Regional bourses opened higher today on tracking positive cues from offshore bourses. Equity markets in the United States and around Europe pushed higher on Wednesday following the release of minutes from the US Federal Open Markets Committee reassured investors the central bank is in no rush to raise interest rates.
The FOMC minutes for the March meeting reinforced the Fed's dovish view over the US economic developments. Policymakers were apparently divided on the outlook of the employment market as there was a range of views regarding how much slack remained. Concerning the forward guidance, policymakers were in line to stress that the change of guidance from quantitative to qualitative did not reflect a change in the Committee's policy intentions.
However, positive sentiments didn't carry through to Asian session and markets trimmed initial gains after weak China trade data. In China, trade surplus came in much wider than expected at $7.71 billion in March, comparing to expectation of $1.8 billion and prior month's $22.98 billion deficit. Exports dropped by 6.6% yoy while imports dropped even more by 11.3% yoy. The data is seen as sign of weak domestic demand and investment demand. Also, with the lunar New Year factor behind, the data provided further evidence that the Chinese economy is suffering a broad slowdown in Q1.
Among Asia bourses, the Australian market continued upward trajectory with the benchmark S&P/ASX200 and the broader All Ordinaries both higher by 0.3% from prior day to finish at 5480.80 and 5477.50, respectively, a highest point since June 2008. Shares of realty, financials, and supermarkets pushed shares higher while disappointing Chinese trade data sparked a selloff in materials and resources stocks.
Sydney market opened higher today on tracking positive cues from offshore bourses. Equity markets in the United States and around Europe pushed higher on Wednesday trading following the release of minutes from the US Federal Open Markets Committee reassured investors the central bank is in no rush to raise interest rates.
Meanwhile, risk sentiments cemented further on an encouraging sign for the domestic economy after the latest official jobs report was surprisingly strong. Australian Bureau of Statistics showed 18,100 new payrolls were created in March while the unemployment rate dropped to 5.8% against expectations for a rise to 6.2%.
Financial sector gained 0.6% today, with top four lenders were leading rally. ANZ Banking Group added 1% to record high of A$34.19, while Commonwealth Bank of Australia, Westpac Banking Corporation, and National Australia Bank each added 0.5% to A$77.89, A$34.86, and A$35.56 respectively.
Material sector was lone underperformer in the Sydney market amid fears of declining demand for iron ore and coal exports following predictions for a decline in Chinese steel demand. Investors were unsettled as China's exports unexpectedly fell 18.1% in February against expectations for a 6.8% rise. Resources giant BHP Billiton dropped 1.3% to A$37.91, while main rival Rio Tinto fell 0.3% to A$64 and Fortescue Metals Group fell 2.4% to A$5.41.
Online travel booking service Wotif.com climbed up 6.6% to A$2.73, registering as top winner of the day in the ASX 200, partially due to the stronger dollar and the latest ABS travel statistics released earlier in the week showed domestic travel remains subdued.
Toll road operator Transurban (TCL) rose 1.1% to A$7.36 after reporting a near 13% increase in revenue in the March quarter to A$221.7 million. The upgrade of Sydney's M2 Hills Motorway was a significant boost to TCL, with revenue from the M2 alone up more than 40% in the period.
Ten Network Holdings (TEN) rose 3.9% to A$0.27 after the media company reported a first half loss of A$7.98 million, a significant improvement on its A$243.3 million loss posted this time last year.
In Japan, Japanese share market finished the session marginal higher, helped by bargain-buying and enthusiasm after minutes from a meeting of the U.S. Federal Reserve revealed a more market-friendly stance toward interest rates than previously thought. The benchmark Nikkei-225 index closed 0.43 point up at 14300.12, while the broader Topix index of all first-section shed 0.95 point to 1149.49.
Japan stock market opened higher today on tracking positive cues from offshore bourses. Equity markets in the United States and around Europe pushed higher on Wednesday trading following the release of minutes from the US Federal Open Markets Committee reassured investors the central bank is in no rush to raise interest rates. However, local market trimmed almost all before finishing the day due to weak China trade data and a subsequent rise in the yen against basket of major currencies. China March imports fell 11.3% on-year against expectations for a 2.8% rise, while exports fell 6.6%, well short of expectations for a 4.2% gain.
Shares of Japanese exporters and inflation-sensitive companies extended losses due to yen upward crawling against the US dollar. A stronger yen is worst for Japanese manufacturers, as it makes prices of goods more costly overseas. As of the close of trading on the Tokyo Stock Exchange, the dollar-yen pair was trading at 101.74, well off its intraday peak above 102.00.
