Minutes from the Fed's March 15-16 policy meeting suggested that the central bank appears unlikely to raise interest rates before June due to widespread concern among policymakers over their limited ability to counter the blow of a global economic slowdown.
Crude prices have extended their rebound in Asian trade today, helped by an unexpected fall in US inventories and hints that a freeze in global output may be on the horizon. Brent crude futures were up 4.9% at $39.74 per barrel. US, or WTI, crude futures surged 5.2% to settle at $US37.75, the biggest percentage gain since March 16.
Among Asian bourses
Australia Market lifts again
Australian share market advanced for the second day in the row on the back of a surge in the crude oil, strength in global stocks and reasonable better Chinese data released on Wednesday. At close of trade, the benchmark S&P/ASX 200 advanced 18.20 points, or 0.37%, to 4964.10. The broader All Ordinaries added 17.70 points, or 0.35%, to 5042.30.
Shares of materials and resources companies ran higher, after an overnight lift in the price of oil. BHP Billiton was up 1.6% to A$16.39, Rio Tinto 1.5% to A$42.97 and Woodside Petroleum 1.8% to A$25.07.
Shares banks and financials also higher, with Westpac up 0.6% to A$28.86. Meanwhile, National Australia Bank was up 0.1% to A$25.52 and ANZ Bank rose 0.3% at A$22.62. Commonwealth Bank shed 0.2% to A$70.99. Bank of Queensland fell 1.2% to A$11.45 after delivering an improved half year profit and announcing a lift in its variable home loan interest rates.
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Nikkei rebounds for first time in eight days
Japan share market ended marginally higher, snapping seven sessions of falling streak, as bottom fishing spurred in heavily battered stocks on hopes that the Japanese government will intervene in the currency market to halt the yen's resilience. But gains were capped due to yen hardening to 107-level against greenback. Notable issues that lost ground comprised retail, transportation equipment and food-linked stocks. The 225-issue Nikkei Stock Average rebounded 34.48 points, or 0.22%, at 15749.84. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 4.89 points, or 0.39%, higher at 1272.64.
Shares of energy explorers were among the biggest gainers in TSE 33 industry groups, as crude oil rose for a third day. Crude prices have extended their rebound in Asian trade today, helped by an unexpected fall in US inventories and hints that a freeze in global output may be on the horizon. Brent crude futures were up 4.9% at $39.74 per barrel. US, or WTI, crude futures surged 5.2% to settle at $US37.75, the biggest percentage gain since March 16. Inpex Corp. rose 2.8%, while JX Holdings Inc. added 2.9%.
Sosei Group Corp. spiked 21%, after Allergan Plc said it will pay $125 million upfront to the drugmaker's unit for rights to a portfolio of treatments for neurological disorders including Alzheimer's disease.
Online retailer Rakuten Inc. surged 7% after Amazon.com Inc.'s Japan unit said on Wednesday it would end free shipping on some orders. Takata Corp. slid 1.4%, falling for a fifth day and extending a record low, after U.S. regulators linked a new death to the company's airbags.
Shares of retailers were the biggest drag on the Topix, led by Seven & I Holdings Co. which sank 1.6% after the Nikkei reported its chairman and chief executive officer will step down, the latest move in an ongoing management saga at one of Japan's largest retailers.
China Market falls 1.4%
Mainland China stock market finished lower, amid worries about the imminent expiration of temporary restrictions on large shareholders from selling domestic stocks. Sentments were also downbeat on signs of increasing default risks in the country's corporate bond market and on caution ahead of slew of Chinese economic data. The benchmark Shanghai Composite Index declined 42.17 points, or 1.38%, to 3008.42. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, declined 48.24 points, or 1.48%, to 3209.29.
In China, a three-month ban on large shareholders selling more than 1% of a company's total shares is about to expire, fueling worries of a barrage of selling pressuring the overall market. China's securities regulator announced the restriction on Jan. 7, saying it was to come into effect on Jan. 9. It didn't specify an expiration date. Back then, local investors were worrying about the expiration of a previous iteration of a selling ban. That one had been put in place last summer as part of massive efforts by the government to stem a stock-market meltdown that eventually sent shares down by almost half.
Shenzhen-listed Beijing Baofeng Technology last down 0.9% after it issued a statement detailing the selling plans of one of its major shareholders that had been restricted from selling. The stock was last down 0.9%.
Hong Kong Stocks climbs 0.3%
The Hong Kong stock market ended stronger on tracking gains on the Wall Street overnight and strength in crude oil prices. Most sectors in Hong Kong, including IT and utilities were firm, but financial and property shares weakened. The benchmark Hang Seng Index advanced 59.38 points, or 0.29%, to 20266.05 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, fell 21.30 points, or 0.25%, to 8647.33 points. Turnover increased to HK$63.5 billion from HK$58.3 billion on Wednesday.
Tencent (00700) put on 1.8% to HK$161.8 on bullish comments from Credit Suisse, which rated the stock "outperform" and set its target price at HK$185. Tencent's rally spurred the buying of other internet counters. Boyaa (00434) gained 2% to HK$3.03. Netdragon (00777) surged 5.8% to HK$22.95.
Steel counters rose on market analysis that steel prices may rise. Magang (00323) soared 11.3% to HK$1.77. Chongqing Iron (01053) surged 8.5% to HK$1.15. Angang (00347) and Xiwang Steel (01266) gained 4.4% and 4.2% to HK$4.04 and HK$0.75 respectively.
Chinese telecom equipment maker ZTE Corp tumbled 10.3% to HK$12.7, as trading resumed for the first time since the U.S. Commerce Department imposed export restrictions on the firm last month for allegedly violating sanctions against Iran.
Indian market hits 3-week low
IT, telecom stocks and index heavyweights HDFC and ITC led losses for the two key benchmark indices. The barometer index, the S&P BSE Sensex, fell 215.21 points or 0.86% to settle at 24,685.42. The Nifty fell 67.90 points or 0.89% to settle at 7,546.45.
Shares of Tata Power and Adani Power edged lower in choppy trade after television reports that a tribunal has rejected a CECR order that allows these two power companies to charge higher prices from procurers than agreed upon for electricity produced from their plants at Mundra in Gujarat. Shares of state-run power equipment major Bharat Heavy Electricals (Bhel) surged after the company after the company reported a strong growth in order inflow for the year ended 31 March 2016 (FY 2016).
Index heavyweight and housing finance major HDFC edged lower after the company's announcement that it proposes to make an additional one-time special provision of Rs 450 crore in Q4 March 2016 on standard assets. Maruti Suzuki India edged lower on media reports that a foreign brokerage has cut the target price on the stock while retaining its hold rating on the stock.
Elsewhere in the Asia Pacific region: New Zealand's NZX50 added 0.3% to 6755.23. Taiwan's Taiex index sank 0.3% to 8490.25. South Korea's KOPSI rose 0.1% to 1973.89. Malaysia's KLCI gained 0.4% to 1724.29. Singapore's Straits Times index added 0.1% to 2813.59. Indonesia's Jakarta Composite index eased 0.02% to 4867.29.
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