The upmove on the regional bourses triggered by stronger currencies relative to the US dollar on the heels of the US Federal Reserve slashing its projections for rate increases to two in 2016 from an earlier projection of four after keeping rates unchanged at the conclusion of a two-day monetary policy review on Wednesday, 16 March 2016. Fewer US interest rates hikes could support demand for emerging-market assets because investors have less incentive to draw out money from risky assets in their search for higher yields in the US.
Oil prices soared, with US crude surging 5% on Thursday to pierce the $40 barrier, as the market was propped up by optimism that major producers may strike an output freeze deal next month. OPEC kingpin Saudi Arabia and non-OPEC producers led by Russia will meet on April 17 in the Qatar capital Doha, aiming for the first global supply deal in 15 years. The front-month in US crude's West Texas Intermediate (WTI) futures extended gains on Friday to as high as $40.55 a barrel, its highest in more than three months, and last stood at $40.35, up 0.4%. Brent crude's front-month reached the year's peak of $41.60 and was last at $41.48. Copper also hit a four-month high of $5,075 a tonne while silver hit a 4-1/2-month high of $16.03 per ounce.
Among Asian bourses
Nikkei extends fall on yen ascent
Japan share market ended down for fourth consecutive session, as yen ascent against the dollar was seen hurting the country's exporters earnings outlook. The US dollar extended its broad slide triggered by Wednesday's Fed statement showing the US central bank would raise rates at a slower pace than its previous forecast. The 225-issue Nikkei average fell 211.57 points, or 1.25%, to end at 16724.81. The Topix index of all first-section issues dropped 13.92 points, or 1.02%, to 1345.05.
The stronger yen weighed export-oriented names. Microcontroller maker Renesas Electronics Corp. fell 4.1% to 730 yen. Electronics parts-maker Murata Manufacturing Co. lost 4.0% to Y14,075.
Toshiba Corp. rose 4.3% to Y200.0, driven by optimism about the progress of restructuring. Accounting scandal-hit Toshiba said Thursday it had reached agreements to sell its medical and consumer-electronics units, part of efforts to raise cash and reduce its bloated business portfolio. The industrial conglomerate also said it would invest Y360 billion ($3.2 billion) in flash-memory production over the next three years.
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Australia Market closes in positive territory
Australian share market endured gains for third consecutive session, buoyed by gains in mining and energy stocks as commodity and oil prices continue to climb. At the close, the benchmark S&P/ASX200 index advanced 14.90 points, or 0.29%, at 5183.10, while the broader All Ordinaries index grew 12.90 points, or 0.25%, to 5239.30.
Commodity linked shares continued uptrend as Brent crude oil jumped more than 4% on Thursday to a 2016 high of $41.60 a barrel, while iron ore soared 4.7% to $56.09 a tonne. Mining giant BHP Billiton grew 4.7% to A$18.10, Rio Tinto 1% to A$44.15, and Fortescue Metals Group 3.8% to A$2.75. Santos advanced 1.8% to A$4.06, Origin Energy 2.1% to A$5.37, and Woodside Petroleum 1.7% to A$27.07.
Premier shares were up 5.5% at A$5.47, after the company delivered a strong first-half result, with net profit up 26% to A$71.5 million.
Fairfax shares have jumped 4.4% to 82.5 cents, adding to yesterday's gains in the wake of announced cost reductions equivalent to 120 full-time jobs in newsrooms across the country.
China Market extends gain
Mainland China stock market advanced after the Federal Reserve's lowering their projections for rate hikes to two this year prompted investors to rebuild their bets on riskier assets. The demand for risk assets also buildup on easing concerns about capital outflows from the country in the wake of weaker dollar. The benchmark Shanghai Composite Index advanced 1.73%, or 50.32 points, to 2955.15. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, added 47.76 points, or 1.53%, to 3171.96. The Shanghai Composite added 5.2% this week.
Shares of technology shares rallied the most among industry groups on the CSI 300, as Hundsun Technologies Inc. and East Money Information Co.surged by the 10% daily limit for a second day.
Hong Kong Stocks surges
The Hong Kong stock market advanced, sparked by the US Federal Reserve's decision to slow its rate rise pace. A surprisingly dovish tilt by the US central bank, halving the number of expected rate rises in 2016 to two, prompted investors to rebuild their bets on riskier assets. The benchmark Hang Seng Index added 167.82 points, or 0.82%, to 20671.63 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, gained 109.18 points, or 1.24%, to 8883.01 points. Turnover increased to HK$92.8 billion from HK$70.7 billion on Thursday.
Shares of Macau gaming players led the march today. The gaming licences for Macau's six casino concessionaire and sub-concessionaires are set to expire in 2020-22. Daiwa Research expects the Macau government to release its mid-term review by year end. The research house believes the process of renewal is unlikely to be timely or orderly. MGM China (02282) surged 13.9% to HK$10.68. Sands China (01928) jumped 7% to HK$31.5. Galaxy Ent (00027) leaped 9.6% to HK$29.65. Wynn Macau (01128) also soared 7.5% to HK$10.86. SJM (00880) advanced 5.5% to HK$5.38.
Tencent (00700) gained 3.7% to HK$157.9 after it reported net profit rose 21% to RMB28.8 billion. Both BNP Paribas and Daiwa Research raised their target prices for the internet giant to HK$200, and rated the stock "buy". Spurred by the rally of Tencent, other internet-related stocks were higher. Kingsoft (03888) surged 8.2% to HK$17.48. Sinosoft (01297) shot up 11.8% to HK$3.78. NetDragon (00777) also leaped 8% to HK$21.6.
Sensex, Nifty attain highest closing level in more than 10 weeks
Stocks of metal and mining firms, IT companies and index heavyweights HDFC and Reliance Industries (RIL) led the rally for key benchmark indices on the last trading session of the week. The Sensex rose 275.37 points or 1.12% to settle at 24,952.74. The Nifty gained 91.80 points or 1.22% to settle at 7,604.35.
Bank stocks edged higher after media reports suggested that the Reserve Bank of India (RBI) has allowed commercial banks to hold bonds issued by state electricity utilities as part of the Ujwal Discom Assurance Yojana (UDAY) scheme under the held-to-maturity (HTM) category. Shares of oil exploration and production firms rose after a surge in international crude oil prices. Shares of public sector oil marketing companies fell after a surge in global crude oil prices. GAIL (India) edged higher, with the stock extending previous trading session's gains triggered by the piped and natural gas regulator raising the tariff on the company's K.G. Basin natural gas pipeline network with effect from 1 April 2016.
Lupin tumbled amid speculation that widely followed investor Rakesh Jhunjhunwala is selling some of his stake. Torrent Pharmaceuticals edged higher after the company's announcement that it has successfully obtained the Establishment Inspection Report from the United States Food and Drug Administration (USFDA) for its plant located at Dahez SEZ, in Gujarat.
Elsewhere in the Asia Pacific region: New Zealand's NZX50 added 0.8% to 6623.50. Taiwan's Taiex index rose 0.9% to 8810.71. South Korea's KOPSI climbed 0.2% to 1992.12. Malaysia's KLCI rose 0.8% to 1716.34. Singapore's Straits Times index rose 0.9% at 2906.80. Indonesia's Jakarta Composite index ended flat at 4885.71.
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