Asia Pacific shares commenced trading mostly with firm footing today, on tracking positive lead from Wall Street overnight. US markets advanced on Monday after Federal Reserve chairwoman Janet Yellen gave a speech that was interpreted as back-tracking from her comments two weeks ago indicating US interest rates might start to rise six months after the central bank concludes its program of extraordinary stimulus. Dr Yellen said on Monday that the US economic recovery was still falling considerably short of the Fed's goals that will take time to reach.
Regional shares got additional boost after China's National Bureau of Statistics surprised the market by reporting manufacturing sector activity picked up slightly in March. The official China manufacturing purchasing managers index rose to 50.3, from 50.2 in February.
Separately, HSBC Holdings Plc and Markit Economics' manufacturing PMI fell to 48 in March from 48.5 in February, slightly worse than a preliminary report and its third consecutive monthly drop. Numbers above 50 signal expansion.
While the PMI figure alone is hardly enough to dispel concerns of a slowdown in China, investors' belief in China has improved in recent weeks as they expect Beijing to adopt a stimulus plan to meet its growth target. Premier Li Keqiang is under pressure to take steps to address weakening economic expansion amid deepening concern that the nation will miss its 7.5% growth target this year, the weakest annual pace since 1990.
Among Asia bourses, Australian stock market finished the session tad below the neutral line, as drop in bullion, energy, retailers, and telecom stocks were more than offset by tech, resources related companies. Australia's benchmark S&P/ASX200 and the broader All Ordinaries both finished 0.1% down at 5389.20 and 5394.90, respectively.
Sydney stocks fell at the open, but managed to claw back most of their early losses after confirmation that RBA's monetary policy is likely to remain supportive in the months ahead and better than expected official Chinese manufacturing data.
Shares of Australian energy companies were the worst-performing in the Australian market today, as crude oil prices dipped. Australia's biggest oil producer Woodside Petroleum fell 1.1% to A$38.60, while Santos sank 0.8% to A$13.39 and Oil Search 0.6% to A$8.41.
Shares of materials and resources companies climbed up, with index heavyweight BHP Billiton leading rally, up 1.6% to A$37.05, after reports suggesting that BHP was considering to sell non-core assets in a A$20 billion deal. Responding to the market speculation BHP made a statement saying We continue to actively study the next phase of simplification, including structural options, but will only pursue options that maximise value for BHP Billiton shareholders. Among other mining stocks, Rio Tinto added 0.5% to A$63.85 and Fortescue Metals Group added 1.1% to A$5.31, as the spot price for iron ore, landed in China, jumped 4% to $US116.80 a tonne.
Australia's biggest gold producer Newcrest was down 2.1% to A$9.68 and Perseus Mining lost 9.2% to A$0.395, as gold price fell on Monday with the Comex futures quote down by US$10 an ounce to US$1,283.80 per ounce.
RP Data and Rismark showed that home prices surged by 2.3% in March 2014 over Australia's eight capital cities to take the total growth for the first quarter to 3.5%. Melbourne recorded the strongest growth, with prices soaring by 5.4% in the first three months of this year. Sydney grew by 4.4% for the quarter while Hobart prices strengthened by 4.7%.
In New Zealand, equities on the New Zealand stock market fell today, as investors took the opportunity to take profit from high-growth stocks to raise cash ahead of the government's public listing of Genesis Energy. Pacific Edge, Diligent Board Members Services, A2 Corp and Xero declined. Investors sold shares to make room in their portfolios for the partial privatisation of Genesis, of which 40 percent has been set aside for institutional investors, and which is being touted for its relatively high dividend yield.
The NZX 50 Index fell 17.463 points, or 0.3 percent, to 5122.519. Within the index, 29 stocks fell, 11 rose and 10 were unchanged.
In Japan, Japanese share market finished mixed after fluctuating in and out of the boundary line, as profit booking ignited on weak BOJ tankan results and caution over the impact of the country first sales tax hike in years. The benchmark Nikkei 225 index dropped 0.24% to close at 14,791.99, while the Topix index of all first-section shares rose 0.11% to 1,204.25.
Bank of Japan tankan survey result came in below market expectations. The index gauging sentiment among major manufacturers came in largely as expected at +17 in March, up from +16 in December and posting the fifth straight quarterly rise, reflecting last-minute demand before Japan's national consumption tax increase to 8% from 5%. While business investment plans by all firms for fiscal 2014 are projected to fall 4.2% from fiscal 2013, when capex plans are estimated to have risen 5.2%.
Retailer stocks were mostly down in Tokyo market, due to weak BOJ tankan results and hike in national consumption tax. Department store operator Takashimaya fell 2.1%, convenience store operator Lawson lost 2.3%, and J.Front Retailing slipped 1.0%.
In China, Mainland China market advanced for the first time in five consecutive sessions, on the back of better than expected factory data for last month and growing speculation government will do more to support domestic growth. The benchmark Shanghai Composite Index, which tracks both A and B shares, added 0.7% from prior day closure to finish at 2047.46, while the Shenzhen Composite Index, which covers the smaller mainland shares, jumped 1.65% to 1057.01.
However, upward movement in the Mainland market was limited, on growing concerns about liquidity availability in the market. Money market rates climbed above alarming level after People's Bank of China drained 72 billion yuan from the market today after soaking a net 98 billion yuan from the market last week and 48 billion yuan drain prior to last week. The seven-day repo rate, a gauge of interbank liquidity conditions, was quoted at 5.10% late afternoon, up 87 bps from previous session's closure.
