Asia Pacific share market finished mostly higher on last trading session of the week, Friday, 18 November 2016, on tracking strong rally on Wall Street overnight after Federal Reserve Chair Janet Yellen's hawkish comments.
The regional share market tracked a positive finish among major U.S indexes on Thursday on the back of remarks from Fed Chair Janet Yellen and upbeat economic data. The Dow Jones industrial average rose 35.68 points, or 0.19%, to close at 18,903.82. The S&P 500 gained 10.18 points, or 0.47%, to end at 2,187.12, while the Nasdaq composite advanced 39.39 points, or 0.74%, to 5,333.97.
U.S. economic data showed housing starts soared more than 25% in October stateside, while weekly jobless claims dropped to their lowest level since November 1973. In October, the consumer price index rose 0.4%, which was in line with expectations.
Yellen has stressed the importance of central bank independence in her first public remarks after Donald Trump's election victory as new data showed the president-elect will inherit a strengthening economy. The Federal Reserve chair told a congressional hearing yesterday, 17 November 2016 that an increase in short-term interest rates could become appropriate relatively soon, raising expectations of a rise at the Fed's next meeting in December.
She added she would not step down from her position as the head of the Federal Reserve until the end of her term. Her comments pushed the dollar higher, with the dollar index, which measures the greenback against a basket of currencies, reaching a session high of 101.32.
Among Asian bourses
Australia Stocks end higher
Australian share market ended higher, on the back of strong rally on Wall Street overnight after Federal Reserve Chair Janet Yellen's hawkish comments. At the closing bell, the benchmark S&P/ASX 200 index rose 20.90 points, or 0.39%, to 5,359.40, while the broader All Ordinaries index increased 18.60 points, or 0.34%, to 5,427.50.
Financial stocks led gainers with Commonwealth Bank of Australia and Westpac Banking Corp, tacking on around 0.3%.
Telecom stocks rallied as Telstra Corp rose 1.9%, bringing the week's gains to 4.5%, as investors reacted positively to news of big cost cuts over the next five years.
Myer Holdings shares jumped as much as 10.6% as the retail giant flagged a return to profit in 2017 financial year after net income fell for the past six financial years.
Nikkei closes at 10-month high
The Japan share market closed at its highest level in more than 10 months, as risk appetite buying fuelled yen depreciation to 110 level against greenback on hopes for an interest rate hike by the U.S. Federal Reserve, after Fed Chair Janet Yellen firmly hinted at the possibility of a hike in December. The headline Nikkei 225 gained 0.59%, or 104.78 points, to end at 17,967.41, a whisker below the psychologically key 18,000 mark and its best level since early January. The broader Topix index of all first-section issues was up 0.38%, or 5.38 points, at 1,428.46.
Shares of export-oriented firms attracted buying on expectations for better earnings after dollar's jump above 110 yen against greenback, as many export-oriented Japanese firms set their assumed dollar rates at 100-105 yen. Among them were automakers Toyota, Honda and Mazda, as well as technologies Sony and Hitachi. Shipping firms Nippon Yusen, Kawasaki Kisen and Mitsui O.S.K. Lines advanced, after the Baltic Dry Index for shipping costs climbed for 11 sessions in a row. By contrast, megabank groups and insurers met with apparent profit-taking after the recent surge. They included Mitsubishi UFJ, Sumitomo Mitsui, Dai-ichi Life and Tokio Marine. Among other losers were drug manufacturer Astellas, mobile carrier NTT Docomo and retailer Seven & i Holdings.
China Stocks fall on capital outflow woes, stronger dollar
Mainland China stock market closed down for second straight session, on funds outflow worries after US Federal Reserve Chair Janet Yellen said the Fed could raise interest rates as soon as next month, which is expected to make emerging markets less attractive. Market heavyweights and financial stocks were hit worst, dragging down overall performance. The benchmark Shanghai Composite Index fell 0.5% to close at 3,192.86 points. The CSI 300 index closed 0.56% down at 3,417.46 points.
A strong US dollar and worries over capital outflows also curbed investor appetites. With the dollar index still hovering near a 13-1/2 year high against a basket of currencies, there are persistent fears of yuan depreciation, as global investors continue to bet US President-elect Donald Trump's policies will result in higher inflation and stronger US economic growth.
Shanghai's property sub-index outperformed the broader market, following government data that showed average new home prices in China's 70 major cities rose 12.3% on-year in October, a faster pace than the 11.2% on-year rise in September. Among Property plays, with Shenzhen-listed shares of Vanke up 3.9% and Poly Real Estate climbing 1.83%, while Gemdale erased early gains to trade down 0.73%.
Hong Kong Stocks close up
The Hong Kong stock market closed up, buoyed by Wall Street rally overnight on rising expectations of a US rate hike next month Market talks indicated slim chances of the Shenzhen-HK Connect program launch on 21 November, and it may be delayed to December. The Hang Seng Index ended up 0.37%, or 81.33 points, to 22,344.21 and the Hang Seng China Enterprises index added 0.24%, or 22.77 points, to 9,349.31. Turnover decreased to HK$55.9 billion from HK$62.3 billion on Thursday.
Chairman of China Tower Corporation Liu Aili said he aims at an IPO by end-2017. China Mobile (00941) edged down 0.2% to HK$84.6. China Telecom (00728) gained 0.6% to HK$3.65. China Unicom (00762) put on 3.9% to HK$9.07.
CKH Holdings (00001) climbed 1.4% to HK$94.9. The company yesterday bought back its own shares by HK$72.7 million. It was the first time of buyback since its restructuring. CK Property (01113) inched down 0.3% to HK$50.75.
AAC Tech (02018) jumped 2.5% to HK$73.85 after the company expects its non-acoustic business revenues to exceed acoustic's in 2017. Sunny Optical (02382) shot up 5.8% to HK$41.25.
Evergande (03333) added stake in China Vanke (02202) again. China Vanke soared 3.2% to HK$21.95, while Evergrande edged up 0.4% to HK$5.3.
Sensex extends recent losing streak
Metal sector stocks and index heavyweights ITC, HDFC Bank and Infosys led small losses for key benchmark indices. The barometer index, the S&P BSE Sensex lost 77.38 points or 0.3% to settle at 26,150.24. The Nifty fell 5.85 points or 0.07% to settle at 8,074.10. The Sensex, and the Nifty, hit their lowest closing level in more than 5-1/2-months.
Stocks of public sector banks edged higher. Stocks of private sector banks were mixed. Index heavyweight Reliance Industries (RIL) nudged higher after the company announced the signing of a global partnership agreement in the Industrial IOT (IIOT) space whereby RIL and GE will work together to build out joint applications on GE's Predix platform.
Elsewhere in the Asia Pacific region: New Zealand's NZX50 added 0.6% to 6857.84. Indonesia's Jakarta Composite index fell 0.4% to 5170.11. Taiwan's Taiex added 0.2% to 9008.79. South Korea's KOSPI index declined 0.3% to 1974.58. Malaysia's KLCI was down 0.2% to 1623.80. Singapore's Straits Times index rose 0.9% to 2838.65.
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