Sony Corp lost 0.8%, Sumitomo Mitsui Financial Group fell 0.7%, Daiwa Securities Group slipped 0.1%, and Tokyo Dome Corp fell 1.4%. Toyota Motor lost 2.4%, while home products maker Kao slipped 0.8%.
Fujitsu rose 1.7% following media reports that it is considering selling its Internet service provider Nifty Co. Fujitsu said it is considering various options for Nifty but denied that it is preparing to sell the unit.
Shares of Sumitomo Metal Mining rose 4.1% after Alcoa, the world's largest aluminum smelter, reported strong earnings and forecast that global aluminum demand will exceed production in 2014, essentially predicting an end to a multi-year surplus.
In China, Mainland China share market closed higher, on government plans to connect the stock exchanges of Hong Kong and Shanghai, allowing a combined 23.5 billion yuan ($3.8 billion) of daily cross-border trading. The buying in the Shanghai market also buoyed after central bank pumped money into the banking system for the first time in nine weeks.
The benchmark Shanghai Composite Index, which tracks both A and B shares, advanced 1.38% from prior day closure to finish at 2134.30, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, added 1.57% to 2273.76.
Investors welcomed the introduction of a trial that will allow cross-market stock investment by mainland Chinese and Hong Kong investors. The announcement of a pilot plans would allow cross-market stock investment between the two cities. The move is long-anticipated, will help ease China's capital controls and could introduce much-needed vigor into the depressed Shanghai market.
China's Premier Li Keqiang said at the opening ceremony of the 2014 annual conference of the Boao Forum for Asia (BFA) held in south China's Hainan Province on Thursday that China will actively create conditions to establish a Shanghai-Hong Kong stock exchanges connectivity mechanism. The move aims to promote two-way opening-up and healthy development of the capital market on the mainland and Hong Kong, the premier said.
The tie-up is part of efforts by China to free up capital flows in the world's second-biggest economy, after the ruling Communist Party pledged the most sweeping reform package since at least the 1990s in November and widened the yuan's trading band in March. Authorities are also trying to revive confidence in stocks as the Shanghai Composite trades 65% below its 2007 peak and valuations of Chinese shares in Hong Kong languish near the lowest valuations since 2001.
Investors will be able to trade 10.5 billion yuan of Hong Kong-listed stocks through the Shanghai exchange, and 13 billion yuan of mainland shares through Hong Kong, the China Securities Regulatory Commission said today. The aggregate quotas for the cross-border trading are 250 billion yuan for Hong Kong-listed stocks, and 300 billion yuan for Shanghai shares, Hong Kong's Securities and Futures Commission said. The limits may be adjusted in the future, and preparations for the link will take about six months, according to a statement from the regulator.
Among SSE sectors, 9/10 sectors of the SSE index advanced, with financial sector was top winner in the SSE sectoral peers, with a 2.6% gain. Meanwhile, industrial issue advanced 1.8%, information technology up 1.8%, utilities up 1.6%, consumer staples up 1.3%, materials up 1.3%, energy up 1.1%, consumer discretionary up 1% and telecommunication services up 0.5%.
China's Premier Li Keqiang today, 10 April 2014, said China will not take any forceful stimulus measures to counter short-term fluctuations in its economic growth, stressing again that authorities have flexibility in achieving the 2014 growth target. Sustaining healthy growth in China's labour market is most important for the government, Li told an investment forum in China's southern island of Hainan. Whether China's annual economic growth comes in slightly above or below a targeted 7.5% is less important in comparison, he said.
Li said China plans to create conditions that will link the stock exchanges in Hong Kong and Shanghai to deepen the nation's capital markets.
In Hong Kong, shares in city's market advanced for third consecutive day in volatile and heavy trade, lifted by announcement of a pilot plan that will allow cross-market stock investment between the China and Hong Kong. The benchmark Hang Seng index advanced 1.51% to 23186.96, while the Hang Seng China Enterprises Index gained 0.4% to 10421.31. The benchmark index opened 106 points higher and then declined 109 points on weaker China trade data. It rebounded when China's premier Li Keqiang expressed support in the Boao Forum to the idea of mutual market access (MMA) between Shanghai and HK bourses.
