A highly influential manufacturing survey has showed that China's economy is picking up at a faster pace than analysts predicted. Caixin manufacturing PMI for the month of June came in at 50.4. The official manufacturing purchasing managers index, a key gauge of factory activity, released on last Friday came in at 51.7% in June, which was better than expected and was higher than May's figure of 51.2 and marked the 11th consecutive month of expansion, according to data released by the National Bureau of Statistics on Friday. New orders accelerated for the domestic sector as well as for the export market. New orders in June, as shown in a sub index of the PMI, increased to 53.1 from May's 52.3, while export orders jumped to 52, 1.3 percentage points higher than in May.
In a closely-watched Bank of Japan Tankan survey released on Monday, showing business confidence among Japan's large manufacturers strengthened to its highest level in more than three years in the second quarter, as a pickup in the global economy and renewed strength in stocks brightened the outlook for corporate Japan. The main index measuring large manufacturers' confidence rose to plus 17 in the April-June period from plus 12 previously. The improvement in business sentiment adds to recent encouraging data for Prime Minister Shinzo Abe's administration, pointing to renewed strength in Japan's economy after the longest expansion since 2006. Sentiment at large non-manufacturing firms also rose, for a second straight quarter, and is now at its highest since December, 2015. The tankan index for large non-manufacturers came to plus 23 in the June survey compared with plus 20 in the previous quarter. The 'outlook' part of the survey found large manufacturers hopeful, rising to a score of 15 from the previous quarter's 11. Large manufacturers expect the dollar will trade at an average 108.31 yen this financial year. The tankan's indexes are derived by simply subtracting the number of respondents who say conditions are bad from those who say they are good, with any positive reading meaning that the optimists are winning.
Among Asian bourses
Australia Market falls on first day of new Australian fiscal year
Australian equity market finished session lower, marking a cautious start to the new Australian fiscal year, with weakness led by biotech giant CSL, the biggest drag on the benchmark, while Fairfax Media tumbled after two private equity firms withdrew rival takeover bids. Market losses were, however, capped after survey that showed that Australia's manufacturing and service sectors both enjoyed strong activity in June with upbeat demand encouraging more hiring. The S&P/ASX 200 index fell 0.7%, or 36.99 points, to 5,684.5 at the close of trade.
The Healthcare sector was the biggest drag on the index, with biotech firm CSL falling 2% to a near one-month closing low on profit booking after biotech firm hits an all-time record high.
Real estate stocks also weighed on the benchmark with Scentre Group and Stockland Corp Ltd slipping more than 1% each. Among the other big losers was Fairfax Media, which slumped more than 10% to its lowest since March after it said two private equity firms withdrew from rival takeover bids worth up to A$2.9 billion.
More From This Section
Commonwealth Bank of Australia dropped by 0.5%, Westpac Banking shed 0.4% and Australia & New Zealand Banking and National Australia Bank each slipped 0.2%. The regional banks fared better, with Bendigo & Adelaide Bank picking up 0.5% and Bank of Queensland rising 0.8%.
At the other end, the energy sector eked out a minor gain as crude-oil prices built on recent gains in Asian trade supported by the first fall in US drilling activity in months, although rising output from Opec despite a pledge to cut supplies capped gains. Oil producer Santos was up 0.8% while Beach Energy jumped 3.5%. Diversified miners BHP Billiton and Rio Tinto diverged, with the former losing 0.2% but Rio gaining 0.5%. Gold producer Newcrest Mining fell 0.6% and Oz Minerals declined 1.5%.
Virgin Australia Holdings gained more than 6% after the carrier said it expects to report positive cash flow for the 2017 fiscal year.
Nikkei gains after upbeat Tankan sentiment data
The Japan share market finished session higher, buoyed by positive lead from Wall Street Friday, an upbeat Bank of Japan's quarterly tankan business confidence survey and a stable dollar-yen exchange rate, but defeat for Japan's ruling party in a Tokyo poll checked investor risk appetite and capped the upside. The benchmark Nikkei 225 average gained 22.37 points, or 0.11%, to close at 20,055.80. The Topix, including all first-section issues, finished up 2.51 points, or 0.16%, at 1,614.41. Rising issues outnumbered falling ones 1,117 to 767 in the TSE's first section, while 138 issues were unchanged. Volume fell to 1.601 billion shares, from Friday's 1.968 billion shares.
Exporters were mostly solid on Monday, as the dollar gained 0.2% to 112.58 yen. Toyota Motor Corp rose 1.0%, Subaru Corp climbed 1.7% and Panasonic Corp gained 0.7%. Auto parts maker Ashimori Industry surged on speculation that it may take over demand for Takata products.
