Asia Pacific share market mostly advanced on Tuesday, 31 March 2015, as risk appetite buoyed by tracking overnight gains in the offshore markets after positive economic data as well as steps by China to shore up its economy.
Regional markets welcomed positive data from around the world, including the U.S., Europe and China, and expectation of favorable company earnings reports. A European Commission survey has shown economic sentiment at its highest since July 2011. Consumer spending edged up in the U.S. in February following two straight monthly declines, and consumers' incomes rose a solid 0.4%.
US stocks climbed more than 1% overnight, rebounding from a sharp decline last week. The Dow rose 263.65 points, or 1.5%, to 17,976.31. The Standard & Poor's 500 index rose 25.22 points, or 1.2%, to 2,086.24, while the Nasdaq composite gained 56.22 points, or 1.2%, to 4,947.44.
China's yesterday loosened its mortgage policies in a bid to boost demand in the country's housing market and spur economic growth. The People's Bank of China issued a joint announcement with the Ministry of Housing and Urban-Rural Development and the China Banking Regulatory Commission to lower the down payment requirement for the second home from 60% to 40%. First-time buyers using housing provident funds will have to pay a minimum of 20% as a down payment, down from the previous 30%. he move is aimed at improving housing credit policies, supporting residents' demands to improve housing conditions and promoting the steady and healthy development of the property market. In a separate statement yesterday, the Ministry of Finance said home owners would be exempted from business tax on sales of a home owned more than two years.
However, gains on the upside was limited amid caution ahead of latest economic data, including the US March Chicago Purchasing Managers Index and a reading on March consumer confidence later today in global day, as well as the China's official manufacturing data scheduled to release tomorrow.
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Among Asian bourses
Australia market bounces 0.8%
The Australian share market closed solidly higher, on the back of bottom fishing across the board after falling 1.3% a day earlier, with shares of resources, energy and financial companies leading the way. The benchmark S&P/ASX 200 Index advanced 45.40 points, or 0.78%, to 5891.50, while the broader All Ordinaries Index added 45.60 points, or 0.78%, to 5861.90. Market turnover was healthy, with 1.73 billion shares changing hands worth of A$5.68 billion.
Shares of mining companies advanced the most in Sydney market, with Rio Tinto rising 2.5% to A$57.23. BHP Billiton added 3.1% to A$31.03. Iron-ore miner Fortescue Metals Group grew 1.8% to A$1.96.
Shares of energy companies also ended higher, as benchmark Nymex crude fell but Brent North Sea crude managed a mild rebound. Woodside Petroleum grew 1.5% to A$34.52, Santos 1.7% to A$7.14 and Origin Energy 1% to A$11.31. Oil Search jumped 0.6% to A$7.20 after scoring a buy recommendation from Morgans. Caltex Australia rebounded 1.5% to A$34.95, paring losses from a day earlier after Chevron Corp sold off its stake in the company.
Nikkei ends 1.05% down
Japanese share market closed down on the last day of the Japanese financial year, as profit-taking emerged in drug makers and other recent strong performers. But, market losses were limited, thanks to overnight gains in the U.S. market, as well as from a weaker yen and bullishness in other Asian markets. The benchmark Nikkei 225 index, which climbed 0.93% in early trade, lost 204.41 points, or 1.05%, to finish at 19,206.99, while the broader Topix index of all first-section shares fell 0.94%, or 14.66 points, to 1,543.11, reversing gains of as much as 1.4%. For the quarter, the benchmark Nikkei 225 index gained 10%, the best quarterly performance the quarter ended December 2013, while the Topix index gained 9.6%, the best performance since the quarter ended March 2013.
Investors are now eyeing the Bank of Japan's tankan survey of business sentiment, due on Wednesday morning, for more clues over the investing environment.
Shares of drugmakers were biggest drag on the Tokyo bourses on profit booking, with Eisai Co sliding 3% to 8,535 yen. Chugai Pharmaceutical Co dropped 3% to 3785 yen
Shares of housing-linked exporters having business exposure with China rallied after the People's Bank of China took steps Monday to revive a slumping property market. , Toilet manufacturer TOTO, which gets about 10% of sales from China, leading gains with 4.6% rise at 1,785 yen. Nihon Flush Co., a maker of wooden interior materials that gets more than half of its sales from China, climbed 4.3% to 1,666 yen.
Apparel retailer Shimamura Co slumped 7.1% to 11120 yen after the company reported a fiscal year operating profit fall of 12% to Y36.8 billion, missing guidance of Y45.7 billion by a wide margin.
Aozora Bank slid 3.6% to 426 yen after Mitsubishi UFJ Morgan Stanley Securities Co. cut its rating on the stock to underweight from neutral.
