The regional market had opened on a tentative note following the overnight losses on European and US markets. Stocks slipped across Asia in early trades as investors felt the jitters over the rising political tensions between Russia and Ukraine. However, media reports stated that Russian Prime Minister Vladimir Putin has ordered troops back to base after the completion of military exercises. This calmed the frayed nervous and a recovery emerged in major indices.
Among Asian bourses, the yen depreciation against major currencies lifted the Japan's stock market above the neutral line for the first time in five consecutive sessions. The benchmark Nikkei-225 index added 0.47% to 14721.48, while the Topix index of all first-section shares was up 0.61% at 1204.11.
Both the dollar and euro rebounded against the yen. The dollar was changing hands at Y101.63 while the euro was trading at Y140, both well up from a day ago.
Real-estate developers and exporters benefited the most from the buying after heavy recent selling. Mitsubishi Estate jumped 2.2% to 2,424 yen. Sumitomo Realty & Development Co. added 3.6% to 4,186 yen. Mitsui Fudosan Co. increased 2.1% to 3,044 yen. Tokyo Tatemono rose 4% to 863 yen. Bridgestone Corp gained 2.3% to 3703 yen and Canon Inc added 1.1% to 3133 yen. Fast Retailing gained 1.2% to 35890 yen, helped by strong February sales data at its Uniqlo stores.
Taisho Pharmaceutical Holdings Co. advanced 4.6% to 8,000 yen after Credit Suisse Group AG lifted its price target 41% to 9,700 yen, citing the possibility of higher earnings next year as its brand strengthens.
In Australia, Australian stock market finished above the neutral line, as gains in shares of financial and telecom related companies were more than offset by losses in energy and resources players. The benchmark S&P/ASX 200 index rose 0.3% to finish at 5400.20.
Risk sentiments in the Australian market bolstered by Reserve Bank of Australia decision to keep interest rate unchanged at 2.5% for the seventh straight month. Meanwhile, an improving current account deficit and bumper housing data also lifted the local sharemarket.
A report from the Australian Bureau of Statistics showed 17,514 new dwellings approved in January, the most per month in more than a decade, confirming low interest rates are helping to stimulate the construction sector. Another ABS release showed the current account deficit fell 19% in the December quarter as exports rose while imports fell.
Telecommunications was the best-performing sector, up 0.7%, as Telstra Corporation lifted 0.8% to A$5.11. Utilities was the worst-performing sector, down 1.7%, as electricity and gas retailer AGL Energy dropped 2.5% to A$15.05 after the Australian Competition and Consumer Commission put the kybosh on plans for a A$1.5 billion takeover of NSW state owned power producer Macquarie Generation.
Australian dollar declined from yesterday's closure against greenback and other major currencies on Tuesday after verbal fire by the Reserve Bank of Australia. The Reserve Bank of Australia has kept the cash rate on hold at a record low of 2.5%, but indicated it wants the Australian dollar to keep falling. The Aussie dollar fell as low as US89.11 cents, from a high of US89.69 cents.
In China, Mainland China stock market declined, snapping four days of gaining streak, as investors pocketed recent gains, amid caution ahead of the National People's Congress annual meeting in China starting tomorrow. The benchmark Shanghai Composite Index slipped 0.2% to 2,071.47 at the close, halting a gain of 2% in the previous four days.
The National People's Congress annual meeting begins tomorrow. The latest meeting of the legislature, the first to be overseen by President Xi Jinping and Premier Li Keqiang, comes as leaders pledge to give markets a decisive role in the economy. Investors will be watching the NPC meeting for clues to the next steps to fix local-government finances, charge market prices for natural resources, rein in shadow-banking risks, free up deposit rates and open up state businesses to private investment.
Shares of Chinese technology companies slid sharply on profit booking following sharp rally last year. Neusoft tumbled 6.7% to 15.55 yuan, Yonyou Software Co 5.6% to 21.41 yuan and Zhejiang Dahua Technology Co 5.1% to 29.69 yuan.
Banks and financials were weaker in Shanghai on worries about liquidity squeezes as money-market rates rebounded today after the central bank withdrew excess cash from the financial system. Citic Bank dropped 2% to 5.03 yuan. Ping An Bank Co. slipped 0.5% to 10.98 yuan.
Property developers stocks, however, rose, with Vanke, China's biggest listed property developer, surged 4.2% to 6.92 yuan after announcing it received approval to convert B-shares to shares in Hong Kong. Poly Real Estate Group Co., the second-largest developer, added 2% to 6.78 yuan after the company said some directors and management bought a combined 180,000 shares on Feb. 28.
