However, gains on the market across the region were marginal, amid caution ahead of the European Central Bank and Bank of England policy meeting later today and as U.S. jobs data due on Friday.
The European Central Bank (ECB) undertakes monthly monetary policy review today, 6 February 2014, amid speculation the ECB will reinforce its commitment to lower rates. The ECB will probably hold the benchmark interest rate at a record-low 0.25% at its policy meeting tomorrow, 6 February 2014, as it faces slowing inflation. After the Jan. 9 policy meeting, ECB President Mario Draghi said the central bank "strongly emphasizes" that it will maintain accommodative measures for as long as necessary.
The Bank of England's (BoE) Monetary Policy Committee (MPC) undertakes monthly monetary policy review today, 6 February 2014, with markets waiting to see if Governor Mark Carney will alter guidance on lifting its record-low interest rate. The MPC is widely expected to keep the BoE's main interest rate at a record-low level of 0.5%. It is widely predicted also to maintain quantitative easing at 375 billion ($613 billion, 454 billion euros), opting against following the US Federal Reserve in tapering stimulus.
Britain's 12-month inflation slowed to 2% in December, recent official data showed, touching the lowest level for more than four years. The BoE's main task is to use monetary policy as a tool to keep annual inflation close to a government-set target of 2%, to preserve the value of money.
Among Asian bourses, Australian stock market closed higher, snapping three days of falling streak on the back of bargain buying across the sectors, with materials and resources, financials, and consumer staples blue chips leading the rally. The benchmark S&P/ASX 200 index was up 61.10 points to 5131.40.
The sharp rebound in the Sydney market largely buoyed by better than expected domestic trade and retail data. The Australian Bureau of Statistics said on Thursday that Australia posted an unexpected trade surplus of A$468 million in December 2013, higher from a surplus of A$83 million in November. The November figure was previously reported as a deficit of A$118 million. Exports rose 4% in December, while imports rose 2%, the statistics bureau said.
Separately, the Australian Bureau of Statistics said today that Australian retail sales rose 0.5% in December from a month earlier. Retail sales rose 0.9% in fourth quarter from the prior quarter. Retail sales rose 5.7% in 2013, matching the biggest gain since 2007.
Shares of retailers were higher after better than expected retail sales data. Woolworths added 2.4% to A$34.72. Rival Wesfarmers, owner of Coles, rose 2.7% to A$42.44.
Shares of Australian financials companies were stronger, with top four lenders leading rally. Australia & New Zealand Banking Group grew 1.4% to A$29.43, National Australia Bank 1.5% to A$32.63, Commonwealth Bank 1.4% to $73.48 and Westpac Banking Corp 1.7% to A$30.83.
Virgin Australia Holdings jumped 7.9% to 34 after confirming to the market that broker expectations a half-year pre-tax loss of A$49 million will be revealed when it reports later this month where materially in line.
In Japan, Tokyo stock market finished lower after giving up early gains as investors booked intraday profit amid caution ahead of the European Central Bank policy meeting later today and U.S. jobs data due Friday. The benchmark Nikkei-225 index declined 25.25 points to finish at 14155.12, while the Topix index of all first-section shares eased 0.27 point to 1162.37.
The Tokyo market commenced trading firmly higher, buoyed by weakening of domestic currency against greenback. The gain was also supported by robust earnings from some of Japan's blue chips. But, the market failed to hold momentum, finishing into the sea of red on concerns about emerging market economies and on caution before the release of key data from both side of the Atlantic.
Mazda Motor Corp shares grew 4.3% to 485 yen after the auto maker increased its fiscal-year operating profit forecast to 180 billion yen from 160 billion yen, and said it plans to resume paying dividends.
Nissan Motor Co. shares jumped 1.65% to 865 yen on reports the automaker possibly report a 10% rise in operating profit for its April-December period, aided by sales of new cars and on yen weakness. Nissan's results are due Monday.
Takeda Pharmaceutical Co, Japan's top drug maker, fell 2.7% to 4565 yen despite delivering solid third-quarter earnings. It's forecast hike was small, however, and failed to impress analysts.
In Hong Kong, shares in city's market closed higher, registering first positive day in three consecutive sessions, as bargain buying emerged on recently battered stocks, led by casino players. The benchmark Hang Seng Index provisionally finished 153.75 points higher at 21423.13.
Among the HK 50 blue chips, 37 stocks rose and 12 stocks fell, while remaining one stock closed steady. Galaxy Entertainment Group advanced 7.3% to HK$71.10, while Lenovo Group fell 2.4% to HK$8.31, making themselves the biggest blue-chip gainer and loser.
Shares of casino players rebounded today as bargain buying emerged after tumbling yesterday amid a slump in Macau's gambling revenue. Gambling sales in Macau grew 7% in January, the slowest pace since October 2012, official data showed yesterday. Sands China was up 11% to HK$60.60. Galaxy Entertainment Group increased 7.3% to HK$71.10. MGM China Holdings added 7.50% to HK$30.80. Galaxy Entertainment Group rose 7.24% to HK$71.10 and Wynn Macau grew 3.91% to HK$1.56.
Shares of Hong Kong retailers finished higher, as media reports said local shopping malls reported strong retail sales during Lunar New Year, largely thanks to high-spending mainland Chinese visitors. Cosmetic retailer Bonjour Holdings jumped 6.85% to HK$1.56 and jewellery brand Luk Fook Holdings International added 1.71% to HK$26.70.
In India, key benchmark indices recouped a lion's portion of intraday losses in mid-afternoon trade as European stocks edged higher in early trade there. The 50-unit CNX Nifty regained psychological 6,000 mark after falling below that mark earlier during the trading session. The barometer index, the S&P BSE Sensex, was down 14.33 points or 0.07%, up close to 170 points from the day's low and off about 100 points from the day's high.
At 14:20 IST, the S&P BSE Sensex was down 14.33 points or 0.07% to 20,246.70. The index dropped 181.21 points at the day's low of 20,079.82 in mid-morning trade.
GAIL (India) declined 2.62%. The company announced during market hours that the board of directors of the company at its meeting held today, 6 February 2014, has approved payment of interim dividend of 45% or Rs 4.50 per equity share on the paid up equity share capital of the company for the year ending 31 March 2014. The company has fixed 11 February 2014 as record date for interim dividend.
Elsewhere in the Asia Pacific region, South Korea's KOSPI index added 0.88%. Taiwan's Taiex index grew 0.56%. Malaysia's KLSE Composite rose 0.67%. Singapore's Straits Times index jumped 0.95%. New Zealand share market closed on account of Waitangi Day. Mainland China market closed for Lunar New Year holidays.
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