Slew of macro-economic data scheduled releasing next week, with the highlight globally would be the November non-farm payrolls data in the US. This is the most important monthly report on the state of North America's jobs market. The US government will release the influential US non-farm payrolls data for November 2013 on 6 December 2013. This result has the potential to move share markets globally and in particular currencies. A stronger than expected reading is likely to reignite stimulus tapering discussions sooner rather than later.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on interest rates in the United States on 17-18 December 2013. The US central bank currently buys bonds worth $85 billion a month in a bid to hold interest rates low and encourage economic growth in the world's biggest economy. Minutes of the Fed's October meeting released on 20 November 2013 showed officials may reduce their $85 billion a month of bond buying if the economy improves as anticipated.
However, downfalls of the stocks were marginal, on the back of global credit rating agency Standard & Poor's upward revision of its debt outlook on Spain. Standard & Poor's today, 29 November 2013, revised up its outlook on Spain to stable from negative, and affirmed its BBB sovereign-debt rating.
"The stable outlook incorporates our view that Spain's credit metrics are stabilizing and that we currently see less than a one-in-three probability of the rating moving up or down over the next two years," said S&P in a press release. S&P said it sees improvement in Spain's external position as growth resumes, and expects GDP will contract by 1.2% in 2013, but then slowly recover, with 0.8% growth in 2014 and 1.2% in 2015, helped largely by robust exports. S&P said Spain's government will broadly meet its budgetary deficit target of 5.8% of GDP in 2014.
S&P raised its score for Cyprus to B- from CCC+. It lowered the Netherlands to AA+ from AAA, citing weaker growth prospects than previously forecast.
Among Asian bourses, the Japanese financial market drifted lower, weighing the benchmark Nikkei225 index down by 0.41% to 15661.87, as investors cashing out gain off the table after the benchmark index hit 6-year closing high the previous day.
Shares of Japanese energy players declined the most in Tokyo due to pullback in crude oil prices. Inpex slid 1.2% to 1,188 yen, while Japan Drilling Co., an offshore contractor for oil and gas exploration, dipped 0.6% to 6,480 yen.
Shares of Japanese shipping companies surged after commodity shipping costs jumped overnight. The Baltic Dry Index surged 9.3% yesterday, the most since September 9 and its fourth day of gains. Mitsui O.S.K. added 1.1% to 455 yen. Kawasaki Kisen Kaisha gained 1.7% to 243 yen. NS United Kaiun Kaisha jumped 5.8% to 311 yen.
Fuji Heavy Industries shares added 0.8% to 2892 yen after a Nikkei report that the firm aims to have a self-driving car on the road by 2020, building on its EyeSight collision avoidance system.
Consumer prices excluding fresh food, the Bank of Japan's gauge for its 2% inflation target, rose 0.9% in October from a year earlier, a fifth straight gain, according a government report today.
Ministry of Economy, Trade and Industry said that Japan's Industrial Production in October increased 0.5% from the previous month, showing an increase for the second consecutive month. It showed an increase of 4.7% from the previous year. The index in October was 98.8(seasonally adjusted). Industrial Production surged 5.10% during the September month. In Australia, Australian financial market drifted lower in thin volume, with the benchmark S&P/ASX 200 index down by 14.30 points to 5320.
Australian major banks and financials were down, with Commonwealth Bank declining 0.3% to A$77.82, Westpac Banking Corp 0.4% at A$32.88, and Australia & New Zealand Banking Group 0.4% to A$31.90, while National Australia Bank rose 0.1% to A$34.58.
Australian materials and resources shares advanced, with BHP Billiton gaining 0.5% at A$37.39, while Fortescue Metals shares closed 0.5% up at A$5.68.
Rio Tinto rose 2.6% to A$66.06 on report the company planned to suspend alumina production at Gove and focus on its bauxite operations after determining the refinery is no longer a viable business in the current market environment. Rio Tinto chief executive Sam Walsh said This is a very sad day for everyone associated with Gove. It has been an extremely difficult decision and we recognise it will have a significant impact on our employees, the local community and the Northern Territory.
Graincorp (GNC) tanked 22.1% to A$8.72 after Treasurer Joe Hockey's decision to reject US food giant Archer Daniel Midland's A$3.4 billion takeover bid of the Australian grain handler. Mr Hockey determined the acquisition of GNC to be contrary to the national interest. Approximately 85% of eastern Australia's bulk grain exports are handled through GNC's port network.
Australia's private sector credit grew 0.3% month-on-month in October, the same rate of growth as seen in September, a report released by the Reserve Bank of Australia showed on Friday. Year-on-Year, total credit increased by 3.5%. Housing and business credit increased 0.5% and 0.1%, respectively, while other personal credit logged a marginal decline of 0.1% in October. Over the month of October, M3 increased by 0.6% and broad money increased by 0.6%, data showed.
