Asia Pacific share market mostly advanced on first trading session of the week, Monday, 13 July 2015, as appetite for risk assets aided by tracking strong gain in the US markets on Friday. Sentiments were also boosted up after euro-zone leaders reached an agreement today, 13 July 2015, for a third bailout deal for debt laden Greece in exchange for strict reform measures. The agreement eases the risk that Greece will be forced to leave the common euro currency union.
In the latest development over Greece- There will be no eurozone exit for Greece after eurozone leaders today, 13 July 2015, agreed on a third bailout deal for cash-strapped Greece in exchange for strict reform measures. Speaking after a marathon weekend summit, President of the European Council Donald Tusk today, 13 July 2015, said the leaders had reached an agreement in principle to start negotiations on financial aid through the eurozone's bailout fund, the European Stability Mechanism, or the ESM. Tusk said that the decision gives Greece the chance to get back on the track for support from European partners. It also avoids the social, economic and political consequences that a negative outcome would have brought, Tusk said.
By Wednesday, 15 July 2015, Greece's Parliament has to pass pension overhauls and sales tax increases that voters overwhelmingly rejected in a referendum held on 5 July 2015. Parliaments in several eurozone nations also have to approve any new bailout.
To help Greece meet its short-term financing needs, eurozone finance ministers will discuss so-called bridge financing, Tusk said. Eurogroup head Jeroen Dijsselbloem also touched on the issue of Greece's future financing needs, saying a fund will be set up to tackle the debt and recapitalization of the country's banks. Greek Prime Minister Alexis Tsipras defended the deal after the all-night meeting, saying it allows his country to stand on its own feet again.
Among Asian bourses
Nikkei surges 1.6%
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Japanese share market advanced on tracking gains in the US markets on Friday and halt in yen appreciation against major currencies. Sentiments were also aided by reports that Japanese pension fund buying of Japanese stocks. The Nikkei Stock Average advanced 309.94 points, or 1.57%, to end at 20089.77 points. The broader Topix index rose 1.89%, or 29.96 points, to close at 1613.51 points.
Exporter stocks were the biggest winners on the benchmark Nikkei, thanks to halt in yen appreciation against major currencies. The dollar was holding back above the mid122 yen level, and the euro was buying above 137 yen level. Among major exporters, Panasonic, Sony and Sharp soared 3-4% each, while Nintendo rallied 1.5% despite announcing that its president Satoru Iwata passed away. Construction machinery maker Takeuchi surged 9% to a record high after announcing a three-to-one stock split and dividend increase.
Shares of Sapporo Holdings rose 2.2% on reports that company would post profit in its first-half earnings despite sluggish domestic beer sales.
Bucking the trend, Toshiba fell 1.2% on reports that the company's accounting scandal may be larger than previously believed and that its president would likely resign over the matter l. The Japanese firm has allegedly overstated around 200 billion yen in its group operating profits for the five years to March 2014.The accounting irregularities are believed to have affected its mainstay infrastructure-related, semiconductor, television and personal computer businesses.
Australia market end softer as miners, energy stocks fall
The Australian share market ended lower, with shares of materials & resources and energy companies being major losers. Market sentiments were weak as Greece remained without a new bailout deal and on caution before testimony this week from Federal Reserve chief Janet Yellen. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both declined by 0.3% to 5473.20 and 5460.40, respectively.
Shares of mining and energy players declined the most in Sydney market, amid drop for crude-oil futures. Brent crude lost over 2%. The selloff in material companies triggered despite the iron ore price recorded a second day of gains over the weekend. Among blue-chip miners, BHP Billiton lost 0.9% to A$26.41 and Rio Tinto declined 1% to A$51.53. Fortescue Metals Group tanked 5% to A$1.725. Among energy stocks, Woodside Petroleum sank 1% to A$33.24, Oil Search 1.6% to A$6.89 and Santos 1.8% to A$7.48.
Shares of financial companies were down on reports that Australian banks will need to raise billions of dollars in new capital over the next few years. Australia & New Zealand Banking Group declined 1.1% to A$31.90, Westpac Banking Corp 0.4% to A$32.96, National Australia Bank 0.6% to A$32.88 and Commonwealth Bank of Australia 0.7% to A$85.18.
Uranium miner Paladin Energy shares rose 7.3% after the company rejects media reports about its African mining operations were linked to hundreds of workers deaths and injuries.
Cochlear gained 6.4% to A$84.57 after JPMorgan upgraded it to "overweight" with a target price of A$90.62, saying it expected strong growth and an increase in market share in coming years.
China market rally gains steam
Mainland China's stock market ended higher third consecutive session, amid Beijing's fresh measures to restore investor confidence. Sentiments were also aided by better than expected trade numbers. News of margin bets increment from traders and trading resumption of more companies also bolstered risk sentiments. The benchmark Shanghai Composite Index advanced 92.58 points, or 2.4%, to 3970.39 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, rallied 4.2%, or 84.09 points, to 2120.25. The Shanghai index has gained 13.2% in last three sessions, though remains down 23.2% from its high reached in June.
