Overnight, Wall Street extended a recent rally on the back of optimism about president-elect Donald Trump's policies. The Dow Jones industrial average rose 0.46%, and is nearing 20,000, a level it has never breached. The S&P 500 ended up 0.36% and the Nasdaq was up 0.49%.The rally was fuelled by financials.
The dollar jumped to a 14-year high late on Tuesday U.S time after Federal Reserve Chair Janet Yellen's positive comments on the labor market, a key economic indicator for the Fed in its decision to tighten monetary policy.
In energy news, U.S. crude stockpiles fell by 4.1 million barrels last week, as refineries boosted output, according to American Petroleum Institute data. Crude futures were up for the fourth straight session with U.S. crude oil futures up 0.56% at $53.60 a barrel on Wednesday Asian time, while Brent climbed 0.47% to $55.61.
Among Asian bourses
Australia Market hits 16-month high
Australian share market finished session at highest in over 16 months, albeit in thin trade, pushed up by a mix of materials and financial stocks as investor sentiment was boosted by Wall Street's record run overnight. The S&P/ASX 200 index rose 0.4%, or 22.43 points, to 5,613.5, its highest closing level since Aug. 5, 2015.
Financial stocks followed suit to close at their highest in over 16 months, in step with the gains of their US counterparts. All four major banks were higher, with ANZ shares up 0.7% and National Australia Bank up 0.4%. Meanwhile REA Group, which announced the A$190 million sale of its European businesses on Tuesday, rose by 1.7%.
Energy shares were also slightly firmer after oil prices rose overnight, despite the rally being cut with Libya announcing it would reopen its pipelines after a recent blockade by protesters. Oil Search Ltd gained about 1% and Whitehaven Coal was up 3%. Caltex Australia rose 1.79%, Woodside was up 0.16% and Origin lifted by 0.16%.
Meanwhile higher copper and iron ore prices boosted the miners with BHP Billiton gaining over 1%, while Rio Tinto Ltd added 1.5%. Fortescue Metals share were also 0.8% higher.
Nikkei falls on profit taking
The Japan share market closed down, weighed down by profit booking in the afternoon following an earlier rally that came after following stellar gains on Wall Street overnight. Total 28 out of 33 TSE industry category on the main section declined, with Precision Instruments, Electric Power & Gas, Iron & Steel, Construction, and Pharmaceutical issues being notable losers. The 225-issue Nikkei average shed 50.04 points, or 0.26%, to end at 19,444.49. The Topix index of all first-section issues closed down 7.42 points, or 0.48%, at 1,544.94. Falling issues outnumbered rising ones 1,417 to 471 in the TSE's first section, while 113 issues were unchanged. Volume rose to 2.102 billion shares from Tuesday's 1.929 billion shares.
Machinery makers Komatsu and Hitachi Construction Machinery were upbeat after Caterpillar advanced in U.S. trading overnight on hopes for President-elect Donald Trump's stimulus policies. PanaHome attracted purchases after parent electronics maker Panasonic announced a plan Tuesday to take full control of the home builder. In contrast, NEC lost ground after a foreign securities firm revised down its investment rating on the electronics maker. Power firms, including TEPCO Holdings, Chubu Electric and J-Power, fell due to profit-taking.
China Stocks rebound on easing liquidity concerns
Mainland China stock market closed higher, as investors chased for bottom fishing after benchmark hits a six-week low previous day. Meanwhile, buying pressured underpinned as fears of a liquidity squeeze in the banking system subsided after risks from a bond scandal appeared contained, and on a pledge to deepen reforms in state-owned sectors. Most sectors gained, led by infrastructure and transport plays, while properties and banks steadied. The Shanghai Composite Index rose 1.11% to 3,137.43, while the Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.74% to 1,996.03. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, added 0.47% to close at 1,991.70 points.
China's bond market rebounded on Wednesday, reversing declines in the previous two trading sessions. Investors relaxed after Sealand Securities, a brokerage embroiled in a scandal, said on Wednesday it would take responsibility for forged bond agreements. Sealand's commitment eased concerns of a liquidity squeeze, triggering a sharp rebound in bond prices. The benchmark 10-year treasury futures for March delivery rebounded 1.57%, while the 5-year Treasury futures for March delivery ended 1.09% higher.