In China, Chinese share market finished the session edge higher after swinging between gains and losses in narrow range amid caution before the latest China manufacturing data, due on Sunday. The Shanghai Composite rose 1.13 points to finish at 2220.50, while the CSI 300 Index fell 0.59 point to 2432.39.
Defense related stocks picked up in China, despite lackluster performance in the broader market gains, on expectations of increased spending on national defense. China sent fighter jets to the East China Sea on Thursday while trying to play down any threat of military retaliation, in response to growing international defiance of its new air-defence zone. Aerospace Communications Holdings was up 3.1% to 15.09 yuan and Hafei Aviation Industry was up 3.8% to 30.22 yuan. Shaanxi Aero-space Power Hi-Tech Co was locked 10% upper circuit at 17.33 yuan.
China's money markets rates were down from yesterday level on Friday after injection of liquidity into the system from the central bank. China's central bank added another 19 billion yuan on Thursday, using 14-day reverse repos. That follows Tuesday's 32 billion yuan addition via seven-day instruments and has resulted in a net injection on the week of 17 billion yuan, following last week's 59 billion yuan in funds addition. The seven-day repo, a gauge of borrowing costs among banks and usually watched as an indicator of liquidity stress, traded at a weighted average of 3.75% by late afternoon compared with 4.80% prior day. The overnight repo, a benchmark measure of interbank funding availability, traded at a weighted average of 3.75% compared with 3.79% previous day.
In Hong Kong, shares in HK market rose in volatile but narrow trade, with financials and industrial heavyweights were leading the way. The benchmark Hang Seng Index rose 92.20 points to 23881.29 while the Hang Seng China Enterprises Index added 55.98 points to 11441.27.
Among the HK 50 blue chips, 32 stocks rose and 13 fell, with five stocks remaining steady. Want Want (00151) put on 2.3% to HK$11.48, while Cathay Pacific dipped 2.3% to HK$16.42, making themselves the biggest blue-chip winner and loser.
China Mobile climbed 1.1% to HK$83.5, while HSBC Holdings inched up 0.1% to HK$86.6. Nine-Dragons Paper soared 4.5% to HK$7.15, and Lee & Man Paper (02314) gained 2% to HK$5.69 on UBS's initiation reports. Cheung Kong Holdings, owned by Li, shed 0.9% to HK$122.50 after Asia's richest man, Li Ka-shing, said property sales are the worst in 13 years, hurting his business.
In India, Indian benchmark indices surged on the final trading session of November 2013, with market sentiment boosted by data released by the stock exchanges showing that domestic institutional investors (DIIs) turned buyers of equities for the first time this month on Thursday, 28 November 2013. Also boosting the sentiment, provisional data showed that foreign institutional investors (FIIs) remained net buyers of Indian stocks on Thursday, 28 November 2013.
As per provisional figures, the S&P BSE Sensex was up 244.11 points or 1.19% to 20,779.02. The index jumped 284.86 points at the day's high of 20,819.77 in mid-morning trade, its highest level since 20 November 2013. All the thirteen sectoral indices on BSE were in the green.
The market sentiment in India was boosted by data showing that foreign funds remained net buyers of Indian stocks on Thursday, 28 November 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 102.91 crore on Thursday, 28 November 2013, as per provisional data from the stock exchanges.
Data released by the stock exchanges after trading hours on Thursday, 28 November 2013, showed that domestic institutional investors (DIIs) turned buyers of equities for the first time this month on Thursday, 28 November 2013. DIIs bought shares worth a net Rs 330.51 crore on Thursday, 28 November 2013.
Syndicate Bank gained 5.89% after the state-run bank after market hours on Thursday, 28 November 2013, said that a meeting of the board of directors of the bank will be held on 3 December 2013 for considering issuance of equity shares aggregating to Rs 200 crore by way of preferential allotment in favour of Government of India. The Government of India holds 66.17% stake in Syndicate Bank (as per the shareholding pattern as on 30 September 2013).
Shoppers Stop rose 2.33% to Rs 329 after IDFC Mutual Fund's IDFC Premier Equity Fund bought 9.99 lakh shares of Shoppers Stop at Rs 321.25 through a bulk deal on the NSE on Thursday, 28 November 2013. Eastspring Investments India Equity Open sold 7.58 lakh equity shares of Shoppers Stop on NSE at Rs 321.25 per share.
Elsewhere in the region, New Zealand's NZX50 declined 0.3%. South Korea's KOSPI dipped 0.04%. Singapore's Straits Times index dropped 0.31%. Indonesia's Jakarta Composite index rose 0.53%. Taiwan's Taiex index added 0.53%. Malaysia's KLSE Composite rose 0.28%.
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