%. Yanzhou Coal Mining Co. advanced 10% to pace an advance for energy companies.

Shares of property developers' advanced, with Poly Real Estate Group Co, the second-biggest Chinese developer, surged by the 10% daily limit, extending gains to 20% during a four-day rally.

Hong Kong Stocks joins global rally

The Hong Kong stock market ended higher, as investor sentiment brightened on improved US data and hopes that new central bank moves will boost China's slowing economy. The benchmark Hang Seng Index grew 596.03 points, or 3.07%, to 20003.49 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, rose 305.80 points, or 3.79%, to 8374.09 points. Turnover rose to HK$92.7 billion from HK$66.9 billion on Tuesday.

Mainland developers were higher on hopes more property-supporting policies from the Chinese government during dual conferences (NPC and CPPCC) scheduled to start later this week. Sentiments also lifted by rumor that Guangdong Province will lessen its restrictions on home purchase. CR Land (01109) shot up 6.6% to HK$20.45. COLI (00688) added 3.8% to HK$24.7. Evengrande (03333) shot up 6.2% to HK$5.63.

Coal stocks were up on reports Sichuan province will no longer grant permission for new coal mining projects in the coming three years in order to trim excess capacity in the sector. China Shenhua (01088) leaped 6.7% to HK$12.04. Yanzhou Coal (01171) mounted 8.73% to HK$3.61. Hidili Industry (01393) surged 10.9% to HK$0.183.

Sensex, Nifty hit over 3-week closing high

Banking, metal sector stocks along with index heavyweights Infosys, HDFC and Reliance Industries (RIL) powered the latest rally on the bourses. The barometer index, the S&P BSE Sensex, jumped 463.63 points or 1.95% to settle at 24,242.98. The 50-unit Nifty 50 index rose 146.55 points or 2.03% to settle at 7,368.85.

Data showing heavy buying of Indian stocks from foreign portfolio investors (FPIs) during the previous trading session added to the positive mood. FPIs bought shares worth a net Rs 3017.25 crore from the secondary equity markets, yesterday, 1 March 2016, as per data from National Securities Depository (NSDL). The Sensex had surged 3.38% yesterday, 1 March 2016, a day after the announcement of the Union Budget 2016-17, as investors heaved a sigh of relief with no adverse changes in long-term capital gains tax on sale of shares in the Budget.

Stocks of public sector banks led rally in bank stocks triggered by the Reserve Bank of India (RBI) announcing relaxations on the treatment of certain balance sheet items for the purpose of determining banks' regulatory capital. Index heavyweight and cigarette major ITC edged lower on profit taking after seeing a post-Budget rally. Bharat Heavy Electricals (Bhel) surged after announcing a large order win.

Elsewhere in the Asia Pacific region: New Zealand's NZX50 added 0.25 to 6313.07. Taiwan's Taiex index added 0.7% to 8544.05. South Korea's KOPSI rose 1.6% to 1947.42. Malaysia's KLCI added 1.2% to 1691.03. Singapore's Straits Times index climbed up 1.7% at 2726.96. Indonesia's Jakarta Composite index advanced 1.2% to 4836.20.

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First Published: Mar 02 2016 | 9:34 PM IST

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