The International Monetary Fund's managing director said she expected the organisation's new report in a few weeks would upgrade global growth forecasts.
Investor sentiments were also buoyed by signs of improvement in the US economy after report showing the U.S. international trade gap narrowed in November. The smaller-than-expected trade deficit bodes well for stronger economic growth for the fourth quarter.
However, gains across the region were limited as large numbers of market participants seated side-line on caution ahead of this week's key risk events. The minutes of Fed's recent policy meeting due later on Wednesday, policy decisions from the European Central Bank and Bank of England due on Thursday, and finally, U.S. non-farm payrolls report for December due on Friday.
Investors cautiously awaiting for the release of the US Federal Reserve's December meeting minutes, which they hope will provide more guidance on how the central bank's plans to wind back its $85-billion-a-month asset purchases program. The central bank said in December it would start to reduce its monthly program by $10 billion this month, and it expected the tapering to be "in further measured steps at future meetings".
Among Asian bourses, Japan's share market advanced, as investors chased for recently battered stocks, thanks to positive finish of Wall Street overnight and the dollar firmness against the yen. The Nikkei Stock Average advanced 1.94% to 16121.45, following Tuesday's slump of 0.59% and Monday's slide of 2.4%.
Export related shares were higher, supported by softer yen. On Wednesday, the dollar inched up and was last trading at 104.86 yen, compared with 104.60 yen late Tuesday in New York. Olympus Corp gained 1.09% and Nissan Motor Co rose 4.4%.
Financial issues were among advancers, with Mizuho Financial Group Inc up 3.54% and Daiwa Securities Group Inc up 2.92%.
Mitsubishi Motors Corp shares dropped 4% after the company announced that it will raise up to $2.3 billion via equity financing. The funds would use mainly used to buy back preferred shares from Mitsubishi group companies, and that would be a step toward the car maker paying dividends again.
Seven & I Holdings Co grew 6.04% after the 7-Eleven stores operator on Tuesday posted a 32% rise in net profit during nine-month period between March and November.
In Australia, shares in Sydney market closed virtually flat despite improving from the lows hit just before midday, with gains in energy, drug maker and consumer goods counters were offset by losses in mining, industrials and banks counters. The benchmark S&P/ASX 200 index declined 1 point to 5316. The broader All Ordinaries lost 0.1 point to 5318.70.
It was yet another quiet day for the Australian share market, with 2.09 billion shares changing hands, on caution ahead of this week's key risk events. The minutes of Fed's recent policy meeting due later on Wednesday, policy decisions from the European Central Bank and Bank of England due on Thursday, and finally, U.S. non-farm payrolls report for December due on Friday.
Metals and mining shares continued to act as the most significant drag on trade, ahead of trade data due for release in China, the largest export market for Australian resources, on Friday. BHP Billiton fell 0.5% to A$37.04 and Rio Tinto 1% to A$65.35. Fortescue Metals lost 0.9% to A$5.39. Likewise, a drop for gold futures in New York helped shove shares of Kingsgate Consolidated sank 7.6% to A$0.975, Newcrest Mining 2% to A$8.41 and Perseus Mining 9.8% to A$0.275. OceanaGold fell 0.6% to $1.64 having joined the fray of goldminers planning to cut production in 2014 after the spot price of gold crashed 28% in 2013. Healthcare was the best-performing sector, up 0.6%, with Sirtex Medical the best-performing stock in the ASX 200, soaring 16.1% to $13.24. Sirtex rose after reporting December quarter sales of its radioactive liver cancer treatment were up 18.7% on the previous corresponding period, rebounding from a declining growth rate over the previous three quarters.
Australian Bureau of Statistics issued a report on job vacancies. There was a 1.7% fall in the number of job vacancies between September and November (15.7% drop over the year). Over the year, losses in the public sector were the biggest drag on jobs.
The Australian Industry Group/Housing Industry Association Australian Performance of Construction Index showed that in December the construction sector expanded for the third month in a row. However the pace of growth slowed, with the index down 4.4 points to 50.8, after recording 55.2 in November - the second-highest rate of expansion since the survey began in 2005. Residential and commercial construction expanded, while the engineering sub-sector contracted. Confirmation of the downturn in demand for engineering construction was negative for mining services stocks.