Among SSE sectors, all 10 sectors of the SSE index advanced, with telecommunication services sector was top winner in the SSE sectoral peers, up 2.56%, followed by consumer staples up 1.81%, information technology up 1.42%, utilities up 0.82%, industrials up 0.82%, healthcare up 0.76%, materials up 0.68%, consumer discretionary up 0.66%, energy up 0.62% and financials up 0.28%.
Shares of consumer staples sector climbed the most among 10 industry group Shanghai market today. Kweichow Moutai, the largest producer of baijiu liquor, surged 5% to 162.49 yuan. Its rival Wuliangye Yibin Co. rallied 3.4% to 17.23 yuan. ZTE climbed 4% to 13.14 yuan.
Poly Real Estate advanced 1.2% to 7.70 yuan after the second-biggest developer said its 2013 net income jumped to 10.7 billion yuan ($1.73 billion) from 8.44 billion yuan.
Bright Dairy plunged 3.4% to 16.19 yuan after it reported a full-year profit of 406 million yuan, weaker than market expectation of around 469.1 million yuan.
In Hong Kong, equities on the Hong Kong market finished first trading session of the new month (April 2014) firmly higher, as risk sentiments boosted up on tracking rally on the Wall Street overnight and better than expected official Chinese manufacturing data. The benchmark Hang Seng Index was higher by 1.34% from previous day to finish at 22448.54.
Among the HK 50 blue chips, 42 rose and 7 fell, with one stock remaining steady. Sands China advanced 9.6% to HK$63.50, contributing 42-points gains to the benchmark Index and becoming the best-performing blue chip, after Macau monthly gambling revenue data showed a 13% growth in March, topping market expectation of 10-13%.
China Merchants Holdings (International) Co declined 3.9% to HK$25.60, contributing 4-points losses to the benchmark Index and becoming the worst-performing blue chip, after the company announced plans to sell HK$15.4 billion ($2 billion) worth of convertible securities to repay debt and fund the construction of ports and related business.
Gambling stocks climbed up sharply after Macau March's gross gaming revenue, which grew 13.1% to MOP35.5bn, at the high end of the market expectations. Sands China (01928) gained 9.6% to HK$63.5. Galaxy Ent (00027) rose 7.9% to HK$72.8.
Tencent China's biggest Internet company, gained 3.9%, as investors chased for bottom fishing after 7.8% losses last week, lending support to other software developers. Kingsoft (03888) shot up 5.7% to HK$32.3. Sinosoft (01297) surged 7.1% to HK$3.25. IGG (08002) soared 7.3% to HK$7.54.
In India, key benchmark indices logged gains amid volatility on first trading day of financial year ending 31 March 2015 (FY 2015) with investor sentiment boosted by firm Asian and European stocks. The market sentiment was also boosted by provisional data showing that foreign institutional investors (FIIs) remained net buyers of Indian stocks on Monday, 31 March 2014. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, attained record closing high. The S&P BSE Sensex, was up 60.17 points or 0.27%, up 150.79 points from the day's low and off 39.33 points from the day's high.
PSU OMCs fell as petrol prices were reduced by 75 paise a litre (excluding state levies) effective 1 April 2014. Diesel prices, however, remained untouched. BPCL (down 3.18%), HPCL (down 2.47%) and Indian Oil Corporation (down 1.94%) declined.
Bank stocks declined after the Reserve Bank of India left key policy rates unchanged after monetary policy review today, 1 April 2014. Among private sector banks, ICICI Bank (down 1.76%), Federal Bank (down 2.15%), Kotak Mahindra Bank (down 1.03%) and HDFC Bank (down 1.3%), declined. Axis Bank rose 0.65%. Yes Bank shed 0.63%. Yes Bank during market hours said the bank has recently raised additional $34 million from DEG, through a long term senior loan agreement for a tenor of 6 years.
Small car maker Maruti Suzuki India declined 2.25% to Rs 1,927, with the stock reversing direction after hitting record high of Rs 1,979.55 in early trade. The company today, 1 April 2014, said its total sales fell 5.5% to 1.13 lakh units in March 2014 over March 2013. Domestic sales declined 5.2% to 1.02 lakh units in March 2014 over March 2013. Exports fell 8% to 11,081 units in March 2014 over March 2013. The company's total vehicle sales declined 1.4% to 11.55 lakh units in the year ended 31 March 2014 (FY 2014) over the year ended March 2013 (FY 2013). Total domestic sales rose 0.3% to 10.53 lakh units in FY 2014 over FY 2013. Total exports fell 15.8% to 1.01 lakh units in FY 2014 over FY 2013.
Mahindra & Mahindra (M&M) rose 1.77%. M&M's total tractor sales rose 2% to 17,673 units in March 2014 over March 2013. Tractor sales in India rose 6.55% to 16,571 units in March 2014 over March 2013. The company announced the monthly sales data during trading hours today, 1 April 2014. M&M's total tractor sales jumped 20% to 2.67 lakh units in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013). Tractor sales in India jumped 22% to 2.57 lakh units in FY 2014 over FY 2013.
Kalpataru Power Transmission rose 2.14% after the company said it has secured new orders worth over Rs 700 crore. The company made the announcement after market hours on Monday, 31 March 2014.
Elsewhere in the Asia Pacific region, Taiwan's Taiex index added 0.27%. South Korea's KOSPI index was up 0.32%. Singapore's Straits Times index added 0.44%. Indonesia's Jakarta Composite Index rose 2.22%. New Zealand's NZX50 fell 0.34%. Malaysia's KLSE Composite shed 0.08%.
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