Among the HK 50 blue chips, 32 rose and 18 fell. Tencent Holdings advanced 7.6% to HK$563, contributing 136-points gains to the benchmark Index and becoming the best-performing blue chip. China Resources Land declined 3.4% to HK$17.90, contributing 4-points losses to the benchmark Index and becoming the worst-performing blue chip, n talks that institutional investors sold stake in the company.
Hong Kong-listed Chinese companies that trade at a heavy discount to their mainland listings surged on hopes that the valuation mismatch could narrow with mutual-market access. Zhejiang Shibao Co, a telecommunications services operator, rose 64.6%. Luoyang Glass (01108) and NE Electric (00042) also soared 40% to HK$1.9 and HK$1.14.
Among the HK 50 blue chips, 32 rose and 18 fell. Tencent Holdings advanced 7.6% to HK$563, contributing 136-points gains to the benchmark Index and becoming the best-performing blue chip. China Resources Land declined 3.4% to HK$17.90, contributing 4-points losses to the benchmark Index and becoming the worst-performing blue chip, n talks that institutional investors sold stake in the company.
Hong Kong-listed Chinese companies that trade at a heavy discount to their mainland listings surged on hopes that the valuation mismatch could narrow with mutual-market access. Zhejiang Shibao Co, a telecommunications services operator, rose 64.6%. Luoyang Glass (01108) and NE Electric (00042) also soared 40% to HK$1.9 and HK$1.14.
Shares of bourse operator HKEx (00388) halted its share trading at mid-morning pending an announcement regarding the mutual market access (MMA) between Shanghai and HK bourses. It dropped 1% to HK$130.9 before suspension.
In Indonesia, share market in the Indonesia fell over 3% after parliamentary election results signalled possible formation of a weak government that will have limited ability to push for reforms needed to boost investments in the Southeast Asia's largest economy. Jakarta Composite Index was down 3.2% at 4,765.73.
Investors have expected PDI-P to secure adequate vote to nominate Jokowi to the July presidential polls and disappointing outcome could raise concern that the country could run into a period of political confusion. The fall was across the board, led by financials with Bank Mandiri and Bank Rakyat Indonesia falling 5.6% and 4.9%, respectively. Bank Mandiri and Bank Rakyat Indonesia have jumped 10.2% and 9.1% since March 14 after the opposition announced Jakowi's candidacy.
In India, key benchmark indices reversed intraday gains in late trade as European stocks slipped into the red from green. The barometer index, the S&P BSE Sensex, was provisionally down 53.17 points or 0.23%, off close to 145 points from the day's high and up about 5 points from the day's low. The market breadth, indicating the overall health of the market was positive.
Shares of power generation and power distribution companies edged higher. Kotak Mahindra Bank and UltraTech Cement hit record high. Hindalco Industries reversed direction after scaling 52-week high. L&T hit 52-week high.
GMR Infrastructure declined 0.78%. The company today, 10 April 2014, said that GMR Highways has completed the Chennai Outer Ring Road Phase I project. The state government of Tamil Nadu and all concerned agencies issued a provisional certificate for completion with effect from 15 June 2013 for the GMR Group's Chennai Outer Ring Road project. The milestone will add to the cash flow of GMR by Rs 118 crore for the next 17 and half years, GMR Infrastructure said in a statement.
Hindalco Industries lost 1.19% to Rs 141. The scrip stock reversed direction after hitting 52-week high of Rs 145.15 in intraday trade. Kotak Mahindra Bank rose 2.38% to Rs 802.75 after hitting record high of Rs 811 in intraday trade. UltraTech Cement rose 0.97% to Rs 2242 after hitting record high of Rs 2253.80 in intraday trade. L&T gained 0.51% to Rs 1306 after hitting 52-week high of Rs 1325.80 in intraday trade.
Shares of power generation and power distribution companies edged higher. Tata Power Company (up 4.12%), NTPC (up 2.57%), NHPC (up 2.28%), Adani Power (up 1.35%), Reliance Infrastructure (up 8.76%), Torrent Power (up 1.81%), Power Grid Corporation of India (up 0.94%), JSW Energy (up 3.34%), and Reliance Power (up 1.98%) gained.
Elsewhere in the Asia Pacific region, New Zealand's NZX50 added 0.95%. Taiwan's Taiex index added 0.2%. South Korea's KOSPI index was up 0.48%. Malaysia's KLSE Composite rose 0.2%. Singapore's Straits Times index fell 0.06%. Indonesia's Jakarta Composite Index dropped 3.16%.
Powered by Capital Market - Live News