Daiseki Co jumped 6.9% after industrial waste disposal business operator said its operating profit surged 25.2% to 2.3 billion for the March-May quarter.
China Stocks up as PMI strengthens
The Mainland China equity market eked out small gains, buoyed by positive economic data showing manufacturing expansion and demand, and optimism about companies' interim results after strong guidance in sectors, including non-ferrous metals, electronics, property, light manufacturing and chemicals. But, concerns of economic slowdown in the second half and lingering fears of monetary tightening checked investor risk appetite and capped the upside. Financial and consumer stocks fell on profit-taking but commodity shares rose on the back of higher raw material prices triggered by recent dollar weakness. The Shanghai Composite Index edged up 0.11% to 3,195.91 points.
Infrastructure companies, coal and steel providers and non-ferrous metal shares were among the biggest gainers on the bourse. Maanshan Iron & Steel Co Ltd jumped 9.89% to 3.89 yuan (US$0.57), Shaanxi Coal Industry Co Ltd added 5.66% to 7.47 yuan and Huaxin Cement Co rose 3.99% to 9.91 yuan.
Hong Kong Market gains on start of China, Hong Kong Bond Connect scheme
The Hong Kong stock market ended higher, mirroring gains on the Wall Street Friday and on the back of a new bond trading link between Hong Kong and China. At the close, the Hang Seng index rose 0.1%, to 25,784.17 points, while the China Enterprises Index gained 0.5%, to 10,412.48 points. Turnover decreased to HK$75 billion from HK$81.3 billion on Friday.
Index heavyweight HSBC Plc - which on Monday conducted the first deal under the Bond Connect - added 1.2% to HK$73.55, while BOC Hong Kong, another beneficiary of the scheme that allows foreign investors to buy China bonds, jumped 1.5% to HK$37.9. Hong Kong Exchanges and Clearing (00388) barely rose 0.5% to HK$202.8.
Hong Kong's small-caps and mid-caps rose after Beijing on Friday allowed insurers to buy the city's stocks under the Shenzhen-Hong Kong Stock Connect, potentially boosting demand for smaller companies. But the services index in Hong Kong was down 1.5%.
Country Garden (02007), China Vanke (02202) and China Evergrande (03333) were top three Chinese developers in terms of sales for the first half of 2017. Country Garden shot up 3.9% to HK$9.4. China Vanke soared 5.7% to HK$23.35. China Evergrande surged 9.2% to HK$15.3.
Geely Automobile (00175) was top blue-chip winner today. It rose 4% to HK$17.52 after some Chinese research houses' investment upgrades.
Strong gains on Indian bourses as investors cheer GST rollout
Trading for the second quarter and July month started on a positive note as key benchmark indices settled with good gains as firmness in global stocks perked up sentiment. The barometer index, the S&P BSE Sensex rose 300.01 points or 0.97% to settle at 31,221.62. The Nifty 50 index advanced 94.10 points or 0.99% to settle at 9,615. The Sensex closed above the psychological 31,000 level. The sentiment was also boosted after the biggest tax reform, the Goods and Services Tax came into force from 1 July 2017. The gains were supported by a sharp jump in index heavyweight ITC. Bank and metal sector stocks advanced.
Index heavyweight and cigarette maker ITC jumped 5.7% at Rs 342.30 on reports that taxation for cigarettes under the goods and services tax regime is around 5-6% lower compared to the previous tax structure. Under the GST regime, cigarettes have been put in the highest tax slab of 28%. Basic excise duty and additional excise duty are repealed and only national calamity duty is continuing under the GST regime for cigarettes.
Mahindra & Mahindra (M&M) was up 1.21%. The company's total auto sales fell 8% to 35,716 units in June 2017 over June 2016. Total tractor sales rose 9% to 32,933 units in June 2017 over June 2016. The announcement was made on Saturday, 1 July 2017.
Maruti Suzuki India rose 1.96% after the company's total sales rose 7.6% to 1.06 lakh units in June 2017 over June 2016. Domestic sales grew by 1.2% to 93,263 units in June 2017 over June 2016. Export sales jumped 95.8% to 13,131 units in June 2017 over June 2016. The announcement was made on Saturday, 1 July 2017.
Meanwhile, Maruti Suzuki India on Saturday, 1 July 2017 announced that the company has passed on the entire benefit of GST rates on vehicles to its customers. The ex-showroom prices of Maruti Suzuki India models have come down by up to 3%. The rate of reduction varies across locations depending on the VAT rates applicable prior to GST, the company said.
Powered by Capital Market - Live News