The regional share market commenced trading with firm footing today, as risk appetite benefited from strong performances from Wall Street which was buoyed by US consumer confidence climbing to a six-year high. The Conference Board, a private research group, said its index of consumer confidence rose to 82.3 in March, it's highest since January 2008, from an upwardly revised 78.3 in February, first reported as 78.1.
Meanwhile buying activities accelerated on continued hopes that China's leaders will introduce pro-growth measures to prop up a slowing economy. Investors welcomed European Central Bank President Mario Draghi's speech on Tuesday in Paris that monetary policy should support the economies of countries that use the euro.
Risk appetite also got a lift from perceptions that geopolitical tensions over Ukraine are easing after a meeting of Western leaders ended with little more than fist-shaking at Russia. U.S. President Barack Obama and his allies agreed to hold off on more damaging economic sanctions unless Moscow goes beyond the seizure of Crimea.
Among regional bourses, Japanese share market finished the session modest higher, lifted by last-minute buying to capture year-end dividends helped lift select blue-chips and shares offering attractive yields. The benchmark Nikkei-225 index added 0.37% to 14477.16, while the Topix index of all first-section shares climbed 0.72% to 1172.07.
Among major market movers, drug stocks and other high-yielding shares were in favour. Astellas Pharma gained 3.3% and Ono Pharmaceutical added 6.1%. Japan Tobacco, a stalwart income stock, rose 1.8%, while food products maker Ajinomoto also rose 3.6%.
Japanese insurers gained ground, with Tokio Marine Holdings gaining 2.0% and NKSJ Holdings up 2.8%.
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Kirin Holdings added 2.6% to 1,362 yen, buoyed by company plans to raise its annual dividend to at least 40 yen a share next fiscal year and stock buybacks of tens of billions of yen by the end of December 2015.
The average price of regular gasoline in Japan this week rose to Y159.0 ($1.55) per litre, or $5.89 per gallon, from Y158.7 last week, posting the third straight weekly rise, data from the Agency for Natural Resources and Energy released Wednesday showed. The average retail price this week was 2.3% above the Y155.5 per litre seen a year earlier, the 45th straight week of a year-on-year increase following the 2.0% rise in the previous week.
In Australia, Australian stock market finished the day with modest gains, as investors sentiments were lifted by consumer confidence data from US overnight and on stimulus speculation from Chinese and European authorities. Australia's benchmark S&P/ASX200 rose 0.8% to 5376.8. The broader All Ordinaries finished 0.7% higher at 5387.2.
Shares of Australian lenders finished higher today. Commonwealth Bank of Australia added 0.7% to A$76.39, ANZ Banking Group 0.7% to A$32.55, and Westpac Banking Corp rose 1.2% to A$34.38. National Australia Bank shares advanced 0.83% to A$34.76, following a move from its UK business, Clydesdale and Yorkshire bank, to close 28 branches and invest 45 million UK pound (A$81.5 million) in mobile banking and branch development.
Shares of materials companies surged sharply today on tricking rebound in base metal prices. Base metal prices lifted on the London Metal Exchange on Tuesday, with zinc (up 2.5%) and copper (up 2%) the best performers. Resources giant BHP Billiton up 1.8% to A$36.55. Main rival Rio Tinto added 2.1% to A$63.67 while iron ore miner Fortescue Metals Group gained 3.1% to A$5.33.
Insurance Australia Group (IAG) shares rose 1.1% to A$5.50 after Australian Competition and Consumer Commission (ACCC) gave the green light to Insurance Australia Group (IAG) to purchase Wesfarmer's (WES) insurance division in a A$1.85 billion deal. The ACCC said the deal would not substantially weaken competition in the insurance market. The deal still requires approval from Federal Treasurer Joe Hockey, APRA and several New Zealand regulators. WES fell 0.4% to A$41.69.
