Regional shares followed a positive lead from the United Stated where the three major indices all added more than 1% despite official non-farm payrolls data showing the world's biggest economy created weaker than expected 113,000 jobs in January. While job numbers disappointed, traders bet that growth would pick up in coming months, as unemployment dipped to 6.6%, the lowest rate since the global financial crisis hit in late 2008, and more people sought jobs.
However, gains on the upside was limited as investors were looking ahead to the new Fed chairman Yellen's inaugural testimonies before the House Financial Services Committee tomorrow and the Senate Banking Committee on Thursday. Market participants are hoping that Yellen likely to repeat the standard forward guidance that the funds rate will remain near zero until the unemployment rate falls well below 6.5%, so long as inflation is subdued. However, she would probably discuss options the FOMC might use regarding the forward guidance, such as lowering the threshold on the unemployment rate and adding an inflation floor.
The Fed had been buying $85 billion worth of bonds every month in an effort to stimulate the economy by pushing down commercial lending rates. The Fed said in December it will reduce that by $10 billion each month. That would reduce February's purchases to $65 billion if the Fed sticks to its plan.
Among Asian market, Japan's share market surged for second session in row, on the back of solid gains on Wall Street on Friday night and yen weakening against the US dollar. The benchmark Nikkei-225 index advanced 255.93 points to finish at 14718.34, while the Topix index of all first-section shares rose 15.14 points to 1204.28
Shares of currency-sensitive exporters led the market rally, thanks to dollar appreciation against the yen. In currency markets, the dollar was at 102.43 yen, up from 102.30 yen in New York Friday. Japan shares are typically highly sensitive to the dollar's movements, as a stronger greenback means exporters can sell their goods more cheaply overseas.
Among leading exporters, Sony Corp was up 0.7% to 1702 yen, Canon Inc 1% to 3010 yen, FANUC Corp 4% to 17010 yen, Konica Minolta Inc 4.4% to 1047 yen and Olympus Corp 7.2% to 3335 yen. Shares of Isuzu Motors surged 4.76% to 638 yen after the auto maker reported a 38% rise in third-quarter profit to 89.48 billion yen ($874.58 million).
Cabinet Office of Japan released the consumer confidence survey on Monday, showing that the Consumer Confidence Index down to 40.50 levels in January, from 41.30 levels in the prior months.
The Finance Ministry announced on Monday that Japan current-account deficit gap hit 638.6 billion yen ($6.23 billion) in December 2013. The trade deficit narrowed slightly to 1.213 trillion yen from 1.254 trillion yen in November but still far outpaced income of 884.3 billion yen for the month.
In Australia, shares of the Australia's market advanced for third consecutive session, with the benchmark S&P/ASX 200 index up 55.60 points to 5222.10, with materials and resources and financial players leading the gains.
Shares of Australian materials and resources companies advanced, lifted by gains in commodities prices. Base metal prices rose up to 1.1% on the London Metal Exchange on Friday with nickel leading the way while copper, lead and tin rose just 0.2%. World oil prices rose on Friday. Brent crude rose by US$2.38 or 2.2% to US$109.57 a barrel while US Nymex crude rose by US$2.04 or 2.1% to US$99.88 a barrel.
Among resources heavyweights, Rio Tinto Rio Tinto was up 1.6% to A$67.02 and BHP Billiton rose 1.1% to A$36.50. Oil Search added 1.70% to A$8.37 and Woodside Petroleum 0.4% to A$37.73. Gold miners Newcrest Mining surged 7.1% to A$11.11, Perseus Mining 13.8% to A$0.455 and Evolution Mining 12.77% to A$0.80 as the spot price of gold strengthened to $1268.68 per ounce. .
Shares of Australian financials companies were also higher, with Australia & New Zealand Banking Group up 1.6% to A$29.91, National Australia Bank 1.9% to A$33.41, Commonwealth Bank 1.8% to $74.85 and Westpac Banking Corp 1.7% to A$31.77.
OzForex Group (OFX) has confirmed it is in talks to potentially acquire UK rival HiFX Group. OFX shares rose almost 6% today to A$3.17.