Hong Kong Stocks rebound
The Hong Kong stock market staged a slight recovery, after falling in the four previous days as traders tracked another record close on Wall Street overnight fuelled by hopes of stronger economic growth during Donald Trump's presidency. The market also got a modicum of support from the mainland, where fears of a liquidity squeeze in China's banking system subsided after risks from a high-profile bond scandal appeared contained. Hong Kong's benchmark Hang Seng Index closed 0.37% higher at 21,809.8, ending a four-day drop as the financial and energy sectors rose. The Hang Seng China Enterprises Index, known as the H-shares index, gained 0.52% to 9,331.63. Daily turnover dropped to HK$47.6 billion from HK$53.8 billion a day earlier ahead of holidays.
China Life Insurance (02628) put on 2.51% to HK$20.4, making itself the top blue-chip gainer. Nomura Research maintained its "buy" rating of the insurer.
Chinese airlines gained broadly after China's SASAC said it will implement mixed-ownership reform of state-owned enterprises in areas such as civil aviation. China Eastern Airlines (00670) shot up 8.43% to HK$3.6. Air China (00753) gained 2.6% to HK$5.13, while China Southern Airlines (01055) surged 4.21% to HK$4.21.
Casino players jumped, amid expectations of increasing revenues for 2017. Sands China advanced 1.99% to HK$33.3, and Galaxy Entertainment added 1.65% to HK$33.9.
Oil companies enjoyed gains as oil prices climbed. PetroChina jumped 1.54% to HK$5.95, while China Petroleum & Chemical added 1.25%.
Hong Kong property developers, however, were lower on concerns that surging mortgage costs will threaten home sales.The three-month Hong Kong Interbank Offered Rate continued to rise, hitting 1.0096%, the highest in more than seven years on Wednesday. Mortgages issued through Hong Kong banks for local property purchases are tied to the Hibor rate. Hang Lung Properties dropped 0.97% to HK$16.32, while Cheung Kong Property Holdings fell 0.31% to HK$48.55.
Indonesian shares hit a near 4-week
Indonesian share market closed near 4-week low today, falling for a seventh straight session as investors stayed on the sidelines due to a lack of positive triggers. The Jakarta Composite Index closed nearly 1%lower, dragged down by consumer staples and financial stocks.
Shares of tobacco companies Hanjaya Mandala Sampoerna Tbk PT and Gudang Garam Tbk PT were down 4.8% and 1.6%, respectively.
Sensex closes down
Indian share market fell for the sixth day to end at nearly two-week low, dragged down by major IT stocks such as Infosys and TCS amid mixed global cues. The Sensex lost 65.60 points or 0.25% to settle at 26,242.38. The Nifty fell 21.10 points or 0.26% to settle at 8,061.30.
IT stocks dropped as rupee strengthened past 68 against the dollar. Infosys (down 0.66%), Tech Mahindra (down 0.39%), TCS (down 1.07%), Wipro (down 0.91%) and HCL Technologies (down 1.05%) edged lower. A firm rupee adversely affects operating profit margins of IT firms as the sector derives a lion's share of revenue from exports. In the foreign exchange market, the partially convertible rupee was hovering at 67.87, compared with its close of 68.05 during the previous trading session.
Sun Pharmaceutical Industries was down 2.25%. The company announced that all the formalities for the closure and the process for acquisition of 85.1% of JSC Biosintez, a Russian pharmaceutical company have been concluded. The company had announced about the transaction on 23 November 2016. JSC Biosintez is engaged in manufacture and marketing of pharmaceutical products in Russia and CIS region.
Reliance Communications (RCom) jumped after the company announced the signing of binding agreements with Brookfield Infrastructure in relation to the acquisition of RCom's nationwide tower assets by affiliates of Brookfield Infrastructure Partners LP and its institutional partners.
State Bank of India rose 0.24% after the bank announced that its shareholders approved the proposal to raise capital through the issue of preferential shares to the government. They also gave an in-principle nod to additional fund raising by way of a public issue, should the bank need to tap the markets.
Among other Asian market- South Korea's Kospi closed down 0.19% while Taiwan's Taiex closed 0.41% lower. Singapore's Straits Times Index added 0.1% and New Zealand's benchmark gauge rose 0.2%
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
