Asia pacific share market soared up on Wednesday, 13 April 2016, as rebound in oil prices, coupled with robust export data from China, lifted investor sentiment and confidence in the health of the world's second-largest economy.
China's trade performance blew past expectations in March, providing more evidence of stabilisation in the world's second-largest economy. Data released by China's General Administration of Customs showed the country's dollar-denominated exports for March increased 11.5% on-year to $160.8 billion. The dollar-denominated imports for the same month fell 7.6% on-year to $131.0 billion. As a result, trade surplus leaped to $29.9 billion.
Among Asian bourses
Australia Market bounces 1.6%
Australian share market ended sharply higher, boosted by advances in the heavily-weighted financials, energy and materials subindexes, thanks to positive China trade data and firm oil prices. At close of trade, the benchmark S&P/ASX 200 advanced 79.10 points, or 1.59%, to 5054.70. The broader All Ordinaries added 73.50 points, or 1.45%, to 5127.20.
Miners stocks received a boost from higher close of base metal prices overnight. Three month copper prices on the London Metal Exchange rose 2.2% overnight, aluminum climbed 1.7% and zinc advanced 4%. Iron ore prices advanced more than 4.6%, climbing from $55.90 on Monday to $58.50 overnight. Shares of BHP Billiton surged 6% to A$17.92, Rio Tinto 4.5% to A$47.38 and Fortescue Metals 7.8% to A$3.19.
Shares of banks and financials closed stronger on renewed bargain hunting. Westpac bank advanced 2.8% to A$29.94, National Australia Bank 2.1% to A$26.09, ANZ Bank 2.2% at A$23.34, and Commonwealth Bank 2.1% to A$73.73.
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Consumer sentiment flagged for the second month in row in April, according to the latest Westpac-Melbourne Institute survey, as share losses, a softening housing market and the stronger Australia dollar soured the mood. Westpac said that its headline index dropped 4%, to 95.1, in April. Anything below 100 points means pessimists outnumber optimists.
Nikkei extends gain on weaker yen
The Japan share market spurted, as relative weakness in the yen against the dollar, rise in prices for crude oil and base metal, and positive China trade data lifted up risk sentiments. All industry categories on the main section advanced, with insurance, mining and banking-linked shares comprising the morning's notable winners. The 225-issue Nikkei Stock Average climbed 452.43 points, or 2.84%, to 16381.22. The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, jumped 33.09 points, or 2.55%, to 1,332.44.
Shares of export related companies advanced on the back of depreciation of yen against the dollar. A weaker yen is a positive for Japanese exporters as it increases their overseas profits when converted into local currency. Among the market's key exporter sector, Panasonic Corp. advanced 3.3%, while Toyota Motor Corp. and Honda Motor Co. accelerated more than 2.5%, while Nissan Motor Co. closed the day 3.4% higher.
Nonbank lender Orient Corp. rocketed 7.58%, a day after the company said it has revised up its group operating profit projection for the year ended in March 2016.
China-linked shares duly gained traction Wednesday following customs data revealing that exports had increased 11.5% from a year earlier, as the country's total value of international trade rose 2%. Murata Manufacturing, widely exposed to markets in China, surged 7.1%, while electronic component maker TDK gained 3.7%.
China Market surges on upbeat China trade data
Mainland China stock market finished stronger, thanks to brisk purchases of a wide range of issues, with investor sentiment buoyed by positive China trade data and jump in crude oil prices. The benchmark Shanghai Composite Index declined 10.31 points, or 0.34%, to 3023.65. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, dropped 11.65 points, or 0.36%, to 3218.45.
Chinese metal plays advanced on the back of higher base metal prices overnight, with shares of Baoshan Steel gaining 0.17%, Yunnan Copper higher by 7.33% and Aluminium Corp. adding 2.42%.
Shares of coal miners soared up after China International Capital Corp. said prices of some coal products will increase on strained supply and improving demand from the steel sector. Guizhou Panjiang Refined Coal Co. and Shanxi Meijin Energy Co. surged by the 10% daily limit. Shanxi Xishan Coal & Electricity Power Co. jumped 5.6%.
Hang Seng settles above the 21100-point plateau
The Hong Kong stock market advanced for sixth straight session, as risk sentiments buoyed after better-than-expected Chinese trade data raised hopes the world's second-largest economy could be stabilizing. The benchmark Hang Seng Index advanced 654.27 points, or 3.19%, to 21158.71 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, added 349.63 points, or 4%, to 9191.49 points. Turnover soared to HK$93.6 billion from HK$51.9 billion on Tuesday.
Oil prices hit fresh year high on reports that Saudi Arabia and Russia have reached an agreement on freezing oil production. PetroChina (00857) soared 7% to HK$5.33. CNOOC (00883) climbed 6% to HK$9.72, while Sinopec (00386) jumped 5% to HK$5.41.
Chinese insurers rose across the board as the Shanghai stock market approached 3,100 level. Ping An (02318) hiked 6% to HK$37.55. China Life (02628) rose 5% to HK$19.16. Nomura said in a research note that it sees more upside for life insurers.
Chinese banks also followed the upward trend, with CM Bank (03968) bouncing 5% to HK$16.8. ICBC (01398) and BOC (03988) gained 4% to HK$4.43 and HK$3.21.
Shipping counters rose across the board as China's March exports growth came in better-than-expected at 18.7%, while imports shrank only 1.7%, lower than consensus. Pacific Basin (02343) surged 25% to HK$1.53. CSCL (02866) and Sinotrans (00598) shot up 9% and 10% to HK$1.98 and HK$3.64.
Sensex jumps on on rate cut hope
Indian stock market ended on an upbeat note on the back of a confluence of positive factors viz. forecast of good rains during the June-September 2016 southwest monsoon season, further easing of consumer price inflation raising hopes of further rate cut from the Reserve Bank of India, rebound in industrial production and gains in global stocks aided the latest rally on the domestic bourses. The barometer index, the S&P BSE Sensex, jumped 481.16 points or 1.91% to settle at 25,626.75. The Nifty gained 141.50 points or 1.84% to settle at 7,850.45. Auto, metal, cement stocks and index heavyweights HDFC, HDFC Bank, ITC and Reliance Industries (RIL) led the rally for the key benchmark indices.
Interest rate sensitive auto and banking stocks gained on hopes that the Reserve Bank of India could ease interest rates further after latest data showed that consumer price inflation eased to a six-month low in March. Maruti Suzuki India extended gains registered during the previous trading session as the Japanese yen moved further off a 17-month high against the dollar. Axis Bank edged higher after private sector bank announced reduction in its lending rates. Metal and mining stocks edged higher after better than expected March trade data from China.
Indian index heavyweight and IT major Infosys dropped ahead of the announcement of its fourth quarter earnings. Wipro edged higher after the company's announcement that its board of directors will consider a proposal for buyback of equity shares of the company at its meeting on 20 April 2016.
Elsewhere in the Asia Pacific region: New Zealand's NZX50 was up 0.8% to 6777.91. Taiwan's Taiex index rose 1.4% to 8652.08. Malaysia's KLCI added 0.5% to 1723.11. Singapore's Straits Times index added 2.7% to 2890.41. Indonesia's Jakarta Composite index added 0.5% to 4853. South Korea market closed for holiday.
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