Childcare centre operator G8 Education Limited (GEM) rose 6.4% to A$3.50 after announcing it planned to expand its portfolio.
In New Zealand, equities on the New Zealand stock market fell despite gains in most of the regional peers. Losses were paced by SkyCity Entertainment Group, amid speculation the impending earnings season may show the impact of a high kiwi dollar. By the provisional closing, the NZX 50 Index fell 7.730 points, or about 0.2% to 4833.058. Within the index, 25 stocks fell, 12 rose and 13 were unchanged.
In China, key benchmark indices of the China stock market finished sharp higher on the back of bargain buying across the board, with resources, industrials and consumer-related stocks leading the gains. The Shanghai Composite Index provisionally ended 2% higher at 2,086.07.
Among SSE sectors, all 10 sectors of the SSE index inclined, with consumer discretionary sector outperformed amongst the SSE sectoral peers, adding 3.5%, followed by telecommunication services up 3.4%, healthcare up 3.4%, industrials up 3.3%, materials up 3%, information technology up 2.2%, consumer staples up 2.1%, energy up 2%, financials up 1.7% and utilities up 1.7%.
Shares of retailers and consumer related companies rallied after report citing the Ministry of Commerce showed China's retail and catering sales rose to 610.7 billion yuan ($101 billion) during the 7-day Lunar New Year holidays, 13.3% higher than during the same holiday last year. Qingdao Haier, China's biggest refrigerator maker, climbed 4% to 22.35 yuan, while Gree Electric advanced 2.8% to 29.56 yuan.
Shares of automaker rallied, with electric car makers leading the charge after the Finance Ministry on Saturday announced plan to extend a program of subsidies for buyers of electric-powered vehicles after the current subsidy regime, part of efforts to combat pollution in cities, expires in 2015. FAW and BYD jumped by the daily limit of 10%. SAIC Motor Corp., the biggest automaker, added 4.1% to 13.48 yuan.
The Finance Ministry said on Saturday that it would extend a program of subsidies for buyers of electric-powered vehicles after the current subsidy regime, part of efforts to combat pollution in cities, expires in 2015. The existing subsidies will be phased out by 2015 as planned, with a new regime to take effect after that date to preserve policy continuity, the ministry said in a statement. The current subsidies of up to 60,000 yuan (US$9,800) are available for the purchase of an all-electric battery car and up to 35,000 yuan for a near all-electric plug-in vehicle were extended for a further three years at the end of 2012.
In Hong Kong, city's share market closed weaker in in narrow but volatile trading session, as investors booked gains made in previous two sessions. The benchmark Hang Seng Index provisionally finished 57.59 points lower at 21579.26.
The decline in the Hong Kong market came as investors booked profit on gains made in previous two sessions amid caution before the release of Chinese data this week from January inflation and trade to new yuan loans and money supply.
Among the HK 50 blue chips, 36 stocks fell and 11 stocks rose, while remaining 3 closed steady. Henderson Land Development Co dropped 2.6% to HK$41.20, while Lenovo Group rose 2.4% to HK$8.62 on news that its handsets will reach out to West Africa in March, making themselves the biggest blue-chip loser and gainer.
Financial shares rose, after the People's Bank of China issued its quarterly monetary-policy report over the weekend and said the central bank would guarantee "adequate" liquidity for 2014. China Galaxy Securities Co. advanced 1.63% to HK$5.63 and China Everbright added 0.19% to HK$10.48.
Retailers were up, with Chow Tai Fook (01929) jump 33.3% to HK$12.48 after announcing its Chinese New Year sales growth was stronger than expected. Chow Sang Sang (00116) also soared 4.9% to HK$22.4. Luk Fook (00590) was flat at HK$27.3. Hong Kong-based Chow Tai Fook Jewellery Group, China's largest jewellery retailer, climbed 3.3% to HK$12.48 after the company recorded a 34% jump in sales from mainland China during the Lunar New Year holidays.
Landing International (00582) shot up 22.2% to HK$0.77 after it announced plan to develop casino resort in Korea. The Company and Genting Singapore jointly announced today they are entering a joint venture to develop and operate an integrated resort in Jeju Island, Korea. The total estimated cost for the integrated development is US$2.2 billion.