Barring financial (down 2.1%), all 9 industry gauges in the SSE index ended higher, led by information technology (up 7.1%), healthcare (up 7%), and telecommunication services (up 7%). Meanwhile, buying pressure was also evident in materials (up 6.7%), utilities (up 6.5%), consumer discretionary (up 6.1%), industrial (up 5.4%), consumer staples (up 4%), and energy (up 3.2%).
The number of halted companies fell by 408 from Friday to 1045 on Monday, or 36% of overall listings on mainland exchanges.
Margin traders increased holdings of shares purchased with borrowed money for the first time in 15 days on the Shanghai Stock Exchange on Friday. The amount of money borrowed from Chinese brokerages for stock investments increased to 1.44 trillion yuan ($231.83 billion) on Friday, marking the first increase since June 18 when margin financing peaked at 2.27 trillion yuan.
China's foreign trade dropped 6.9% year on year to 11.53 trillion yuan (US$1.89 trillion in the first half of 2015, according to data released by the General Administration of Customs on Monday. Exports rose slightly by 0.9% from a year ago to 6.57 trillion yuan, while imports slumped by 15.5% to 4.96 trillion yuan. Trade surplus expanded 1.5 times to 1.61 billion yuan in the Jan.-June period. For June 2015, foreign trade decreased by 1.9% from the previous year, with exports rising by 2.1% and imports falling by 6.7%. Trade surplus in June jumped by 45% to 284.2 billion yuan.
The Chinese government has unveiled a flurry of major moves to curb the stock sell-off, including requesting all listed Chinese companies boost their stock price by share-buybacks, stock-incentive plans, employee stock-ownership plans, and other options. Meanwhile, China's police department has reportedly discovered evidence of "suspected malicious short-selling," with a special team having arrived in Shanghai at the end of last week to carry out the investigation
HSI extends gain for third day
The Hong Kong stock market rallied for third straight session, on tracking gain in Mainland China markets. Sentiments were also aided by reports that Greece has reached an agreement with its creditors over the reforms needed to start talks for a third bailout in five years and remain in the euro. The benchmark opened 191 points lower and saw its losses widen to 300 points. Later on, the local market got a boost from the mainland A-share market. The Hang Seng Index rallied 322.73 points or 1.3% to finish at 25224.01 points, off an intra-day low of 24596.44. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, gained 145.28 points, or 1.23%, to 12003.83 points. Turnover reduced to HK$180 billion from HK$212 billion on Thursday.
Companies with European exposure also benefited from the Greece agreement with creditors. HSBC (00005) rose 1.4% to HK$69.05. StanChart (02888) edged up 0.8% to HK$121.6. CKH Holdings (00001) gained 1% to HK$112.1. Esprit (00330) jumped 2.4% to HK$7.21.
Major Chinese banks and insurers also posted broad gains, with China Citic Bank Corp rising 1.7% to HK$5.86 and Bank of China advanced 1.8% to HK$4.53, while China Pacific Insurance Group Co rose 1.5% to HK$34.25 and PICC Property & Calsualty Co gained 1.3% to HK$16.72.
Macau gaming counters rose on news that the government may keep some smoking rooms for punters. Sands China (01928) shot up 4.7% to HK$30.95. Galaxy Ent (00027) surged 4% to HK$35.45. MGM China (02282) gushed 7% to HK$17.3. Wynn Macau (01128) advanced 5.6% to HK$15.82.
Sensex ends higher
Indian stock market advanced, on rising risk appetite after euro zone leaders said there would be no Grexit, with shares of IT, auto and index heavyweights HDFC and ITC being major gainers. The Sensex was provisionally up 299.04 points or 1.08% at 27,960.44.
Indian industrial production rose 2.7% in May 2015, compared with a downwardly revised 3.36% growth in April 2015, according to the data released by the government after trading hours on Friday, 10 July 2015.
Foreign portfolio investors (FPIs) sold Indian shares worth a net Rs 465.27 crore during the previous trading session on Friday, 10 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 590.49 crore on Friday, 10 July 2015, as per provisional data released by the stock exchanges.
IndusInd Bank rose after announcing good Q1 results. The stock was up 3.27% to Rs 923.90. The bank's net profit rose 24.69% to Rs 525.04 crore on 19.97% increase in total income to Rs 3447.84 crore in Q1 June 2015 over Q1 June 2014.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index rallied 1.34% to 9033.92. South Korea's KOSPI rose 1.5% to 2061.52. New Zealand's NZX50 sank 0.3% to 5706.70. Singapore's Straits Times index advanced 1% at 3311.22. Indonesia's Jakarta Composite index jumped 0.7% to 4893.92. Malaysia's KLCI rose 0.03% to 1716.11.
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