Bandai Namco Holdings Inc jumped 1.7% to 2338 yen after saying it would license rights to some of its world-famous classic games such as Pac-Man and Galaxian.
Fujifilm Holdings Corp advanced 1.5% to 4276.50 yen on the back of its deal to buy U.S. company Cellular Dynamics International Inc for about $307 million in cash.
China market falls on profit booking
Mainland China share market closed down after volatile ride, as profit booking triggered on recent outperformer after the benchmark indices climbed to fresh seven-year high early today. The Shanghai Composite Index dropped 1% to 3,747.90 at the close, erasing an earlier advance of 1.3% and paring a quarterly advance to 16%. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, fell 36.98 points, or 0.9%, to 4051.20.
Mainland bourses commended trading with firm footing today, after the People's Bank of China (PBOC) statement that it would cut the down-payment ratio for second homes to 40% from 60%. Separately, the Ministry of Finance reduced the minimum holding period of a property to be exempt from sales tax from five years to two years. But, the market failed to hold early momentum, as investors elected to book profit amid concern recent gains have gone too far, too fast and on caution ahead of official manufacturing data scheduled to release tomorrow.
Shares of property developers suffered the biggest loss among industry groups, after sharp gain yesterday. China Vanke Co slid 3%. Gemdale Corp lost 1.5%.
Shares of energy and industrial companies were also down. China Railway Group fell 3.8%. China Petroleum & Chemical Corp. retreated 1.2%.
Hong Kong market ends 0.18% up
Hong Kong stock market finished the session slight higher in heavy volume, as risk sentiments remain buoyant by tracking overnight gains in the U.S. market, as well as bullishness in other Asian markets. The benchmark index opened 258 points higher and broke the 25,000 mark, but pared most of its gains in tandem with the decline in Shanghai market. The Hang Seng Index improved 45.77 points, or 0.18%, to close at 24900.89, off an intra-day high of 25113.20 and intra-day low of 24876.37. Turnover increased to HK$148.9 billion from HK$140.80 billion on Monday.
Shares of Chinese developers declined on profit booking after sharp rally in morning session on the back of PBoC joint announcement with CBRC and MOHURD to lower the down payment requirement for the second home from 60% to 40%. Meanwhile, home owners would be exempted from business tax on sales of a home owned more than two years. CR Land (01109) dipped 1.4% to HK$21.9. COLI (00688) slid 3.7% to HK$25.05. Agile (03383) plunged 7% to HK$4.66. Shimao Property (00813) slipped 2.3% to HK$16.3.
PICC P&C (02328) dipped 3% to HK$15.32 after AIG Group disposed of 256 million shares inthe insurer for HK$3.9 billion at HK$15.15 apiece. PICC (01339) fell 1.3% to HK$3.94. Other insurers were also weaker. China Life (02628) and Ping An (02318) dropped around 1% to HK$33.95 and HK$93.2.
Hong Kong's value of total retail sales in February, provisionally estimated at HK$46.6 billion, rose 14.9% compared with the same month in 2014, according to the Census and Statistics Department. The revised estimate of the value of total retail sales in January dropped 14.5% from a year earlier. For the first two months of 2015 taken together, total retail sales fell 2% in value compared with the same period in 2014. After netting out the effect of price changes over the same period, the volume of total retail sales in February grew 18.2% over a year earlier.
Sensex fails to retain 28,000 level
Indian benchmark indices registered small losses on the last day of the financial year amid divergent trend among various index constituents. Indian companies and domestic investors follow the period from 1 April to 31 March as their financial year. The barometer index, the S&P BSE Sensex, fell below the psychological 28,000 level after surpassing that level after a higher opening. Key indices slipped into the red from green after a sudden slide in mid-afternoon trade. High volatility on the domestic bourses during the latter part of the trading session materialized as European stocks reversed intraday gains after eurozone jobs data showed unemployment this year is higher than previously expected. As per provisional closing, the Sensex was down 57.55 points or 0.21% to 27,918.31. The 50-unit CNX Nifty was down 1.30 points or 0.02% at 8,491.
Bank stocks edged lower in volatile trade. Shares of public sector oil marketing companies (PSU OMCs) advanced on slide in global crude oil prices. Index heavyweights HDFC and L&T edged higher. Two other index heavyweights viz. ITC and Infosys edged lower.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 240.34 crore yesterday, 30 March 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 651.67 crore yesterday, 30 March 2015, as per provisional data.
Elsewhere in the Asia Pacific region: South Korea KOSPI added 0.54% to 2041.03. Taiwan's Taiex rose 0.68% to 9586.44. New Zealand NZX50 was up 0.22% to 5833.98. Indonesia's Jakarta Composite index added 1.47% to 5518.67. Singapore's Straits Times index fell 0.21% at 3447.01. Malaysia's KLCI added 0.5% to 1830.78.
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