The MSCI Asia Pacific Index gained 0.7% to 138.43, with Mumbai boosted by a surprise interest rate cut by the Reserve Bank of India and Tokyo boosted by a weaker yen. Shanghai and Hong Kong was also supported by speculation Chinese leaders are taking measures to increase liquidity in financial markets in a bid to boost lending. The Australian market trimmed losses after better-than-expected employment data and as copper prices rebounded.
Among Asian bourses
Nikkei rises for the first time in three days
Japanese share market closed higher, registering first gain in three consecutive sessions, as investors chased for bottom fishing on recently oversold stocks, thanks to stability in the dollar and global oil prices. The Nikkei Stock Average advanced 312.74 points, or 1.86%, to 17108.70.
Shares of oil explorers advanced the most in Tokyo as investors chased for bargain hunting following a spike in overnight crude futures. Inpex rose 2.9%, while J Drill gained 1.6%. Refinery and plant equipment makers Chiyoda Corp. and JGC also rose 4.7% and 5.5%, respectively.
Shares of material and resources companies remain weak, as the international prices of copper and other commodities kept falling. Sumitomo Metal Mining slipped 1% and steelmaker JFE Holdings dropped 1.1%.
Tire-maker Bridgestone surged 6.7% after upward revision of target prices from brokerage houses. Barclays and Credit Suisse both lifted their target prices to reflect the benefits of cheaper oil and natural rubber prices, along with a relatively weak yen, on the firm's profitability.
Skymark Airlines lost 6.9% following a report that it is forgoing a request for a capital tie-up from larger rival ANA Holdings. ANA shares rose 1.8%.
Australia stocks hit by falling commodity prices
Australian share market declined for fourth consecutive session, hurt by decline in shares of materials & resources companies in response to a fall in the commodity prices. However, strong jobs data and a rebound in Asian markets helping the local shares to trim some ground. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both declined by 0.41% to 5331.40 and 5310.60, respectively.
Australian Bureau of Statistics said on Thursday that the number of people employed rose by 37,400 to 11.67 million in December, trimming unemployment rate to 6.1% in December from a revised 6.2% in November 2014.
Shares of material and resources companies were worst performers in the Australian market, with resources giant BHP Billiton falling 1.1% to A$26.90 and main rival Rio Tinto slipping 2.5% to A$54.18 as the investors took fright at falls in commodity markets. Australia's third largest iron ore miner Fortescue Metals Group fell 3% to A$2.27.
Energy stocks declined the most in Sydney, inline with weak oil price. Australia's biggest dedicated oil producer Woodside Petroleum slid 1.38% to A$35.06 on reports that it would cut capital investment this year after the plunge in crude oil prices, despite reporting record sales for the full year. The collapse in oil prices is also contributing to as much as $US400 million in write-downs that Woodside flagged for its assets for the full-year. It also reported a step backwards at its Browse floating LNG project, saying that a joint marketing agreement for LNG signed in 2012 with project partners Mitsui and Mitsubishi had been terminated. Among other oil stocks, Santos rose 1.77% to A$7.48, Oil Search lost 0.14% to A$7.21 and Drillsearch gained 4.20% to A$0.75.
China stocks surge after record bank-credit growth for 2014
Mainland China share market closed sharply higher, after record bank-credit growth for 2014 spurred confidence over Beijing's determination to prop up its slowing economy. The Shanghai Composite Index advanced 3.5% to 3336.46 at the close.
Chinese banks issued 697.3 billion yuan (US$112.6 billion) worth of new loans in December, down from 852.7 billion yuan in November, data from the People's Bank of China showed Thursday. At the same time, total social financing, a broader measurement of credit in the economy that include bank lending as well as shadow bank financing activities, rose to 1.69 trillion yuan in December from 1.15 trillion yuan in November. For the full year of 2014, Chinese banks extended a total of 9.78 trillion yuan in new yuan loans, a new high for annual credit growth.
Shares of financial companies advanced the most in Beijing market, propelled by speculation authorities are taking steps to support economic expansion and on expectations the central bank will ease monetary policy after cutting interest rates in November. Industrial & Commercial Bank of China, the largest lender, surged 4.1%. China Life Insurance Co., the biggest insurer, rose 9.9%. China Vanke Co., the largest listed developer, added 5.1%, Poly Real Estate Group Co., the second biggest, gained 8%.
Shares of railway companies also ended higher. China Railway Construction Corp. gained 5.4% on optimism it will win a Mexican rail bid. CSR Corp. and China CNR Corp., the nation top train makers, both also surged 10% daily limit.
Hang Seng ends 0.99% stronger
Hong Kong share market closed higher, as risk appetite buying propelled by tracking gains on the Mainland A-shares and other regional bourses. The Hang Seng Index ended 238.31 points, or 0.99%, higher at 24350.91, off an intra-day high of 24070.39 and low of 24369. Turnover increased to HK$93.11 billion from HK$86.08 billion on Wednesday.
Within HK 50 blue chips, 42 stocks rose and 18 fell. PING AN rose 4% to HK$86.65, while LENOVO GROUP dipped 1.1% to HK$10.62, making themselves the biggest blue chip winner and loser.
Shares of Hong Kong-listed Chinese insurers advanced, with Ping An (02318) gaining 4% to HK$86.65. China Life (02628) rose 3.6% to HK$31.65. NCI (01336) soared 5.6% to HK$43.2. It was the top H-share winner.
Utilities counters were also chased on rising risk-aversion sentiment. Power Assets (00006) added 2% to new high of HK$78.4. CLP (00002) edged up 0.3%, while HK & China Gas (00003) put on 1%.
Civil aviation stocks declined on profit taking, after Crude oil prices rebounded sharply overnight. Air China (00753) slipped 4% to HK$6.85. China South Air (01055) and China East Air (00670) fell 3% and 2.5% respectively.
Sensex jumps after RBI rate cut booster
Indian investors cheered the Reserve Bank of India's (RBI) surprise announcement of a cut in its main lending rate as key equity benchmark indices surged. But, the benchmark indices pared strong intraday gains towards the fag end of the trading session as European stocks reversed intraday gains after Switzerland's central bank the Swiss National Bank shocked global markets by ditching its currency ceiling against the euro and cutting its deposit rate to negative 0.75%. As per provisional figures, the S&P BSE Sensex was up 646.98 points or 2.37% at 27,993.80. The CNX Nifty was up 216.60 points or 2.62% at 8,494.15, as per provisional figures.
The RBI surprised financial markets by announcing a cut in its main lending rate viz. the repo rate by 25 basis points in an unscheduled monetary policy review today, 15 January 2015, morning. Reacting to the RBI's surprise rate cut, the finance ministry today, 15 January 2015, said that along with other policy actions already taken by the government and other that are under its consideration, the RBI move represents one more step towards reviving investment and realizing India's medium term growth potential.
State-run United Bank of India announced a 25 basis points reduction in its base rate after the RBI's surprise repo rate cut. The bank cut its base rate to 10% from 10.25% with effect from 1 February 2015.
Realty, auto and bank stocks surged after the Reserve Bank of India's (RBI) surprise announcement of a cut in its main lending rate viz. the repo rate by 25 basis points in an unscheduled review today, 15 January 2015. Bajaj Auto advanced after announcing Q3 December 2014 results.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 0.16% to 9165.09. South Korea KOSPI was up 0.03% to 1914.14. New Zealand's NZX50 fell 0.12% at 5642.05. Singapore's Straits Times index added 0.38% at 3338.84. Indonesia's Jakarta Composite index rose 0.56% to 5188.71. Malaysia's KLCI climbed 0.17% to 1745.
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