In Singapore, shares in city's market closed higher after recouping intraday losses, thanks to active buying in midcaps such as Genting Singapore outweighed concerns about a proposed reform of market rules. Singapore's Straits Times index finished 0.13% higher at 3017.20.
Genting Singapore shares rose 1.8%, buoyed by a brokerage upgrade and its plan to develop a $2.2 billion casino resort in South Korea.
Shares of bourse operator Singapore Exchange fell 1% amid concern that the proposed market reforms, released late on Friday, possible reduced trading volumes.
In India, key benchmark indices ended the choppy trading session on a negative note. The market sentiment was affected adversely by data showing that foreign funds remained net sellers of Indian stocks on Friday, 7 February 2014. The market sentiment was also affected adversely as a government forecast released after trading hours on Friday, 7 February 2014, suggested the Indian economy is expected to continue to expand at a pace of less than 5% in the year ending 31 March 2014.
The S&P BSE Sensex fell 42.29 points or 0.21% to 20,334.27, its lowest level since 6 February 2014. The CNX Nifty fell 9.75 points or 0.16% to 6,053.45, its lowest level since 6 February 2014.
Among the 30-share Sensex pack, 16 stocks fell and rest rose. Bharti Airtel (down 2.57%), TCS (down 2.32%), Hindustan Unilever (down 2.22%), HDFC (down 2.21%), GAIL (India) (down 1.67%), Sesa Sterlite (down 1.03%), Cipla (down 0.84%), State Bank of India (down 0.82%) and Hero MotoCorp (down 0.75%), edged lower from the Sensex pack.
Dr Reddy's Laboratories (up 2.10%), Sun Pharmaceuticals Industries (up 1.68%), Maruti Suzuki India (up 1.41%), Larsen & Toubro (up 1.27%), ONGC (up 1.02%), Reliance Industries (up 0.90%) and Tata Motors (up 0.86%), edged higher from the Sensex pack.
Bank stocks edged lower. Kotak Mahindra Bank (down 1.62%), Bank of India (down 1.15%), IndusInd Bank (down 0.99%), State Bank of India (down 0.82%), HDFC Bank (down 0.64%), AXIS Bank (down 0.5%), Canara Bank (down 0.43%) and Yes Bank (down 0.36%), edged lower.
Corporation Bank declined 2.65% on poor Q3 results. The company's net profit declined 58.2% to Rs 126.69 crore on 16.2% growth in total income to Rs 4947.34 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced after market hours on Friday, 7 February 2014.
United Bank of India lost 6.29% after the bank reported a net loss of Rs 1238.08 crore in Q3 December 2013 as against net profit of Rs 42.20 crore in Q3 December 2012. Total income rose 14.9% to Rs 2986.80 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced after market hours on Friday, 7 February 2014.
DLF rose 2.94% after the company said before market hours that DLF Global Hospitality (DGHL), a 100% step down subsidiary of DLF has completed the sale of 100% equity stake in Silverlink Resorts (SRL), the owner of Amanresorts to Aman Resorts Group (ARGL), a Joint Venture between Peak Hotels & Resorts Group (PHRL) and Mr. Adrian Zecha, the founder of Amanresorts for an Enterprise Value of $358 million. The sale has been in the form of management buyout. DLF Global Hospitality had purchased 100% equity in Amanresorts in 2007 from a group of investors. The deal excludes the iconic Lodhi Hotel in Delhi which shall remain a part of DLF. The transaction is a part of DLF's objective of divesting its non-core assets.
Puravankara Projects lost 6.36% after consolidated net profit fell 68.78% to Rs 20.1 crore on 13.67% decline in revenue to Rs 268.30 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced after market hours on Friday, 7 February 2014.
Elsewhere in the Asia Pacific region, South Korea's KOSPI index added 0.04%. Taiwan's Taiex index grew 0.05%. Malaysia's KLSE Composite rose 0.42%. Indonesia's Jakarta Composite lost 0.36% on risk off selloff amid caution ahead of Bank Indonesia's interest rate review later in the week.
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