Sigma Pharmaceuticals (SIP) shares climbed up 3.3% to A$0.63 after the company announced plans to buy wholesaler and distributor Central Healthcare for $24.5 million. Central Healthcare provides pharmaceuticals to hospitals and pharmacies in Victoria, New South Wales, Queensland and the ACT.
Shares in Westfield Retail fell 1.3% to A$3.01 after the shopping centre behemoth announced it secured A$22 billion in finance to fund its restructure plans. The company is aiming to split its Australian shopping centres from its less profitable global assets.
In New Zealand, equities on the New Zealand stock market closed down, as investors made room in their portfolios ahead of the government's Genesis Energy initial public offer next month. Property stocks paced the fall as rising interest rates made the sector's yield less attractive. The NZX 50 Index fell 5.807 points, or 0.1%, to 5124.888. Within the index 24 stocks fell, 18 rose and eight were unchanged.
The New Zealand dollar held gains in local trading as a lack of hard economic data this week has investors waiting for signs of recovery in the US. The kiwi traded at 85.83 US cents from 85.73 cents earlier today, up from 85.51 cents yesterday. The trade-weighted index advanced to 80.16 from 79.92 yesterday.
In China, Mainland China stock market finished weaker amid lingering concerns domestic economic growth and concerns about liquidity availability in the market. The benchmark Shanghai Composite Index, which tracks both A and B shares, declined 0.18% from prior day closure to finish at 2063.67.
Mainland market moved zigzag in the tight range throughout the day, as risk sentiments remain worrisome after latest batch of weak Chinese economic data painted doubt over the pace of domestic economic growth. Meanwhile, selloff in the Mainland market fuelled further on liquidity crunch concerns after People's Bank of China drained 46 billion yuan from the banking system during Tuesday's open market operation. The People's Bank of China drained a net 48 billion yuan from the market last week, slightly greater than the 40 billion yuan removal prior to last week.
Among SSE sectors, 6/10 sectors of the SSE index declined, with consumer staples sector was worst performer in the SSE sectoral peers, down 1%, followed by energy down 0.7%, utilities down 0.68%, industrials down 0.4%, financials down 0.18%, and information technology down 0.06%. On the upside, Healthcare issue gained 1.2%, best performer in the SSE sectoral peers, while materials sector rose 0.44%, consumer discretionary added 0.3% and telecommunication services 0.26%.
Shares of pharmaceuticals advanced the most in the Mainland China market, boosted by government subsidy plans for the sector. Premier Li Keqiang said in statement on the government web portal on Tuesday that China would step up medical reforms this year by increasing the number of illnesses eligible for government subsidies and said the market for health insurance would be opened up. The biggest gainers were Shanghai Fosun Pharmaceutical Group Co, up 3.2%, Yunnan Baiyao Group Co, by 2.4%, and Shan Dong Dong-E E-Jiao Co by 2.9%.
In Hong Kong, headline shares of the Hong Kong market climbed up sharply, sending the benchmark Hang Seng Index higher by 0.72% to 21887.75, aided by gains on Wall Street overnight and on stimulus speculation from Chinese government.
Among the HK 50 blue chips, 33 rose and 15 fell, with 2 stocks remaining steady. China Mengniu Dairy Co advanced 8.6% to HK$38.60, contributing 13-points gains to the benchmark Index, and becoming the best-performing blue chip, after the company reported better-than-expected 2013 profit. New World Development Co declined 3.5% to HK$7.36, contributing 4-points losses to the benchmark Index, and becoming the worst-performing blue chip
Chinese banking counter rose across the board, led by Agricultural Bank of China, up 3.4% to HK$3.31, as investors took comfort in its decline in non-performing loans (NPLs) and increase in net interest margins. CBC (01398) added 1.3% to HK$4.63 ahead of earnings report tomorrow. CCB (00939) put on 2% to HK$5.28. It reports results on Friday. BOC (03988) was up 2.5% to HK$3.3.