In China, shares in the mainland China market closed weaker in volatile yet narrow trade with losses in energy and resources stocks overshadowed gains elsewhere. The benchmark Shanghai Composite declined 2.98 points, or 0.15%, to 2044.34.
Shanghai market commenced trading with firm footing, but failed to hold momentum, wiping out gains to finish tad below neutral line, as market sentiments remain weak on concern over market liquidity after the resumption of initial public offerings and as China's cabinet drafted a framework to tighten the oversight of rapidly increasing shadow-banking industry. The move suggests that Beijing is looking to control rapid buildup of debt in recent years.
The State Council said on Monday, 6 January 2013, that it had temporarily suspended laws to allow international shipping joint ventures and foreign-owned international shipping management firms in the zone. It also temporarily halted a ban on sales of game consoles by foreign-invested companies and delegated the task of drafting new rules to departments overseeing cultural matters. Consoles such as Microsoft's Xbox 360 and Sony Corp.'s PlayStation were banned by China in June 2000.
The China Securities Regulatory Commission approved seven IPOs yesterday, bringing the total number of those approved to 38. Shaanxi Coal Industry Co. plans to raise 9.83 billion yuan ($1.6 billion) by selling one billion shares in Shanghai on Jan. 17, making it China's biggest IPO in more than two years.
The Shanghai measure had slumped 3.4% in 2014, extending 2013's 6.75% decline, as disappointing economic data relating to activity in both manufacturing and services, along with the resumption of the domestic initial-public-offering market.
Shares of material and energy companies were biggest drag on Shanghai market. China Oilfield, the drilling unit of the nation's largest offshore oil producer, lost 1.5% to 21.02 yuan. Chenzhou Mining Group Co. (002155) fell 2.9% to 7.45 yuan. Baoshan Iron & Steel Co., the listed unit of the second-biggest steelmaker, retreated 1.5% to 3.83 yuan. Likewise, a drop for gold futures in New York helped shove shares of Shandong Gold by 3.9% to 16.67 yuan.
In Hong Kong, shares in city bourses climbed up, as investors bought back beaten-down stocks, on tracking positive cues from broader Asian market and strong U.S. trade data. Meanwhile, buying appetite underpinned further after the International Monetary Fund said it will raise its global economic growth forecast. The benchmark Hang Seng Index provisionally ended 283.81 points higher at 22996.59. The benchmark index briefly broke above the 23,000 mark.
Among the HK 50 blue chips, 39 rose and 8 fell, with 3 stocks remaining steady. Belle International Holdings climbed up 12.9% to hK$9.95, while China Petroleum & Chemical Corp shed 1.2% to HK$5.90, making themselves the biggest blue-chip gainer and loser.
Market heavyweights were firmer. China Mobile (00941) edged up 0.5% to HK$78.45, while HSBC (00005) put on 1.8% to HK$85.4. Li & Fung (00494) also gained 1.9% to HK%10.98. COLI (00688) jumped 6.6% to HK$21.7.
Insurers were higher after CIRC announced deregulation and allowed insurers to invest in the second board. Ping An (02318) shot up 3.2% to HK$68.1. PICC (02328) rose 3.7% to HK$11.08.
In India, key benchmark indices recovered from lower level after erasing almost entire intraday gains in afternoon trade. At 14:15 IST, the S&P BSE Sensex was up 74.75 points or 0.36% to 20,767.99.
Shares of state-run coal miner Coal India jumped after the company said that a meeting of the board of directors of the company will be held on 14 January 2014, to consider payment of interim dividend, if any, for the year ending 31 March 2014. Index heavyweight and cigarette major ITC regained positive zone in volatile trade. Tata Power Company rose on bargain hunting after recent steep slide triggered by media reports that the state government in Maharashtra is planning to cut power tariffs. Siemens rose on bargain hunting. Gillette India slumped after the company clarified that it has no plans for an open offer or delisting.
Foreign institutional investors (FIIs) sold Indian shares worth a net Rs 567.02 crore on Tuesday, 7 January 2014, as per provisional data from the stock exchanges.
Elsewhere in the region, New Zealand's NZX50 index rose 0.42%. Indonesia's Jakarta Composite index added 0.59%. South Korea's KOSPI eased 0.02%. Taiwan's Taiex index added 0.51%. Malaysia's KLSE Composite climbed up 0.35%. Singapore's Straits Times index added 0.95%.
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