In Hong Kong, shares in the HK market rebounded on bottom fishing across the board as Ukraine crisis abated. The benchmark Hang Seng index advanced 156.96 points from prior day to finish at 22657.63.
Among the HK 50 blue chips, 29 rose and 13 fell, with eight stocks remaining steady. Belle (01880) slipped 3.5% to HK$9.3. Tingyi (00322) gained 3.5% to HK$22.2. They were today's top loser and winner inside the Hang Seng Index family. Market heavyweights were firmer. HSBC (00005) edged up 0.6% to HK$81.5. China Mobile (00941) inched up 0.3% to HK$73.9. Tencent gained 1.7% to HK$612.50.
Tongda (00698) soared 12% to HK$1.12 on news of strong sales of Xiaomi's new handsets as the company supplies components to Xiaomi. Xinyi Solar (00968) also surged 17% to HK$2.47 on Citi Research's initiation.
In India, Indian stock market closed slight higher on tracking lead from positive trade on European bourses on Tuesday and gain in US index futures.
The market sentiment was also boosted by data showing that foreign funds remained net buyers of Indian stocks on Monday, 3 March 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 198.53 crore on Monday, 3 March 2014, as per provisional data from the stock exchanges.
The S&P BSE Sensex was up 263.08 points or 1.26% to 21,209.73, its highest closing level since 23 January 2014. The index rose 277.99 points at the day's high of 21,224.64 in late trade, its highest level since 24 January 2014. The index dropped 6.26 points at the day's low of 20,940.39 in early trade.
Metal stocks rose across the board. Hindalco Industries (up 8.1%), Hindustan Zinc (up 4.15%), Sesa Sterlite (up 4.7%), JSW Steel (up 2.52%), Jindal Steel & Power (up 2.97%), Tata Steel (up 2%), Sail (up 2.9%), NMDC (up 3.15%), National Aluminum Company (up 3.34%) and Hindustan Copper (up 3.69%) gained.
Bharti Airtel rose 0.35% after the company said during market hours that "Airtel Networks Kenya ("Airtel Kenya") has sought an approval from the Communications Authority of Kenya (CAK), to acquire the telecommunications licenses and subscribers of Essar Telecom Kenya, which operates under the brand name 'yuMobile'.
IT stocks were mostly higher on positive economic data in US, the biggest outsourcing market for the Indian IT firms. Infosys (up 0.25%), TCS (up 0.3%), and Wipro (up 0.27%) gained. HCL Technologies (down 1.6%) and Tech Mahindra (down 0.27%) declined.
Bank shares rose across the board. Among private bank stocks, Axis Bank (up 3.57%), ICICI Bank (up 3.61%), Yes Bank (up 6.1%), Kotak Mahindra Bank (up 0.75%) and HDFC Bank (up 0.73%) rose. Among PSU bank stocks, Bank of Baroda (up 6.03%), Punjab National Bank (up 4.86%), Bank of India (up 3.77%), Canara Bank (up 3%), Union Bank of India (up 4.18%) edged higher.
State Bank of India rose 2.09% after the bank said after market hours on Monday, 3 March 2014 that the Central Board of the bank, at its Meeting held on 3 March 2014, has declared an interim dividend at the rate of Rs 15 per equity share for the year ending 31 March 2014. The date of payment of the interim dividend is fixed as 2 April 2014 and the dividend warrants will be payable, in India, at par at all branches of State Bank of India, irrespective of the amount. SBI said that the Register of Members & Share Transfer Books of the bank will remain closed from 13 March 2014 to 17 March 2014 (both days inclusive) for the purpose of payment of interim dividend.
Hindustan Construction Company jumped 4.84% after the company said it bagged a Rs 903.83 crore order in joint venture with GVPR Engineers from Karnataka Neeravari Nigam. The announcement was made after market hours on Monday, 3 March 2014.
IVRCL jumped 8.47% after the company said that its irrigation division and water division have bagged orders worth an aggregate Rs 2632.85 crore. The company made the announcement during trading hours today, 4 March 2014.
Elsewhere in the Asia Pacific region, Indonesia's Jakarta Composite Index rose 0.37%. Malaysia's KLSE Composite added 0.1%. Singapore's Straits Times index added 0.56%. New Zealand's NZX50 added 0.52%. South Korea's KOSPI index fell 0.54%. Taiwan's Taiex index dropped 0.55%.
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