Forgame (00484) plunged 8.6% to HK$44.9 as the company turned loss. AAC Tech (02018) surged 12% to HK$37 after strong results.
In Singapore, Singapore stocks soared to two-month highs as a break above 3100 levels extended for the benchmark Strait Times index following supportive cues from the regional indices and a surge in Singapore's industrial production. The Strait Times index closed up 39.20 points or 1.26% on the day at 3143.30 points.
The ST index saw 2287 million shares change hands with the value of trades placed at 1283 million. The winners beat losers by 236 to 149. Shares of Noble Group surged five%. Banks rallied. DBS added 1% while OCBC jumped 1.50%. Property major CapitaLand added .036%. However, Olam international pared around half a% after the recent array of gains.
Singapore's industrial production recorded a double-digit growth in February, data from the Economic Development Board showed Wednesday. Industrial production expanded 12.8% year-on-year in February. Excluding biomedical manufacturing, output increased 11.2% versus 4.2% rise in the previous month. Driven by pharmaceutical output, biomedical production surged 19.3%.
In India, Indian stock market registered small gains after witnessing high volatility during the latter part of the trading session. The Sensex was provisionally up 20.44 points or 0.09%, off 96.45 points from the day's high and up 55.07 points from the day's low.
Metal and mining stocks edged higher on growing expectations that China will take steps to stimulate its sagging economy. China is the world's largest consumer of copper and aluminium. Jindal Steel & Power (up 3.01%), National Aluminum Company (up 2.09%), Steel Authority of India (Sail) (up 6.28%), Sesa Sterlite (up 3.97%), Hindalco Industries (up 3.19%), NMDC (up 0.33%), JSW Steel (up 1.56%), and Hindustan Zinc (up 1.6%) gained. Hindustan Copper shed 0.38%.
Tata Steel rose 2.13%. Tata Steel after market hours on Tuesday, 25 March 2014, said that the company had launched the bid-cum-auction process for the sale of its land parcel in Borivali on 18 December 2013 by public advertisements in national dailies. The site measuring roughly 25 acres is located at the junction of Western Express Highway and Dattapada road in Borivali (E), Mumbai and is abutting both these roads. The neighborhood predominantly comprises medium to high-end residential developments. Tata Steel said it has completed the e-auction process on Monday, 24 March 2014, for the sale of this land with the participation of several well-known developers. The Committee of Independent Directors appointed for the oversight and governance of the sale process by the Tata Steel Board on Tuesday, 25 March 2014, declared Oberoi Realty as the highest bidder of the auction on the basis of their final bid of Rs 1155 crore, after several rounds of bidding. As per the laid down process, the sale will be concluded after all requisite permissions are obtained, Tata Steel said.
Oberoi Realty surged 8.25% after the company after market hours on Tuesday, 25 March 2014, announced that it was declared as the highest bidder at the auction of about 25 acres of land parcel owned by Tata Steel in Borivali (East), Mumbai. Oberoi Realty is awaiting detailed communication for the next steps in the process. The sale will be concluded after receipt of the requisite approvals, the company said.
Ambuja Cements rose 1.47%. Ambuja Cements today, 26 March 2014, said that Hon'ble High Courts of Gujarat and New Delhi have approved the Scheme of Amalgamation of Holcim India with the company. The Hon'ble High Court of Gujarat while sanctioning the Scheme of Amalgamation has also approved the reduction of capital of the company as envisaged in the scheme, Ambuja Cements said. Certified copies of the order from both the High Court is awaited. The effectiveness of the scheme is subject to fulfilment of conditions precedent specified therein, Ambuja Cements said.
Elsewhere in the Asia Pacific region, Taiwan's Taiex index jumped 0.55%. South Korea's KOSPI index was up 1.19%. Singapore's Straits Times index added 1.26%. Indonesia's Jakarta Composite Index rose 0.53%. New Zealand's NZX50 fell 0.11%. Malaysia's KLSE Composite added 0.11%.
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